Morningstar has launched a series of new features in its Direct Advisory Suite platform (the next phase of Advisor Workstation) to help financial advisors analyze and integrate private investments into their clients’ portfolios. This is a new service from the firm. These enhancements are now available and will be showcased at the Morningstar Investment Conference, taking place June 25–26 in Chicago, USA.
“Morningstar’s universal investment language has helped advisors and investors bring clarity to complexity for decades,” said Kunal Kapoor, the company’s CEO. “As private investments become part of more portfolios, we are expanding that language to provide the same level of comparison and confidence in private markets as we already offer in public markets,” he added.
The new features in Direct Advisory Suite are designed to help advisors evaluate, compare, and communicate the role of private investments within the broader context of a portfolio. Key features include:
Expanded Investment Research
Advisors now have access to a new universe of private equity funds to filter, compare, and monitor. Access to semi-liquid vehicles, such as interval funds and tender offer funds—has also been improved. Morningstar’s updated classification system integrates private equity vehicles alongside public market securities, allowing for comprehensive investment analysis.
Enhanced Risk Profiling
The Morningstar Risk Model now incorporates private equity funds. The Morningstar Portfolio Risk Score breaks down the percentage of risk driven by volatility and liquidity constraints.
Portfolio Transparency Tools
Advisors can now view what percentage of a portfolio is exposed to private investments.
Proposal-Ready Reports
The investment proposal summary report, reviewed by FINRA, now includes new indicators for risk and liquidity.
Alternative Investments Hub
A new themed page aggregates editorial content and research from Morningstar on alternative investments, supporting advisor education and client conversations.
“As private markets become more accessible, advisors need actionable data, standardized analytics, and unified workflows to evaluate the full spectrum of investment opportunities,” said James Rhodes, President of the Morningstar Direct platform.
“We’re leveraging our history as investor advocates and transparency champions to offer Direct Advisory Suite users the ability to analyze private investments with the same rigor expected in public markets—helping them achieve their clients’ desired outcomes,” he added.
Market Convergence
These new features arrive amid a growing array of investor choices and increased interest in private markets. Morningstar’s Voice of the Investor 2025 study found that 25% of retail investors already hold private equity investments, rising to 35% among those with $500,000 or more in investable assets.
To help investors make informed decisions with clarity and rigorous due diligence, Morningstar is leveraging PitchBook’s extensive private market database and expanding its independent analysis into the fastest-growing sectors of the private and semi-private investment universe. Next quarter, Morningstar analysts will begin publishing qualitative and forward-looking ratings (Medalist Ratings) for semi-liquid funds, including interval funds, tender offer funds, non-traded business development companies (BDCs), and non-traded real estate investment trusts (REITs).
The recently published State of Semiliquid Funds report emphasizes that while access to private markets is expanding, semi-liquid funds are not making these markets more affordable. Though these funds offer greater access and the potential for higher returns, they also carry significant risks, such as fees that average three times higher than traditional open-end funds, increased use of leverage, amplifying both gains and losses, and Potential liquidity restrictions.
