Historically, private investments were only accessible to ultra high-net worth clients and institutional investors. More recently, however, the asset management industry has renewed its focus on developing products that are accessible to a larger investor base and the offerings are increasingly compelling, with strong performance and lower minimums. Penetration of private market strategies in the retail channel remains low at only 1-2%, it could rise to 5-10% over the next 5 years and RIAs and wirehouses are a few of the ways a retail investor can access these alternative strategies. BofA strategists are generally bearish on key markets for 2022 due to potential volatility surrounding rate hikes which could make private markets attractive to retail investors.  Also, if we see a market decline, it should make for a more attractive environment for asset managers to invest capital.

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