Advisors tell clients to invest in private markets
The majority of financial advisors want their clients to consider investing in private markets, according to a new survey from Blackstone’s private wealth solutions group.
The latest Advisor Pulse surveyed 309 financial advisors and 81 per cent said that over the next 12 months they planned to introduce private markets to clients who have not yet allocated.
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Private credit is seen as a particularly attractive sector thanks to its balance of liquidity and high risk-managed returns. For income-oriented client portfolios, a majority of advisors (60 per cent) already allocate at least five per cent to private credit.
Meanwhile over 25 per cent said that they allocate at least 10 per cent to private credit at present. Seven per cent allocate 20 per cent or more.
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The survey found that most advisors allocate to private real assets for capital appreciation and income generation.
A majority of the advisors allocate at least five per cent to private equity in growth-oriented client portfolios.
However, the survey found that while US family offices have an average allocation of 34 per cent to private equity, just three per cent of the advisors polled came close to approaching that level.
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