Key Takeaways
- • Private Equity is the most-favored destination for new capital, with 54% of surveyed investors planning allocations, up 16 percentage points year over year, while Private Credit draws 44%, up 20 points, according to BBH's second annual Private Markets Investor Survey.
- • 84% of institutional investors and wealth advisers plan to increase private markets exposure within the next two years, and more than a quarter expect over 30% of their investments to flow into private markets strategies over the next five years.
- • Liquidity has emerged as the top priority, with investors preferring a four-to-six-year holding horizon and three in four reporting that time to capital return lengthened over the past year.
- • Transparency is the central demand: investors want more reliable liquidity calculations and clarity on redemption rules and gating criteria, and more than three-quarters turn to GPs or advisers for support.
- • Investors see promise in private markets ETFs and tokenization, but call for better visibility into underlying holdings and higher liquidity and trading efficiency to accelerate adoption.
Summary
Brown Brothers Harriman (BBH) Investor Services released its second annual Private Markets Investor Survey, conducted by Wakefield Research between August 5 and 17, 2026. The survey polled 500 institutional investors and wealth advisers in the United States (150), the United Kingdom (100), Japan (100), Germany (100) and Switzerland (50). Institutional respondents included pension funds, sovereign wealth funds, foundations, insurers and family offices, while adviser respondents included private banks, RIAs and wealth managers serving accredited or high-net-worth clients.
According to the findings, private markets are becoming increasingly central to overall portfolios. More than a quarter of investors expect over 30% of their investments to flow into private markets strategies within five years. Most respondents (84%) intend to raise their private markets allocations within two years. Private equity is the most popular destination for new capital at 54%, a 16-percentage-point increase year over year, followed by private credit at 44%, up 20 points.
Liquidity emerged as the dominant theme. Investors' preferred capital commitment horizon is four to six years, followed by a preference for two to three years. Three in four private markets investors said the time to capital return had lengthened over the past year, which BBH suggests may partly explain the shorter horizons. Lata Vyas, head of Alternative Client Solutions at BBH, said investors are becoming more demanding on liquidity and want to understand how redemptions are managed and what to expect when they need access to capital.
Transparency is a central requirement. Respondents called for more reliable reporting of liquidity calculations and clearer redemption rules and gating criteria, and more than three-quarters said they consult GPs or advisers to better understand these features.
On product innovation, investors view ETFs for private markets as an attractive vehicle, but most said greater transparency into underlying holdings, plus higher liquidity and trading efficiency, would accelerate adoption. Investors also see benefits in tokenization, including blockchain security, fractional ownership and an extended liquidity window. Chris Adams, Global Head of Business Development for Alternative Funds Services at BBH, said managers offering liquidity-providing structures such as evergreen funds, combined with clear rules, real transparency and investor education, are likely to succeed.
According to the findings, private markets are becoming increasingly central to overall portfolios. More than a quarter of investors expect over 30% of their investments to flow into private markets strategies within five years. Most respondents (84%) intend to raise their private markets allocations within two years. Private equity is the most popular destination for new capital at 54%, a 16-percentage-point increase year over year, followed by private credit at 44%, up 20 points.
Liquidity emerged as the dominant theme. Investors' preferred capital commitment horizon is four to six years, followed by a preference for two to three years. Three in four private markets investors said the time to capital return had lengthened over the past year, which BBH suggests may partly explain the shorter horizons. Lata Vyas, head of Alternative Client Solutions at BBH, said investors are becoming more demanding on liquidity and want to understand how redemptions are managed and what to expect when they need access to capital.
Transparency is a central requirement. Respondents called for more reliable reporting of liquidity calculations and clearer redemption rules and gating criteria, and more than three-quarters said they consult GPs or advisers to better understand these features.
On product innovation, investors view ETFs for private markets as an attractive vehicle, but most said greater transparency into underlying holdings, plus higher liquidity and trading efficiency, would accelerate adoption. Investors also see benefits in tokenization, including blockchain security, fractional ownership and an extended liquidity window. Chris Adams, Global Head of Business Development for Alternative Funds Services at BBH, said managers offering liquidity-providing structures such as evergreen funds, combined with clear rules, real transparency and investor education, are likely to succeed.
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