Financial advisers are looking to private credit as a valuable option in increasing diversification, according to Blackstone’s quarterly Advisor Pulse survey. Private credit not only offers improved liquidity, but it also offers high risk-managed returns.
When asked if they will offer private markets to clients, nearly all financial advisers responded by saying yes, with only 2 percent saying no. A majority of advisers already allocate at least 5 percent to private equity, and U.S. family offices allocate an average of 34 percent of their portfolios to private equity.
Private equity can provide enhanced opportunities for capital appreciation and diversification, according to the report. Some 47 percent of advisers credited capital appreciation as their motivation for investing in private real assets, as 36 percent cited income generation. Investing in private infrastructure and private real estate both mitigate inflation, offer tax advantages and have low co
