Product innovation and new technologies are accelerating the democratization of private markets, according to State Street’s new report, 2025 Private Markets Outlook: Driving success in volatile environments. The report reveals the biggest trends affecting institutional investors in the Netherlands, drawing on our latest global survey of 480 investment firms.

We focus on three crucial themes, each of which has implications for the future of private equity, private credit, real estate and infrastructure.

The democratization of private markets: The survey highlights a shift toward retail-like products in private markets. Forty-five percent of institutions in the Netherlands say that at least half of private markets fundraising will come through such products in as little as two years’ time.

Several developments could help unlock growth in retail-style products, including technological advancements. In the survey, nearly half (45 percent) of respondents in the Netherlands say that innovations like generative AI are important to ensure the availability of timely, high-quality data, which in turn will make private markets investing more accessible for investors in defined contribution schemes.

A focus on quality: The shift from quantity to quality is now entrenched in investment strategies. Private markets investments are seen as a way to manage risk, for example, with 44 percent of institutions in the Netherlands increasing their private equity allocations as a strategy to enhance diversification.

The emphasis on quality can also be seen in a shift in capital allocation plans from emerging to developed markets. Developed Europe saw a significant jump in interest since last year’s survey, with 63 percent of limited partners (LPs) now planning investments in this region within the next two years (up from 43 percent in 2024). Institutions in the Netherlands are even more enthusiastic about developed Europe, with 100 percent of its LP respondents citing the region as a top focus for investment over the next two years.

AI adoption in private markets: The AI revolution is already underway, and institutions in the Netherlands are moving faster than their peers in many other countries. A significant majority (90 percent) of its respondents recognise the opportunity to use GenAI-based large language models to make better use of their unstructured information.

The report goes on to explore why private markets are proving to be resilient at a time of increased market volatility and geopolitical uncertainty, as well as which private asset classes are most likely to benefit from the three trends outlined above.