Panel Recap: Retail Investors in Private Markets - Reporting Quarterly in Arrears is no Longer Sufficient

As an expanding retail investor base increasingly requires more frequent estimates of value, some funds have moved to daily valuations over the past year. Yet fair value for private investments delivered on a more frequent basis does not mean that private investments are more liquid.

This fundamental distinction continues to challenge private asset retailization, as education lags behind greater transparency and access. Closing that gap was a central theme of “Retail Investors in Private Markets - Reporting quarterly in arrears is no longer sufficient,” a panel at Kroll’s flagship Private Markets Conference.

Panelists emphasized that education must extend not only to retail investors, but across the broader fund management ecosystem. Redemption pressures in early 2026 underscored that comfort with complex liquidity constraints is still a work in progress.

The topic of education is under scrutiny as private funds move closer to participants’ defined contribution plans, and with the DOL expected to issue a formal rule on fiduciary standards in the coming months. So, why offer private funds to retail investors?

Panelists addressed this question head on by articulating the shifting market dynamics that make private funds potentially attractive. Fewer IPOs in recent years mean new investment opportunities are shrinking in traditional markets. And with public funds possibly being over-exposed to certain industries, private markets can aid diversification goals. Historically, these markets also offer the potential of higher returns, theoretically helping lengthen the payout of retirement distributions.

The panel also explained potential misperceptions around private funds in defined contribution plans. Investors would not be able to invest in a private fund directly, but would gain exposure through a professionally managed structure, such as a target-date fund investing through a collective investment trust (CIT), with the CIT maintaining a sleeve of liquid assets alongside helping meet redemption requests.

The importance of valuation rigor, governance and discipline also rang through the discussion, with panelists explaining the role of independent valuations in aiding defensible marks. Process consistency and discipline figures to come under increasing regulatory attention as the SEC also turns their attention to the growth of private markets.

Panelists reiterated that daily valuation requires daily monitoring, meaning that simply carrying forward quarterly marks is not sufficient. Market, performance and idiosyncratic changes must all be appropriately monitored to generate fair value estimates. This valuation backbone is critical as the market expands.

In addition to the recap above, visit the Kroll Private Markets Conference 2026: Perspectives Hub for panel recaps throughout the month of November.