Australian clients lead the way for private markets enthusiasm
Australian advised clients are the most eager among global peers to invest in private markets, with their knowledge of the asset class also being higher.
The investment firm’s annual Global Private Wealth Survey, canvassing 320 advisers across the globe, explored how private markets are reshaping the advice landscape.
Hamilton Lane discovered that Australian advised clients exhibit the highest enthusiasm for the asset class out of all the regions, with 61 per cent of clients described as “very interested”.
The US followed at 53 per cent for eager clients, Canada at 42 per cent, and Europe at 33 per cent.
Australia also reported the highest number of clients who said they hold a strong understanding of how private markets operate.
The majority (52 per cent) of Australian advisers reported their clients’ knowledge of the asset class as intermediate, while 36 per cent ranked it as beginner and 13 per cent as advanced.
In comparison, just 5 per cent of European advisers described their clients’ private markets education as advanced, and 48 per cent respectively said it was beginner or intermediate.
Across the globe, Hamilton Lane discovered that a key reason why advisers are offering private market investments is to have a competitive edge when attracting and retaining clients. Some 70 per cent of global respondents said they provide these investments to strengthen their relationships with current clients, and 58 per cent said to attract new clients.
Three-quarters of advisers globally said their clients believe private markets offer higher rewards than stocks and bonds due to the performance and diversification benefits.
As a result, 30 per cent of all survey respondents stated they plan to allocate 20 per cent or more of client portfolios to the asset class.
Another 29 per cent intend to allocate 10 per cent or more, indicating that nearly 60 per cent of advisers globally are planning to allocate above 10 per cent to private market investments this year.
This marked a 15 per cent increase from the 2024 survey, Hamilton Lane noted, representing a positive shift in comfort with the asset class as investor interest rises.
“The strong interest in private markets among our Australian private wealth clients is directly aligned with the report’s findings, which underscore a global shift towards this asset class for diversification and long-term performance enhancement,” said Scott Thomas, Hamilton Lane’s Australian head of private wealth.
Steve Brennan, head of private wealth solutions at Hamilton Lane, added the findings signal the growing enthusiasm and appreciation surrounding the benefits of private market opportunities.
“Just a few years ago, we would never have expected to see nearly 60 per cent of advisers planning to allocate 10 per cent or more of clients’ portfolios to this asset class in the coming year. To us, this reinforces the growing understanding of the wealth creation opportunities within the private markets,” Brennan explained.
When asked how advisers are planning to adjust their sector allocations in 2025 in light of this increased interest, nearly half of global respondents said they are looking to increase exposure to private infrastructure.
This was followed by 45 per cent of advisers planning to raise allocations to private equity, and 39 per cent intending to increase private credit allocation.
AUTHOR
Jasmine Siljic
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