Global investors continue to support private markets despite geopolitical tensions, according to a survey by Wellington Management, which found that 96% of global limited partners (LPs) plan to increase or maintain their private market allocations over the next 12 months.
53% of LPs surveyed said they intend to grow their allocation, while 43% will hold steady. Only 4% of LPs shared plans to reduce their exposure — signalling broad optimism in the asset class even amid ongoing uncertainty.
“Despite last year’s challenges in private markets, the Wellington Management Private Investing Survey reveals LPs are still optimistic about private markets and see ongoing opportunities,” said Kalyani Harar, director of private investments at Wellington. “Many LPs have taken steps to diversify their historically concentrated allocations away from traditional strategies and include the likes of secondaries and growth in their portfolios going forward.”
The research, which gathered views from over 165 industry professionals, including GPs and service providers, showed that political uncertainty is still seen as the top risk. 48% of respondents said geopolitical instability will have the greatest impact on private markets in the year ahead, with concerns around tariffs also prominent.
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Still, private markets’ “higher return potential” remains a major draw — cited by 45% of respondents as a top benefit. A growing number of LPs are also warming to the idea of blending public and private strategies to improve performance and gain broader investment insights.
“More than half of global LPs believe a combined public and private strategy can enhance portfolio performance,” said Laura Kirk, head of private investments capital formation at Wellington. “At Wellington, our private markets investment teams are supported by the broader research and investment insights of our public market analysts to achieve the best results for our clients. This collaboration provides a fuller picture of industries and sectors, as well as potential investment opportunities.”
Among LPs, equities were seen as the asset class with the greatest potential for convergence between public and private markets. In terms of benefits, 19% cited “a more holistic view of all investments” as the primary advantage of integration, followed by “easier access to research and insights” as cited by 16% of respondents.
Appetite for private markets is strongest in Europe and the Middle East, where 65% and 64% of respondents, respectively, plan to increase allocations in the coming year. In the US, 73% of respondents had already increased their exposure over the past 12 months.
