Contents
Key Takeaways
Younger investors drive growth – Under-40s are 1.5x more likely to invest in private markets, leveraging longer horizons to pursue growth despite illiquidity.
Older investors seek yield – Investors aged 55–70 increasingly favour private credit and semi-liquid real asset funds that provide income with some flexibility.
Experience shapes participation – Seasoned investors engage more deeply, while newcomers remain cautious, underscoring the importance of professional guidance.
Risk appetite guides allocation – Over half of adventurous investors commit to private markets, compared with only a third of cautious investors.
Entrepreneurs lead adoption – Business owners and shareholders are twice as likely to participate, treating private markets as an extension of wealth creation.
ESG values fuel demand – More than half of ESG-driven investors use private markets to support renewables, social housing, and sustainable projects.
Private markets have long been a domain of the few: opaque, illiquid, and historically reserved for institutional investors or ultra-high-net-worth investors. But things are changing. As access improves and product structures evolve, more individual investors are exploring this space, some for the first time, others with renewed confidence [1].
We interviewed 2,373 individuals, each with investable assets of £2 million or more, to better understand their attitudes towards private markets. The responses were collected via a structured survey designed to assess behavioural, demographic, and financial services factors. We analysed the data across key categories including age, financial sophistication, work status, ESG priorities, and risk appetite, market conditions, investor interest to build a clearer picture of who is embracing alternative investments and why. The insights might surprise you, or confirm your instincts.
Time Horizon Matters: How Age Shapes Participation
It won’t surprise anyone to learn that younger investors show more enthusiasm for these markets, but the scale of that difference is revealing.
- Under 40s had the highest interest, with 61% saying they were open to private market investments, a trend accelerating in recent years.
- Investors aged 40–60 were more balanced, with 48% interested.
- Among 60+ investors, interest dropped sharply to just 34%.
So, what’s driving this?
The most obvious explanation is time horizon. Younger investors typically have decades ahead of them, which gives them more flexibility to lock up capital for 7–10 years or more, taking a long term approach to building wealth in direct investment structures, especially if they’re not reliant on those funds for income or liquidity [2].
But the story goes deeper, as younger investors are more comfortable with illiquidity. Several studies have shown that younger HNW investors are:
- More growth-oriented
- Less reliant on income
- And more likely to embrace equity strategies as part of a diversified portfolio
According to the Schroders Global Investor Study (2023), investors under 45 were 1.5x more likely to increase allocations to alternate assets compared to those over 60 [3]. This aligns closely with our findings.
Moreover, Platforms like Moonfare, Titanbay, and established managers such as Hamilton Lane have seen rising interest in long-term PE funds and venture strategies, especially among first-generation wealth holders who understand that meaningful returns take time.
That said, older investors still have a role to play. Just because interest declines with age doesn’t mean these opportunities should be off the table entirely for 60+ investors. The key is matching strategy to life stage.
Older investors often prioritise:
- Capital preservation
- Steady income
- Lower volatility
- And sometimes, estate planning or tax optimisation
Fortunately, certain private market strategies align well with those goals:
Private Credit
These funds typically offer shorter lock-ups (3–5 years), predictable income, and lower volatility than equity-based strategies, making them attractive to individual investors seeking stability. Private credit is increasingly used as bond replacements in diversified portfolios.
Real Asset Income Funds
Real estate, infrastructure debt, social housing, and sustainable farmland funds can offer income plus inflation-linked capital growth, while also supporting economic growth, without the sharp drawdowns of public markets.
Evergreen or Semi-Liquid Funds
These vehicles provide exposure to private market asset classes without long lock-ins, offering quarterly liquidity and diversification (e.g, Schroders Capital’s LTAF or Partners Group’s evergreen structures).
According to J.P. Morgan Private Bank (2025), demand for direct lending and semi-liquid real assets is rising fastest among investors aged 55–70, precisely because these vehicles offer yield with a degree of flexibility [4].
Psychological Factors Also Play a Role
Age doesn't just determine time horizon, it also shapes risk perception. Research from the CFA Institute (2022) found that older investors often perceive them as ‘opaque’ or ‘complex’ even when the risk-adjusted returns are attractive. That perceived complexity may lead to inaction, even when suitable products exist.
Education, access, and trust in trust in advisers become become more important later in life. This is where wealth managers play a critical role, helping clients understand that not all direct investments are binary, illiquid, and high-risk [5].
If you're in your 30s or 40s, private markets can be a powerful way to build long-term wealth, and your time horizon gives you the freedom to take illiquidity in stride. But even if you’re in your 60s or beyond, don’t write off private assets entirely. With the right structure, they can deliver income, downside protection, and diversification, and access to new investment opportunities, in a way that’s aligned with your current priorities.
The key isn’t age. It’s alignment.
Experience Matters in Private Markets
Private markets are often seen as the domain of “experts” and data suggests there’s truth to that. Among fund managers and private equity professionals, 50% expressed interest in private capital markets. Their familiarity with PE funds, credit, and real assets makes them more comfortable assessing illiquidity and navigating complex structures. By contrast, experienced investors without formal training, such as those active in public markets, property, or business ownership, showed slightly less engagement, with 44% expressing interest. The appetite is there, but the leap into private markets isn’t always automatic [6].
Industry research echoes this tension. While many investors recognise the opportunity, barriers such as opaque valuations, fee structures, and liquidity constraints still cause hesitation. The articles below highlight these issues:
- UBS (2023) [7]: 83% of family offices allocate to private equity, but newly wealthy investors remain cautious due to unfamiliarity with private investments.
- Schroders (2022) [8]: Investors with high self-reported understanding were twice as likely to invest in alternatives, showing how knowledge drives participation.
So What Does This Mean for You as an Investor?
Experience helps, but confidence and familiarity are just as important. If you’ve built wealth through equities, property, or business, you already have the foundation to explore private markets. The hesitation often comes from understanding how deals are structured, how exits work, and how risks are managed.
That caution is not a weakness. It’s disciplined capital management and exactly the mindset that turns opportunity into success in private investing.
What Kind of Risk Taker Are You?
Because these markets aren’t for the overly cautious. In our dataset, risk appetite was one of the clearest predictors of interest:
- 35% of cautious investors were interested in private markets
- 36% of balanced investors showed interest
- 51% of adventurous investors engaged
- 58% of aggressive growth investors participated
The contrast is clear: the more comfortable investors are with risk, the more likely they are to commit. Private markets offer higher return potential, exclusive opportunities, and portfolio diversification, but demand acceptance of illiquidity, delayed exits, and structural complexity [9].
Private markets are built for investors who embrace calculated risk. The more adventurous you are, the more likely you are to commit, not recklessly, but with intent, patience, and a clear understanding of how these markets add long-term value.
If you consider yourself moderately adventurous or beyond, you’re part of the fast-growing cohort of direct investors willing to accept complexity in exchange for outsized opportunity. This isn’t about chasing returns. It’s about building resilience with ambition. Attached below are some key research insights into the risks associated with private markets.
- BlackRock (2023) [10]: Risk tolerance was the strongest driver of allocations. Growth seekers were twice as likely to increase exposure compared with preservation-focused peers.
- Preqin (2023) [11]: Investors viewing volatility as “the cost of opportunity” were far more active in private equity and venture capital.
- CFA Institute (2025) [12]: Growth and diversification-oriented investors engaged far more with illiquid assets, while preservation investors held back despite recognising the return premium.
Why Business Owners Are Naturally Drawn to Private Markets
If you’ve built a business, you already understand the fundamentals of private investing: risk, reward, illiquidity, and long-term value creation.
In our data, 56% of business shareholders and 58% of partners showed interest in private markets, compared with 47% of employed professionals and just 35% of retired investors. The difference is clear: running a business prepares you for the realities of private markets.
Entrepreneurs know what it means to reinvest profits for future growth, to endure periods of uncertainty and illiquidity, and to make strategic bets with incomplete information. These experiences mirror how private equity managers scale portfolio companies. For business owners, private markets don’t feel foreign, they feel like an extension of how wealth is often built in the first place.
Evidence in Practice
- Titanbay & Campden Wealth (2023) [13]: Among 120+ high- and ultra-high-net-worth individuals, 84% planned to increase private market exposure. Their top motivations were control, alignment with how they built wealth, and direct business backing.
- UBS (2023) [14]: Business owners were twice as likely to invest in private equity or direct lending compared with those who inherited wealth or earned it through salary. Familiarity with risk and long-term horizons were key drivers.
Private markets reward the same qualities that fuel successful entrepreneurship: patience, conviction, and the willingness to commit capital for future growth. For business owners, investing this way isn’t a departure from their journey, it’s a continuation of it.
If you’re a business owner with £2–20+ million of investable assets, you’re not just eligible for private markets, you’re well suited to them. You already think in terms of capital deployment, not just preservation. You understand that returns often follow patience. And you’re more likely to see the value in companies, property, or lending platforms that mirror the same drivers that built your business.
In short: private markets don’t feel like a leap. They feel like a logical next step.
ESG Investors Are Not Holding Back
The idea that private markets and ESG don’t mix, too opaque, too return-driven, is fading fast. Our data shows why: 52% of investors with strong ESG priorities are interested in private markets, compared with ~45% of those with weaker ESG focus. Not causation, but a clear correlation: ESG-minded investors are more willing to think long term, embrace complexity, and move beyond traditional norms.
Both ESG and private-market investors share core traits: patience, comfort with complexity, and a desire for influence. Crucially, private markets provide one of the few avenues where capital can be directly aligned with values, from renewable energy and social housing to regenerative agriculture and climate-focused venture funds. Below are two key stats which highlight this:
- Preqin (2024) [15]: 61% of alternative managers now integrate ESG screens, almost double five years ago.
- GIIN (2025) [16]: Private equity and debt remain the dominant channels for impact capital, with rapid growth in climate tech and social impact.
The data doesn’t prove a direct cause-and-effect link between ESG priorities and private market interest, but the overlap is hard to ignore.
For investors who care about the broader impact of their capital, private markets offer something public markets often can’t: flexibility, directness, and the ability to align investments with values. As sustainable and impact-oriented strategies expand, this isn’t about choosing between returns and responsibility, it’s about finding both in the same place.
The Private Market Investor Is Evolving: Are You One of Them?
There is no single “type” of private investor. But our research shows clear patterns in who is stepping into this space most confidently.
Younger investors embrace private markets thanks to longer horizons and greater comfort with illiquidity. Experienced investors, particularly those with backgrounds in business, property, or public markets, are more measured, often waiting for the right clarity or access. Risk appetite is critical: adventurous and growth-focused investors are far more likely to participate, especially after shocks like the financial crisis exposed the limits of public equities.
Business owners stand out. For them, private markets feel familiar: patient, strategic, and opportunity-driven. ESG-focused investors are also leaning in, seeing private markets as one of the few arenas where capital and values can align directly.
Age, mindset, experience, and values all shape how private markets are approached, but the access gap has closed. Product structures are more flexible, platforms more open, and opportunities more transparent. Private markets are no longer reserved for institutions or the ultra-wealthy. They are accessible now.
So, where do you see yourself? If you’re ready to think beyond preservation and put capital to work with purpose, private markets offer the chance to do more than grow wealth. They let you shape it, on your terms, for your future, and for the outcomes that matter most.
