Overview

• Retail investors control 50% of global investable assets but represent only 16% of alternative AUM—a massive underrepresentation creating a $7 trillion opportunity through 2032
• More than 70% of high-net-worth individuals would invest in alternatives if properly approached, yet most GPs lack strategies to reach this market
• Major institutions like BlackRock, KKR, and Goldman Sachs are now targeting retail capital with sophisticated platforms, but mid-sized GPs still have advantages through personal relationships and specialized expertise
• The window for mid-sized firms to establish position in retail markets is open, but requires action before larger competitors fully adapt their strategies

The Market Opportunity is Massive

By 2032, retail investors will inject an additional $7 trillion into alternative investments, nearly doubling their share of alternative AUM. Institutional investors, like pensions and endowments, have largely maxed out their alternative allocations, opening a massive, largely untapped market.

JPMorgan data shows a record high number of Americans investing through brokerage accounts, signaling a significant shift toward retail participation. Yet, most mid-sized GPs remain focused on institutional dollars.

The takeaway? 

The firms that pivot now stand to dominate this emerging capital source.

[Get your copy of the Retail Investor Capital Guide to discover the specific strategies for capturing your share of this $7 trillion opportunity →]

Understanding Today’s Retail Investors

Here’s what we know: a record 58% of U.S. households now have stock holdings. More telling, 70% of high-net-worth individuals would invest in alternatives if financial advisors recommended them.

Retail investor participation significantly lags behind their institutional counterparts, not due to lack of interest, but because GPs simply haven’t built the right systems yet.

But here’s the thing: retail investors have fundamentally different expectations than institutional LPs.

Our complete guide breaks down exactly how retail investors make decisions differently and what they expect from sponsors →

The Mid-Market Advantage

Here’s why mid-sized GPs actually have the upper hand right now:

Industry reports confirm smaller and mid-market funds are resonating strongly with retail investors. Personal relationships and specialized expertise carry more weight than firm size or brand alone.

The challenge? Major players like BlackRock, KKR, and Goldman Sachs have already launched retail-focused platforms, aiming to quickly close the advantage gap.

The opportunity to leverage your advantage is real, but the window is narrowing.

Download the complete guide to learn exactly how to position your fund against larger competitors →

Scaling Your Operations

Raising retail investor capital means managing more investors with higher expectations. This isn’t possible using outdated processes.

Success requires technology and systems specifically designed for retail investor expectations, but achieving scale without increasing complexity isn’t straightforward.

Our guide shows the specific operational requirements and technology solutions successful GPs use to scale retail AUM effectively →

The Time to Act is Now

Retail capital presents a massive opportunity, but the market won’t wait.

Interest rates are stabilizing, individuals are actively exploring alternatives, and technology has simplified investor connections.

However, the competitive landscape is changing as institutional giants move into the retail space.

This is your moment to establish your position and capitalize on the retail investor opportunity before larger competitors adapt.

Download “How to Capture Retail Investor Capital: A Guide for Mid-Sized GPs” now to get the detailed roadmap for capturing your share of the retail investor market →