Retailisation, Tokenisation and Private Credit: The Outlook for the Investment Funds Sector in 2026

The sheer scale of the retail opportunity for private funds continues to electrify debate across the alternative funds sector. Private wealth and high-net-worth investors are enthused about exposure to an asset class they have traditionally been excluded from, while the ability to increase assets under management (“AUM”) and broaden the investor base is extremely attractive for managers. The outlook is striking, with total AUM in evergreen funds driving much of this activity projected to hit US$4.4 trillion by 2029 and some suggesting evergreen funds could comprise 20% of the total private funds market in the next decade.

At the same time, with much investor attention on digital infrastructure, crypto and AI opportunities, private fund sponsors are coming to grips with investing in this new breed of generative AI companies redefining “fast growth”. As these firms reach US$100 million in revenue in a matter of months rather than years, sponsors are squarely focused on fund structuring techniques for these unique investments and implementing appropriate governance measures so that founders have the right controls in place from day one. In a similar vein, there is consideration of the growing complexity in private credit platforms as the industry scales. More complexity usually involves more cost, which must be balanced with satisfying the accommodations of a global investor base.

These themes featured strongly in discussions at the recent 2026 Maples Investment Funds Forum which convened delegates from around the world in Grand Cayman for an exciting few days of networking, socialising and critically important conversations about the key issues facing the investment funds sector.

New Pressures in Maturing Private Markets

As private markets mature, driving the need for more capital and expansion beyond the US, retail capital represents the growth engine for private markets, through evergreen vehicles and regulatory frameworks such as Europe’s ELTIF 2.0 and the UK’s LTAF. While institutional capital has a role to play, we are just scratching the surface of untapped retail money, panellists at the event said. Even a 5-10% allocation represents a huge opportunity for the industry and a great opportunity for managers to expand their fundraising toolkit, with particular excitement over innovation in tokenised funds and structures for retirement channels.

Being positioned for retail capital also brings added pressures for managers of private funds in terms of liquidity management, redemption frequency and movement towards shorter investment horizons.  What’s needed here, panellists stated, is a shift to effectively a completely new skill set, to pivot from previously having complete control over cash management. Rapid deployment, as well as accessing liquidity through warehouse funds, credit lines or other liquidity management instruments, can all play a part to help manage portfolios in the registered space. Discussions with counsel at every stage of the investment process can also be effective in educating consumers and regulators in the current administrative environment. Retail products are complex, panellists said, requiring due diligence with distribution partners to understand how they are communicating the strategy to the underlying clients and to ensure the products are suitable from a risk and sophistication perspective.

A Compelling Case for Tokenisation

Innovation in the area of tokenisation has been under the spotlight with a compelling business case stacking up in terms of enhanced access and distribution through fractional ownership, as well as improved liquidity and greater efficiency through automation. While many are still just watching for now, panellists remarked on the priority currently on the wealth management side to understand what tokenisation will mean for the industry over the next five years. This would involve seeing some of the benefits actually playing out rather than just being discussed, they agreed.

Presently, strong interest has garnered around tokenisation as a distribution play to expand the universe of investors that can access a manager’s product. Tokenised feeder funds are being used to invest in underlying products, while the SEC is understood to be close to approving a tokenised ETF share class. Looking ahead to how the next generation of investors will likely access alternatives on their mobile devices, tokenisation represents a natural path, with the need for guard rails, custody and other operational issues to be addressed.

Navigating the Permanent Capital Landscape in Private Credit

Evergreen funds have been as central to private credit as they have been across the private funds arena, providing flexibility for sponsors looking to attract permanent capital. NAV based liquidity structures are frequently being utilised, and series funds have become more widespread as LPs gain more familiarity with them. This is where portfolio managers really need to keep their eyes open, panellists said. Managers need to understand how maintaining a liquidity sleeve in an evergreen private credit fund, for example, is going to affect the investment strategy and returns. For a primarily opportunistic or illiquid credit approach, there will be a need for 5-10% quarterly liquidity, which is going to have an impact, panellists said.

Growing scalability in private credit has brought additional challenges, particularly with sponsors required to manage cross-strategy conflicts and other allocation questions. Things can get very complicated where a dynamic sponsor is investing in portfolio companies across the capital set and sponsors will need to balance their conflicting needs as a lender and equity owner, panellists said. A proactive approach would be to engage in conversations first about how these scenarios will be handled under certain circumstances, rather than relying on simple definitions. Such scenarios can then be brought directly into fund documentation for full disclosure, as part of taking a long-term approach to what are really long-term clients. Every asset is different, of course and unexpected situations can often occur. But by pushing the process now, it can help investors appreciate the work involved in terms of risk and conflicts. In addition to consultants helping to bridge the gap, there is a need to work closely with LPACs and directly with investors, panellists said, to be sure a robust process for managing conflicts and gaining consent can be implemented.

Moving into new strategies and establishing platforms with new teams often raises questions over the portability of a track record and the inherent governance implications. Credibility is key and a constant struggle when introducing a new asset class. Now in the industry, in addition to advertising restrictions, it is not unusual to see employment agreements where employees acknowledge they don’t own their former fund’s prior track record. While such clauses may ultimately end up in court, from a practical standpoint managers are being advised to demonstrate potential track record where they can through affiliated seed capital.

Industry Challenges and Rising Competition

Among industry challenges for private credit, recent investor concerns were discussed, with some withdrawals and negative press headlines. Increased competition also has the potential to pressure returns or push lenders down the risk spectrum. Notably, many managers already invested in the asset class have doubled down on private credit, while others less traditionally involved have expanded by acquisition in the sector. While investors have shown some anxiety around leveraged loan defaults, scepticism over the sustainability of AI spending and uncertainty around tariffs, panellists said more opportunities have emerged in special situations and on the opportunistic credit side.

In addition to infrastructure investments in hard assets like data centres and real estate, there has also been a significant emphasis on asset-backed financing (“ABF”). Panellists said that while ABF is typically seen more as investment grade territory particularly suitable for insurance capital, a key emergent trend has been acquisitions in the space or investments in lending platforms. By taking opportunistic positions in platforms that specialise, for example in automotive loans or home improvement loans, private credit sponsors have been to gain access to this capital.

At a broader level, panellists note that as the mega-sized private credit funds have moved up market, smaller managers are left with smaller deals which are less repeatable, often involving more esoteric capital. As a result of this complexity, managers are looking to opportunities that present market dislocation in order to reduce competition, particularly where they can provide more tailored credit solutions. It all adds up to a need for managers to get creative in terms of the opportunities and deals they are chasing.

The shifting landscape for retailisation, tokenisation and private credit is emblematic of a structural shift in the way capital is being raised and deployed. Certain barriers that have long defined the investment funds industry are eroding with broader participation and new technology creating significant opportunities, but also raising the bar for governance, transparency and operational excellence. The Maples Group remains at the forefront of developments across the industry and is primed to continue partnering with its clients to achieve success in this evolving environment.

For more information, please feel free to get in touch with your usual Maples Group contact or [email protected].

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