Hamilton Lane survey shows rising interest in private markets among advisors, highlighting need for client education
Over 90 percent of survey respondents allocate client capital to private markets.
Almost all (99 percent) plan to continue this practice this year, according to a recent independent survey by Hamilton Lane, a global private markets investment management firm.
More than half of the advisors (52 percent) plan to allocate over 10 percent of clients' portfolios to private markets, reflecting a broader industry trend of increased interest among non-institutional investors.
Additionally, 70 percent of advisors intend to increase clients' allocation to private markets compared to 2023. Advisors attribute this interest to the performance and diversification benefits of private markets.
Despite 97 percent of advisors having either advanced (55 percent) or intermediate (42 percent) knowledge of private markets, they recognize that their clients may not be as informed.
The survey revealed that 50 percent of advisors rate their clients' knowledge about private markets investments as beginner, indicating a need for basic education. Only 4 percent of advisors believe their clients have advanced knowledge of the asset class.
Steve Brennan, head of Private Wealth Solutions at Hamilton Lane, emphasized the need for more education as interest in private markets grows.
“A foundational understanding of the asset class strengthens initial interest from new investors and sustains investing appetite for those already allocated. We anticipate that as private wealth investors become more knowledgeable and familiar with the asset class, private markets allocations will likely increase.”
Advisors identified education, thought leadership, and events as the top three tools and information that would help improve their clients' knowledge of private markets.
Brennan highlighted Hamilton Lane's resources, such as the Knowledge Centre, Chart of the Week, and the podcast series ‘Private Markets Made Human,’ as valuable tools to help advisors and clients develop their private markets acumen and achieve their unique investment objectives.
