Survey: Private markets funds are moving out of the margins

Wealth Club surveyed 100 UK IFAs and wealth managers and 100 private markets fund managers. What are their views on the opportunities and risks of investing in private markets? How do they expect the sector to change?

In November 2024, Wealth Club launched the UK's first non-advisory private markets funds platform for high net worth and sophisticated investors.

Our platform aimed to make this asset class – traditionally the preserve of institutions and the ultra-wealthy – as accessible as more mainstream investments.

Since then, interest in private markets has continued to grow, with fund managers developing new evergreen products and advisers considering how these strategies could fit within eligible investors’ portfolios.

To understand how the market is evolving, Wealth Club surveyed 100 UK Independent Financial Advisers (IFAs) and wealth managers and 100 UK private markets fund managers working across private equity, private credit, real estate and infrastructure in June 2026. The report also incorporates responses from up to 548 Wealth Club clients, surveyed in July 2026, with average investible wealth of £3.8 million.

• 82% of advisers expect investor inflows into private equity to increase over the next five years
• 94% of fund managers agree that clients need exposure to private markets to access a broader range of growth opportunities
• 74% of advisers plan to boost their personal private market investments due to the increasing availability of evergreen funds

The findings reflect the views and expectations of the respondents surveyed. They do not necessarily reflect the views of Wealth Club and should not be regarded as personal financial advice or a recommendation to invest.

For decades, pension funds, insurers and endowments have used private equity and private credit as important components of their portfolios, but access for individual high net worth and sophisticated investors has been far more limited.

As companies stay private for longer, more of their growth can occur before they reach public markets, meaning individual investors may miss part of that growth. In response, fund managers have launched a growing range of evergreen private markets funds, making these strategies more accessible than ever before.

That trend is reflected in Wealth Club's own private markets offering. Since launch, we have more than doubled our fund range and this year launched the UK's first Private Markets SIPP.

But how confident are fund managers and wealth managers about the future of private markets? Where do they expect demand to come from? How do investors want to access these strategies, and what barriers could slow wider adoption?

Wealth managers and IFAs expect increased capital inflows into private markets funds from eligible investors, with private equity emerging as the clear frontrunner, the research found.

Today, private markets remain a relatively niche allocation. Just 4% of advisers report that more than half of their clients have private market exposure, while almost a quarter (23%) say fewer than 10% invest in the asset class.

However, advisers expect that picture to change significantly over the next three years. The proportion reporting that more than half of their clients are invested in private markets is expected to more than triple, rising to 13%, while those with minimal client exposure are forecast to fall from 23% to just 9%.

Private equity is expected to outpace all other alternative asset classes, with more than eight in 10 (82%) respondents expecting investor inflows into the sector to increase over the next five years, with 53% of these forecasting a “significant” or “dramatic” rise.

Infrastructure stands out as another beneficiary, with three in four (75%) predicting allocations to increase over the next five years. Of these, 37% expect there will be a “significant” or “dramatic” rise.

Private credit also appears to have robust momentum, with more than two out of three (65%) surveyed predicting that inflows into private credit will rise over the next five years, with a notable 39% expecting a “significant” or “dramatic” uptick.

Real estate and venture capital, though still showing positive net growth expectations, face slightly more tempered outlooks. Whilst 66% of respondents expect real estate fund inflows to increase, 11% predict a slight decrease. Venture capital inflows are expected to rise by 61% of advisers, though more than a third (35%) believe allocations will simply hold steady.

As well as an expanding client base, the study found there is also an expectation for a deeper commitment of capital.

Currently only 3% of wealth managers and IFAs surveyed allocate more than 30% of their clients’ total investible assets to private markets. In three years, that figure is projected to rise to 13%. The single largest allocation band will become the 10% to 20% range, expected by 41% of wealth managers.

With inflows and allocations set to increase, the underlying fund structures used by wealth managers are also set to shift. Listed investment trusts currently remain the most popular access route, utilised by 57% of advisers. However, looking ahead three years, this dominance is set to decline to 48%, heavily challenged by the rise of open-ended evergreen (or semi-liquid) structures.

Advisers using evergreen funds are expected to climb slightly from 43% today to 48% in three years, drawing level with listed investment trusts. Traditional closed-ended drawdown funds are also expected to rise a little from 32% to 37%.

The advisers surveyed increasingly view private markets not simply as a specialist allocation, but as a potential component of a diversified portfolio for eligible investors.

Some 94% of wealth managers and IFAs agree that relying solely on a traditional 60/40 portfolio risks missing some of the primary wealth-generation engines of the modern economy. Similarly, 89% believe access to private markets is important for capturing the high-growth phase of a company's lifecycle, with 30% describing it as essential.

Respondents highlighted a range of benefits beyond access to growth opportunities. Nearly three-quarters (72%) cited enhanced long-term capital growth potential, while around half pointed to inflation protection (48%) and access to sectors and opportunities unavailable on public markets (47%). Reduced volatility (35%) and lower correlation with public markets (26%) were also cited by respondents as potential benefits.

Advisers do not see this as a short-term trend. More than nine in ten (92%) expect the need for private market exposure to increase over the next five years as investors seek access to a broader range of growth opportunities.

Wealth Club's research, conducted among investors with an average wealth of £3.8 million, found strong existing engagement with private markets and a clear intention to increase allocations in the years ahead.

Nearly half (47%) already have exposure to private markets outside of VCT, EIS and SEIS investments, while more than half (52%) hold private market investments through their pension or SIPP. More than a third (35%) plan to increase their allocations over the next three years, suggesting demand is set to grow further.

Private equity is by far the most popular private market asset class among high net worth and experienced investors, with 80% of private market investors holding exposure. Infrastructure follows at 33%, while 26% invest in real estate and venture capital each.

Despite this interest, allocations remain relatively modest. Most investors hold less than 10% of their portfolio in private markets, with 35% allocating between 1% and 5% and 32% holding between 6% and 10%.

Additionally, investors view valuation concerns (42%) and lack of transparency (40%) as some of the biggest barriers to allocating more in private markets.

Investment trusts remain the most popular route into private markets, used by 75% of investors, while 41% invest directly. However, evergreen private markets funds are gaining attention, with more than one in five (21%) identifying them as an attractive investment vehicle.

Private market fund managers are increasingly focusing on eligible investors, anticipating strong growth in demand over the coming years.

Nearly half (49%) already target this market through evergreen funds, while almost all of the remainder (50%) plan to do so in future. Of those planning a launch, 42% expect to bring products to market within the next year and a further 40% within one to three years. Just 1% have no plans to target eligible investors.

This increased focus is expected to translate into higher fundraising from private investors. Fund managers estimate that eligible investors will account for 14% of inflows within five years, up from 9.5% today.

Greater competition is also expected to broaden access. Nearly six in ten (59%) expect minimum investments in evergreen funds to fall below £50,000, including one in five (20%) targeting minimums between £10,000 and £20,000, although 11% still expect minimum investments above £250,000.

Managers expect growth across the private markets domain, with infrastructure attracting the strongest optimism. More than four in five (81%) expect inflows into infrastructure to increase over the next five years, narrowly ahead of private credit (78%) and private equity (77%).

The industry's confidence in private markets is reflected in how advisers and fund managers invest their own wealth.

Almost all wealth managers and IFAs surveyed (98%) already hold private market investments outside VCTs and EIS, with nearly three-quarters (73%) allocating more than 5% of their personal investible assets to the asset class. That proportion is expected to rise to 83% within three years.

Private market fund managers are similarly committed. On average, they currently allocate 12% of their personal wealth, excluding property, VCTs and EIS investments, to private markets. Within three years, that figure is expected to rise to 18%, with only 1% expecting to have no private market exposure.

Growing availability of evergreen funds appears to be helping drive this trend. Almost three-quarters (74%) of advisers say they expect to increase their personal private market investments specifically because of the expansion of evergreen fund structures.

Around 40% of advisers already invest through evergreen funds, while fund managers (52%) are even more likely to do so. Looking ahead, 92% of fund managers say they would probably or definitely invest in private markets through a SIPP, rising to 95% if investments were available through an ISA wrapper.

Fund managers and advisers believe evergreen private markets funds will play a central role in the next phase of growth for private markets.

Nearly nine in ten (89%) private market fund managers agree that, as more companies remain private and lending increasingly moves outside traditional banking channels, eligible high net worth and sophisticated investors need access to private markets to capture a broader range of investment opportunities. More than nine in ten (91%) believe this trend will strengthen over the next five years.

To meet this demand, managers expect a significant increase in the number of evergreen funds available to investors. More than six in ten (62%) predict significant or dramatic growth in fund launches over the next three years, while a further 27% expect a more modest increase.

Evergreen structures are increasingly seen as the key mechanism for broadening access. More than three-quarters (77%) of fund managers believe they will be essential or very important to the mainstream adoption of private market investing, whilst 92% of advisers expect evergreen funds to account for at least 5% of clients' investible assets within the next decade.

This expansion is expected to drive substantial inflows. Some 94% of wealth managers and IFAs anticipate growth in the amount of individual investor capital invested in private markets over the next three years, while 92% expect the number of evergreen funds available to investors to increase.

Private market fund managers believe SIPPs will play an important role in broadening access to private markets over the next five years.

The vast majority (85%) believe greater access through SIPPs will have a positive impact on investor participation, with almost a quarter (24%) expecting the effect to be very positive.

That optimism is already translating into product development. More than three-quarters (77%) of fund managers say they are likely to develop products specifically for eligible investors using SIPPs over the next five years, while just 3% have no plans to do so.

The research also points to growing interest in other tax-efficient wrappers. Around three-quarters (74%) of fund managers expect to develop products suitable for ISAs, although some (58%) continue to cite the UK's regulatory framework as a barrier to wider adoption.

Recent warnings from the Bank of England and JPMorgan CEO Jamie Dimon, together with withdrawal restrictions imposed by some funds, have brought increased scrutiny to the private credit market.

Most private market fund managers acknowledge those concerns, but do not believe they pose a material threat to the wider sector. More than two-thirds (68%) believe some concerns are justified but manageable, while 8% think they are significantly overblown.

That is not to say managers are unconcerned. One in five (21%) believe there are serious risks in parts of the private credit market, while 61% are fairly or very concerned that problems in private credit could become a financial stability issue during a future economic downturn.

Despite these reservations, few expect concerns around private credit to significantly dent investor appetite for private markets more broadly. While 39% believe sentiment may be affected to some degree, 40% expect no wider impact and 19% believe investors could instead increase allocations to other private market sectors.

When asked about the biggest risks facing private credit, managers most commonly highlighted over-optimistic valuations (25%), followed by rising defaults (17%) and investor exposure (16%).

While wealth managers and IFAs increasingly recognise the benefits of private markets for eligible investors, the Consumer Duty is having a meaningful influence on how these investments are assessed and recommended.

More than three-quarters (77%) of advisers say the Consumer Duty has had a moderate or significant impact on their willingness to recommend private market investments. However, only 1% say it prevents them from recommending private market investments entirely.

Instead, advisers appear focused on ensuring private markets are used appropriately within portfolios. When asked what represents the absolute maximum allocation for an eligible high net worth or sophisticated investor, advisers suggested an average limit of 13%, with none saying investors should have no exposure at all.

Beyond regulation, operational challenges continue to hamper wider adoption. Complex tax reporting requirements are viewed as the single biggest obstacle, cited by 39% of advisers, ahead of limited independent research and ratings (23%) and high minimum investment thresholds (20%).

The research also highlights a need for greater transparency. Advisers most frequently cited difficulties obtaining underlying asset performance data (29%), understanding valuation methodologies (27%), and evaluating fee structures and carry arrangements (25%). These issues can make due diligence more complex and increase the challenge of demonstrating good client outcomes.

Private market fund managers believe investment platforms will play a central role in bringing private markets to a wider audience over the next five years.

Six in ten (60%) identify platforms as an important distribution channel, ahead of wealth managers and IFAs (52%). Private banks (29%) and pension and SIPP providers (27%) are also expected to play an important role, while few managers (5%) see direct-to-consumer investment apps as a significant route to market.

This reflects where managers see the greatest opportunity. More than a third (36%) identify mass affluent investors advised by wealth managers as the most attractive growth market, while 32% highlight eligible investors accessing private markets through investment platforms.

Nearly half (47%) of managers say their interest in the high net worth market is driven by the opportunity to access growing pools of private wealth, while 27% see it as a way to diversify their investor base.

However, broader adoption will depend on overcoming operational and educational challenges. Reporting and regulatory requirements are viewed as the biggest obstacle by 32% of managers, while 29% point to the need to build larger investor relations teams.

Managers also recognise that investor education remains a significant barrier. More than half (56%) expect specialist investment platforms to play an important role in addressing this challenge, ahead of simplifying product structures (53%), adviser-led education (47%), greater transparency and reporting (46%), and third-party research partnerships (42%).

The respondents of the June 2026 survey comprise 100 IFAs and wealth managers in the UK, and 100 private markets fund managers in the UK working across private equity, private credit, real estate and infrastructure. The respondents of the July 2026 survey comprise up to 548 Wealth Club clients, with the average wealth of those who chose to disclose it being £3.8 million. Results describe this survey sample and should not be treated as representative of all UK IFAs, wealth managers, private markets fund managers or investors.

The survey was conducted by Wealth Club, the UK’s leading non-advisory investment platform for high net worth and experienced investors.