Most individual investors plan to keep or boost their private market allocations in the next five years, according to a survey released this week from Yieldstreet, a private market investment platform.
The survey of industry experts and 388 self-directed retail investors with at least $1 million in investable assets shows a fundamental transformation happening in how they approach and invest in private market opportunities, according to Yieldstreet. The platform concluded that private market investments are evolving from specialized alternatives to core portfolio components.
Forty-eight percent plan to increase their alternatives allocations, 46% plan to maintain their current breakdown and 6% expect to reduce their private market proportion in the next five years, the survey found. The majority of investors fund these investments through brokerage accounts, including traditional and online brokerages.
“As financial firms rush to bring private markets to self-directed affluent retail investors, we wanted to challenge common assumptions about this audience — including our own," said Michael Weisz, Yieldstreet's founder and CEO.
“What we found is that when provided access to private markets, investors are actively diversifying between their public and private market accounts to make sophisticated investment decisions across asset classes. The platforms that succeed will be those that deliver the intuitive, digital experience investors have come to expect, paired with institutional-caliber opportunities — enabling them to build diversified portfolios over time," he said.
Yieldstreet also found that:
- Sixty-four percent of investors with over $1 million in investable assets cite diversification as their primary motivation for private markets investing, followed by higher yield generation (53%) and reduced correlation with public markets (27%).
- Nearly 60% of direct-to-consumer private market investments are funded through brokerage accounts (37% from online platforms, 22% from traditional full-service firms), with the remaining 41% sourced from savings and checking accounts. This suggests a shift in how individual investors approach portfolio construction and diversify between public and private markets portfolios.
- Investors using digital alts platforms showed more interest in infrastructure than non-users, 22% to 8%, suggesting that broader access to private markets may reshape preferences.
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