Episode #71: The Realities of Private Wealth in Private Markets
Guest: Cyril Demaria-Bengochea, Julius Bär
What happens when private equity pivots from institutional capital to private wealth? In this episode, Ross Butler speaks with Cyril Demaria-Bengochea, Head of Private Market Strategy at Julius Bär and one of the most respected thinkers in private markets. Cyril blends academic rigour with industry expertise, drawing on his work with Invest Europe, ILPA, and the European Commission.
Together, they explore the complex realities of opening private markets to individual investors, and why true democratisation may still be a long way off.
🏢 From Institutions to Individuals As institutional funding slows, fund managers are turning to private wealth, but it's not a simple swap. Cyril unpacks why $5M+ investors still struggle to access private equity meaningfully, and how portfolio construction must adapt to this fragmented investor base.
📊 Evergreen Funds & the Democratisation Myth Despite the buzz, evergreen vehicles still represent just 1–2% of AUM. Cyril explains why they are a tool, not a solution, and why true democratisation needs a more nuanced strategy.
⏳ Private Markets Are Three-Dimensional Long holding periods, illiquidity, and delayed returns create a "time complexity" most investors (and advisers) underestimate. Cyril emphasises that private markets require patience, planning, and portfolio redesign.
🔧 Fund Structures: Not One-Size-Fits-All Closed-end funds remain dominant, but evergreen and semi-liquid structures are gaining traction. Cyril foresees a future where fund structures are matched to investor objectives, not trends.
📉 Fundraising, Dealmaking & Dry Powder While fundraising has slowed, especially in VC, buyout strategies remain active, with managers deploying capital via smaller, lower-leverage deals focused on operational value. Dry powder is declining—suggesting a more disciplined cycle ahead.
💬 Rethinking Communication in Private Markets Cyril argues that better education and transparency are essential if private wealth is to participate meaningfully. The industry must do more to share value and demystify risk.
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------------------------------------------------📞 Contact: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals, produced by Linear B Group.
📧 Katie Mitchell | katie@linearb.media
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