SuperReturn International 2025: The Investor Sophistication Curve Has Never Been Steeper

Wherever you spent your time at SuperReturn International, the private markets industry’s annual gathering in Berlin, you’d have heard the same themes on something of a loop: the continued dearth of exits and discussion around when M&A will return, the growing use of liquidity tools like secondaries and continuation vehicles, AI adoption, the ongoing attraction of private credit and infrastructure, and the rotation toward Europe by allocators.

However, what was apparent to more seasoned attendees was the widening sophistication gap among today’s investor universe, exacerbated by the influx of fresh capital from individual investors new to private assets.

For managers seeking to raise capital from both the traditional institutional and more nascent wealth channels, how they reach and position themselves to these two very distinct and separate audiences is perhaps the most meaningful challenge for communications professionals in the private markets.

A repeated observation in Berlin was the growing sophistication of longstanding customers in private markets’ rapidly maturing LP universe of public and private pension plans, sovereign wealth funds, insurance companies, and endowments. Many managers privately commented on how their conversations in Berlin have evolved over the years to be less like pitches to more engaged and interactive dialogues borne out of greater understanding.

This is in stark contrast to the wealth channel, which is vast, highly divergent across different geographies, and largely uneducated about how alternative investment products work, therefore requiring a massive amount of resources to reach, teach and persuade.

With more managers looking to raise capital from the mass affluent, how do private markets firms approach communications and marketing when the divergence between their most and least sophisticated audiences has never been wider?

For the managers this applies to, it’s important to view a firm’s overall communications strategy as a sophistication curve.

A GP’s underlying messaging and proof points must be consistent throughout but tailored to each audience and meet them where they are. Firms telling different things to different investor segments will ultimately be found out. One of the biggest risks that exists for managers looking to tap the wealth channel is that mass affluent investors don’t fully understand what they’re buying, which extends beyond being a brand awareness issue and is heightened by inconsistency of message.

From a central point of consistency, managers must be able to raise overall brand visibility, directly reach and educate wealth advisors within local markets and illustrate investment expertise within the asset classes and strategy in which they focus. This is the same for all managers regardless of whether they are a large, multi-asset class manager or a specialist GP in a certain sector (see Prosek’s 2024 ‘Reaching for Retail’ report for more information on the Barbell Effect).

To successfully achieve these communications objectives, it’s never been more important to employ the full range of tactics and channels at your disposal – including traditional earned media, owned channels, and comprehensive and targeted marketing strategies – all of which should be closely aligned with the efforts and priorities of local sales and distribution teams.

If SuperReturn illustrates one thing, it’s that this market is getting more competitive by the day and isn’t slowing down any time soon. Approaching and differentiating yourself through the lens of the sophistication curve is ultimately key to how successful your marketing and communications efforts will be.