Private wealth professionals are planning to increase their private markets investments this year and view the associated risk/reward as similar to public markets, according to Hamilton Lane.

The private markets firm’s 2026 Global Private Wealth Survey found that 86 per cent of wealth managers expected to increase their allocations to private markets, with portfolio optimisation being the top motivator.

Currently, 97 per cent of private wealth professionals allocate up to 20 per cent of their book of business to private markets, and the majority expected those allocations to increase in 2026.

Within these allocations, there was a relatively even spread across private markets strategies, with private equity at 19 per cent, private real estate at 18 per cent, private credit at 16 per cent, venture capital & growth at 16 per cent, and private infrastructure at 15 per cent.

While allocations were fairly evenly spread, venture capital & growth was a top priority for wealth managers this year, with 47 per cent planning to increase allocations to this strategy, while 46 per cent pointed to infrastructure.

Looking at what drove client interest, wealth managers ranked performance and diversification as the top reasons for investing in private markets.

The study also found that the majority did not see private markets as riskier than public markets, with 83 per cent of respondents viewing private market risk/reward as similar to public markets.

Education was seen as important, with 81 per cent of wealth professionals believing that client education significantly boosted interest in private markets.

“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,” said Hamilton Lane head of global client solutions, James Martin.

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

Carta global head of LP portfolio analytics, Michael Aldridge, added: “The shift towards private markets comes as no surprise. Rising geopolitical volatility and public market uncertainty are driving changes in allocation strategy as investors seek to diversify, manage risk and deliver strong returns.

“However, as private allocations become larger and more complex, LPs will increasingly struggle to manage investments, given the opacity of the private markets data landscape.

“Outdated manual processes and fragmented data slow down reporting, lead to inaccurate valuations, and hamper decision-making. For private markets to become a core part of portfolios, transparency can no longer be optional.

“Consistent and reliable data is essential for LPs to accurately assess risk and value assets precisely. Without it, growing exposure to private markets risks creating blind spots just as the space is growing."

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