Despite the growth of private markets and their strong investment returns, retail investors continue to have little exposure to the asset class, a survey by Morningstar has found.
According to the financial research company, 72 per cent of the retail segment does not invest in private markets, and 52 per cent avoids alternatives altogether even though globally 1,643 private companies are valued at over $1bn (£0.7bn).
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“Our findings show that access and understanding remain major hurdles in private markets, even as interest grows,” said Joseph Agostinelli, senior director of market research at Morningstar, adding that “investors are signalling a clear need for human judgement in an increasingly digital investment landscape”.
Morningstar’s survey is based on 5,793 online responses collected from across the US, the UK, Canada, and Australia in March 2026. The respondents represented a diverse sample across age, gender, ethnicity, household income, employment status, and investable assets.
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The survey found that only 18 per cent of UK retail investors say they understand private markets, suggesting comprehension is a barrier. This is leading investors to increasingly rely on financial advisers for guidance, reassurance, and judgement, in addition to greater returns, Morningstar argues.
Of the 89 per cent of UK investors who work with financial advisers, many struggle with trust and information overload despite rating advisers highly in shaping investment strategies.
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In terms of allocation among alternative assets, private debt rose by two per cent, representing eight per cent of allocations in 2026. Cryptocurrencies remained the most popular alternative asset, at 23 per cent in 2026, and private equity dropped by four per cent, to 22 per cent in 2026.
Morningstar suggests alternative assets should be held for at least 10 years but notes 41 per cent of respondents are only comfortable holding them for a maximum period of three years.
