US-based global private markets investment firm Hamilton Lane has just published an online survey on the outlook for private market allocations covering private wealth firms, RIAs, family offices and other advisor professionals from APAC, Canada, EMEA, Latin America, the Middle East and the US.  

Private market allocations are rapidly becoming a significant portion of advisors’ book of business in 2025, according to a recent survey of investment advisors conducted by Hamilton Lane. The report adds to other commentaries suggesting that exposure to these assets will continue to rise.

Advisors plan to allocate more to private markets, with 56 per cent saying they’ll increase overall allocations in 2025, the survey reveals. Nearly one-third of survey respondents report that they plan to allocate 20 per cent or more to the asset class in 2025. Another 29 per cent plan to allocate 10 per cent or more, meaning that a total of nearly 60 per cent of the financial professionals surveyed plan to allocate 10 per cent or more to private market investments in 2025.

This is a 15 per cent increase from the firm’s 2024 survey and marks a shift in comfort with the asset class and growing interest among individual investors. Clients favorably view the risk/reward profile of private markets, with 76 per cent anticipating a higher reward than for stocks and bonds, the survey reveals. The Americas (48 per cent) reported the highest percentage of clients who are “very interested” in the asset class.

A survey by Blackstone’s Private Wealth Solutions group also shows that nearly 80 per cent of respondents expect to increase allocations to private markets in clients' portfolios in 2025. And a study from BNY, the US bank, has also pointed to larger allocations on the way.

Julien Dauchez, head of portfolio consulting and advisory at Paris-based Natixis Investment Managers, is also positive on alternatives in 2025, with liquid alternatives favored for diversification against changes in market momentum. He believes that the 60:40 rule in favour of equities and bonds no longer applies, with alternatives playing a more dominant role, moving to perhaps 30 per cent of an investor's portfolio from 10 per cent.

Hamilton Lane’s survey, which was conducted from October 29 to December 4, 2024, covered 320 global respondents including private wealth firms, RIAs, family offices and other advisor professionals from APAC, Canada, EMEA, Latin America, the Middle East and the US.  

Interest in infrastructure investing
Private infrastructure is poised to gain market share according to the survey, with 48 per cent of respondents planning to increase exposure in that sector. This finding affirms a broader trend of growing investor interest in private infrastructure as the benefits become more widely understood, including high barriers to entry, durable cash flows, competitive total returns, income yield and portfolio diversification. While infrastructure saw the biggest uptick in interest, private equity and private credit followed closely behind, with those strategies currently in the top two spots in terms of overall portfolio allocation, the survey reveals.

Attractiveness of private markets
More than three-quarters (76 per cent) of respondents said their clients see private markets as providing higher reward compared with stocks and bonds. The survey finds diversification and performance continue to drive private wealth interest in the asset class. When asked why clients are interested in private markets, the results this year were almost identical to last year’s survey, with these two factors cited most frequently, significantly outpacing other responses (sector exposure, liquidity or other).

Increased acumen but knowledge gap persists
Despite increased acumen on the part of advisors, with 63 per cent rating their knowledge of the asset class as advanced, compared with 55 per cent in last year’s survey, for the remainder of the respondent base there is still a knowledge gap. Hamilton Lane offers resources such as the Knowledge Center and Chart of the Week to help advisors and clients develop private markets acumen to meet their investment objectives. 

Other key findings
One key reason why advisors offer private market investments is to have a competitive edge when attracting and retaining clients, with 70 per cent of advisors reporting that helping clients invest in private markets deepens those relationships.

While all age groups show an interest in private market exposure, interest is highest among Gen Xers (94 per cent), Millennials (89 per cent) and Baby Boomers (77 per cent). Following were Gen Z (59 per cent) and those aged 75+ (43 per cent).

Globally, Asia Pacific (51 per cent) and the Americas (48 per cent) reported the highest percentage of clients who are “very interested” in the asset class, followed by Europe, the Middle East and Africa with 34 per cent, the survey reveals. Unsurprisingly, knowledge of the private markets correlated with interest, with those regions topping the number who described their knowledge as either “advanced” or “intermediate.”  

“This year, our survey results showed a growing enthusiasm around and appreciation for the diversification and performance benefits the private markets can provide,” Steve Brennan, head of private wealth solutions at Hamilton Lane, said. “Just a few years ago, we would never have expected to see nearly 60 per cent of advisors planning to allocate 10 per cent or more of clients’ portfolios to this asset class in the coming year. To us, this reinforces the growing understanding of the wealth creation opportunities within the private markets.” 

“As we look ahead, we expect interest in the infrastructure space to continue to grow, and hope to see investors who describe their knowledge of the private markets as ‘advanced’ tick up even further,” he said. “At Hamilton Lane, we continue to be focused on bringing high-quality private markets investment opportunities to advisors and their clients while expanding investor access and knowledge of this asset class.”

Dedicated exclusively to private markets investing for more than 30 years, Hamilton Lane employs about 730 professionals operating in offices in North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has more than $947 billion in assets under management and supervision, composed of more than $131 billion in discretionary assets and approximately $816 billion in non-discretionary assets. See more commentary here about Hamilton Lane and private markets.