Private assets, AI play into growth plans say wealth managers

A new global report commissioned by Natixis Investment Managers (Natixis IM) has confirmed the “critical” role played by private assets and artificial intelligence (AI) in wealth managers’ growth plans.

The Natixis IM Wealth Industry Survey polled over 500 investment professionals from 20 countries including Australia, the UK, the United States and others in Latin America and Europe representing a total of more than $US38.4 trillion for public and private pension and superannuation funds, insurers, foundations, endowments and sovereign wealth funds.

Of the individuals surveyed – including those who worked for private banks, wirehouses, independent financial advisers, wealth advisory platforms, and registered investment advisers – 92 per cent said they plan to increase or keep their private credit offering and 91 per cent plan the same for their private equity investments.

Among the local wealth managers who participated in the survey, 40 per cent said a “lack of access” to private markets is a threat to their business and 48 per cent said satisfying client demand for unlisted assets is considered “critical” to their growth plans. According to the survey, the average of Australian wealth managers’ portfolios consisted of 88 per cent public assets and 12 per cent in private.

“If one thing is certain amidst the current market volatility, a potential trade war, and inflationary fears; it’s that demand for private assets is still increasing,” Natixis IM Country Head of Australia and New Zealand, Louise Watson, said.

“Wealth managers welcome the diversification and return benefits of private markets as they aim towards an 8.3% growth target for portfolios this year.

“We are working closely with our private wealth and advice clients to understand their needs and wants for a retail-friendly private asset offering, and where demand exists, we’ll build a customised, cost-effective solution to match it.

“Pleasingly, Natixis IM’s private equity manager Flexstone Partners has secured approval from the French regulator to launch a retail private equity fund in Europe, and we can leverage this expertise in Australia.”

The survey also revealed that 40 per cent of respondents believe private assets will provide a “safe haven” despite current high valuations, with a further 68 per cent also indicating that development of more “retail-friendly” private asset investment products would help to boost portfolio diversification.

The report also indicated that the number of Australian wealth managers integrating artificial intelligence (AI) into their investment strategies has more than doubled since last year (25 per cent), now at 56 per cent in 2025.