Private markets participation among wealthy investors surveyed has risen over the past year, even as investors adopt a more selective approach to deploying capital, a survey finds.

After what was a tough time for private equity in 2022 and 2023, new Barclays Private Bank research reveals that there is growing demand for private markets participation, with 72 per cent of respondents currently investing in private markets, up from 50 per cent in 2025.

The Barclays Private Markets Annual Report 2026, now in its third year, surveyed more than 600 wealthy investors across the UK, Europe, Asia, the Middle East and Africa. It shows that 60 per cent plan to increase their allocations in the coming years. Survey participants comprised current private markets investors, former investors and individuals considering investing in private markets in the future.

However, the findings also point to a more measured approach to deployment. While 60 per cent plan to increase allocations, the average proportion allocated to private markets has edged down from 30 per cent to 27 per cent, with investors placing greater emphasis on manager quality, access, due diligence and portfolio construction, the report shows.

A recent survey by alternative assets firm Blackstone also shows that 90 per cent of surveyed advisors are either increasing or maintaining their private equity allocations. Hamilton Lane, a US private markets investment firm, also expects private markets to outperform public ones over the next few years, with infrastructure playing an important role. See more coverage here, here and here.

However, earlier this year, private credit markets were jolted by worries about borrower defaults, leading to withdrawals from funds that raised questions over whether the influx of private client money into the space came with particular risks. Debate remains and some firms argue that non-bank credit markets are in some ways less rather than more risky than conventional bank lending. See here and here.

Barclays report also highlights barriers to private markets participation. Liquidity remains a concern among those not currently invested, while more than half (53 per cent) of investors would like to see improved fee structures and 41 per cent want shorter lock-up periods. Close to one in two of non-investors cite a lack of knowledge as a barrier to investing, highlighting the need for specialist expertise as participation in private markets continues to broaden.

Appetite is also pronounced among younger investors, the report reveals. More than eight in 10 Mennials (84 per cent) plan to increase their private markets allocations, compared with 59 per cent of Generation X investors and 36 per cent of Baby Boomers, pointing to the potential for further growth in participation over time, as the generational wealth transfer continues.

Investment patterns are also evolving. Infrastructure is gaining momentum, with mean allocations rising from 22 per cent to 27 per cent, while 37 per cent of investors not currently participating in private markets are now considering the asset class, up from 14 per cent in 2025, the report reveals. Secondaries also continue to become a more prominent part of portfolios, with 42 per cent of current private markets investors increasing allocations over the past year.

Investors' interests also remain focused on growth sectors, with technology the most popular area for increasing exposure (63 per cent), followed by healthcare (54 per cent), energy (44 per cent) and financial services (40 per cent). At the same time, demand for co-investments is rising, with half of private markets investors already using them and a further 42 per cent of non-users considering doing so, highlighting growing appetite for more direct participation in private market opportunities.

The findings were carried out between 29 May and 5 June 2026 by Savanta on behalf of Barclays.

This week, in a survey by iCapital, the alternative investment platform, it found that three quarters of European advisors use alternative investments, but only one in ten has more than a fifth of their clients allocating, and close to half report fewer than one client in ten invested. The share of advisors planning to allocate more to alternatives more than tripled, from 11 per cent to 36 per cent, while the share planning to allocate less rose from 3 per cent to 16 per cent. Europe is separating into firms accelerating their alternatives programs and firms stepping back.

The survey also found that advisors most often cite limited model portfolios for alternatives (56 per cent), understanding how alternatives affect overall portfolio construction (54 per cent), and difficulty assessing liquidity and risk exposure (52 per cent) as their biggest challenges. Access to institutional-quality product has become more constraining, not less.

In other news, Barclays Private Bank opened a booking centre in Singapore, representing something of a return to the jurisdiction after a 10-year period.