A recent survey of 500 institutional investors from Aviva Investors finds performance expectations are increasingly important in driving allocations to private markets.
However, the survey also showed some dissatisfaction with recent performance. Globally, the proportion of institutional investors that were satisfied with private market performance fell from 75% in 2023 to 61% in 2024. This reflects relatively lacklustre returns in the asset class in 2024, at a time when equities soared to record highs.
The fact that performance emerged as the top criterion for institutional investors gives an indication of which assets they are likely to prioritise. The survey's findings revealed a consensus on the three assets expected to deliver the strongest risk-adjusted returns over three and five years: real estate equity, private equity and infrastructure equity.
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