"Investors behind private funds are more diverse than ever. High-net-worth individuals, single- and multi-family offices, pension funds, insurers, endowments, sovereign wealth funds and private banks all play distinct roles. A large portion of capital is typically raised from large institutions, family offices, and HNWIs. BlackRock reports that alternatives represent 42% of participating families' portfolios, and more than half are bullish on private credit and infrastructure, with nearly one-third planning to increase allocations to each in 2026."
"According to a 2026 Global Private Wealth Survey, 86% of private wealth professionals plan to increase private market investments in 2026, with allocations spread across various strategies. Wealth platforms are also reducing operational friction and funnelling new capital into the market. Taken together, the expansion of the investor base and the acceleration of allocations point to stronger opportunities for managers."
"Private markets are no longer funded primarily by a narrow pool of large institutions; they are increasingly supported by a multi-layered capital stack spanning private wealth channels, family offices, and high-net-worth individuals. As wealth platforms streamline access and other allocation pipelines mature, the flow of capital into private strategies is likely to become more consistent and diversified. For managers, understanding the differing objectives, liquidity expectations, and governance standards across this broader investor spectrum will be essential to navigating the next phase of private markets growth."
Investors in private funds now span high-net-worth individuals, single- and multi-family offices, pension funds, insurers, endowments, sovereign wealth funds, and private banks. Large institutions, family offices, and HNWIs supply a substantial portion of capital. Alternatives account for a large share of participating families' portfolios, with many investors bullish on private credit and infrastructure and planning allocation increases in 2026. Most private wealth professionals intend to raise private market exposures next year. Wealth platforms are reducing operational friction and directing fresh capital into private strategies. Managers must align with varied objectives, liquidity expectations, and governance standards across this broader investor base.
Read at London Business News | Londonlovesbusiness.com
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