Institutional investors pivot towards private market strategies
Private markets were the leading area of institutional mandate activity in the year to March, accounting for half of manager searches.
According to new data from bfinance, 50 per cent of manager searches in the 12 months to March were for private market mandates, up from 43 per cent in the previous year.
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While demand for private equity remained subdued, demand for private debt and infrastructure was strong, with infrastructure rising to 13 per cent of searches.
Semi-liquid vehicles and asset-backed strategies also features strongly among searches as investors demand more stable income with built-in flexibility.
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“As global markets contend with rising volatility, inflationary persistence and geopolitical disruption, investors are rethinking how risk is allocated – not just how much risk is taken,” said Oliver Wade, associate, investment content at bfinance.
“We’re seeing a pivot toward asset classes and strategies that offer both adaptability and resilience: private debt, multi-sector credit, real assets, and uncorrelated hedge fund styles.”
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