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The convergence of public and private markets will drive digitalisation

We're witnessing a fundamental transformation in capital markets. As Matt Levine recently highlighted, the lines between public and private markets are blurring rapidly. Traditional asset managers like Capital Group are partnering with private equity giants like KKR to create hybrid products, while 18.5% of US households now qualify as accredited investors (versus the 21% that own public stocks). So the retail markets for both asset classes is almost equal. This isn't just about new products, it's about a structural shift in how capital is allocated, managed, and accessed.

The transformation of capital markets represents both an opportunity and challenge for wealth managers, family offices and fund-of-funds managers. Those who can effectively navigate the complexities of private markets while maintaining transparency with clients will likely gain competitive advantage in this new landscape.

This evolution creates an urgent need for wealth managers, family offices, and fund of funds to modernize their digital and data infrastructure:

1. Data and digital infrastructure must evolve - Private market investors typically deliver inconsistent, unstructured data across multiple formats and timelines. Legacy systems simply are not up to this challenge.
2. Performance measurement becomes complex - Combining daily public market pricing with quarterly private valuations creates analytical challenges that most current systems can't handle elegantly.
3. Risk frameworks need rebuilding - Traditional risk models fail when applied to illiquid investments with limited historical data and complex cash flow patterns.
4. Client reporting requires reinvention - The ability to clearly communicate performance, risk, and fees across hybrid portfolios is no longer optional.

Firms that thrive in this new landscape won't just be those with the best investment opportunities. They'll be those that also solve the digital infrastructure challenge, enabling them to scale efficiently while maintaining transparency and insight across increasingly complex portfolios. This isn't just about better operations, it's a strategic imperative that will separate tomorrow's winners from those left behind. What steps is your firm taking to modernize its infrastructure for this new reality?

Mesoica’s data quality platform is specifically designed to help LPs and GPs manage their data efficiently. By using our platform, you can seamlessly collect, validate, and monitor data, enhancing communication and collaboration. Our scalable solution adapts to your organization's growing data needs, providing peace of mind and enabling you to become a truly data-driven organization. Start your journey today by visiting our website or contacting us to learn more about how Mesoica can empower your firm to continuously improve data quality.