64% of financial advisors and private banking in Spain and Portugal invest in private markets
27 JAN, 2025
More than half of financial advisors and private banks in the Iberian market (64%) currently invest in private markets, and another 14% expect to do so in the next two years, according to the Global Investment Perspectives Study by Schroders (GIIS). This trend is confirmed by the specialists surveyed internationally, with 55% of them currently making allocations to private markets and 19% showing their willingness to do so in the next two years.
This study, which surveyed 1,755 wealth managers and financial advisors from around the world with about $12.1 trillion invested in assets, reveals that, internationally, private equity (53%), private multi-asset solutions (46%) and renewable infrastructure equity (46%) are the three classes of private market assets that they predict their clients will increase their allocations to in the next 1-2 years. These preferences coincide with the responses of the respondents in Iberia, although the latter show higher percentages: 77% for private equity, 55% for private multi-assets and 56% for renewable infrastructure equity.
On average, how do you think your clients' allocation to the following classes of private market assets will change in the next one or two years?
Main benefits that investors from Spain and Portugal identify when investing in private markets
For the vast majority (69%) the main advantages are the possibility of achieving higher returns than those of public markets and the diversification they provide, as private assets give you access to very different portfolios from the point of view of sector and business.
On average, the majority of Iberian investors' allocations to private markets are between 5% and 10% or between 1% and 5% of their portfolios.
Private banks and financial advisors in Iberia stated that they accessed private market opportunities through closed funds (52%) or listed funds (48%), closely followed by evergreen semi-liquid/open funds (45%).
Despite these opportunities, the potential lack of liquidity (60%) is cited as the main challenge when discussing private markets with clients in Iberia.
It is striking that up to 61% of respondents from Iberia, compared to 49% globally, perceive a lack of client education as a clear brake on increasing demand for private assets. Other challenges to face are the lack of more suitable product structures (44%) and lower investment minimums (47%).
Although many private banks and financial advisors already invest in private markets on behalf of their clients, the volume of allocations is currently much lower than the 20% or more seen in institutional portfolios and family offices. This difference presents a substantial opportunity to increase client engagement with private markets. Therefore, we expect these to continue playing an increasingly important role in wealth portfolios, as investors become more and more aware of the potential they offer for solid and diversified returns.
Carla Bergareche, Global Head of Wealth Clients at Schroders
There is no doubt that private investors will play a very important role in private markets in the future. The options for private banks and advisors to access private markets have so far been limited compared to their institutional counterparts, which is why, despite intentions, we continue to see reduced allocations. However, the emergence of new vehicles, such as semi-liquid funds or ELTIFs, are expanding the accessibility of these types of products and have represented a significant advance in offering flexibility to investors to meet their objectives by investing in private markets. Therefore, it is not surprising that this segment of clients prefers these types of vehicles, both at the Iberia and global level.
Leonardo Fernández, General Manager for Iberia at Schroders
