The wealth channel is expected to boost EMEA private markets growth significantly over the next five years, according to a recent BlackRock survey.
The asset manager surveyed 70 wealth professionals from 17 countries across EMEA and found that all respondents expect their wealth clients will incorporate private markets into their portfolios by 2030.
BlackRock conducted the poll at its inaugural EMEA Private Markets Wealth Summit in London at the end of March.
Read more: US wealth managers increase alts allocations
It found that current allocations to private markets are very low, with two-thirds of wealth investors believed to allocate just 0-0.5 per cent of their portfolios to this segment of the market currently.
By 2030, it is expected that all wealth investors will allocate a segment of their portfolios to private markets, with more than 70 per cent forecast to allocate between five and 20 per cent.
Furthermore, the proportion of wealth investors allocating over 20 per cent of their portfolios to private markets is expected to double by 2030.
Read more: Goldman Sachs Alts launches infra strategy for private wealth market
Private equity, infrastructure and private credit are projected to deliver the strongest investment performance in private markets over the next five years.
When choosing their managers, wealth professionals cited liquidity management, brand reputation and reporting transparency as key factors.
They also highlighted the benefits of technology and data when constructing portfolios and providing market transparency for their clients.
Read more: BlackRock predicts more performance dispersion in private debt
“Private markets currently account for about $13tn (£9.7tn) of assets globally and it is expected to grow to more than $20tn by 2030, which will require a significant increase in allocations,” said Fabio Osta, head of the alternatives specialist team in EMEA wealth at BlackRock.
“We believe this growth will increasingly come from the wealth channel, in addition to institutional investors, as we continue to make investing in private markets easier and more accessible for a broader range of investors and head towards the potential 50/30/20 portfolio of the future.”
