Majority of Global Investors Focus on Private Markets for Diversification

Recent research reveals that a significant 86 percent of global asset owners are investing in private markets, making up about 13 percent of their portfolios on average. This shift highlights a growing trend toward balancing investments between public and private assets for better diversification.

Among the surveyed asset owners, public equities dominate with 42 percent of portfolios, followed by fixed income at 27 percent. However, private markets are gaining traction as a critical component of long-term strategies, offering strong, risk-adjusted returns that public markets often struggle to match in the current time frame.

Popular Choices in Private Markets

Investors in private markets are prioritizing specific asset classes. Here are the most common allocations:

• Private equity: Held by 67 percent of investors.
• Commercial real estate: Owned by 55 percent.
• Private credit and direct lending: Allocated by 49 percent.
• Residential real estate: Chosen by 46 percent.

Why Private Markets Are Gaining Popularity

The growth of private debt and other alternative assets is notable, as they’ve become essential in many institutional portfolios. Funds and managers are increasingly tailoring offerings to meet long-term investor goals, providing significant opportunities for growth and stability.

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