Introduction

Institutions that drove growth over the last decade are pulling back, and competition for capital is fiercer than ever. To adapt, GPs are turning to retail investors – digital natives who expect seamless, personalised experiences in every part of their lives, including private markets.

Performance still matters, but so does transparency. The problem? Investor portals – the tool designed to deliver transparency – are outdated and frustrating. If GPs want to win in today’s environment, they must rethink how they communicate with LPs.

Why institutions are slowing down

Private markets are resilient, but institutional fundraising is feeling the squeeze. Economic headwinds are slowing dealmaking, exits, and distributions. As payouts decline, LPs are naturally reducing exposure.

But it’s not just about distributions. Many institutions have already hit their allocation limits for private markets, while others are consolidating with mega-funds. Bain & Co found that in 2024, the top 10 private equity funds captured 36% of all LP flows. Almost all capital went to large, experienced managers – leaving smaller firms fighting for attention.

For GPs outside the top tier, the message is clear: differentiation matters. That means sharpening not just performance, but also the investor experience, including how they deliver reporting through their private equity investor portal.

Retail investors on the rise

Here’s the good news: while institutions are tightening, retail demand is growing. Everyday investors are seeking alternatives to stocks and bonds, and private markets are on their radar.

According to Preqin, a quarter of private equity’s expected growth through 2033 will come from private wealth – from high-net-worth individuals to the mass affluent.

That’s a huge opportunity. But retail investors won’t settle for the fragmented systems institutions have tolerated. They expect seamless onboarding, transparent reporting, and intuitive digital experiences. In fact, research shows that:

  • 77% of retail allocators already invest through digital platforms.
  • 73% rely on digital sources for investment information.

To capture this audience, GPs need to deliver the kind of effortless, tech-enabled experiences these investors already enjoy elsewhere – including through a modern investor platform.

Why today’s investor portals fall short

Let’s be honest, most investor portals simply don’t work the way LPs need them to.

Many are built on legacy technology, making them slow, fragmented, and hard to use. Content is often limited to PDFs or file dumps, which quickly go out of date or add little value and the user experience is equally frustrating.

“A single GP with multiple funds will usually have multiple administrators servicing those funds, each with their own portal,” explained Iain Robertson, Head of Client Success at Lantern. “That means one investor may need to log into several portals just to understand their allocations. Scale that across multiple GP relationships, and it becomes unmanageable.”

At big LPs, I’ve seen how performance teams, distribution teams, and tax teams all end up working off the same portal data. That duplication creates unnecessary complexity and slows everyone down.

For institutional investors, this is inefficient. For retail investors, it’s unacceptable. This is exactly why private market investor portals need to evolve to become an investor platform.

The path to a better experience

So, what’s the solution? It’s time to reimagine how data is shared.

Today’s investors want interactive, real-time access to fund information – not a static file repository. Lantern replaces outdated investor portals with a single, intuitive platform where investors can instantly find the insights they need.

“Platforms should be data-led, not document-led,” emphasised Iain. “That means empowering investors to self-serve with confidence and ease.”

Thanks to advances in cloud infrastructure, machine learning, and data integration, it’s now possible to deliver this at scale. Leading managers are already moving in this direction, with modern investor platforms that can:

  • Provide a single source of truth for accurate, validated data.
  • Scale seamlessly, connecting multiple funds and portfolios in one place.
  • Democratise data responsibly, giving each stakeholder exactly the access they need.

The takeaway for GPs

The fundraising landscape is changing fast. Institutions are more selective, retail investors are rising, and expectations for transparency are growing rapidly.

To stay competitive, GPs must upgrade their reporting infrastructure – and it starts with their private markets investor platform. The firms that get this right won’t just reduce friction. They’ll build stronger relationships, earn greater trust, and unlock new flows of capital in the process.