- One in three affluent investors (32%) already allocate to private markets, with Millennials far more likely to invest than older generations
- Benchmarks and indices are seen as critical to building confidence and bringing private markets into the mainstream
- Strong trust in advisors makes them the primary gateway to private markets – but many are missing the opportunity
FTSE Russell, LSEG’s global index provider, today launched its 2026 U.S. Wealth Pulse Survey, showing that private markets are rapidly moving toward the mainstream of affluent investors’ portfolios, led by Millennials' stronger risk appetite and longer time horizons. While investors report strong satisfaction with portfolio performance in 2025, they are more cautious regarding the rest of 2026, though younger investors are more optimistic than those approaching retirement.
Adam Gebler, Head of Wealth, Americas, at FTSE Russell, said:
"Our research shows investors are interested in private markets, but they're looking for guidance on how to incorporate and use them, which means activation runs through the advisor. This creates a clear opportunity to better equip their advisors with the tools, education and solutions investors are seeking."
Satisfied with 2025 perfomance, investors cautious about 2026
The survey finds that more than nine in 10 affluent investors (91%) are satisfied with their 2025 performance, including nearly half (47%) who are very satisfied. This is a sharp rise from 2024 (80% satisfied and 30% very satisfied). Satisfaction is even higher among advised investors, with half (50%) saying they are very satisfied.
Looking ahead, optimism is more cautious. Two-thirds (66%) are positive about portfolio performance over the next six months and half (51%) about the U.S. stock market, both down from last year (76% and 57%, respectively). Positive sentiment toward the U.S. economy (45%), the global economy (40%) and inflation (33%) remains subdued and broadly unchanged.
Benchmarks and the road to mainstream
As private markets become part of mainstream investing, investors see standardised benchmarks as critical for building confidence. More than three-quarters (78%) say benchmarks increase their confidence in private markets, and 92% say benchmark comparison is important when evaluating returns – with 45% calling it “very important.”
Benchmarks matter most to younger investors, with 62% of Millennials rating them as very important, compared with just 40% of Gen X and 36% of Boomers.
While high return potential is the main attraction of private markets for affluent investors (67%), performance uncertainty remains the biggest barrier (42%), ahead of high fees (36%) and complexity (35%).
Most investors are willing to trade liquidity for higher returns, with 57% prepared to sacrifice some liquidity in exchange for just moderately higher returns, and among those open to limited liquidity (e.g., 5+ year lock-up), more than four in 10 (44%) would require an annual premium (above public markets) of 5–9%, a quarter (26%) would require 10–14%, and almost a fifth (17%) would require 15% or more.
Advisors are key to adoption – an untapped opportunity
Most private markets investors access the asset class through an advisor. More than three-quarters (77%) invest with a financial advisor, with 44% relying on wealth managers or private banks, a pattern mirrored among prospective investors. Current investors have also accessed private markets directly (33%) or through a self-directed brokerage platform (36%).
Advisor recommendations are especially powerful. While just over half of investors who work with an advisor (55%) are interested in private markets regardless of whether their advisor recommends it, 89% say they would invest following a strong recommendation from their advisor. Yet engagement remains uneven, as nearly half of investors with an advisor (48%) have not discussed private markets, and only around a quarter (26%) have had detailed conversations.
Demand for education is high. Most affluent investors (72%) want to learn more about private markets, with advisor-led discussions their preferred source of information, ranked among the top three by 62%.
Private markets gaining traction – especially with Millennials
Private markets have become a significant part of affluent portfolios in a short period. One in three investors (32%) are currently investing in private markets, with 61% doing so for the first time within the past five years, with 74% allocating 10% or more of their portfolios.
Familiarity with private markets varies by asset class. Familiarity is highest with hedge funds (58%), private equity (56%) and private real estate funds (50%), while awareness is lower for private credit/private debt funds (45%), business development companies (BDCs) (34%) and interval funds (25%).
Generational differences are pronounced. Nearly nine in 10 Millennials (87%) are familiar with private markets and two thirds (67%) already invest, compared with 30% of Gen X and just 11% of Baby Boomers. Looking ahead, a quarter (24%) of those surveyed that are not yet investing in private markets expect to do so in the next 12 months; of these potential investors, 56% were Millennials compared to just 19% for Boomers.
Ali Zaidi, Head of Alternatives at FTSE Russell, comments on the findings:
“Investors effectively forgo the premium of private investments by positioning for liquidity that is not intended to be utilised, maintaining fully liquid portfolios despite long-term investment horizons. With regulatory and retirement tax frameworks structurally aligned with long-term capital, such portfolios may therefore be inherently inefficient. As private markets mature – bringing greater transparency through more timely performance data – investors are better able to introspect and align allocations with their investment horizons.”
Workplace plans could further drive adoption
Workplace retirement plans appear poised to become an important channel for expanding access to private markets. Among workplace plan participants, three-quarters (77%) say they would consider allocating to private markets if such options were made available, and more than a third (35%) say they would definitely do so.
FTSE Russell supports investors across private markets through a growing suite of benchmarks, including daily private market indices developed with StepStone and listed private market indices delivered in partnership with LPX.
