Private market investments are rapidly shedding their “alternative” label as RIAs increasingly treat them as foundational components of portfolio construction. According to KKR’s 2025 RIA Private Markets Survey, nearly half of surveyed RIAs already allocate 10% or more of AUM to private markets, with more than 80% expecting to maintain or increase that exposure over the next five years. 

Advisors are particularly drawn to private infrastructure, private equity, private credit, and real estate for their diversification benefits, return potential, and lower correlation to public markets. This shift is also being reinforced by structural changes, including shrinking public markets, elevated stock-bond correlations, and concerns about concentration risk in public equities.

While enthusiasm is high, implementation challenges remain, particularly around client education, liquidity expectations, and operational complexity, prompting greater reliance on third-party platforms and manager-provided training.

Finsum: As private markets scale from selective allocations to portfolio cornerstones, the advisors who succeed will be those who can pair access with education and execution at scale.