Semi-Liquid Investment Funds Face Scaling Challenges
A new FIS report highlights how rapidly growing semi-liquid investment funds are pressuring traditional financial operations.
Updated on Oct. 21, 2026 in Investing
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The rapid expansion of semi-liquid investment funds is forcing firms to rethink their operational infrastructure. Increased retail investor interest and complex unitised pricing demands are driving a shift toward integrated digital platforms.
Why it matters
As public and private markets converge, traditional fund servicing models struggle to maintain the real-time reporting and digital capabilities expected by a broadening retail investor base.
The number of semi-liquid funds nearly doubled from 238 in 2020 to 455 in 2024, with assets under management growing from $126bn to $349bn. Projections estimate these assets will reach $4.1trn by 2030.
The players
FIS
FIS is a global provider of financial technology solutions and services for institutions and businesses.
The details
Fund managers are increasingly using hybrid structures that combine liquid and illiquid assets to appeal to larger retail populations. To manage the resulting operational complexity, firms are integrating transfer agency operations and implementing AI agents to support investor servicing.
Timeline
2020 was the baseline year for fund count and asset measurements.
2024 marks the most recent data point for industry growth.
2030 is the projected year for semi-liquid asset growth to hit $4.1trn.
2032 is the target forecast for global private market assets reaching $60-65trn.
Market Dynamics
The rise of semi-liquid funds reflects a long-term structural shift toward the democratization of private market access for retail investors. This trend aligns with the FIS global private markets operational assessment, which highlights the industry's need to modernize legacy systems.
Retail investors can expect more frequent valuations and enhanced digital self-service capabilities as firms modernize their platforms. These upgrades are designed to provide better real-time reporting on investments that were previously difficult to access.
The takeaway
The convergence of private and public market structures requires investors to prioritize funds with robust digital servicing capabilities. Staying informed on how firms manage these technical transitions can help ensure better access to investment data.
Further reading
For more context on market shifts, visit our page on Investing.
Source note: This article includes information reported by Funds Europe.
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