Wealth managers are preparing to expand client access to private market assets, with new research indicating portfolios have room to add more. The study suggests firms plan to make visible progress in 2026 as product pipelines and investor demand align.
The core message is straightforward: clients hold lower private market exposure than managers believe is suitable, and firms are mapping out steps to close that gap. The timing points to 2026, when platforms, due-diligence processes, and client education initiatives are expected to mature.
What the Study Signals
“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.”
The finding reflects a broader shift in wealth management. Advisors say private equity, private credit, real assets, and secondaries can add diversification and new sources of return. Many clients, however, still sit under target ranges, often due to liquidity preferences, access hurdles, or limited familiarity with these strategies.
Why Portfolios Lag Target Allocations
Private markets have grown rapidly in institutional portfolios over the past decade. Retail and high-net-worth adoption has lagged, held back by lockups, high minimums, and complex structures. Wealth platforms have also needed time to build screening tools and manager lists that fit compliance rules.
Advisors report that clients want inflation protection, income stability, and lower correlation to public markets. Private credit and infrastructure are frequently cited for these roles. But many investors prefer the daily liquidity of public funds, and that mismatch slows allocation shifts.
- Illiquidity and long holding periods can deter new investors.
- Fee structures vary and can be hard to compare.
- Access to top-tier managers remains limited for smaller tickets.
- Education gaps around risk, cash flows, and valuations persist.
What Could Change by 2026
Wealth managers point to product innovation and better onboarding as keys to progress. Semi-liquid vehicles, interval funds, and evergreen structures are expanding access while moderating lockup terms. Digital platforms are improving subscription, reporting, and tax documentation. Due-diligence teams are scaling, giving advisors clearer guidance on manager selection.
Firms also plan broader client education. Advisors want standardized materials on liquidity, capital calls, and secondary options. Clearer cash-management playbooks should help clients plan around commitments and distributions.
Balanced Views on Risks and Returns
Advocates say diversified private allocations can improve risk-adjusted outcomes. They argue that private credit may offer appealing yields and senior-secured exposure, while secondaries can reduce the “J-curve” typical in private equity.
Others caution that performance dispersion is wide and manager selection is decisive. They note that periods of higher interest rates can stress borrowers, especially in lower-quality private credit, and that valuations in some segments have yet to reset fully. Liquidity remains a central trade-off.
Data, Benchmarks, and Comparisons
Industry surveys in recent years have reported rising interest in private strategies among high-net-worth investors, but average allocations still trail institutional peers. Comparisons with public market drawdowns have also driven investor attention to assets with different cash flow profiles. Case studies shared by advisors often highlight staggered commitments and fund vintage diversification to manage timing risk.
Compliance teams continue to stress suitability and concentration limits. Firms are building tools that map private holdings to overall household risk, helping advisors translate complex exposures into simple portfolio views.
What Investors Should Watch
The road to 2026 will be shaped by product supply, regulatory guidance, and market conditions. Watch for fee compression in semi-liquid vehicles, clearer disclosure on valuation practices, and growth in technology that streamlines access and reporting. Private credit fundraising trends may indicate how quickly wealth channels are opening.
The takeaway is measured but firm: wealth managers see room to grow private market exposure, and they have a plan to advance that in 2026. If product innovation and education efforts stay on track, clients could see more choice, clearer information, and better alignment with long-term goals. The next milestones to monitor are new fund launches, advisor training programs, and early adoption results across large wealth platforms.
