Blackstone reports growing confidence in private markets, according to a new study from its Private Wealth division. The survey found that 75% of financial advisors expect private markets to record the strongest growth this year, indicating a rebound after disruptions caused by the pandemic and higher interest rates. Advisors cited elevated equity valuations and increased volatility in public markets as key drivers behind portfolio shifts, while concerns about inflation and rising rates have diminished significantly. About 40% pointed to high stock valuations as the primary reason for diversification, and 32% referenced public market volatility. Nearly 40% said long-term capital appreciation and diversification will shape client investment decisions in the year ahead.
The study highlights private real estate as a preferred allocation, with 61% of advisors viewing it as more attractive than traditional stocks and bonds. Respondents noted lower valuations relative to public markets, historically low correlation with listed assets, stable income potential, and inflation mitigation benefits. Firms such as KKR and Carlyle continue expanding their private wealth channels to reach affluent investors, while institutional allocations remain constrained. Franklin Templeton and Hamilton Lane also project strong private market performance, with infrastructure expected to play a central role in returns over the coming years.
