A recent report from Barclays Private Bank and Wealth Management indicates that private markets are becoming increasingly important for wealthy investors and family offices. The second annual "Mind the gap: How private markets can align to the evolving needs of private investors" report surveyed 554 Limited Partners across multiple regions, as well as 146 General Partners, between June and August 2025.
According to the research, 89% of those currently investing in private markets consider them significant in shaping their overall investment strategies. Additionally, 79% of all surveyed expect to increase their allocations to private markets in the future. Among respondents not currently involved in these investments, nearly half (48%) said they would consider entering the space if certain barriers were addressed, with perceived risk and uncertainty being cited by 56% as the main obstacle.
The report found that almost all current investors see private markets as attractive for capital appreciation (91%), are willing to accept less liquidity for long-term gain (89%), and value diversification beyond public markets (89%). Professional advisers play a key role, with 69% of investors relying on wealth or relationship managers for advice on private market investments.
Within private markets, real estate and private equity remain popular asset classes. Real estate attracts 75% of current investors and is also most interesting to those not yet investing (68%). Private equity follows closely at 73% among current investors and draws interest from 59% of potential new entrants. Other asset classes such as private debt/credit (47%), venture capital (43%), and secondaries (33%) are also being considered by a growing number of respondents.
General Partners are responding to investor demand by offering co-investments—used by over three quarters (83%)—and developing various fund structures like evergreen funds (80%) and feeder funds (71%) among larger firms managing over $100 billion. While more than half of GPs view the current environment as less favorable compared to previous fundraising cycles, nearly three quarters expect performance in private markets to improve over the next year.
Shenal Kakad, Global Head of Private Markets at Barclays Private Bank and Wealth Management, stated: “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 report draws on data from PitchBook and Barclays research covering global activity through Q2 2025. It notes an increasing professionalisation among wealthy investors along with evolving fund structures and emerging sector opportunities such as healthcare.
For more information or to read the full report visit Mind the gap: How private markets can align to the evolving needs of private investors.