Hamilton Lane Private Wealth Survey Finds 70% of Global Respondents Planning to Increase Allocation to Private Markets, As Need for Education Continues
- Global survey of more than 230 investment advisors highlights diversification and performance as key drivers of private wealth interest in the asset class
- Ninety-two percent of respondents currently allocate client capital to private markets, with more than two-thirds planning to increase allocation
- Opportunity to continue educating private wealth investors, as advisors cite a knowledge gap between them and their clients
Uptake Continues
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.
Knowledge Gap
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 interest in the asset class. Only 4% of advisors rated their clients' knowledge about private markets as advanced, or well versed in the asset class and confident in talking about private market details, trends and products. In other words, there is an opportunity to increase end investors' private markets knowledge.
"The punchline from this survey was an affirmation that as interest in private markets grows, there is a clear need for more education," said
When asked what private markets tools and information advisors would find helpful in their practice, advisors cited education, thought leadership and events as the top three ways to improve their clients' knowledge of the asset class.
"Our survey shows that giving private wealth clients more opportunities to learn about private markets investing can help both advisors and clients achieve their goals," said Brennan. "Resources like
To view the full report and findings, click here.
Survey Methodology
The online survey was conducted from
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