Private infrastructure and private real estate have the potential to provide a range of benefits in investor portfolios across market environments, Blackstone said in its study. They have a track record of delivering capital appreciation, income generation, inflation mitigation, and low correlation to traditional public asset classes.

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Nearly all surveyed advisors want clients to consider private markets: 81 per cent of advisors said they plan to introduce private markets to clients who have not allocated yet. Given the wide range of objectives clients can pursue with private markets, surveyed advisors see broad applicability. Common objectives include capital appreciation, income generation and diversification.

Blackstone’s Advisor Pulse is a quarterly survey of more than 300 financial advisors across the globe, uncovering their beliefs and attitudes towards private markets investing.

A majority of advisors allocate at least 5 per cent to private equity in growth-oriented client portfolios, the survey shows. Global family offices have an average allocation of 22 per cent to private equity in portfolio – while only 10 per cent of surveyed advisors approach that level.

For income-oriented client portfolios, a majority of advisors also allocate at least 5 per cent to private credit, according to the survey. Private credit has been one of the fastest-growing segments of the financial system over the past 15 years, with the potential of offering higher yields and less market volatility than traditional fixed income investments.

Most advisors allocated to private real assets for capital appreciation (47 per cent) and income generation (38 per cent), the survey reveals. Private infrastructure and private real estate have the potential to provide a range of benefits in investor portfolios across market environments.