The research found that 80% of wealth managers are already investing in private assets on behalf of their clients as they seek to provide additional sources of diversification, enhanced performance, and an alternative source of income. With wealth managers allocating on average only 5% of their total assets under management to private assets, there is significant interest in, and potential for, further growth.
Survey participants, however, noted a number of barriers to investing more in private assets, including the availability of appropriate fund vehicles; the regulatory barriers that prevent their sale to all but the most sophisticated and wealthy retail investors; and the higher costs involved with private asset investments. The issue of liquidity expectations on the part of clients was also flagged as a barrier.