State Street: How Europe is unlocking private markets for every investor

November 17, 2025

Europe Private Markets

Across Europe, the combined forces of regulatory reform, digital innovation and investor demand are opening up alternative investments to a much broader audience. According to Sven Eggers, European head of Private Markets at State Street, there are three key driving this transformation:

New fund structures (i.e. ELTIF 2.0 and UCI Part II) are paving the way to the democratization of private markets
Product innovation, i.e. regarding ETFs, solve the three biggest pain points for private markets investors: a lack of liquidity, limited access for private investors and high costs
Technology, with AI and tokenization taking center stage, will be the primary enabler for scaling up the market for semi-liquid funds

The successful democratization of private markets hinges on the convergence of smart regulation and client-focused innovation. The evolution from ELTIF 1.0 to 2.0 (or UCI Part II for Luxembourg) highlights how a collaborative approach between the industry and regulators can create frameworks that are both robust and commercially attractive.

"The strategic idea behind ELTIF 2.0 is to strengthen the European capital market," Eggers explains. "It does this by facilitating long-term retail investment in areas critical to Europe's growth, such as infrastructure, modern real estate and private equity."

The rise of “ETF as a service,” where asset managers help wealth platforms launch their own branded ETFs, is key to winning “the retail last mile,” as digital distribution becomes the new battlefield for asset managers.

"Looking ahead, technology like AI and tokenization will be essential for asset managers to build the efficient, scalable and secure operating models that this new market demands. As the next-generation fund structures and digital platforms become mainstream, the future of private markets in Europe looks set to be more open, transparent and accessible for a new generation of investors," Eggers says.