Democratizing High-Conviction Alternatives: How Invesco and LGT Expand Retail Access to Private Markets

The landscape of alternative investments is undergoing a seismic shift as traditional barriers to entry for retail investors begin to erode. Private equity and credit-once the exclusive domain of institutional players-now face a wave of innovation aimed at broadening access. At the forefront of this movement is Invesco's strategic partnership with LGT Capital Partners, a collaboration designed to democratize high-conviction alternative strategies for U.S. wealth and retirement investors. By combining Invesco's operational scale with LGT's deep network of private market opportunities, the partnership is redefining how retail investors engage with asset classes historically reserved for the ultra-wealthy.

A Strategic Alliance for Private Market Access

Invesco, which manages over $190 billion in private markets, has long recognized the demand for diversified, uncorrelated returns among retail investors. However, private equity and credit-segments of the alternative space with high minimums and illiquid structures-have remained out of reach for most. Enter LGT Capital Partners, a firm with $120 billion in assets under management and access to over 800 general partners across private equity, credit, and infrastructure according to Invesco's official announcement. The partnership leverages LGT's privileged access to hard-to-reach segments of the private markets while building on Invesco's existing infrastructure for delivering private market solutions to retail investors, including its prior collaboration with Barings in real estate and credit as reported by WealthManagement.com.

This alliance is not merely transactional. As stated by Invesco in its official announcement, the partnership aims to "combine public and private markets to deliver innovative and diversified portfolio solutions" according to Invesco's official announcement. The focus on U.S. wealth and retirement channels is particularly significant, given the growing importance of retirement accounts as a vehicle for long-term, alternative allocations.

Democratizing Access Through Multi-Alternative Solutions

The partnership's core innovation lies in its multi-alternative approach. By packaging private equity, credit, and infrastructure opportunities into structured products tailored for retail investors, Invesco and LGT are addressing two critical pain points: complexity and liquidity. For example, LGT's ability to invest alongside clients as a principal investor-a practice that aligns incentives and reduces information asymmetry-adds a layer of trust often absent in traditional private market deals.

Moreover, the collaboration simplifies access to asset classes that require specialized due diligence. LGT's network of 800+ general partners provides a pipeline of opportunities that Invesco can curate into products with lower minimums and more flexible terms. This is a marked departure from the typical institutional-grade structures of private equity funds, which often require minimum investments of $250,000 or more. According to a report by WealthManagement.com, the partnership is explicitly targeting "a broader set of U.S. wealth and retirement investors," signaling a shift toward democratization.

Structural Innovations and Client-Centric Design

The partnership's success hinges on its ability to balance innovation with investor protection. One structural innovation is the use of co-investment models, where LGT's capital is deployed alongside retail investors. This not only mitigates risk but also signals confidence in the underlying strategies. Additionally, the focus on secondaries-a market for buying and selling existing private fund interests-offers retail investors liquidity solutions in an otherwise illiquid space according to Invesco's official announcement.

For retirement investors, the partnership introduces a new dimension of portfolio diversification. Traditional retirement portfolios are often overexposed to public equities and bonds, leaving them vulnerable to market volatility. By integrating private credit and infrastructure-sectors with stable cash flows and inflation-hedging properties-the partnership addresses a critical gap in retirement planning according to Pionline's analysis.

Broader Implications for the Industry

The Invesco-LGT collaboration reflects a broader industry trend: the commoditization of alternative strategies. As technology and regulatory frameworks evolve, private markets are becoming more accessible to a wider audience. This shift is not without challenges, including the need for robust risk management and transparency. However, the partnership's emphasis on client-first innovation-such as aligning interests through co-investments and leveraging scale to reduce costs-sets a benchmark for future collaborations.

Critically, the partnership also underscores the role of asset managers in bridging the gap between institutional-grade returns and retail accessibility. By 2025, as the partnership scales, it could catalyze further competition among firms to develop similar solutions, accelerating the democratization of private markets.

Conclusion

Invesco's partnership with LGT Capital Partners represents a pivotal moment in the evolution of alternative investments. By combining operational expertise, network access, and client-centric design, the collaboration is dismantling long-standing barriers for retail investors. As the demand for diversified, high-conviction strategies grows, this model offers a blueprint for how the industry can balance innovation with inclusivity. For investors, the message is clear: the era of exclusive access to private markets is giving way to a more equitable, dynamic landscape.