Private markets appetite outweighs risk v reward concerns

Yasmine Raso

Senior Journalist, Financial Newswire

30 January 2026

A global survey of private wealth advisers has debunked the misconception that private markets are still considered riskier than public markets, as investor appetite for the asset class continues to surge.

Commissioned by private markets investment giant, Hamilton Lane, the survey of 390 advisers based in the US, South America, Europe, the Middle East and the Asia-Pacific region found 83 per cent of respondents view private market risk as equal to or below public market levels.

The Global Private Wealth Survey also confirmed that 86 per cent of private wealth professionals who responded – including private wealth firms, RIAs, family offices and other adviser professionals – planned to increase their private markets allocations, primarily motivated by its ‘portfolio optimisation’ and ‘competitive positioning’ benefits.

Approximately 97 per cent of those surveyed currently allocate between one and 20 per cent to private markets, split out across private equity (19 per cent), private real estate (18 per cent), venture capital and private credit (both 16 per cent), infrastructure (15 per cent) and secondaries (13 per cent).

“This year highlighted a shift among private wealth investors and their advisors toward building more resilient portfolios, and the findings reflect what we’re hearing in the market today: private markets are viewed through a more nuanced risk‑reward lens than in the past,” Scott Thomas, Head of Private Wealth Solutions for Australia at Hamilton Lane, said.

“As we look across strategies, Venture Capital & Growth stands out as investors seek access to innovative, high-growth private companies, many of which are not available in the public markets.”

Surveyed advisers said client demand was mainly driven by performance (28 per cent), diversification (28 per cent) and gaining access to investment opportunities not available to the public (25 per cent). They also confirmed that while private equity was the most popular entry point for new “highly-engaged” investors (56 per cent), venture capital and growth and infrastructure emerged as the favourites among investors in general, with 47 per cent planning to increase their allocations in 2026.

Around 81 per cent of professionals surveyed also highlighted education as an important tool that grows client interest (86 per cent), while several knowledge gaps remain in particular around product availability (61 per cent) and liquidity constraints (56 per cent).

“The survey results point to the increasingly important role private markets play within wealth management portfolios, due to the portfolio optimisation and diversification benefits these investments can provide,” James Martin, Head of Global Client Solutions at Hamilton Lane, said.

“Across our own client base and in the survey results, we see investors and their wealth advisors becoming more sophisticated around assessing risk/reward tradeoffs and recognising the strong link between education and interest in the asset class.”