Elevated equity valuations and rising volatility in public markets are shaping diversification decisions this year, [ 2 ] highlighting advisors’ search for additional drivers of return and risk management. Notably, inflation and interest rates have faded as major concerns, chosen by just 5% of respondents.
What is the primary reason you plan to diversify client portfolios in this environment?
Today’s market—marked by high equity valuations and greater volatility—has prompted clients to focus on growing their capital over the long term and diversifying their investments. [ 2 ] Private markets can address these needs, offering unique opportunities for long-term growth with the potential for enhanced diversification.
Which factor is having the greatest impact on your clients’ investment decisions this year?
Surveyed advisors anticipate that private market allocations will see the most substantial growth this year. Private assets offer investors unique sources of return, the potential to help mitigate downside risk, and potential access to long‑term growth trends that may be less influenced by daily market swings. Advisors can increase holdings in private equity, private credit, and real assets through diverse strategies, positioning portfolios to help achieve long-term goals. [ 3 ]
Where do you anticipate the largest allocation increase in client portfolios this year?
Surveyed advisors are turning to private real assets for long-term capital appreciation and enhanced diversification. [ 2 ] It features lower valuations compared to public markets, while also offering historically low correlation with public markets, [ 4 ] potential for stable income, and inflation mitigation. [ 5 ]
How attractive do you think private real assets are today relative to stocks and bonds?
Based on surveys of financial professionals across the U.S., EMEA, and APAC participating in Blackstone programming over the period November 2025 – January 2026. Average number of respondents per question: 180. Any views or opinions expressed herein reflect solely the views of the advisors who were surveyed in connection with this survey and/or Blackstone, and such views or opinions are subject to change without notice and may differ from opinions expressed by others. Blackstone has not independently verified the information received from the advisors surveyed and no representation is made as to the accuracy of such information. Any projections, expectations or other forward-looking statements set forth herein are based on assumptions that are uncertain and are subject to many factors, changing market conditions and general economic conditions, and may vary materially from the themes set forth herein. Nothing herein constitutes investment advice or recommendations and this page should not be relied upon as a basis for making an investment decision.
Diversification does not ensure a profit or protect against losses. Risk management seeks to mitigate risk, but does not reduce or eliminate risk and does not protect against losses.
Diversification does not ensure a profit or protect against losses. Risk management seeks to mitigate risk but does not reduce or eliminate risk and does not protect against losses. Investments are subject to the risk of capital loss and investors may not get back the amount originally invested.
Private Real Estate returns are largely uncorrelated to that of US Equities, Investment Grade Bonds, and Public REITs. Private Infrastructure returns are largely uncorrelated to that of Private Real Estate, Investment Grade Bonds and Global Equities. Source: Morningstar, as of December 31, 2024. Private Real Estate (NFI-ODCE); Public REITs (MSCI U.S. REIT Index); US Equities (S&P 500 Index, including dividends); Investment Grade Bonds (Bloomberg U.S. Aggregate Bond Index); Private Infrastructure (Cambridge Private Infrastructure Index); Global Equities (MSCI ACWI).
Private real estate has historically outpaced inflation during inflationary periods. Net operating income (“NOI”) reflects Green Street Advisors data, as of December 31, 2024. U.S. CPI reflects Bureau of Labor Statistics data, as of December 31, 2024. NOI growth represents the average NOI growth by year across the equal-weighted average of the asset-weighted average of the multifamily, industrial, mall, office and shopping center sectors. Multifamily refers to apartment; shopping center refers to strip retail. The Consumer Price Index (CPI) measures changes in the prices paid by urban consumers for a representative basket of goods and services. NOI may not be correlated to or continue to keep pace with inflation. There is no assurance that any investment will effectively mitigate inflation.
