Blackstone’s private wealth group recently conducted its “Summer 2025 Advisor Pulse” survey, showing that financial advisors within Blackstone’s global network are quite positive about private markets.

Despite the increasing challenges of volatile markets and geopolitical tensions, a survey by Blackstone, a New York-based alternative asset manager with $1 trillion in assets under management, shows that advisors are increasing allocations to private markets in client portfolios. Clients are showing a strong interest in private markets when introduced for the first time, according to the survey.

While traditional private equity might be slowing and continuing along that path, 68 per cent of advisors said they plan to raise private market allocations in the current environment.

This quarter’s survey included over 160 financial advisors within Blackstone’s global network to gain insight into how advisors are managing current market conditions and their outlook on private markets.

It shows that financial advisors are hearing growing concerns from clients about volatility in the public markets. When asked what their clients are most focused on in today’s market environment, 66 per cent of advisors cited public market volatility.

The rise of private market investing has become one of the dominant themes in wealth management. In the decade after the 2008 financial crash, ultra-low interest rates crushed yields on government bonds and listed equities, making private equity, venture capital and private credit more attractive by comparison. On the supply side, more firms are staying private, and not listing on stock markets, and a number are reverting to private hands. These forces have combined to make this area significant. These assets are typically less liquid than listed equities and bonds, with the promise â€“ other things being equal â€“ of paying superior returns to compensate for that illiquidity. However, there are concerns that the area is becoming overhyped. See more commentary here, here and here.

Diversification
Advisors in the survey also agreed that private assets offer important diversification benefits, with real assets such as real estate and infrastructure having low correlation to public markets. Private credit complements public fixed income by providing higher income and reducing duration risk, the survey found. Private equity returns are typically driven by revenue growth rather than multiple expansion, which the firm believes provides greater reliability across market environments. 

Seventy-eight per cent of advisors said private market investments are very important for a well-diversified portfolio.

Most clients also showed interest when first introduced to private markets, drawn by potential benefits such as diversification, access to alternative return drivers, and reduced exposure to public market volatility, the firm continued. 

Other firms are also quite positive about private markets in 2025. Although deal activity across private markets is continuing to be sluggish compared with the levels seen in 2021 and 2022, Hamilton Lane, a US private markets investment management firm, recently highlighted how private equity-backed firms have proved to be resilient under stress and work well in uncertain, volatile times.

A report by Chicago-headquartered Adams Street Partners, a private markets investment firm with more than $62 billion in assets under management, shows that the shift towards private markets is accelerating as wealthy individuals seek diversified investment opportunities.