Top investments now obscured from public trading
In a recent survey conducted by Wealth Club, private markets are emerging as a more attractive investment option compared to publicly-listed markets. This shift is primarily due to several factors, including global stock market volatility, consistently attractive returns, and a lack of Initial Public Offerings (IPOs).
The instability in global stock markets is driving investors towards more stable assets, and private markets, which often provide uncorrelated returns, are becoming more appealing. In addition, private markets, including private equity, real estate, venture capital, private debt, and infrastructure, have shown a track record of consistently attractive returns, making them a favorable option for investors seeking more stable and potentially higher-yielding investments.
The scarcity of new public offerings has led investors to look more closely at private markets for diversification and to capitalize on the broader range of investment opportunities available there. As a result, financial intermediaries anticipate a significant increase in investor wealth being allocated to private markets over the next few years, with many expecting a rise of between 25% and 50% in allocations to these assets.
Nearly 9 out of 10 (87%) private market fund managers expect the percentage of privately-held firms to increase, and around 46% of these managers expect the switch away from publicly-listed markets to increase dramatically. This is particularly significant as currently, 88% of the 159,000 firms globally with revenues of more than $100m (around £73.7m) are privately-held.
Alex Davies, chief executive of Wealth Club, notes that this shift is particularly relevant in the current context, as private market opportunities are becoming more accessible to individual investors. Historically, these opportunities have been inaccessible due to high minimum investments and complex structures. However, Davies asserts that the private credit market is stronger in 2025 compared to the previous year, making it a compelling investment for individual investors.
Furthermore, 97% of private markets fund managers believe that the increase in companies remaining privately-held and a rise in lending outside of traditional banking has made public markets no longer offer the most compelling investments. While no specific data on the percentage of private market managers agreeing with this statement is provided, a further 39% of these managers predict a slight increase in the switch away from publicly-listed markets.
In conclusion, the Wealth Club survey highlights a growing trend towards private markets as a preferred investment option. The stability, attractive returns, and broader range of opportunities available in private markets are driving this shift, with financial intermediaries anticipating a significant increase in investment in these markets over the next few years.
- Given the instability in global stock markets, investors are increasingly turning to private markets for more stable assets, as these markets often offer uncorrelated returns and have a track record of providing attractive returns.
- The scarcity of new public offerings and the rise of privately-held firms have led many investors to capitalize on the broader range of investment opportunities available in private markets, resulting in an expected increase of between 25% and 50% in allocations to these assets over the next few years.
