More FAs Increasing Asset Allocation to Private Market Options, Blackstone Says 

As various difficulties concerning market volatility and international conflicts continue to intensify, financial advisors are moving towards using private markets for asset allocation for their client portfolios, according to a newly released survey from private equity firm Blackstone. 

As clients also voice their concerns regarding market volatility and how it’ll impact their future planning, about 68% of financial advisors said they plan to raise private market allocations in the current market environment. Meanwhile, 78% of advisors stated that private market investments are “very important” for portfolio diversification, and about 22% revealed that private market investments are “somewhat important” to them. 

Blackstone’s quarterly ‘Advisor Pulse’ survey, which collected feedback from over 160 financial advisors within Blackstone University, indicated that there’s a growing interest in private markets among clients when introduced in the beginning. 

Private market investing has become increasingly popular among financial advisors and their client base, as investors are turning towards higher returns, and more tools are becoming more accessible within traditional portfolios.  

Advisors reported that 48% of clients said they were “somewhat” interested in private market options. Meanwhile, 43% of clients are “very interested,” and about 6% stated that they are “ready to invest,” immediately, and only 3% stated that they have no interest in private market options at all, according to the survey. 

On the other hand, clients are cautious regarding the growing exposure to private markets, as concerns surrounding liquidity and client propriety continue to be a growing factor. 

About 6% of advisors said they aim to increase their allocations to public equities, 4% stated they anticipated raising allocations to cash, and approximately 18% said they plan on making minimal or no changes. 

In Blackstone’s ‘Advisor Pulse’ survey, which was conducted in April, found that more than 60% of advisors have allocated at least 5% of income-oriented portfolios to private credit, while over 25% of advisors have allocated at least 10% to private credit.