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Laxman Pai, Opalesque Asia: The investment appetite for private markets surges as 70 percent of advisers plan to raise clients' allocations to the asset class.
More than 90% of global investment advisors allocate client capital to private markets and virtually all of them (99%) plan to allocate to this asset class this year, according to the Hamilton Lane Private Wealth Survey of more than 230 investment advisers.
With more than half of advisors (52%) reporting that they plan to allocate 10%+ of clients' portfolios to private markets, the survey affirmed the broader industry trend of strong, growing interest in the private markets among non-institutional investors. Seventy percent of advisors plan to increase clients' allocation to the asset class compared to 2023.
Advisors cited performance and diversification as the top reasons for the spike in interest in the private markets.
In terms of their own knowledge of the private markets, 97% of advisors report either advanced (55%) or intermediate (42%) understanding. While advisors are knowledgeable, their clients may not be.
The survey found that advisors acknowledge that their clients believe alternatives may provide portfolio benefits but may not be educated enough on the asset class.
For example, 50% of advisors rate their clients' knowledge about private markets investments as beginner, or having little to no knowledge of the asset class and requiring basic education, despite their strong in...................... To view our full article Click here
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