Barclays Private Bank and Wealth Management has published its second annual private markets report, which points to continued growth in allocation to private markets, including by LPs and GPs.
The findings are based on a survey of 554 limited partners in the UK, Europe, Asia, Africa and Middle East, and 146 general partners, with the research conducted in June-August 2025.
The report also draws on data from PitchBook and Barclays research, covering global private capital activity through the second quarter of 2025.
Key findings include:
- Nearly half (48%) of respondents who were not currently investing in private markets said they were considering entering the space and over three quarters (79%) of all surveyed expect to increase their allocations to private markets in the future.
- Almost all respondents who currently invest in private markets see them as an attractive route for capital appreciation (91%), are willing to accept less liquidity for long-term gain (89%) and value the ability to diversify beyond public markets (89%).
- Nearly half (48%) of those not currently investing in private markets would consider doing so if key barriers were addressed, with over half (56%) citing the main obstacle being perceived risk and uncertainty.
- Professional advisers could play an important role, as 69% of private investors cite that they use trusted wealth managers and/or relationship managers as a key source of advice for information on investing in private markets.
The report suggests that investors favour private equity and real estate in their private markets exposure.
“Private equity and real estate remain the leading asset classes within private markets, attracting the majority of current investors (75% in real estate and 73% in private equity). However, the landscape is evolving with over two in five now actively considering private debt / credit (47%), venture capital (43%) and a third considering secondaries (33%) for future investments,” the report notes.
Among those not currently investing in private markets, real estate draws the most interest (68%) followed by private equity (59%) and private debt/credit (30%).
Barclays PB and WM suggests the level of interest in real estate and private equity “appears to stem from greater familiarity with these sectors”
Looking to the responses from GPs, Barclays PB and WM notes: “Three in four (75%) GPs describe the current sentiment surrounding private markets with investors as positive. Co-investments have become commonplace, with over three quarters (83%) of GPs using this structure to serve clients, while larger firms managing over $100 billion+ deploy a range of investment strategies including evergreen (80%) and feeder funds (71%) to cater to increasingly sophisticated investor needs.”
“Despite this, over half of GPs (58%) view the current private markets environment as less favourable compared to previous fundraising cycles but are more positive on the future with nearly three quarters (73%), expecting private market performance to be better in the next 12 months.”
Shenal Kakad, global head of Private Markets at Barclays Private Bank and Wealth Management, commented: “Private markets are no longer a niche and are becoming a more common component of high-net-worth investor strategies, and we are seeing that private investors are showing a growing level of sophistication in their approach to the asset class. They are scrutinising opportunities more closely, favouring established managers, and exploring structures that offer both performance potential and liquidity flexibility. This marks a clear shift from access to strategy.”
The full report can be accessed here: Mind the gap: How private markets can align to the evolving needs of private investors
