New legislation and rising retail demand are redefining private markets. Here’s what GPs, LPs, and wealth managers must do to stay ahead.
Private markets are on the verge of a major shift. The GENIUS Act, now law, delivers long-awaited rules for digital assets and stablecoins. The upcoming Clarity Act will take this further by establishing standards for tokenized securities and secondary trading. These changes are not small adjustments. They are catalysts for faster liquidity, broader retail participation, and a more transparent investor experience.
The GENIUS Act 2025 establishes a clear framework for digital assets. It defines how stablecoins are issued, backed, and governed, while providing firm standards for custody and transfer. For private markets, this means managers and investors can integrate digital assets into fund operations with greater confidence and regulatory clarity. Wealth managers also gain the assurance they need to include these tools in client portfolios.
The GENIUS Act, formally the GENIUS Stablecoin Act, gives stablecoins a clear legal framework. That unlocks their use across private market operations, capital calls, distributions, and transfers can now move faster and more reliably. Instead of relying on slow, manual banking processes, stablecoins offer near-instant settlement with the security and oversight investors need. They make wallet-based subscriptions and automated fund flows possible, helping GPs, LPs, and wealth managers streamline operations and reduce friction.
The Clarity Act builds on this foundation. It clarifies how digital tokens represent ownership interests and sets expectations for reporting and investor protection. It also creates the conditions for true secondary markets in private funds. Investors will have the ability to trade stakes with more flexibility. For GPs, this means faster fundraising cycles. For wealth managers, it allows private market exposure to be treated more like a liquid part of a diversified portfolio.
Retail participation in alternatives has been growing for years, but these acts push it into a new gear. Tokenization allows funds to fractionalize interests and lower the minimums for entry. Wallet-based subscriptions and built-in KYC and AML processes make the investor experience faster and simpler.
Today, much of this access is controlled by large platforms such as iCapital, which focus on serving brand-name managers. Smaller GPs are often shut out because of fund size or lack of infrastructure. The GENIUS and Clarity Acts change this dynamic. They create the framework for smaller managers to connect directly with investors and wealth managers while offering a product experience that rivals public markets.
Investors are now firmly at the center of the private markets ecosystem. For GPs, investor relations (IR) is no longer a secondary function. It is the core of fundraising, liquidity, and retention. Investors will expect real-time access to data, clear education on new liquidity options, and seamless reporting.
Wealth managers will need consolidated views that integrate private market holdings into the broader client portfolio. They must be able to answer questions about performance, pricing, and liquidity in real time.
To meet these expectations:
LPs and fund-of-funds must also prepare for this shift. They need to integrate real-time NAV data, track tokenized positions, and adopt audit-ready reporting. Secondary markets will allow for faster exits and more accurate price discovery. LPs who embrace this will be able to optimize liquidity and rebalance portfolios with far greater flexibility.
Wealth managers, meanwhile, have the chance to bring private markets to a broader segment of clients. Doing so will require them to adopt digital workflows and advisory tools that can keep up with continuous reporting and pricing.
These changes require rethinking the entire fund lifecycle, from fundraising to investor reporting.
Firms that modernize these workflows will not only meet new expectations but will also raise capital faster and deliver a superior investor experience.
Tokenization is as much about data as it is about liquidity. Every transaction and NAV update can now be captured as a real-time, auditable event. Investors and wealth managers will expect instant access to positions, distributions, and performance metrics.
To deliver this, GPs will need to consolidate data across multiple fund administrators and custodians. Creating a single, accurate, and easy-to-use reporting layer is no longer optional. Firms that build multi-admin data pipelines and centralized dashboards will offer the clarity and speed that investors demand.
The GENIUS and Clarity Acts create the conditions for AI to elevate fundraising, reporting, and investor engagement. AI can analyze fund performance, forecast liquidity events, and generate personalized investor communications.
Wealth managers will benefit from AI-driven insights that combine public and private market data for a unified portfolio view. GPs will use AI to streamline onboarding, NAV forecasting, and reconciliation across multiple fund admins.
Looking ahead, agentic AI will push this further by automating complex workflows, surfacing liquidity events, and supporting investor relations teams. We will explore its potential in detail in a future blog.
The retail alternative market is projected to grow from $1.4 trillion today to $2.4 trillion by 2030 (Cerulli Associates). Retail-oriented fundraising exceeded $47 billion by mid-2024 and is on pace to top $110 billion by year-end (WealthManagement.com). Meanwhile, total private equity fundraising dropped 28% in 2024, with 75% of capital captured by funds over €1 billion (Adams Street Partners, Global Relay).
Firms that modernize now can seize these flows, build trust, and accelerate capital raising. Those that delay will lose ground to competitors who deliver better reporting, faster onboarding, and more transparent investor experiences.
The GENIUS and Clarity Acts are changing how capital moves and who can participate. The winners will be the firms that put investors and wealth managers at the center, offering a seamless experience that spans onboarding, reporting, and liquidity. Now is the time to modernize and scale before legacy systems hold you back.
At Alt360, we focus on accelerating fundraising and time-to-market by connecting the front, middle, and back office around the investor experience. Our expertise in private markets and AI-powered workflows allows GPs, LPs, and wealth managers to raise capital faster, deliver real-time reporting, and create stronger investor relationships.
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