Why financial advisors are embracing the private market: Taking heed of BlackRock’s recent announcement
Recent developments—most notably BlackRock’s efforts to democratize investing and announcement that they’ll include private market assets in their model portfolios—could signal a turning point in investment management.1 Democratizing access to the private market is no longer a fringe activity; it's fast becoming mainstream. For financial advisors, this is a strategic wake-up call: decide whether to adapt to this new paradigm or potentially risk falling behind.
The new private market investment imperative
The macro backdrop—recent public market volatility, trade tensions and recession fears—has reinforced the appeal of private market exposure.2 Private company investments can offer diversification, opportunities to invest in some of the most innovative pre-IPO companies, and potentially smoother, risk-adjusted returns. Ultimately, financial advisors who can skillfully blend public and private investment opportunities may better position their clients for more resilient performance.
How financial advisors can carve out a competitive edge
1. Build deep private market expertise
Understanding private market nuances—i.e. the risks, secondary market operations and liquidity mechanics—is key. Advisors can now leverage secondary market platforms like Forge to support clients who are, for example, early employees at unicorn, pre-IPO companies or others looking to invest in the same. It’s an opportunity to offer knowledge-driven value that robo-advisors simply can’t match.
What’s more, when consulting clients, financial advisors can now take advantage of deep data insights, such as Forge Price™—a derived, indicative price, calculated daily for hundreds of pre-IPO venture-backed, late-stage companies.
2. Curate next-level investment product suites
The market is expanding beyond traditional private funds. Single-company fund offerings executed through SPVs, interval funds and tender offer structures are all gaining traction.3 Financial advisors should consider aligning private market products and solutions with client needs—whether they want growth exposure, income streams or inflation hedges.
3. Prioritize client education
Private market investments can often feel opaque, but clarity builds trust. Advisors should translate costs, benefits, risks and liquidity tradeoffs in plain language. An informed investor is more confident and more likely to stay invested for the long haul.4
Why this matters now
- Private market assets excel at delivering potential opportunities: With roughly 70,000 venture- and equity-backed privately held companies versus ~4,400 public ones, the private market is where innovation thrives and opportunities abound to carpe diem with unicorn, pre-IPO companies.5
- Individual investors are joining the wave: A growing proportion of the $14 trillion private-market asset base—some $2.7 trillion—is now driven by private wealth, with that share projected to rise.6
Forge’s approach
At Forge, we champion making the private market more accessible—whether through our platform or robust financial industry relationships. Our message is clear: you no longer have to be an industry insider to participate in the private market. In fact, interest in a Forge investment can be submitted for as low as $5,000 on the platform.7 [Note: the avenue to participate at a $5,000 minimum investment would be through limited Forge fund opportunities (not direct trades).] Simply put, platforms like Forge help streamline access, due diligence and investment execution, so advisors can focus on strategic allocation—not operational complexity.
Final thoughts
BlackRock’s embrace of the private market is not just a headline; it appears to be tacit validation of a fundamental industry shift. Advisors who master private market strategy—from deep investment strategy knowledge and thoughtful client education to the use of private market platforms—can elevate their value propositions to clients and help future-ready their practices.
Indeed, the private market transformation isn’t just coming—it’s already here—and Forge stands ready to partner with financial advisors and investors alike on their private market journeys.
To get started on your private market journey, create a complimentary Forge account today.
