In 2025, one of the most exciting trends in UK capital markets is unfolding quietly but powerfully: retail access to private markets. Historically the preserve of institutions and ultra-high-net-worth investors, private equity, venture capital, and unlisted debt markets are now being reimagined for broader participation — and UK regulators are starting to take note.
The Financial Conduct Authority (FCA) has signaled its interest in fostering more inclusive investment opportunities while balancing its core responsibility to protect retail investors. New proposals expected later this year may open the door for regulated platforms to offer fractional access to private market assets, under stricter governance and disclosure regimes.
Several UK fintechs and asset managers are already testing this space with innovative products:
- Tokenised private equity funds
- Alternative investment platforms with simplified KYC/onboarding
- Long-Term Asset Funds (LTAFs) structured for semi-professional and retail use
This shift isn’t just about democratising access — it’s also about capital reallocation. UK startups and growth companies, often locked out of deep capital pools, could benefit from more diverse investor bases. For investors, it introduces greater portfolio diversification — but with it comes liquidity and valuation risks that regulators will need to manage carefully.
Key questions remain:
- How will investor education and risk profiling evolve to meet this challenge?
- Will tax and pension rules be updated to accommodate these asset classes?
- Can the UK strike the right balance between innovation and prudence?
One thing is clear: private market access could be the next major chapter in post-Brexit UK capital markets reform. If done right, it could redefine how everyday investors grow their wealth — and how British companies fuel their ambitions.
What do you think — should private markets be more open to the public?
How can Cosegic help?
We provide regulatory advice to private market firms. If you’d like to understand how these changes could affect your business, or explore how we can support you, please get in touch to speak with one of our experts.
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