Barclays Private Bank and Wealth Management has published its second annual private markets report entitled “Mind the gap: How private markets can align to the evolving needs of private investors,” highlighting the role that private markets play for wealthy individuals and family offices.

A new report from Barclays Private Bank and Wealth Management shows that a majority (89 per cent) of those already actively participating in private markets view them as an important part in shaping their overall investment strategy.

Forty-eight per cent of respondents not currently investing in private markets said they would consider doing so in the future, the report reveals, while 79 per cent of those surveyed expect to increase their allocations to private markets in the future.

Almost all respondents who currently invest in private markets see them as an attractive route for capital appreciation (91 per cent), are willing to accept less liquidity for long-term gain (89 per cent), and value the ability to diversify beyond public markets (89 per cent).

The research, which was commissioned by Barclays in collaboration with Savanta, surveyed over 550 high net worth individuals, 554 limited partners (UK, Europe, Asia, Africa and Middle East) and 146 general partners between June and August 2025. Private markets include private equity, venture capital, private credit, real assets, and secondaries. Private investors refer to those with more than ÂŁ5 million ($6.5 million) in investable assets, with current investors having on average 30 per cent of their portfolio allocated to private markets.

The report also reveals that private equity and real estate remain the leading asset classes within private markets, attracting a majority of current investors (75 per cent in real estate and 73 per cent in private equity). However, the landscape is evolving with over two in five now actively considering private debt/credit (47 per cent), venture capital (43 per cent) and a third considering secondaries (33 per cent) for future investments.

Among those not currently investing in private markets, real estate draws the most interest (68 per cent) followed by private equity (59 per cent) and private debt/credit (30 per cent).

Investor interest in real estate and private equity appears to stem from greater familiarity with these sectors, the firm said. A significant majority reported a strong understanding of real estate and private equity compared with lower levels of familiarity with other private markets asset classes.

Three in four (75 per cent) GPs describe the current sentiment surrounding private markets with investors as positive. Co-investments have become commonplace, with over three quarters (83 per cent) of GPs using this structure to serve clients, while larger firms managing more than $100 billion deploy a range of investment strategies including evergreen (80 per cent) and feeder funds (71 er cent) to cater to increasingly sophisticated investor needs.   

“Private markets are no longer a niche and are becoming a more common component of high net worth investor strategies, and we are seeing that private investors are showing a growing level of sophistication in their approach to the asset class,” Shenal Kakad, global head of private markets at Barclays Private Bank and Wealth Management, said. “They are scrutinising opportunities more closely, favouring established managers, and exploring structures that offer both performance potential and liquidity flexibility. This marks a clear shift from access to strategy.”

A number of wealth managers including Nils Rode, chief investment officer at Schroders Capital, the specialist private markets arm of UK-listed Schroders, also believe that the potential of investing in private markets to help navigate this prevailing global uncertainty has arguably never been more important. See here.