The rise of Eltif 2.0 and private market retail access is exposing a critical weakness: legacy reporting systems that cannot meet modern client expectations.
Private markets are in high demand, but client reporting systems are struggling to keep up. Clients want exposure, advisors support it, yet most platforms are not built to handle these less transparent, data-scarce investments.
Wealth managers now face an added layer of complexity: the introduction of Eltif 2.0. These semi-liquid structures are designed to expand access to private assets beyond institutional investors, reaching a broader retail audience. However, this shift comes with significantly wider reporting obligations.
“Legacy systems built for Ucits portfolios often cannot cope with the irregular data flows of illiquid assets, particularly when combined with Eltif liquidity features.”
Retail clients expect timely, clear, and simplified performance updates. Legacy systems built for Ucits portfolios often cannot cope with the irregular data flows of illiquid assets, particularly when combined with Eltif liquidity features. As access expands, so does the operational burden.
To manage these demands, many wealth managers rely on either labor-intensive reconciliations or expensive, custom-built technology upgrades. Manual processing increases the risk of errors and inefficiencies. Overhauls, meanwhile, require substantial investment and carry long-term costs in staff training and system maintenance.
Pressure will only grow
Neither option offers a scalable solution. Allocations to private assets have doubled over the past five years among European high-net-worth investors, according to Preqin. The pressure on outdated infrastructure will only grow.
“This is not just a technology issue. It is a competitive threat.”
Picture a high-net-worth client comparing two advisors. One provides a real-time dashboard that integrates liquid and private holdings in a seamless view. The other delivers a PDF weeks late, filled with placeholders instead of performance figures. The difference is more than technical. It defines the client experience, and ultimately, the client relationship.
This is not just a technology issue. It is a competitive threat. Digital-first wealth platforms are gaining ground with integrated systems purpose-built for alternatives. Incumbent firms that fail to modernize may lose relevance as clients gravitate toward providers that offer better visibility, speed, and service.
Flexible systems needed
Wealth managers must move beyond temporary fixes. They need to adopt flexible systems that can integrate complex private market data, or partner with fintechs equipped to bridge this gap. Luxembourg, as a center of wealth innovation, has an opportunity to lead this transformation.
Managing private market assets should not be a source of frustration. Those who act now can turn today’s operational challenge into a lasting competitive edge.
Christophe Santer is a columnist for Investment Officer Luxembourg. A Luxembourg native, Santer has nearly two decades of experience in fund administration, investor services, and private markets. He also works as director of business development manager at bunch.
