Limited Partners maintain investment in private markets despite prevailing global uncertainties
In a significant shift, global investors are increasingly allocating their resources to private markets, with the United States leading the charge. According to the Wellington Management Private Investing Survey 2025, 73% of respondents in the US have already increased their exposure to private markets over the past 12 months [1]. This trend is echoed in Europe and the Middle East, where 65% and 64% of respondents, respectively, plan to increase their allocations in the coming year [2].
The survey, which gathered views from over 165 industry professionals, including General Partners (GPs) and service providers, reveals a robust confidence in private market allocations despite geopolitical risks [1]. A staggering 96% of global limited partners (LPs) plan to increase or maintain their private market allocations over the next 12 months [3].
The appeal of private markets lies in their long-term growth opportunities, which are less correlated with public markets, offering diversification benefits amid global uncertainty [2]. Furthermore, investors are drawn to sectors aligned with scientific breakthroughs, innovation, and sustainability, such as climate change solutions, healthcare advancements, and technology [4].
Leveraging extensive industry research, deep expertise, and global networks, investors are identifying private companies poised to transform industries, which supports their conviction in private markets as a strategic allocation [4]. However, this optimism is not without its concerns. Geopolitical instability is expected to have the greatest impact on private markets in the year ahead, according to 48% of respondents [2].
In addition, concerns around tariffs are also prominent among respondents. Among the benefits of integration, 19% of respondents cite "a more holistic view of all investments" as the primary advantage, and 16% cite "easier access to research and insights" [5].
Laura Kirk, head of private investments capital formation at Wellington, emphasises the potential benefits of collaboration between private markets and public market analysts, stating that this can provide a fuller picture of industries and sectors [6].
Despite the positive outlook, not all investors are increasing their exposure to private markets. Only 4% of LPs plan to reduce their exposure, while 43% will hold steady in their private market allocations [3].
The survey did not provide specific data on the intentions of LPs in Asia or other parts of the world, leaving room for further exploration in future research. However, the findings from the Wellington Management Private Investing Survey 2025 suggest a strategic focus on resilience and thematic growth areas, reflecting a commitment to private markets among global investors amid ongoing geopolitical tensions.
References: [1] Wellington Management. (2025). Wellington Management Private Investing Survey 2025. Retrieved from https://www.wellington.com/en-us/insights/research/private-investing-survey-2025 [2] Investment News. (2025). Global investors bullish on private markets amid geopolitical tensions. Retrieved from https://www.investmentnews.com/news/investment-news/2025/03/23/global-investors-bullish-on-private-markets-amid-geopolitical-tensions [3] Pensions & Investments. (2025). LPs bullish on private markets amid geopolitical risks. Retrieved from https://www.pionline.com/article/20250323/ONLINE/160329984/lps-bullish-on-private-markets-amid-geopolitical-risks [4] Financial News. (2025). Private markets: The new frontier for global investors. Retrieved from https://www.fnlondon.com/articles/private-markets-the-new-frontier-for-global-investors-20250323 [5] Private Equity International. (2025). LPs see private markets as key to portfolio resilience. Retrieved from https://www.peimedia.com/news/11078564/lps-see-private-markets-as-key-to-portfolio-resilience [6] Bloomberg. (2025). Wellington's Kirk on the future of private markets. Retrieved from https://www.bloomberg.com/news/articles/2025-03-23/wellington-s-kirk-on-the-future-of-private-markets
Investors are strategically focusing on private markets for their long-term growth opportunities, less correlated with public markets, offering diversification benefits amid global uncertainty. Furthermore, private markets are attracting investors due to sectors aligned with scientific breakthroughs, innovation, and sustainability, such as climate change solutions, healthcare advancements, and technology.
