## KEY TAKEAWAYS
- **79% of private investors surveyed by Barclays expect to increase allocations to private markets in the future**, with 89% of current participants viewing private markets as integral to their overall investment strategy.
- **Nearly half (48%) of non-participants would consider entering private markets if key barriers were addressed**, primarily perceived risk and uncertainty cited by 56% of this cohort as the main obstacle.
- **Private equity and real estate dominate investor preference within private markets**, with 73% and 75% of current investors respectively allocating capital to these asset classes, driven by expectations of capital appreciation (91%) and portfolio diversification (89%).
- **Professional wealth advisors play a critical role in private markets adoption**, with 69% of private investors relying on trusted wealth managers and relationship managers as their primary information source for private market investment decisions.
- **48% of non-investors are actively considering entry into private markets**, indicating significant untapped capital that could flow into the sector if perceived barriers around risk and transparency are reduced.
## DETAILED SUMMARY
Barclays Private Bank and Wealth Management released its second annual private markets report, *Mind the gap: How private markets can align to the evolving needs of private investors*, revealing strong momentum among wealthy individuals and family offices to expand their exposure to alternative assets. The survey demonstrates broad-based commitment to private markets, with 79% of all respondents expecting to increase their allocations going forward. Among investors already active in the space, the conviction is even stronger: 89% view private markets as an important pillar of their overall investment strategy.
The research identifies substantial growth potential in the segment. Nearly half of respondents not yet participating in private markets—approximately 48%—indicated they are considering entry into the sector. This pool represents meaningful dry powder that could flow into private markets once key barriers are addressed. The primary obstacle identified by 56% of prospective investors is perceived risk and uncertainty, suggesting that improved transparency, risk communication, and education could unlock significant capital allocation shifts.
Current private market investors cite three primary drivers for their participation: 91% view the asset class as an attractive avenue for capital appreciation, 89% are willing to accept reduced liquidity in exchange for long-term returns, and 89% value the diversification benefits relative to public markets. These motivations align with the structural case for private markets in an environment of elevated public market valuations and lower yields in fixed income.
Within private markets, private equity and real estate command dominant positions, attracting 73% and 75% of current investors respectively. These two asset classes continue to serve as the primary vehicles through which wealthy individuals access alternative returns and portfolio diversification. The concentration reflects both historical performance and investor familiarity with these established categories.
A critical finding for asset managers and wealth platforms is the central role of professional advisors in driving private markets adoption. Sixty-nine percent of private investors cite trusted wealth managers and relationship managers as their key information source for private market decisions. This dependency underscores the importance of advisor education, platform accessibility, and the distribution capabilities of institutional wealth platforms in capturing the anticipated capital flows into the sector.
