Almost half of investors not currently using private markets said they would consider doing so in the future, a new report found.
An annual report on private markets from Barclays claims advisers can play a “crucial role” in building investor confidence in private markets.
It claims the momentum for investor interest in global private markets will increase as the great wealth transfer approaches.
The report said advisers “must go beyond generic communication” to educate investors on private markets.
It added: “For many investors, feeling well-informed is the key that unlocks confident decision-making.
“Ultimately, the future of private markets will be forged by building bridges between diverse investor groups, sharing knowledge and best practice, and extending access to build a more diverse, robust environment.
“The priorities are clear: invest in education, review product design, promote transparency and inclusivity, and nurture partnerships that last beyond any single cycle.”
The report found 48 per cent of those not currently investing in private markets would consider doing so if key barriers were addressed, with 56 per cent citing the main obstacle being perceived risk and uncertainty.
And 69 per cent said they use advisers and wealth managers as a key source of information on investing in private markets.
Shenal Kakad, global head of private markets at Barclays Private Bank and Wealth Management, said: “Private markets are no longer a niche and are becoming a more common component of high-net-worth investor strategies, and we are seeing that private investors are showing a growing level of sophistication in their approach to the asset class.
“They are scrutinising opportunities more closely, favouring established managers, and exploring structures that offer both performance potential and liquidity flexibility. This marks a clear shift from access to strategy.”
Of those surveyed, more than three quarters expected to increase their allocations to private markets in the future and 38 per cent who were not currently invested in private markets said they were considering doing so.
tara.o’connor@ft.com
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