Democratising Private Assets in Europe: Opportunity, Responsibility and Structural Challenges

The democratisation of private assets has become one of the most debated themes in European finance. Platforms are multiplying, private banks are accelerating partnerships, wealth advisors are expanding their role, and funds are adapting their structures to reach a broader audience.

Yet one fundamental question remains: are we collectively ready to make private market access not only efficient, but sustainable and virtuous for retail investors?

This was precisely the focus of a recent discussion on Finscale with Yann Charraire, former CEO of Neuflize OBC within the ABN AMRO Group and founder of One Wealth Place, later rebranded as Airfund.

https://www.youtube.com/watch?v=QbIBuHeV204

Democratisation Is Not Simply “Opening Access”

In finance, democratisation is often confused with accessibility. Lowering minimum investment tickets or launching semi-liquid vehicles is not enough.

True democratisation implies transformation:

• Redesigning distribution models

• Strengthening investor education

• Adjusting regulatory frameworks

• Reassessing product structures and liquidity terms

• Clarifying risk profiles

Private assets were historically built for institutional and professional investors capable of managing illiquidity, information asymmetry, capital lock-ups and long investment horizons.

Opening these assets to a broader audience requires a complete rethink of the value chain from producer to distributor to end investor.

Europe’s Regulatory Fragmentation: A Structural Friction

In Europe, democratising private assets is particularly complex due to regulatory fragmentation.

Although the European framework relies on harmonised texts such as:

• MiFID II

• PRIIPs

• AIFMD

• Prospectus Regulation

Each national authority interprets and supervises these regulations differently.

What is authorised in one country may face distribution hurdles in another.

Documentation standards, investor classifications, transparency thresholds and marketing rules vary in practice.

The result? Structural friction that complicates genuine pan-European scaling of private asset distribution.

Many entrepreneurs underestimate this regulatory complexity—yet it directly shapes the feasibility of democratisation.

Market Depth Does Not Guarantee Allocation Quality

Yes, the European private markets ecosystem is deep:

• Growing diversification across geographies and sectors

• Expansion of evergreen funds

• Emergence of semi-liquid structures

• Standardisation of feeder vehicles

But depth does not guarantee quality.

Mass distribution can create unintended consequences:

• Valuation pressure

• Accelerated fundraising cycles

• Relaxation of selection criteria

• Dilution of investment discipline

Democratisation without discipline risks becoming commercial expansion rather than investor empowerment.

The Four Conditions for Sustainable Democratisation

For private asset democratisation to be credible and sustainable, four key conditions must be met:

1. Sustainable Accessibility

Ticket sizes and fee structures must align with the real wealth profile of the target audience. Participation must be meaningful within an allocation not symbolic.

2. Genuine Risk Education

Marketing cannot focus solely on potential returns. Investors must clearly understand:

• Illiquidity constraints

• Capital lock-up periods (often 8–12 years)

• Downside scenarios

• J-curve effects

3. Product–Investor Coherence

Investment horizon, volatility tolerance and liquidity needs must align with the product’s structure.

A 10-year lock-up is not automatically suitable for retail portfolios without careful allocation planning.

4. Transparent Infrastructure

Clear reporting, fee transparency and defined responsibilities between producers, platforms and distributors are essential.

Without these conditions, democratisation becomes marketing-driven distribution.

Infrastructure as a Bottleneck: The Role of Airfund

One overlooked dimension in theoretical discussions about private market access is operational infrastructure.

Airfund addresses practical bottlenecks such as:

• Simplifying subscription processes

• Structuring capital calls

• Managing reporting flows

• Absorbing regulatory complexity

Crucially, infrastructure must simplify complexity without transferring that burden directly onto retail investors.

Yann Charraire also highlights the structural difference between:

• White-label models, where regulatory responsibility primarily remains with institutional partners

• Marketplace models, where the platform assumes distributor obligations, including due diligence, suitability and selection responsibilities

Industrialising private markets requires transforming an ecosystem historically built on bespoke relationships.

Shared Responsibility Between Producers and Distributors

Democratising private assets is not just a technological or regulatory challenge. It is fundamentally about shared responsibility.

On the Producer Side

Asset managers must ask:

• Is the product structurally coherent with the intended audience?

• Are cumulative fees (management, performance, distribution, retrocessions) proportionate to value delivered?

• Can investment discipline be maintained under fundraising pressure?

• Is reporting transparent enough for non-institutional investors without oversimplifying risk?

On the Distributor Side

Distributors act as:

• Filter

• Translator

• Risk gatekeeper

They must ensure suitability assessments go beyond formal compliance and reflect genuine understanding of investor capacity and risk tolerance.

The Five Essential Questions Before Democratising

Before distributing private assets to a broader audience, producers and distributors should ask:

1. Does the product genuinely match the target audience’s liquidity profile and time horizon?

2. Are cumulative fees proportionate and transparent?

3. Can downside risk and illiquidity be clearly explained?

4. Will increased capital inflows compromise investment discipline?

5. Is the distribution infrastructure robust enough to support long-term transparency and operational efficiency?

Conclusion: Discipline Over Expansion

Democratising private assets in Europe is not about lowering entry tickets.

It is about redesigning an ecosystem built for institutions so that it can responsibly serve a broader investor base.

Without discipline, education and transparency, democratisation risks becoming accelerated distribution under regulatory tension.

With the right infrastructure, aligned incentives and shared responsibility, however, it may become one of the most transformative shifts in European wealth management over the next decade.