The New LP: How Millennials and Gen Z Are Shaping Private Markets

The private markets have long been the domain of ultra-high-net-worth individuals, family offices, and institutional investors. But a shift is quietly and quickly taking place. Millennials and Gen Z are stepping onto the private investment stage, bringing with them fresh energy, new expectations, and a redefined vision of wealth.

Welcome to the age of the New LP.

A Generation of Builders and Believers

Unlike previous generations, Millennials and Gen Z grew up during a time of rapid tech innovation, widespread digital access, and a cascade of global challenges: from climate change to social injustice. This backdrop has shaped how they invest: they are not just seeking returns, they are seeking meaningful returns.

A 2023 Morgan Stanley survey found that 95% of Millennials are interested in sustainable investing, compared to 85% of the general population. Meanwhile, 86% of Gen Z investors said they care about the environmental and social impact of their investments (Bank of America, 2022).

For these next-gen investors, participating in private markets isn’t only about financial gain. It’s about backing startups and funds that align with their values—whether that means supporting clean energy, women-led ventures, or blockchain-based transparency.

They want to feel like builders, not just buyers.

Tech-Native and Platform-First

Millennials and Gen Z are digital natives. They’re more comfortable managing their portfolios from mobile apps than from boardrooms. They expect intuitive onboarding, real-time updates, and jargon-free education, delivered with the speed and clarity of consumer tech.

According to Deloitte, over 70% of Millennials prefer digital channels for financial interactions. In the UK, Gen Z is now the fastest-growing group of retail investors, with more than one in three aged 18–24 investing via online platforms (FCA, 2023).

This is fuelling the rise of platforms like Mara, which lower the barriers to entry for private market access. Historically opaque, relationship-driven processes are being replaced by curated digital experiences, better data, and more inclusive communities.

The result is a world where someone can go from learning about venture capital to co-investing in a growth-stage fund—all from their laptop.

Impact Over Institutions

Traditional LPs often prioritised legacy, institutional pedigree, and long-standing brands. Today’s New LPs are asking very different questions:

• “What’s your carbon footprint?”
• “How diverse is your leadership team?”
• “How transparent are your fees?”
• “What’s your real-world impact?”

Research from PwC shows that 77% of Gen Z and 75% of Millennials say it’s important that their investments align with their personal values. Meanwhile, assets in ESG-focused private equity funds are projected to reach $1.2 trillion by 2025 (Preqin).

For fund managers and GPs, this means evolving or falling behind. ESG reporting is no longer optional; it’s expected. Authentic storytelling is now a must-have, not a nice-to-have. And performance is measured by both IRR and integrity.

Transparency Is the New Trust

Having come of age during the 2008 financial crisis, the rise of Reddit-fuelled investing, and increasing institutional scepticism, Millennials and Gen Z are discerning and data-driven. Trust is earned, not assumed.

To win this cohort, fund managers need to embrace radical transparency: around fees, performance, risks, and even past failures. Access to investor webinars, regular updates, and co-investment opportunities helps build a genuine sense of shared ownership.

A recent Edelman report found that 68% of Millennials are more likely to trust a brand that shares its performance metrics publicly. The same principles now apply to fund managers.

The days of closed doors are fading. The New LP wants a seat at the table, and they’re bringing friends.

What This Means for the Future

As Millennials and Gen Z inherit trillions in wealth—an estimated $84 trillion by 2045 in the US alone (Cerulli Associates)—and continue building their own, they’re poised to become one of the most powerful investor classes in private markets.

They are more global, more diverse, and more impact-driven than any generation before them.

Platforms like Mara aren’t just adapting to this shift. They’re built for it. By making private markets more accessible, more aligned, and more transparent, we’re helping usher in a future where wealth doesn’t just grow, it makes a difference.

Are you a next-gen investor looking to shape the future?