- Global survey of more than 230 investment advisors
highlights diversification and performance as key drivers of
private wealth interest in the asset class
- Ninety-two percent of respondents currently allocate client
capital to private markets, with more than two-thirds planning to
increase allocation
- Opportunity to continue educating private wealth investors,
as advisors cite a knowledge gap between them and their
clients
CONSHOHOCKEN, Pa., June 6, 2024
/PRNewswire/ -- More than 90% of survey respondents currently
allocate client capital to private markets, with essentially all of
them (99%) planning to allocate some portion of client portfolios
to the asset class this year, according to a recent independent
survey conducted by leading global private markets investment
management firm Hamilton Lane (Nasdaq: HLNE).
Uptake Continues
With more than half of advisors (52%) reporting that they plan
to allocate 10%+ of clients' portfolios to private markets, the
survey affirmed the broader industry trend of strong, growing
interest in the private markets among non-institutional investors.
Seventy percent of advisors plan to increase clients' allocation to
the asset class compared to 2023.
Advisors cited performance and diversification as the top
reasons for the spike in interest in the private markets.
Knowledge Gap
In terms of their own knowledge of the private markets, 97% of
advisors report either advanced (55%) or intermediate (42%)
understanding. While advisors are knowledgeable, their clients may
not be.
The survey found that advisors acknowledge that their clients
believe alternatives may provide portfolio benefits but may not be
educated enough on the asset class.
For example, 50% of advisors rate their clients' knowledge about
private markets investments as beginner, or having little to no
knowledge of the asset class and requiring basic education, despite
their strong interest in the asset class. Only 4% of advisors rated
their clients' knowledge about private markets as advanced, or well
versed in the asset class and confident in talking about private
market details, trends and products. In other words, there is an
opportunity to increase end investors' private markets
knowledge.
"The punchline from this survey was an affirmation that as
interest in private markets grows, there is a clear need for more
education," said Steve Brennan, Head
of Private Wealth Solutions at Hamilton Lane. "We've found that a
foundational understanding of the asset class affirms initial
interest from new investors and contributes to a sustained
investing appetite for those who are already allocated. We
anticipate that, as private wealth investors become more
knowledgeable about and familiar with the asset class, private
markets allocations will likely also increase."
When asked what private markets tools and information advisors
would find helpful in their practice, advisors cited education,
thought leadership and events as the top three ways to improve
their clients' knowledge of the asset class.
"Our survey shows that giving private wealth clients more
opportunities to learn about private markets investing can help
both advisors and clients achieve their goals," said Brennan.
"Resources like Hamilton Lane's Knowledge Center, Chart of the Week
and our ongoing podcast series, Private Markets Made Human, were
created to help advisors and clients develop private markets acumen
to further their unique investment objectives."
To view the full report and findings, click here.
Survey Methodology
The online survey was conducted from November 27 – December 22,
2023. The 232 global respondents included private wealth
firms, RIAs, family offices, and other advisor professionals from
the U.S., Canada, LatAm, EMEA and
APAC.
About Hamilton Lane
Hamilton Lane (Nasdaq: HLNE) is one of the largest private
markets investment firms globally, providing innovative solutions
to institutional and private wealth investors around the world.
Dedicated exclusively to private markets investing for more than 30
years, the firm currently employs approximately 700 professionals
operating in offices throughout North
America, Europe,
Asia Pacific and the Middle East. Hamilton Lane has over
$920 billion in assets under
management and supervision, composed of more than $124 billion in discretionary assets and
approximately $796 billion in
non-discretionary assets, as of March 31,
2024. Hamilton Lane specializes in building flexible
investment programs that provide clients access to the full
spectrum of private markets strategies, sectors and geographies.
For more information, please visit our website or follow
Hamilton Lane on LinkedIn.
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SOURCE Hamilton Lane