The biggest barriers to investing in private markets

Institutional investors may be increasingly engaging with private markets, but barriers remain that may delay further allocations. In a recent Aviva survey of 500 institutional investors, high transaction costs and rich valuations were jointly identified as the top barriers to investing in – or increasing allocations to – real assets. These issues stem from the fact that private markets can be harder to access than their listed counterparts. As a result, investors often must pay extra to invest. The opaque nature of private markets also raised other barriers. While investors reported having...