Wealth managers are signaling a clear shift in client portfolios as a new study finds more room for private market assets, with firms planning to act in 2026. The finding points to a rising interest in assets such as private equity, private credit, infrastructure, and real estate. It also suggests a change in the traditional mix of stocks and bonds that has guided many investors for years.
The study’s core message is simple and direct. Firms see space to increase private market exposure and expect to make progress next year. The timing aligns with a search for stable income, diversification, and potential return drivers after a period of rate volatility and market swings.
“A new study shows there is a lot more room for private market assets in client portfolios and wealth managers expect to make progress filling that space in 2026.”
Why Private Markets Are Back in Focus
Private markets have gained attention as public markets grow more concentrated and dividend yields fluctuate. For some, private assets can offer income streams that are less tied to daily market moves. They can also provide exposure to parts of the economy that are not easily accessible through public shares or bonds.
Private credit funds have drawn investors seeking higher yields as banks scale back some lending. Infrastructure and real estate appeals include inflation-linked cash flows and long-term contracts. Private equity remains a draw for investors willing to accept longer holding periods in exchange for higher growth potential.
Historical Context and the 60/40 Debate
The classic 60/40 stock-bond mix faced a severe test when inflation rose and rates climbed, hitting both sides of the portfolio at once. That experience pushed many firms to review alternative allocations. While alternatives are not new, interest has widened as platforms improve access and disclosures.
Past market cycles show that allocations tend to adjust after big shocks. Some investors adopted a “60/30/10” approach that includes a slice of private or alternative assets. Others have used private credit as a partial substitute for fixed income in search of yield, though with higher risk and lower liquidity.
Access, Liquidity, and Risk Controls
Interest does not erase trade-offs. Private assets are less liquid and often lock up capital for years. Fees can be higher and performance varies widely by manager and vintage year. Those features make selection and pacing critical for planners.
- Liquidity: Redemptions can be limited or delayed during stress.
- Valuation: Pricing updates may lag public markets.
- Fees: Layered costs can reduce net returns.
- Complexity: Strategies can be harder to compare and monitor.
Firms addressing these risks are building stronger due diligence and clearer client education. Many are also setting guardrails on position sizes and cash-flow planning to prevent forced sales of other assets.
What Could Change in 2026
The study points to 2026 as a year of action. Several factors could support the shift. Fund structures aimed at individual investors are maturing, including interval and tender-offer funds. Wealth platforms are adding research tools and managed portfolios that include private assets. Regulatory clarity is improving in some regions, which can ease compliance burdens.
Market conditions will matter. If rates settle and volatility eases, managers may commit capital more steadily. If the economy slows, private credit underwriting and sponsor discipline will face a test. Either way, firms are preparing product shelves and client communications to meet interest.
Investor Impact and Who Benefits
High-net-worth clients are likely first in line due to eligibility rules and tolerance for illiquidity. Over time, simplified vehicles may broaden access. Retirement plans and endowments, which already use private markets, could adjust pacing and sectors as opportunities shift.
For clients, the key questions remain simple. What problem does the allocation solve? How much illiquidity fits the plan? What are the cash needs in the next three to seven years? Clear answers can prevent mistakes during downturns.
Signals to Watch
Several indicators will show whether plans become reality in 2026. Fundraising trends in private credit and infrastructure are one gauge. Secondary market activity can reveal demand for liquidity. Fee compression and manager consolidation may signal a more competitive market for capital.
Advisers will also watch default rates in private credit, exit activity in private equity, and valuation resets in real estate. These metrics shape trust and pacing decisions for new commitments.
The new study captures a mood among wealth managers who see room for private assets and a path to add them next year. The shift will not be uniform and will depend on client goals, risk tolerance, and liquidity needs. If firms pair stronger oversight with patient pacing, private markets could play a larger role in diversified plans. Investors should watch access tools, fees, and risk controls as the industry moves from interest to execution in 2026.
