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April 8, 2025

The complexities of introducing private markets to HNWs, with Cyril Demaria

https://open.spotify.com/show/2lTpCheO4AefZOtw1Nemwk

In this episode of Fund Shack, Ross Butler is joined by Cyril Demaria-Bengochea, Head of Private Market Strategy at Julius Baer, Associate Professor at EDHEC Business School, and author of multiple leading books on private equity. Cyril has worked as an expert for Invest Europe, ILPA, and the European Commission, and he brings a unique perspective that combines academic rigour with practical industry insight.

Together, they explore the ongoing transformation of private markets, focusing in particular on the challenges—and limitations—of accessing capital from private wealth clients.

A shift from institutions to individuals

Institutional capital has long been the cornerstone of private markets, but fund managers are increasingly turning their attention to the private wealth segment. However, as Cyril points out, this market is fundamentally more complex. Individual investors are highly heterogeneous, each with unique goals, constraints, and levels of financial sophistication.

The Challenge of Democratisation

Much has been made of the “democratisation” of private equity, but Cyril believes the term may be misleading. True access remains limited, especially when trying to balance diversification, cost-efficiency, and liquidity. Although evergreen structures have been hailed as a solution, Cyril estimates they still represent just 1–2% of total assets under management in private markets—highlighting how early-stage the trend really is.

Private Markets: A Three-Dimensional Investment

One of the major hurdles for private wealth clients is understanding the time dimension of private markets. Unlike traditional public investments, private equity involves long holding periods, delayed distributions, and a lack of liquidity. Cyril argues that much of the complexity in private markets stems from this third dimension—and that many investors (and advisers) still struggle to properly account for it in portfolio construction.

Fund Structures: No One-Size-Fits-All

While closed-end funds remain the dominant structure for good reason—offering embedded discipline and clear payout timelines—other structures are growing in relevance. Cyril sees increasing use of evergreen and semi-liquid structures, particularly for clients seeking operational simplicity.

Rather than any one structure “winning,” he envisions a world where different vehicles coexist and serve different needs. The key is understanding the investor’s objectives and building a tailored toolbox that balances access, complexity, and outcome alignment.

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Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.