Tech-Driven Transformation in Private Markets: Can Mid-Sized Firms Keep Up?

Private markets are growing rapidly, with recent reports predicting assets under management to reach $30 trillion by 2030. Despite this expanding “pie,” capital concentration is intensifying.

According to PitchBook data, nearly 50% of all capital raised over the past five years has gone to mega-funds (firms managing more than $5 billion in assets). These industry giants dominate fundraising rounds, benefiting from global brand recognition and extensive operational infrastructures. Recent headline-grabbing fund closures include EQT’s $23.7 billion close and major launches by CVC and Blackstone in Asia, each targeting over $10 billion.

The concentration is clear: the biggest players consistently scoop up more than their share of the available capital, reinforcing the divide between the industry behemoths and the rest. As one mid-market GP candidly put it, “We’re top 300, not top 30” and therefore, have to operate differently to compete. This mindset is becoming a reality for many mid-sized firms (managing between $100 million and $5 billion in assets).

Still, private capital isn’t only a game for these mega-managers. Mid-sized firms remain vital players. While they don’t have the seemingly limitless war chests of the behemoths, many are finding alternative paths to scale. Their advantage lies in adopting the right technology, rethinking workflows, and making strategic decisions about operations that enable them to punch well above their weight.

Building smarter, not larger

Scale in private markets today is less about brute force and more about thoughtful, intentional adoption of technology. Mid-sized firms are increasingly realizing that competing with larger players means differentiating, not just getting bigger.

Especially in a landscape marked by rising costs, talent scarcity, and complex global regulations, throwing more bodies at the problem is no longer viable. Instead, many mid-sized GPs are embracing digital transformation as the key to scaling operations while maintaining lean teams.

Automating compliance workflows, consolidating investor communications, and deploying integrated investor portals help reduce manual errors and improve operational efficiency. More importantly, these technologies centralize information across departments, creating a “golden source of truth” that supports real-time decision-making and transparency.

Mid-sized GPs often face an uphill battle juggling multiple systems, from investor relations to compliance, which can create bottlenecks and operational risk. The shift to digital isn’t just about efficiency; it’s a risk management imperative. Automating and integrating these workflows helps firms stay compliant, reduce costly mistakes, and respond faster to investor inquiries. In this way, technology becomes a force multiplier for lean teams.

Alongside operational efficiency, technology is reshaping the investor experience. Modern fundraising data rooms and investor portals offer interactive interfaces, real-time reporting dashboards, and tightly controlled access - elevating investor engagement and reinforcing firm branding, critical for mid-market GPs looking to compete with larger peers.

"Jack of All Trades" or "Best in Class"?

A critical decision for mid-market firms lies in how they build their technology ecosystem. Should they opt for an all-in-one platform or piece together best-of-breed solutions?

Both approaches have merits. All-in-one platforms simplify vendor management, enable seamless data flow, and provide a consistent investor experience. On the other hand, best-in-class solutions can offer specialized depth but often introduce integration challenges, data silos, and inconsistent user journeys.

Investors today expect transparency, real-time updates, and seamless digital experiences on par with the largest firms. Choosing the right tech stack influences not only operational efficiency but also the firm’s ability to meet these elevated expectations consistently across the investor lifecycle.

As managers build their tech ecosystems, it’s becoming increasingly important to evaluate how platforms communicate and integrate. The trade-offs between an all-in-one approach and a best-of-breed stack aren’t just technical; they impact scalability, security, and the firm’s ability to adapt to evolving investor expectations and regulatory demands.

Reducing administrative burdens is another key benefit of a well-integrated tech stack. Previously, many asset managers required sizeable teams just to process data requests and manage investor communications manually. Today, digital platforms drastically streamline these workflows, cutting overhead costs and freeing firms to focus on value-adding tasks like capital raising and investor relations.

Integration is not simply a technical hurdle; it’s a strategic differentiator. Firms with unified platforms gain richer insights, better investor engagement, and can pivot quickly as market or regulatory landscapes shift. This agility is increasingly a competitive advantage for mid-market players aiming to scale.

However, integration remains a challenge. Many firms still wrestle with fragmented systems - CRMs, AML providers, fund management tools - that don’t communicate smoothly, leading to productivity losses and slower fundraising. A future-proof digital infrastructure that scales with the firm, adapts to regulatory changes, and consolidates investor information into a “single source of truth” is crucial for mid-market firms aiming to grow sustainably.

Conclusion: Adapt or be outpaced

This is not just a story about improving internal efficiency; it’s about survival. The private markets will continue to reward firms that combine strong performance with professionalism, delivering institutional-grade experiences regardless of size.

The firms that rise won’t necessarily be the biggest, but they will be the smartest. In a market where nearly half of all capital flows to a handful of mega-managers, mid-market firms need a more agile and scalable approach to close the gap.

Investing in the right technology and rethinking traditional operating models is no longer optional. Firms that build scalable, integrated digital infrastructures will be better positioned to navigate regulatory complexity and evolving investor demands, setting the stage for long-term growth and resilience.