Demand for private markets exposure is accelerating as high net worth individuals (HNWI) seek diversified investment opportunities, according to a report from Adams Street Partners.

The private markets investment firm’s global survey of financial advisers found that 67 per cent anticipated an increase in the percentage of clients with an allocation to private markets over the next three years.

This demand was being driven by performance expectations, with 92 per cent of those surveyed predicting that the asset class will outperform public markets over the long term.

Around two thirds (65 per cent) of financial advisers said at least 10 per cent of their clients had private market investments.

Furthermore, advisers felt there had been progress on addressing private markets investment barriers, such as complexity, limited access, and tax reporting preferences.

The expansion of private markets access was supported by structures such as evergreen trusts, with 44 per cent of advisers preferring them to traditional closed-end funds, and digital platforms.

This has resulted in the wealth management market emerging as a “significant and fast-growing” source of private markets capital, according to the report.

“Individual investors are playing an increasingly vital role in the evolution of private markets,” commented Adams Street head of investments, Jeffrey Diehl.

“As access expands and product innovation accelerates, we see a meaningful opportunity to deliver differentiated returns through high-quality private equity and private credit investments—strategies traditionally reserved for institutional portfolios.”

However, an education gap was identified, with 69 per cent of advisers stating that the complexity of private markets made it difficult to communicate effectively with clients.

When asked about investment priorities, 58 per cent of advisers saw technology as a key investment sector for 2025, followed by financial services (42 per cent).

Advisers also reported an expectation that artificial intelligence would ‘transform’ how they engage with clients, predicting enhancements in risk management (52 per cent), market forecasting (48 per cent), and operational efficiency (48 per cent).

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