The demand for private markets investments by asset owners and managers is expected to rise in the next three to five years as investors seek higher yields and greater diversification, according to a recent survey State Street conducted with 170 private market asset managers and asset owners.
According to the survey results, asset managers expect that their median allocation to private market assets will rise from 30 percent to 35 percent, while asset owners believe it will increase from 22 percent to 28 percent. Respondents identified the most significant drivers of this momentum to be diversification from listed markets (59 percent of asset managers and 67 percent of asset owners) and better opportunities for return generation (52 percent of asset managers and 52 percent of asset owners). Some 40 percent of asset managers also identify private markets as an attractive and/or stable source of yield.
However, there are significant barriers to investing in private marke
