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Modernizing Private Markets

By Sloane Collins, Head of Preqin Clients and Product Management

Investors face a growing complexity gap, requiring them to rethink their tech infrastructure as private markets scale faster than their ability to aggregate, analyze, and act on fragmented data. 

As private markets are projected to reach $32 trillion by 20301, institutional investors seeking stronger returns and increased diversification are tackling an increasingly complex landscape. They’re focusing more on underlying drivers of return, risk, liquidity, and exposure — and they need the right technology infrastructure in place to understand how a private asset allocation behaves inside the broader portfolio.


Private markets as part of the whole portfolio

This is a pivotal moment because private markets are no longer at the edge of portfolio construction. The average institutional allocation to private markets rose to 21.5 percent in 2025, up from 16 percent in 2021, according to Preqin data.
 
Portfolios are increasingly being evaluated as integrated systems rather than as separate public and private allocations, which raises the standard for how private assets need to be measured, monitored, and reported.

Private markets are no

longer at the edge of

portfolio construction.

Most firms are in the ‘Emerging’ stage on the

Aladdin Strategic AI Adoption Index*

 

*Developed based on respondents’ self-reported use of AI and the extent to which AI is embedded within workflows. More details on the Index in the ‘About the Research’ section, . AI Adoption Report 2026, Survey results may not be representative of the experience across all investment firms. Source: AI Adoption Report 2026

Liquidity and access are reshaping the market

Market structure is evolving in parallel. As companies stay private for longer, the ecosystem around them is deepening. Secondaries, co-investments, continuation vehicles, and semi-liquid structures are no longer peripheral. They are increasingly part of how capital is raised, recycled, and deployed.

 

Preqin’s State of Private Capital Fundraising in 2025 noted that GPs turned to innovative liquidity solutions such as continuation funds to ease the liquidity squeeze, underscoring a surge in secondaries activity.

 

At the same time, the investor base is broadening — including across wealth and retirement investors. As access expands, expectations rise with it. The landscape requires stronger data standards, more consistent benchmarks, and a shared framework for evaluating performance and risk across asset types. Expanding access will continue to be an important theme, but it will need to be accompanied by greater transparency and education.


Infrastructure to meet the moment

This is where the limitations of existing infrastructure become more visible. Private markets have evolved faster than their data architecture. Building a consistent view across debt and equity, managers and jurisdictions, or funds and direct exposures remains difficult. Information that was once reported quarterly is now expected to be available more frequently, as the investor base continues to expand.

Private markets have evolved faster than their data architecture.

 

of organizations say

growing portfolio complexity

driven by increased private

markets exposure is

straining their organization.

 

 

 

 

 

 

cite limited private-markets

visibility, especially at the fund

and underlying investment

level as a key technology and

operating model challenge

A comprehensive asset‑level dataset for private markets remains foundational to that effort. We’re in early stages of this transformation, but there is incremental progress. eFront® Insight, powered by Preqin data, now brings pre-investment and post-investment workflows together in one place. And Preqin Private Credit unifies data in a single, AI-driven workflow, providing greater transparency and enabling on-demand analysis from market level to individual instruments. 

 

Further innovation across indices and analytics will support more accurate pricing and reporting over time. And eventually, fully investable solutions that operate in real time, akin to public markets, will likely emerge in stages as the underlying data infrastructure continues to mature.

 

The firms that lead in this environment are likely to be the ones that modernize the infrastructure beneath private markets, not just the products on top of them. As private assets become more central to portfolios, the real question is whether the operating model around it can mature fast enough to support that growth with confidence.

 

 

1 Private Markets in 2030 report, Preqin

Key questions for leaders shaping the future investment operating model: evolving the approach to private markets  

  • Where are fragmented data models still preventing a

    whole-portfolio view of private market exposures?

  • Can we connect debt, equity, liquidity, and

    performance data at the asset level?

  • Are our benchmarks and analytics strong enough to

    support well-informed portfolio decisions?

  • As access broadens, are transparency and education

    improving at the same pace?

  • Are we building for isolated allocations, or for a world

    where public and private assets increasingly need to

    be understood together

Get in touch to learn how Aladdin® is shaping the AI era of investing