Advisors Plan to Boost Clients' Private Equity Holdings: Survey

Advisors planning to boost clients’ private markets holdings in the next 12 months are most likely to increase allocations to private equity, according to a new survey from alternative asset manager Blackstone.

Blackstone, which recently surveyed financial professionals globally participating in its programming, found that about 90% of advisors have allocated to private markets in client portfolios, and over 70% have allocated 5% or more to these alternatives.

Advisors approaching clients about investing in private markets overwhelmingly, at 71%, cite the benefits of portfolio diversification, the survey found.

“Investors are more focused on diversification in recent years due to shifts in the macroeconomic environment and positive correlation between stocks and bonds. For clients seeking portfolio diversification, private markets can serve as a core component of their investment strategy,” the firm said.