Despite increasing interest, two fifths of Australian wealth managers (40%) say a lack of access to private assets is a threat to their business, according to new research from Natixis Investment Managers (Natixis IM).

Wealth managers are now tapping a broader pallet of vehicles and asset classes to fulfil client needs. Locally, portfolios are now relying on a mix of 88% public assets and 12% private, a spread that is likely to narrow as the focus on private assets intensifies. What’s more, nearly half (48%) say meeting client demand for unlisted assets will be a critical factor in their growth plans.

Overall, 92% of wealth managers plan to increase or maintain their private credit offering and similarly 91% plan to increase or maintain private equity investments. With almost seven in ten (68%) saying there is still a significant delta in returns between private and public markets.

Additionally, 80% say despite high valuations, they think private assets are good value for the long term and 40% say they will provide a safe haven in a recession.

Natixis IM, in collaboration with CoreData research, surveyed 520 investment professionals across 20 countries, including Australia, managing a total of US$38.4 trillion for public and private pension and superannuation funds, insurers, foundations, endowments and sovereign wealth funds.