Private markets continue to attract capital from institutional investors, but the nature of that growth is changing. While momentum remains strong — nearly half of investors plan to increase allocations — the industry appears to be moving beyond a phase of rapid expansion into one of considered optimization. Rather than simply building exposure, investors are increasingly focused on how private markets fit within portfolios, how returns are generated and access routes.
Aviva Investors’ study of 500 institutional investors, collectively representing $6.5 trillion in assets, points to a market that is more mature, selective and differentiated than in previous years. Conviction remains high. However, this is being expressed through evolving implementation choices, greater emphasis on return quality and clearer regional and investor-type divergence.
From expansion to optimization
After years of sustained allocation growth, private markets are
