More than half of advisers and wealth managers are already active in private markets, with an additional 20% planning to engage over the next two years.
- Schroders’ survey of 1,755 global advisers identifies private equity, multi-asset solutions, and renewable infrastructure equity as key investment areas.
- Private markets present potentially higher returns compared to public markets, which is seen as the primary benefit by two-thirds of advisers.
- Advisers view private market involvement as a strategic move driven by client demand for diversified investment opportunities.
- The interest in private markets reflects a forward-looking approach towards more dynamic and potentially rewarding investment avenues.
In a recent survey conducted by Schroders, it was revealed that a significant number of advisers and wealth managers are already venturing into private markets, with over half currently investing in these sectors. This interest is expected to expand, with 20% more planning to join within the next two years. This indicates a growing trend towards embracing less conventional investment opportunities.
Private equity, alongside multi-private asset solutions and renewable infrastructure equity, are identified as the main areas where wealth managers expect their clients to increase their commitments. Specifically, private equity is earmarked by 53% of advisers as a primary asset class of interest, followed closely by multi-private solutions at 47% and renewable infrastructure equity at 46%. This highlights a strategic direction towards investing in areas perceived to offer substantial growth potential.
The attraction towards private markets is primarily fuelled by the promise of higher returns compared to public markets. A notable two-thirds of the survey respondents acknowledged this as the most significant advantage for their clients. This reinforces the belief that private market investments can deliver superior earnings, aligning with client expectations for profitable outcomes.
Furthermore, the momentum towards private markets aligns with a broader strategy to meet client demands for diversified investment portfolios. This movement is not merely about chasing high returns but also about delivering on client expectations for innovative and dynamic investment strategies. Advisers are thus exercising a level of foresight and adaptability in their investment planning.
This increased engagement in private markets underscores a shift in investment paradigms, reflecting a more enterprising attitude among advisers and wealth managers. They are increasingly viewing their roles as not just financial stewards, but as proactive agents facilitating access to varied asset classes, thereby enhancing client portfolios.
Advisers are progressively aligning with private markets to meet client demands for innovative investment solutions.
