Table of Contents:
The investment landscape in private markets
In recent years, the investment sector has seen a significant shift towards private markets. According to a recent study conducted by Schroders, 55% of financial advisors and wealth managers have already started investing in this asset class, with an additional 20% planning to do so in the next two years.
This trend is particularly evident in Italy, where 26% of professionals in the sector expect new allocations in private markets, exceeding the global average of 19%.
The most popular investment areas
The most popular investment areas include private equity (53%), multi-private asset solutions (47%) and renewable infrastructure equity (46%). These sectors offer high performance opportunities and diversification, elements that are increasingly attracting consultants and their clients. However, despite growing interest, lack of liquidity remains a major concern for investors
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The challenges and opportunities in private markets
Two-thirds of those interviewed in the Schroders survey highlighted the potential for higher returns compared to public markets as the main benefit for their customers. In addition, 62% of respondents emphasized the importance of diversification thanks to differentiated return drivers. However, the lack of liquidity is cited as a significant challenge in discussions with customers. To address these concerns, 49% of respondents suggested that more training for customers could further support demand, followed by more adequate product structures and lower entry thresholds
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The Italian case: a growing market
Italy presents itself as an interesting case in the investment landscape in private markets. Although current allocations are smaller than in other developed markets, Schroders’ survey indicates a clear growth trajectory. With 26% of consultants planning to introduce proposals on the private market in the next two years, the Italian market is emerging as a significant opportunity for investors. Carla Bergareche, Global Head of Wealth, Client Group at Schroders, said that, although many wealth managers are already investing in private markets, the amount of allocations is still lower than in institutional portfolios
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Conclusions on the future of investments in private markets
In summary, private markets are gaining ground among financial advisors and wealth managers, with growing interest from investors. As awareness of the potential of these assets increases, private markets are likely to continue to play an increasingly important role in individual investor portfolios. The challenge for consultants will be to educate clients and provide appropriate solutions to make the most of these opportunities
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