They’re becoming essential to modern portfolios.
For allocators, the question is no longer whether private markets belong in portfolios. The question is how they fit and how they are structured.
An independent study by AssetMark found that 91 percent of U.S. financial advisors now view access to private market investments as essential to differentiating their practice. That level of agreement suggests a shift in how many professionals are thinking about portfolio construction.
Public markets remain foundational. At the same time, many allocators are increasingly examining factors such as concentration risk, higher correlations, and narrower opportunity sets when evaluating how portfolios are positioned across market cycles.
Private Markets Are Moving Into the Core
Private credit, private equity, and venture capital are being evaluated differently than they were in the past. What were once treated as opportunistic or niche exposures are now more commonly considered alongside other long-term portfolio components.
The data reflects this shift. According to the same study, nearly 70 percent of advisors who do not currently offer private markets plan to add them within the next year. Among those already allocating, more than eighty percent expect private market exposure to increase over the coming years.
For allocators, the focus is less on whether to include private markets and more on how they function within a portfolio. Assets with distinct return drivers and longer time horizons are being assessed for the role they can play alongside public equities and fixed income.
Access Alone Is No Longer Enough
Wider availability has brought greater scrutiny. As private markets become more prevalent, questions around liquidity terms, valuation methodology, advisor education, and governance standards have become central to decision-making.
Advisor behavior reflects this shift. The same study found that 59 percent of advisors would consider switching firms to gain access to better private market solutions. This indicates that platform quality, oversight, and implementation support now influence firm selection as much as access itself.
As a result, allocator focus has narrowed to execution. How exposure is structured, monitored, and explained to clients increasingly determines whether private markets can be used responsibly at scale.
Policy Signals Are Reinforcing the Trend
This shift is not happening in isolation. In 2025, the White House directed regulators to revisit long-standing guidance related to access to alternative assets within defined contribution retirement plans.
While implementation will take time and fiduciary oversight remains central, the direction is notable. Private markets are increasingly being acknowledged as part of the broader capital markets landscape rather than a specialized corner of it.
How This Framework Shows Up in Practice
As private markets become more common in portfolios, allocators are spending more time thinking about how exposure is built, not just which strategies are included. The focus is shifting toward balance across different stages of capital, risk profiles, and return drivers rather than relying on a single approach.
That thinking shapes how we approach portfolio construction at Capital Q® Ventures Inc., including the design of CAPQ BDC. The objective is to combine private credit, private equity, and venture capital within a regulated structure intended to support consistency across market cycles rather than emphasizing a single strategy.
Where This Leaves Allocators
The data is consistent. Advisors are increasing exposure. Firms are being evaluated on private market capabilities. Policymakers are revisiting legacy frameworks.
Private markets are no longer peripheral to allocation discussions. For many allocators, they are becoming essential.
This content is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer may be made only through official offering documents and in accordance with applicable securities laws. Investments in private markets and business development companies involve risk, including the potential loss of principal, and are intended solely for accredited investors. Investing involves risk. There is always the potential of losing money when you invest in securities. Past performance does not guarantee future results. Asset allocation, rebalancing and diversification do not guarantee against risk in broadly declining markets.