Blackstone Positive On Private Markets – Survey

Amanda Cheesley

18 February 2026

A new report by US-listed alternative asset manager Blackstone's Private Wealth group shows that nearly three quarters of surveyed advisors expect that private markets will see the most substantial growth this year – evidence that the sector has recovered some of its vigor after the blows caused by the pandemic and spikes in interest rates.

Elevated equity valuations and rising volatility in public markets are shaping diversification decisions this year, highlighting advisors' search for additional drivers of return and risk management. Notably, inflation and interest rates have faded as concerns, cited by 5 per cent of respondents, the firm said.

Clients want to focus on growing capital over the long term and diversifying their investments. Private markets can address these needs, offering opportunities for long-term growth with the potential for enhanced diversification, the firm continued.

Blackstone, along with peers such as KKR and Carlyle, is one of the largest firms in the private investments space. In recent years, these organizations have launched private wealth channels to distribute their products to affluent and high net worth clients. Established institutional investors such as pension funds have become more fully allocated, waiting for private market funds to achieve exits and return investments before new money can be committed.

Among the asset classes in vogue, the report said advisors in the survey are turning to private real estate, in particular, for long-term capital appreciation and enhanced diversification. Sixty-one per cent of surveyed advisors think that private real estate is more attractive than stocks and bonds. Property comes with lower valuations compared with public markets, while also offering historically low correlation with public markets, potential for stable income, and inflation mitigation.

Alternatives to stocks
Forty per cent of surveyed advisors cite elevated equity valuations as a primary reason for diversifying client portfolios while 32 per cent cite public market volatility.

Nearly 40 per cent of advisors also said that long-term capital appreciation and enhanced diversification will have the greatest impact on clients’ investment decisions this year.

In line with a number of managers, California-headquartered investment manager Franklin Templeton, sees attractive opportunities within private markets globally in 2026. Hamilton Lane, a US private markets investment firm with $1.0 trillion in assets under management and supervision, also expects private markets to outperform public ones over the next few years, with infrastructure playing an important role – see here.