Thirty-eight percent of financial advisors report that their clients are prioritizing portfolio diversification at a time of increased concentration in public equity markets, according to a fourth-quarter advisor pulse survey released Friday by Blackstone’s private wealth group.
Twenty-nine percent of advisors said higher returns are clients’ priority, followed by 17% who cited capital preservation and 14% who said higher income generation.
Blackstone’s sample comprised some 196 advisors within the firm’s global network, who were surveyed over the July-to-September period.
Sixty percent of advisors said their clients are expressing more interest in private markets this year than they were in 2024. They are building on their diversification focus by looking for assets that are less correlated to public markets and can boost returns over the long term.
In particular, 55% of advisors said clients are adding private real estate for its historically low correlation with public markets. They also are attracted by its potential for stable income, lower valuations compared to public markets and as an inflation mitigator.
Fifty-eight percent reported that clients favor private infrastructure, again for its low public markets correlation. Also appealing are infrastructure’s inflation-linked income potential and long-term growth opportunities, driven by such megatrends as the buildout of digital infrastructure and growing demand for power.
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