While demand for private markets is increasing, investment advisors rate their clients’ knowledge in the asset class as limited, according to a survey by Hamilton Lane.
Investors are increasingly seeking exposure outside of traditional stocks and bonds with demand for private markets on the rise. According to a survey by private markets firm Hamilton Lane, 92 percent of investment advisors allocate non-institutional client capital to the asset class.
99 percent are planning to increase exposure this year with 52 percent planning to allocate over 10 percent of client portfolios.
Knowledge Gap
Despite the demand, private clients face a knowledge gap. Only 4 percent of advisors rated their clients’ private markets knowledge as advanced with 50 percent rating them as beginners with little to no knowledge. In contrast, 97 percent of advisors reported either advanced (55 percent) or intermediate (42 percent) understanding.
«The punchline from this survey was an affirmation that as interest in private markets grows, there is a clear need for more education,» said Steve Brennan, head of private wealth solutions at Hamilton Lane. «We’ve found that a foundational understanding of the asset class affirms initial interest from new investors and contributes to a sustained investing appetite for those who are already allocated.»
The survey was conducted online in 2023 from November 27 to December 22. It involves 232 respondents including private wealth firms, registered investment advisors, family offices, and other advisory professionals from the US, Canada, Latin America, EMEA and APAC.
