Nearly 80% of Advisors Expect to Increase Private Markets Allocations: Blackstone

The anticipated surge in private markets, driven by increasing demand from registered investment advisors, is substantiated by a recent Blackstone study, indicating that the democratization of private markets is a lasting trend.

Nearly 80% (79%) of financial advisors expect to increase client portfolio allocations to private markets in 2025, according to the latest Blackstone Private Wealth Solutions group quarterly ‘Advisor Pulse’ survey of more than over 157 advisors. The survey also revealed that respondents expect to allocate 7% to both fixed income and stocks and only 1% to cash.

In addition, 52% of advisors believe digital infrastructure is the best positioned sector to benefit from artificial intelligence. Healthcare (16%), Logistics (13%), Cybersecurity (10%), and Energy (8%) rounded out the list.

The survey further showed that almost 60% of clients of financial advisors have allocated to private infrastructure. The average percentage allocation varied, with 40% allocating 1% to 3%; 13% allocating 3% to 5%; and 6% investing 5% or more. Interestingly, 40% have no allocation to the sector.

More than 50% (55%) of clients of advisors surveyed are prioritizing portfolio diversification, while 18% are focused on preserving capital and 13% aer seeking higher returns.