The bar for institutional investing is rising fast as private markets continue to expand via broadening access through retirement plans and other channels. In a recent CIO article examining the growth of private markets and the infrastructure needed to support them, Alpha Partners Managing Partner Steve Brotman shared why this shift is structural and worth paying attention to.
“A lot of innovation is happening in the private markets,” said Brotman. “As a CIO, you can no longer ignore tech.”
The article explores how private assets have more than doubled in value since 2019, driven largely by technology companies that are staying private longer, reaching massive scale before ever considering an IPO. With companies like OpenAI, SpaceX, and Anthropic achieving extraordinary valuations outside the public markets, institutional allocators are being forced to rethink long-standing portfolio frameworks.
But growth brings scrutiny.
As more capital flows into private equity, venture, and private credit (particularly from new investor pools) expectations around transparency, discipline, and valuation rigor are converging with public-market standards. Infrastructure gaps, inconsistent data, and subjective pricing are becoming harder to ignore.
Brotman is candid about the risks. In certain corners of the market, valuation “euphoria” is real. But he also makes a clear distinction between excess and opportunity.
“When an engineer leaves OpenAI to start a new company and they raise a billion dollars at a $3 billion valuation, and all they have is a piece of paper, it’s hard to not call that some type of euphoria,” he said. But “the opportunity set is massive.”
The key, he argues, isn’t timing the cycle but aligning with the right time horizon and partners. Institutions with short-term mandates may not need heavy private-market exposure. But for allocators investing over 10, 20, or 30 years, meaningful participation in private equity and venture is increasingly required to outperform.
Secondaries, too, are gaining attention as a strategic tool. Today’s market dislocations are creating entry points for disciplined investors to access high-quality managers and mature assets as over-allocated institutions seek liquidity.
At Alpha Partners, we believe private markets are a long-term supertrend, but one that rewards patience, persistence, and relationships over opportunism. You can’t rotate in and out of private investing. You have to build conviction, earn access, and stay the course.
The infrastructure is catching up. The scrutiny is increasing. And the stakes for CIOs and long-term allocators have never been higher.
Read the full CIO article here.
