Private Markets 700 – 2026 research & trends

• Most investors say inflation (55%) and geopolitical instability (54%) are the leading risks on private market asset performance
• Nearly one in 10 investors say their portfolios are vulnerable to economic shocks, and a further 29% believe their portfolios are only moderately resilient
• Over half (53%) say they see private markets as a key means to improve their portfolio diversification and offset risk profiles or concentrations in sectors or geographies. Plus, 50% do so to improve their financial returns, while close to a quarter (23%) say private markets investments are a hedge against inflation

Investors say inflation, geopolitical instability and interest rate volatility are the biggest risks to their portfolios

^{Source: IFM Investors/FT Longitude}

• Investors are aware that they lack the specialist knowledge to take full advantage of private market possibilities. Nearly half (44%) say a lack of internal expertise limits them scaling complex thematic investments

• Investors are seeking tailored solutions or more direct investment access to private markets. We found that 33% of investors want more customised solutions, while 65% agree they are using more co- and secondary investments in private markets to improve their portfolio efficiency.

• They are also keen on greater transparency to better understand how investments are being made. A third (35%) say they want more granular data on underlying exposures

Many investors agree that a lack of internal expertise limits their ability to scale complex thematic investments

^{Source: IFM Investors/FT Longitude survey}

• Investors increasingly believe their long-term portfolio success will depend on their ability to access some of the key themes underpinning major capital investments. 71% say long-term megatrends like AI and the energy transition are essential for returns
• Digital technology is particularly appealing among investors, with 40% pointing to advanced technologies such as AI as a top investing opportunity and 34% noting that telecoms (including digital infrastructure) is appealing
• However, many investors also worry that too much capital is chasing these opportunities, which presents investing difficulties. We found that 62% of investors felt that inflows into popular themes are pressuring future returns 

Investors say that themes such as AI and the energy transition are the strongest investment opportunities

^{Source: IFM Investors/FT Longitude}

• North American investors are keener on customised solutions than their peers, and more willing to look at conventional energy (28%) and defence investments (12%)

• EMEA investors are strongly supportive of the energy transition (81%), and 76% say sustainability is key to private markets investing. They are also more focused on blended strategies

• Asia (ex-Australia) investors are very interested in infrastructure debt investing (61%), while over three-quarters (78%) believe AI, the energy transition and demographic change are essential for reaching return objectives

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• Australia investors are particularly prepared to invest in private markets via globally diversified vehicles (59%). They are also especially focused on flexibility, with 68% saying greater liquidity and flexible redemption terms would catalyse more private markets investments 

North America and EMEA investors are very home-focused, unlike Asia and Australia

^{Source: IFM Investors/FT Longitude survey}

• Infrastructure equity is the most appealing private markets asset class with investors as of 2026. Nearly two-thirds (63%) say they plan to raise infra equity allocations over the next three to five years 

• The asset class is regarded as especially good at enabling access to key megatrend themes. 44% of investors raising infrastructure equity say they are doing so to access themes like energy transition and digitalisation 

• Australia investors are particularly keen on infrastructure equity, with 75% saying they intend to raise their allocations in the asset class

Nearly two-thirds of investors plan to increase their exposure to infrastructure equity and private equity 

^{Source: IFM Investors/FT Longitude survey}

 

• The energy transition and climate change are seen as areas that continue to offer great opportunity. 72% of investors agree that the energy transition offers long-term private market opportunities, and 69% say sustainability is key to private markets investing

• Almost one in three investors (32%) also believe the climate imperative is a top 3 megatrend that is set to impact private markets

• Nearly 1 in 4 investors (24%) say one of the top reasons they invest into private markets is to have a positive environmental or social impact

Investors think the energy transition is central to private markets opportunities

^{Source: IFM Investors/FT Longitude survey}