Private markets have moved decisively from the periphery to the centre of asset management. As opportunities in public markets become harder to capture (not least given they’re shrinking) and passive investing continues to dominate flows, private equity, private credit, infrastructure and real estate offer active managers much needed and differentiated return drivers. In the UK, this shift is underpinned by policy momentum. The Mansion House Accord has helped legitimise greater pension fund investment into private markets and is encouraging a broader conversation about how long-term capital can be accessed via pension schemes.

Yet as private markets become more visible and more accessible, the communications challenge has intensified. The question now is how asset managers explain them as they increasingly engage retail investors who have less familiarity with the asset class, less patience for locking in capital and lack tolerance for surprise.

Institutional vs retail: know your audience

For institutional investors, private markets are familiar territory. Those that invest in them accept illiquidity, long-dated commitments and periodic valuations as part of the trade-off for the potential of superior returns. Communications can assume specialist knowledge, internal governance structures and the ability to absorb complexity.

Conversely, many retail investors are encountering them for the first time. For many, the question remains as to whether private markets are inherently unsuitable for this investor base, and these probes will only continue to cause trouble if managers fail to segment and address their different audiences appropriately.

Education, message and channel

The firms navigating this shift most effectively make education the starting point. Managers such as Blackstone, Partners Group and Brookfield have consistently framed private markets as a complement to public assets, not a superior replacement. Future market leaders will spend time explaining how assets are valued and how often, why liquidity constraints exist and how returns are generated over time. Crucially, they will be explicit about what transparency looks like in a private market context, rather than implying it mirrors public markets.

As private markets move ever closer to the retail mainstream, asset managers need to rethink both message and channel. Transparency should not be oversold. Explaining governance, valuation discipline, returns and how they are calculated in plain language goes far in building trust … and when an investment is realised, show what that asset has done for investors.

Digital owned channels will be increasingly important in this effort. Websites, LinkedIn and platforms such as YouTube allow managers to communicate directly with investors. Used well, these channels support ongoing education that reinforces how private markets behave.

Above all, education must be continuous. Retail investors will likely judge credibility over time, particularly when markets turn or liquidity is tested. Asset managers that invest early in clear communication will be better positioned when scrutiny inevitably intensifies.

Regulation, headlines and the Woodford shadow

Scrutiny increases sharply when retail investors are involved. Regulators, consumer groups, investor forums and the financial press are all very alert to potential mis-selling and governance weaknesses when everyday savers are exposed to complex assets.

The Woodford scandal remains a defining reference point in this debate. The ripple effects went far beyond one firm, hardening media and regulatory attitudes and creating a lasting preconception that private or illiquid assets and retail investors are an inherently dangerous mix.

That legacy still shapes how private markets are covered by the media today. Redemption gates, valuation delays or changes to liquidity terms, even when working exactly as designed, risk being framed through a Woodford lens if investors appear surprised or under-informed, especially if they’re retail. In this environment, clarity is not just good practice. It is reputational protection.

Private markets offer genuine opportunities for diversification and long-term growth. But as access broadens, success will depend not only on performance, but on how responsibly those opportunities are communicated. In a post-Woodford world, trust is fragile and transparent communication is a strategic asset in its own right.