Private Markets Move Further Into Mainstream Wealth Portfolios
Private markets are rapidly moving from the periphery to the core of affluent investors’ portfolios, led by Millennials’ stronger risk appetite and longer investment horizons, but advisor engagement remains the pivotal and largely untapped lever for broader adoption, according to FTSE Russell’s 2026 U.S. Wealth Pulse Survey.
“Our research shows investors are interested in private markets, but they’re looking for guidance on how to incorporate and use them, which means activation runs through the advisor,” said Adam Gebler, Head of Wealth, Americas, at FTSE Russell. “This creates a clear opportunity to better equip advisors with the tools, education and solutions investors are seeking.”
Satisfaction High, But Caution Creeping In
More than nine in 10 affluent investors (91%) reported satisfaction with their 2025 portfolio performance, up sharply from 80% in 2024. Looking ahead, however, optimism has tempered. Just 66% are positive about portfolio performance over the next six months and 51% about the U.S. stock market, both down from 76% and 57%, respectively, a year ago.
Private Markets Gain Ground, Especially Among Millennials
One in three affluent investors currently allocates to private markets, with 61% having done so for the first time within the past five years and 74% allocating 10% or more of their portfolios. Generational differences are stark: 87% of Millennials are familiar with private markets and 67% already invest, compared with 30% of Gen X and just 11% of Baby Boomers. Among non-investors, 24% expect to enter private markets within the next 12 months, with Millennials accounting for 56% of that prospective cohort.
Benchmarks Build Confidence
As private markets mature, standardized benchmarks are emerging as a critical confidence builder. More than three-quarters (78%) of investors say benchmarks increase their confidence in private markets, and 92% say benchmark comparison is important when evaluating returns. Millennials place the highest premium on benchmarks, with 62% calling them very important, compared with 40% of Gen X and 36% of Boomers.
High return potential remains the primary attraction for 67% of affluent investors, while performance uncertainty is the biggest barrier at 42%, ahead of high fees at 36% and complexity at 35%. A majority (57%) are willing to sacrifice some liquidity for moderately higher returns.
The Advisor Gap
Despite strong underlying demand, advisor engagement on private markets remains uneven. Nearly half (48%) of investors working with an advisor have never discussed private markets, and only 26% have had detailed conversations. Yet the power of advisor influence is clear: while 55% of advised investors express interest in private markets independently, 89% say they would invest following a strong recommendation from their advisor.
Ali Zaidi, Head of Alternatives at FTSE Russell, framed the opportunity in structural terms. “Investors effectively forgo the premium of private investments by positioning for liquidity that is not intended to be utilized,” Zaidi said. “As private markets mature, bringing greater transparency through more timely performance data, investors are better able to align allocations with their investment horizons.”
Workplace retirement plans could further accelerate adoption, with 77% of plan participants saying they would consider private markets allocations if such options were made available.
