How Private Markets Can Solve Our $400 Trillion Savings Crisis

In today's edition:

• The $400T savings gap – Why private markets are the missing piece.
• The $22T tech opportunity – Scaling private markets requires new infrastructure.
• Three shifts reshaping private markets – Core vs. alternative, regulation, and value creation.

Private markets are alternative anymore. They're the economy.

I write about private markets because they're the most misunderstood force in our economy—and that misunderstanding is costing us trillions in untapped potential.

Private markets aren't just driving elite portfolios. They're powering the entire economy.

But we're treating our core economic engine as a luxury accessory.

The Reality of Private Markets

Over 95% of U.S. companies are held privately.

There are over 270,000 private companies with over 50 employees compared to fewer than 4,000 public companies.

The "alternative" is now the mainstream:

• 75% of companies generating $100M+ in revenue are private
• Private equity accounted for 17% of all M&A in 2024—the highest in five years
• Deal value reached $838.5 billion in 2024, up 19.3% year-over-year

Yet the public narrative remains stuck: private markets are seen as exclusive playgrounds for the ultra-wealthy.

This perception couldn't be more misaligned with our economic needs.

The Savings Crisis Private Markets Could Solve

The global retirement savings gap will hit $400 trillion by 2050. 

The gap will not be solved by a few thousand public companies and fixed income. 

We need better options.

Private markets aren't just another investment vehicle. They're the main answer to a generational savings crisis.

While only 1.5% of the $190 trillion in retail capital touches private investments today, the industry is waking up:

• 76% of financial advisors report clients see private markets as providing higher rewards than stocks and bonds
• Nearly 60% of financial professionals plan to allocate 10%+ to private markets in 2025—a 15% jump in one year

Moving allocations from low single digits to mid-single digits "literally is trillions of dollars that have the potential to move to alternative products," according to KKR.

This isn't hyperbole. It's the next evolution of finance.

The Alts Tech Opportunity

All of this will require a new technology infrastructure for private markets. 

Which means the biggest opportunity isn't investing in private markets—it's building the technology to scale them.

In the past  25 years, alternative assets have exploded from $1 trillion to $22 trillion—despite outdated systems, paper-based processes, and opaque data.

This growth happened without modern infrastructure.

Imagine what happens next when we build it.

The Three Fundamental Shifts We Need:

1. From Alternative to Core 

Private markets must shed their "alternative" identity completely.

This isn't semantic—it's existential. When an industry views itself as peripheral, it accepts peripheral treatment. The leaders redefining markets are positioning them as essential economic infrastructure, not optional allocations.

This identity shift drives everything else: technology priorities, talent acquisition and capital formation.

2. From Regulatory Subject to Economic Partner

Too often, the regulatory relationship is broken. Both sides lose.

Forward-thinking firms are creating a new model: proactively developing frameworks that balance democratization with appropriate oversight. They're bringing regulators solutions, not problems.

The gap between Singapore's regulatory approach and America's reveals not just policy differences, but vision differences.

3. From Financial Returns to Economic Value Creation

Private markets have accepted incomplete metrics for too long.

IRR and MOIC capture financial returns but miss broader economic impact. The most sophisticated investors are developing new quantification frameworks that measure transformation, not just transactions.

When we properly value resilience, innovation velocity, and infrastructure development, the case for private markets becomes irrefutable.

What comes next

Each week, I'll share one high-leverage insight about how private markets are being redefined through strategic shifts and technological transformation.

Not the standard press release fodder or conference circuit talking points.

The structural shifts and strategic openings that actually matter.

Because while everyone else reports about allocation percentages and asset class performance, the real opportunity lies in the infrastructure transformation happening beneath the surface.

That's where the next decade's market leaders will emerge.

And that's what you'll find here.

Please share with a friend if you like it. 

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