The Quiet Transformation of Private Markets - By Costas Souris - Quality Group
Private market investing, once the preserve of institutions and ultra-high-net-worth individuals, is undergoing a profound transformation.
Advances in technology, regulatory developments, and shifting investor demand are dismantling barriers to entry and ushering in a new era of accessibility.
Over the next decade, private markets will not only grow in scale but also redefine how investors participate, allocate capital, and manage risk. At Future Proof Tomorrow (FTP), we’re closely watching five key trends reshaping this landscape — trends every forward-thinking investor should expose themselves to.
1. The Transformation to 50/30/20 Portfolio
The traditional 60/40 portfolio — 60% equities, 40% bonds — is being challenged like never before. Market volatility, inflationary pressures, and low fixed-income yields have prompted investors to seek new ways to build resilience. Larry Fink, CEO of BlackRock (World’s biggest fund manager) has called the 60/40 model “less relevant” in today’s world, highlighting the need for alternatives like private equity, private credit, and infrastructure to achieve meaningful diversification. The way forward 50% equities-30%bonds-20%provate assets!
History underscores the shift: during the dot-com crash, public equities (MSCI World Index) fell on average 50% and took four years to recover, while private equity declined only on average 20% and rebounded in two. A similar trend occurred during the 2008 financial crisis. Over the past 15 years, private markets have consistently delivered better risk-adjusted returns and fewer drawdowns than public strategies — a compelling case for inclusion in modern portfolios.
Mainstream wealth managers like Discovery Invest are quietly adopting the 50/30/20 models.
2. Digital Tokenisation: From Niche to Mainstream
Tokenisation — the digital representation of assets on secure blockchain ledgers — is moving beyond experimentation. Regulators in hubs like Singapore (MAS Project Guardian) and Hong Kong (HKMA Project Genesis) are pioneering frameworks for tokenised bonds and digital asset custody.
The USA is also moving quickly: large asset managers, including BlackRock, are piloting tokenised fund structures to enhance efficiency and broaden investor access. Expect broader asset coverage, deeper institutional adoption, and greater liquidity via regulated secondary markets. Bitcoin ETFs are featuring in private assets.
3. Private Credit: The Rising Star of Alternatives
Private credit has emerged as a core allocation for yield-seeking investors, benefiting from bank retrenchment and evolving global rate cycles. Offering attractive returns, shorter durations, and low correlation to public markets, this sector alone is forecast to exceed US$2.8 trillion by 2028 (Preqin).
Once reserved for institutions, private credit is now drawing family offices and forward-looking accredited investors. Alternatives include niche medical commercial property structured products and litigation lending notes in the small ticket no win no fee arena.
Quality Group introduces a unique alternative investment strategy: fixed‑return litigation funding in the UK’s “No Win, No Fee” market – generating 12% p.a. in hard currency. This predictable quarterly income is then used to dollar‑cost average into Bitcoin, allowing investors to capture potential upside whilst preserving their original capital.
Unique Benefits of this Strategy
● Capital Preservation
Core investment secured by ATE insurance Performance Bond– principal protected.
● Pursue Speculative Growth with Capital Preserved
Bitcoin historically delivered 60%+ average annual gains since inception.
● Dual Benefit
Fixed returns + exposure to crypto upside, with no downside on principal.
● Diversification
Alternative assets uncorrelated to equities and bonds.
This method offers a low‑risk entry into cryptocurrency while leveraging the fastest‑growing private asset class globally.
4. Liquidity and Flexibility Redefined
Long lockups and high entry barriers once defined private markets. Today, digitally native investors expect semi-liquid structures, fractional access, and real-time visibility. Many Platforms are responding with secondary trading, streamlined onboarding, and investor-first design, making private markets dynamic and accessible.
5. Personalisation Over One-Size-Fits-All
Investors are moving toward tailored solutions aligned to their specific risk profiles, liquidity needs, and time horizons. The future of alternatives isn’t just broader access — it’s delivering the right fit for each investor.
Private markets are stepping into a new era — inclusive, digital, and investor-centric. The rise of tokenisation, private credit, and personalised investing, combined with the global reassessment of the 60/40 model, signals a profound shift in portfolio construction: 50/30/20
At Quality Group – Future Proofing Tomorrow aligns with the shift to private assets. We work with investors and their advisors, navigating these changes with hard currency strategies, with protection for fixed-return products, and curated private market opportunities — always focused on protecting and growing wealth for tomorrow.
Ready to explore private market opportunities?
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