Advisors expect private markets 'advice gap' further filled in 2026

A recent study showed there is a multi-trillion dollar “advice gap” when it comes to private market assets. Nevertheless, financial advisors say that breach will increasingly be filled in the coming year as Wall Street improves its insight into how investors weigh risk, reward and, most importantly, liquidity.

A recent report by wealthtech provider Capital Preferences showed only 9% of advisory clients are invested in private markets, despite the fact that 82% have some suitability for them in their portfolios. Moreover, the current average portfolio share in private markets among those who hold them is 5%, while research shows that if a client's true preferences were actually measured, then the average allocation would be closer to 16.8%.

As a result, the study concludes that both gaps can be closed by raising private markets ownership to align with revealed client preferences. Capacity suggests an estimated $6.9T private markets opportunity out of a total $51.5 trillion in investable assets, according to the report.

Matthew Gotlin, chief investment officer and managing director with Choreo, for one, expects to see continued interest in private markets across the spectrum in 2026. For investors with the proper qualifications and circumstances, he believes private investments can be good diversifiers and continues to see this recognition expanding over time.

“More companies are remaining private for longer and the opportunity set is expanding in a wider variety of opportunities,” Gotlin said.

Similarly, Rafia Hasan, chief investment officer at San Francisco-based RIA Perigon Wealth Management, says she is starting to see a pickup in deal activity in the private markets space and expects that to continue going into 2026. She adds that the Federal Reserve’s recent string of rate cuts will also boost dealmaking among private equity players by lowering financing costs for borrowers.  

“We take a diversified approach to allocating to the private market space given the differing investment objectives of our client base. Some clients tend to be more income focused, while others are more growth oriented,” Hasan said.

Investors in the wealth management space are also increasingly allocating more towards private markets because there is an investment opportunity set within that space that isn’t available in public markets. So in terms of the supply of capital, there is a new investor base that is interested in investing in private markets, which is a boon, according to Hasan.

And on the demand side, Hasan believes that the AI investment buildout and more policy stability from Washington, provides a strong backdrop for businesses to invest, innovate and expand. 

All that said, Josh Strange, president of advisory firm Good Life NOVA, says the demand he see from clients for private markets is “nowhere near what the coverage suggests.”

“In all my years doing this, I’ve never had a client come in asking about private markets. What I see instead is product companies trying to push an asset class down-market, but once you add liquidity and broaden access, you change the very parts that made those investments attractive,” Strange said.

Stressed Strange: “And when you look at the returns relative to the effort and risk, it’s not obvious that the tradeoff is worth it.”