Moderated by Stéphanie Roy, a journalist at L’AGEFI, this roundtable discussion on real assets brought together Alex Bogdanovskij, Director of the Investment Advisory team at CMB Monaco; Olivier Dauman, Head of Private Equity at CFM Indosuez Wealth Management Monaco; and Federico Vittore, Head of Private Markets for Wealth at Morgan Stanley Investment Management. In light of the rise of unlisted strategies and the gradual democratization of private equity, the panelists shared their views on current trends. They all agreed: real assets are set to play an increasingly significant role in the portfolios of high-net-worth investors, provided they are approached with discipline and a long-term perspective.
Supporting families often spans several decades, illustrating the generational nature of these investments. Some relationships extend from grandfather to father, then to children, making private markets a truly long-term endeavor. The most challenging periods frequently present the best investment opportunities: difficult years often produce the best results. The headwinds experienced in recent years have helped to stabilize the market. Valuation levels have returned to more reasonable levels, covenants have been strengthened, and the returns offered on certain private debt strategies have once again become particularly attractive. The role of professionals is precisely to look beyond short-term concerns in order to maintain a long-term perspective.
However, the overly rapid democratization of private markets calls for caution. The arrival of new investors represents a tremendous opportunity, but it requires significant support. Private markets must be approached with great discipline. Investors currently active in unlisted strategies are generally sophisticated and have a good understanding of the risks. Democratization must therefore not lead to these investments being treated as run-of-the-mill. Perceived volatility reflects both the illiquid nature of the assets and investors’ allocation and liquidity behaviors. The key lies in the ability of management teams to identify opportunities in the real economy and create value on the ground. The quality of sourcing remains the primary driver of value creation.
One of the key lessons concerns the complementarity between public and private markets. While financial markets are strongly influenced by macroeconomic trends, private markets rely more on factors specific to individual companies, management teams, or the sectors in question. This dimension is an essential element of diversification. The selection of deals and close relationships with entrepreneurs make all the difference. Risks naturally exist, but they can be better managed thanks to the quality of the teams and an approach based on in-depth knowledge of the assets.
Evergreen funds have been a major topic of discussion. These more flexible vehicles, which allow for regular subscriptions and redemptions, are growing rapidly among private investors. They now account for a very significant portion of certain wealth management activities. However, their apparent simplicity should not obscure the fundamentally illiquid nature of the underlying assets. The first year was primarily devoted to educating clients. Investors must understand that they are purchasing private assets with liquidity mechanisms that may be limited or suspended if market conditions require it. Evergreen structures appear to be a solution poised for growth, but they will certainly not completely replace closed-end funds, whose structure remains better suited to certain investment strategies and cycles. The two approaches are likely to continue coexisting, each presenting advantages and constraints in terms of liquidity and investment timing.
The democratization of private markets cannot succeed without a considerable educational effort, whether it involves explaining investment horizons, liquidity constraints, or distribution mechanisms. The relationship between the banker and the client takes on particular importance here. The success of real assets depends as much on the quality of the products as on the ability of professionals to support investors over the long term. This educational effort becomes all the more essential as the range of available solutions expands and private investors seek more flexible and personalized structures.
Beyond the products themselves, the choice of teams is one of the key determinants of performance. Asset management firms capable of demonstrating their expertise across multiple generations of funds and various economic cycles stand out in particular. Consistent strategies, stable teams, and adherence to investment processes are major criteria. Proximity to investors has also become a differentiating factor: major firms seeking to succeed in wealth management must maintain a strong presence with clients. Today, this presence takes the form of regular meetings, conferences, dedicated events, and much more frequent interactions than in the past, reflecting a profound shift in the relationships between investors and asset management firms and the formation of genuine communities centered around major private equity franchises.
A rise in tailored solutions is taking shape. After an initial phase focused on accessibility, investors now seek more sophisticated allocations combining listed and unlisted assets. Major asset managers are developing hybrid solutions that integrate private markets into comprehensive, optimized portfolios. This growing level of personalization marks a new stage in the sector’s maturity.
Among the most promising sectors is the use of artificial intelligence in the real economy. Beyond large language models, considerable potential is emerging in very concrete industrial applications, particularly in mineral exploration and the improvement of production processes. European private debt is also a strong conviction, as its yields and protective features appear particularly attractive.
Two other segments are generating particular optimism: secondary markets and infrastructure. The secondary market still has considerable growth potential. As for infrastructure, it represents a major need for the coming decades, whether in energy, telecommunications, or transportation.
One thing is clear: real assets are no longer merely a diversification tool but are gradually becoming one of the structural pillars of the wealth of prominent families. This evolution is accompanied by increasing professionalization, the rise of evergreen funds, and greater sophistication in the solutions offered. However, this growth can only continue on one condition: preserving the discipline and long-term vision that have always been the strength of private markets. Real assets require time, careful selection, and patience. The era of democratization thus seems to be gradually giving way to an era of maturity.
