​​Private Markets in Wealth Management: Resilient demand despite market scrutiny

Recent headlines surrounding private credit redemptions in the US have raised questions about the resilience of investor demand for private markets.

To understand whether these developments have had a meaningful impact on sentiment, we conducted our own research among the professionals closest to the end investor: wealth managers and financial advisers.

Our study focused on the US and UK wealth markets. While the UK market remains less mature than the US, it continues to evolve rapidly as investor-friendly structures such as Long-Term Asset Funds (LTAFs) gain traction.

To ensure a robust and representative view, we surveyed 200 wealth managers and advisers across both markets. The findings provide valuable insight into the current state of the private markets opportunity within wealth management.

Key Findings

• Confidence in private markets remains strong over the medium to long term. Private equity and infrastructure are viewed as offering the most compelling growth opportunities.
• Recent negative publicity surrounding private credit has affected sentiment. However, medium- to long-term confidence in the asset class remains positive.
• Advisers' concerns extend beyond liquidity and redemption policies. They are calling for greater transparency, clearer communication, and stronger support from asset managers across a range of areas.
• Advisers are highly selective when discussing private markets with clients. Many determine suitability before initiating conversations, meaning private markets are not routinely discussed across their entire client base.
• Knowledge drives recommendation. Advisers with the strongest technical understanding of private markets are significantly more likely to engage clients proactively on the opportunity.
• Competition is increasing. Advisers are becoming more open to recommending multi-manager and "whole-of-market" solutions, while many continue to find it difficult to distinguish between individual managers' strategies, capabilities, and underwriting approaches.

Key Questions Addressed by the Research

Our research provides insight into several critical questions for asset managers seeking to grow within the wealth channel:

• What questions are end investors asking their advisers about private markets?
• Where do advisers turn for education and information? Do they rely on external managers or internal resources?
• What types of content and educational materials are most effective?
• Which private market asset classes and sub sectors are viewed as offering the greatest opportunities?

Join Us at Our UK Breakfast Briefing

We will be sharing the findings at our upcoming UK Breakfast Briefing, The Private Markets Readiness Gap, taking place on Thursday, 2 July at The Ned, London.

During the session, we will explore the forces driving these trends and provide practical recommendations on how asset managers can better equip advisers with the tools, education, and support needed to deepen conversations with clients.

If you are interested in attending, please register here:

Register for the briefing

Looking Ahead

A more detailed analysis of the findings, including adviser attitudes, allocation trends, and implications for asset managers, will be published in our July Capital Markets Newsletter.