Diversification and Return Potential Drive Demand for Private Assets Across Europe

• Demand for private market assets has continued to grow, with private debt seeing the greatest increase since 2024.
• Private equity remains the most popular private market asset class in Europe, but UK fund selectors have been slower in uptake.
• ELTIFs are outpacing even UCI Part II funds, with familiarity and appetite to allocate to such vehicles seeing a strong growth since 2024.

London, June 25, 2025 – Demand among European fund selectors for private market assets has risen across the board since 2024, with the greatest appetite for private equity, as revealed by the most recent European Fund Selector Study (EuroFSS), conducted by Research in Finance in collaboration with Neuberger Berman.

For Pan-European selectors, portfolio diversification (74%) and high return potential (60%) were the most commonly cited benefits of investing in these assets, and long-term focus (45%), capital growth (33%) and low volatility (33%) were all cited as other potential benefits. Conversely, a lack of liquidity was the most significant obstacle (57%) to investing in private assets. Lack of transparency (41%) and high minimum investments (36%) were also frequently mentioned hurdles.

This year’s EuroFSS features insights gathered from 894 fund selectors across Pan-European and UK markets, spanning 597 retail* and 297 institutional** respondents. It also revealed retail fund selectors are expected to increase allocations across all private market asset classes over the next 12 months.

Appetite for Private Debt Reaches New Highs

The demand for private debt among retail and institutional fund selectors looking to expand their private market portfolios saw a significant increase on the previous year, with the proportion of respondents planning to boost allocations to this asset class rising from 19% to 47%. Average allocations to the asset class were largely similar across markets, although investing in the asset class was more common among selectors in Spain (67%) and France (65%).

Private Equity Remains the Foremost Private Market Asset Class

Private equity continues to dominate as the most popular private market asset class. The highest average allocations across retail and institutional channels were observed in the Nordics (9.4%), Germany (9%), and Switzerland (8.2%) while fund selectors in the UK, reflecting a regional preference for investment trusts, had a lower level of private markets exposure (4.4%). This trend is set to continue, with private equity expected to see an increase in allocations, particularly among pan-European retail selectors.

ELTIFs, Gaining Ground in Europe

The familiarity and usage of ELTIFs (European Long-Term Investment Funds) has continued to increase, with approximately 70% of Pan-European selectors familiar with the vehicle, compared to around 50% last year. Italy emerged as the market most familiar (85%) and most likely to recommend to clients (24%). European Selectors are much more familiar with ELTIFs than UCI Part II funds. 37% of selectors surveyed already allocate or plan to allocate to ELTIFs over the next twelve months, compared to 11% for UCI Part II funds.

José Cosio, Head of Intermediary – Global ex US at Neuberger Berman, comments: “In the current volatile macroeconomic environment, the resilience and diversification that private markets can provide are more valuable to clients than ever. This study shows that in Europe so called “alternatives” are now mainstream and have become an indispensable tool in the portfolio of fund selectors seeking to meet their investment objectives. We are encouraged by the continued momentum behind ELTIFs as an efficient access point for clients to these strategies and look forward to helping clients navigate the new options available to them.”

In selective regions, Neuberger Berman has launched NB Private Markets Academy, a comprehensive platform offering on-demand learning, expert insights and resources designed to educate and empower financial advisors and investors as they navigate the private markets investment universe.

About Neuberger Berman

Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages $515 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman's investment philosophy is founded on active management, fundamental research and engaged ownership. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last eleven years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of March 31, 2025.

About NB Private Markets

NB Private Markets is a division of Neuberger Berman and has been an active and successful private markets investor since 1987. NB Private Markets invests across strategies, asset classes, and geographies for a large number of sophisticated and renowned institutions globally including public and private pension funds, endowments, insurance companies, sovereign wealth funds, family offices and intermediaries. As of December 31, 2024, NB Private Markets managed over $135 billion of investor commitments across primaries, co-investments, secondaries, private credit, and specialty strategies. NB Private Markets has an experienced, diverse and stable team of over 440 professionals with a global presence in 15 offices across the United States, Europe, and Asia (as of March 31, 2025).

Media Contact:

Fiona Kehily, +44 (20) 3214 9087, Fiona.Kehily@nb.com