Wealth managers and IFAs are planning to increase how much of their own wealth they allocate to private markets, according to new research from Wealth Club.
The research shows 98 per cent of advisers expect to raise their personal exposure to the asset class. These funds typically invest in private equity and other assets not traded on public markets.
According to the research, most respondents currently hold between 5 and 10 per cent of their personal wealth in private markets. A further 21 per cent said they have between 10 and 25 per cent, while 4 per cent reported holdings of up to 5 per cent.
The growing popularity of semi-liquid private market funds is helping drive this shift. These vehicles offer more regular opportunities to invest and withdraw, easing the liquidity constraints traditionally associated with private equity and other unlisted assets.
Meanwhile, nearly a quarter of advisers expect to increase their allocation to between 10 per cent and 25 per cent, while those with under 5 per cent exposure will fall to just 2 per cent.
The research, which covers advisers at firms managing £75.8bn in client assets, reflects growing confidence in the role of private markets in long-term personal investment strategies, according to Wealth Club.
