CONSHOHOCKEN, PA — Investment advisors are significantly increasing their focus on private market allocations, with nearly 60% of respondents planning to allocate 10% or more of clients’ portfolios to private market investments in 2025, according to a new survey by global private markets investment management firm Hamilton Lane (Nasdaq: HLNE). This marks a 15% jump from last year’s survey and reflects growing confidence and demand in this asset class.The survey, which gathered insights from over 300 investment advisors, emphasizes that diversification and performance remain the primary drivers behind private wealth’s growing interest in private markets. A substantial 76% of advisors said their clients see private markets as providing higher potential rewards compared to traditional assets like stocks and bonds.
Among private market sectors, private infrastructure is poised for the most significant expansion. Nearly half (48%) of respondents plan to increase exposure to this sector, citing its attractive features, including durable cash flows, high barriers to entry, competitive returns, and diversification benefits. Private equity and private credit also continue to dominate portfolio allocations, reinforcing their strong appeal among advisors.
Despite the rapid growth in interest, a knowledge gap persists. While 63% of advisors now rate their private markets knowledge as “advanced,” the remaining 37% recognize the need for further education. Steve Brennan, Head of Private Wealth Solutions at Hamilton Lane, highlighted the importance of enhancing understanding within this space. “This year, our survey results showed a growing enthusiasm around and appreciation for the diversification and performance benefits the private markets can provide,” Brennan said. “To us, this reinforces the growing understanding of the wealth creation opportunities within the private markets.”
Age groups such as Gen X (94%) and Millennials (89%) show the highest interest in private market exposure, while regional data indicates that Asia Pacific and the Americas lead in both interest and knowledge of the asset class.
Advisors increasingly see private market investments as a competitive edge, with 70% reporting that such offerings deepen client relationships. Brennan expects continued growth in the infrastructure sector and further advancement in advisor expertise. “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,” he added.
The findings underscore private markets’ evolving role in investment portfolios and the growing recognition of their diversification and performance potential.
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