zkMe, a leading provider of zero-knowledge identity verification solutions, has been recognized in a recent report by Deloitte US as a technology enabler for the rapidly expanding semi-liquid funds market. The Deloitte Center for Financial Services estimates that assets under management (AUM) in semi-liquid funds could reach US$4.1 trillion by 2030, with retail investors contributing more than 40% of the total.
The report, “Semi-liquid funds: A US$4 trillion opportunity for traditional and alternative investment managers”(September 2025), emphasizes how semi-liquid fund structures—sometimes called “evergreen funds”—are emerging as a powerful bridge between private markets and retail investors. These funds combine access to alternative asset classes, such as private equity and private credit, with periodic liquidity and simplified administration.
Semi-Liquid Funds: A Growing Market
Historically, retail investors have been limited to public equities and fixed-income securities, missing out on the wealth creation opportunities of private markets. The universe of public companies has been shrinking, while private firms vastly outnumber public listings.
As Deloitte notes, the median age of companies at IPO has risen from six years in 1980 to 14 years in 2024, leaving fewer early-stage opportunities for retail participation.Semi-liquid funds provide an answer. With low minimum investment requirements, simplified tax treatment, and redemption windows, they enable retail investors to participate in alternative assets without the capital lockups of traditional private equity funds. Deloitte projects this segment will nearly triple over the next five years, driven by retail and high-net-worth individual demand, institutional adoption, favorable regulations, and the introduction of new structures in the US and Europe.
Technology as a Catalyst
While investor appetite is evident, Deloitte stresses that fund managers will need to adapt their operating models to fully realize this opportunity. In particular, three themes stand out:
- Operational efficiency to manage complex investor flows.
- Investor trust and education to expand adoption.
- Compliance and transparency to satisfy regulators while protecting investor data.
Technology adoption—including tokenization and privacy-preserving identity solutions—is cited as a critical lever. Tokenization allows semi-liquid funds to fractionalize ownership, facilitate secondary trading, and automate settlement processes via smart contracts. This creates liquidity and operational efficiency, but also introduces new compliance and identity management challenges.
Deloitte’s Mention of zkMe
In discussing how tokenization can streamline fund administration while enhancing compliance, Deloitte highlights the role of decentralized identity solutions.
The report identifies zkMe's decentralized identity technology as a key enabler for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance that protects user privacy—critical capabilities for the semi-liquid funds market.Unlike traditional identity verification methods that require storage of sensitive customer information, zkMe leverages zero-knowledge proofs (ZKPs) to confirm investor eligibility without exposing or retaining personal data. This means semi-liquid fund managers can meet stringent regulatory requirements while reducing their liability footprint and strengthening investor trust.
“This recognition from Deloitte validates zkMe's role in the broader tokenization ecosystem," commented Alex Scheer, CEO of zkMe. "As semi-liquid funds bridge traditional finance and DeFi, they need compliance infrastructure that speaks both languages. Our zero-knowledge solutions ensure that whether investors are accessing funds through traditional platforms or decentralized applications, verification remains private, portable, and regulation-ready.”
Building Investor Trust
Trust remains a critical barrier for retail investors entering alternative assets. Deloitte cites survey data showing that nearly half of retail respondents would be more likely to invest in semi-liquid funds if backed by established brands. As emerging players seek to gain credibility, leveraging trusted technology providers becomes equally important.By integrating zkMe’s zkKYC solution, investment managers can assure both regulators and investors that the highest standards of data protection are in place. This not only reduces reputational and operational risk but also supports broader adoption of semi-liquid funds as a mainstream investment vehicle.
Ready to position your fund at the forefront of the $4.1 trillion semi-liquid funds opportunity? As Deloitte's report demonstrates, privacy-preserving compliance technology isn't just an advantage—it's essential for scaling access to millions of new retail investors.
Schedule a Demo with our team to discover how zkMe's zero-knowledge identity solutions can transform your fund's compliance infrastructure while building investor trust.
