A recent survey conducted by Blackstone reveals that financial advisors plan to increase client exposure to private markets in 2025, highlighting a growing emphasis on diversification. The Winter 2024 Pulse Survey, which included 157 advisors, found that 79 percent intend to raise private market allocations. As reported by InvestmentNews, only 7 percent expect to increase exposure to fixed income or equities.

The push toward private markets aligns with advisors' efforts to enhance portfolio diversification, with 55 percent of respondents citing broader diversification as a top priority for their clients. The survey noted that advisors increasingly view private markets as an effective way to move beyond the traditional 60/40 stock-and-bond allocation model.

Digital infrastructure has emerged as a key growth sector, with 52 percent of advisors identifying it as the industry most likely to benefit from advancements in artificial intelligence (AI). The demand for digital infrastructure, including data centers, has surged 17-fold since 2019, driven by the rise of sophisticated AI technologies. Other sectors, such as healthcare and logistics, garnered significantly less interest, with just 16 percent and 13 percent of advisors favoring them, respectively.

Interest in private infrastructure investments is also growing, with nearly 60 percent of advisors reporting client exposure to the sector. Among those, 40 percent allocate between 1 percent and 3 percent of client portfolios to private infrastructure. In response to this trend, Blackstone has launched a private infrastructure fund targeting accredited investors, which has raised $1 billion as of early January 2025.

While advisors express enthusiasm for alternative investments, challenges remain. According to InvestmentNews and a separate Fuse Research report, barriers such as liquidity, accessibility, client suitability, and operational hurdles continue to slow broader adoption in the retail investor market. Mike Evans, director of BenchMark Research at Fuse, emphasized these concerns as significant factors limiting broader use of private markets in retail portfolios.

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