How to to Talk to Clients About Private Markets

Private assets, including private equity, private credit, real estate or other alternatives, are not so private anymore. 

According to a 2025 Invesco survey, nearly one in five investors already hold private assets in their portfolio, with 79% of those surveyed expressing interest in adding or keeping these alternatives in their portfolio over the next few years. High net worth and younger clients — two segments who have expressed interest in alternatives — will be looking for advisors who understand the unique challenges of investing in private markets. Savvy advisors can stand out by shifting the conversation and educating clients on implementation, and by communicating the importance of a customized strategy that explains how to put private assets to work alongside public holdings.

Break It Down

Private markets aren’t monolithic. Private equity, private credit and real assets — such as real estate and infrastructure — all serve different purposes in client portfolios. Each asset class deserves a separate conversation about the distinct role it plays in a comprehensive strategy, its specific risk-reward profile and the opportunities it offers.

The words and phrases advisors use, particularly in discussing private markets with clients, matter. Private market discussions can quickly circle around technical concepts, such as liquidity and hedging risk. As common as these terms are in finance, according to Invesco research on the language of financial services, they may not resonate with clients. Talk with investors about the ways private assets may meet long-term needs or explain the benefits of comprehensive diversification with private investments. Using word choices that align with an investors’ level of understanding helps build a strong relationship, increasing clients’ comprehension of private markets. Here are a couple of other pointers:

• Frame your discussion around what clients care about now. In this low-interest rate environment, heightened interest in inflation and income can offer a chance to highlight the different roles that private credit can play in a client’s portfolio. Private markets can be particularly beneficial as rates are falling, providing both income and returns, as well as reducing exposure to public market volatility. For a client focused on inflation risks, it would be helpful to explain the benefits of private, floating rate loans over public, fixed income.

• Provide proper context. Today, there are only around 3,700 listed US stocks, which is about half the count at the peak in 1997. Thanks to mergers, acquisitions and companies electing to stay, or go, private, the investable universe of public stocks is simply smaller than it has been historically. By adding private equity exposure, investors are effectively re-expanding the opportunity set.

Let’s Get Active. Lastly, walk clients through the investment decision-making process so they know all the steps you are supervising. Show them the entire process, starting with the client’s investable assets and goals to ascertaining a client’s liquidity needs and risk appetite for alternatives. When you involve clients in the process of analyzing investments that meet their liquidity and exposure needs, it builds a stronger understanding of how alternatives are the correct fit for that client’s strategy.

These practices can better educate clients, helping them achieve better client outcomes and set your practice apart. Knowing more about alternatives, such as private credit and private real estate, is a key differentiator for investors and can allow smart advisors to truly stand out.

Rocco Benedetto is Head of Invesco’s US Wealth Management Intermediaries Field Distribution at Invesco.