Published by Wanda Rich
Posted on November 8, 2023
5 min readLast updated: January 31, 2026
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By Eliot Hodges, CEO, Anduin
Eliot Hodges, CEO, Anduin
There’s been a lot of chatter over the democratization of the global alternatives markets, and investors of all types are seeking out the private markets. Still, very few people have spoken about the lack of infrastructure standing in the way of a brighter future for all. Bain & Company have issued a piece that sheds light on this critical constraint.
The infrastructure gap: barriers to new potential private market investors
The brief outlines the many barriers preventing smaller investors, particularly high-net-worth individuals and very-high-net-worth individuals, from accessing the multi-trillion-dollar private markets. It offers real solutions, including lowering investment minimums, establishing infrastructure and workflows for more predictable capital calls, improving transparency and reporting, and more continuous liquidity.
However, it largely takes the view that smaller investors with alt-starved portfolios would certainly welcome the outsized returns and diversification of private market investments. But what about the fund managers that are presented with most of the infrastructure challenges to onboard and serve these new classes of LPs?
The macro forces driving fund management investment
Since much of the infrastructure burden will fall on fund managers and their service partners, let’s dive into these macro forces acting on GPs and understand why they’re beginning to invest deeper in their middle- and back-office infrastructure than ever before.
Enter Anduin: futureproofing the GP tech stack
Infrastructure investment can seem daunting. And, as we all know, private markets have historically been underinvested in technology, but a digital fund subscription platform can help teams onboard more investors with less time and resources, collaborate cross-functionally thanks to automated workflows and communications, and even capture secure critical regulatory-related data.
There’s no better time than now to begin making a change. In these uncertain times, it’s important to look for nothing less than reliable and flexible technology infrastructure for the future.
Technology infrastructure refers to the integrated set of hardware, software, networks, and services that support the delivery of technology services and solutions in financial services.
General partners are individuals or entities that manage a partnership, typically in private equity or venture capital, and are responsible for making investment decisions.
Limited partners are investors in a partnership who provide capital but have limited liability and do not participate in the management of the partnership.
A capital call is a request by a fund manager to investors to provide a portion of their committed capital, typically used to fund investments or operational expenses.
Liquidity refers to the ease with which an asset can be quickly bought or sold in the market without affecting its price.
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