More than 84% of asset and wealth managers either already offer or plan to offer private markets strategies for individual investors, according to State Street's fifth annual Private Markets Study. Nearly eight in ten firms cite liquidity management as the key challenge as demand from individual investors accelerates, with specific pressure points including redemption management, cash forecasting and liquidity stress testing. Only 7% of firms expect to reduce allocations despite market volatility, while half plan to increase exposure. Artificial intelligence and AI infrastructure rank as the top investment theme globally, underscoring private markets' role in financing long-term structural growth. Around 43% of organizations now expect individual-focused vehicles to account for at least half of private markets fundraising within the next three years, down from 56% in the prior year's survey, reflecting a more measured view of operational and distribution challenges.
State Street CorpSurvey shows strong demand for private markets access, benefiting State Street's servicing business.