Financial advisers are reporting a lack of change in client allocations to private market assets over the past year.
- A recent survey by NextWealth indicates that 80% of advisers see no change in these allocations.
- Despite interest, only 15% of advisers expect an increase in private market investments.
- A minority of advisers, 20%, have clients with private market allocations, averaging 17% of their portfolios.
- These assets currently represent less than 2% of advised client portfolios.
In the past 12 months, financial advisers have observed little to no change in client allocations toward private market assets, according to a recent survey conducted by NextWealth. This stagnation has been confirmed by 80% of the advisers surveyed, implying a general hesitation or lack of momentum in shifting investment strategies within this domain.
Even with some interest in expanding investments in private markets, a mere 15% of advisers anticipate an increase in such allocations. This highlights a cautious approach among the financial advising community, as only a small fraction foresee growth in this area.
Currently, only 20% of financial advisers have clients who are invested in private market assets. For these clients, the allocation to private markets comprises approximately 17% of their overall investment portfolios, underlining the limited penetration of such assets in client portfolios.
The data further reveals that private market allocations account for less than 2% of the total assets managed by advisers. This suggests that, despite being an area of interest, private markets have yet to become a mainstream component of investment portfolios.
The data reflects a cautious stance among advisers towards private market allocations, with minimal change observed over the past year.
