Key Takeaways
- • Private market adoption among asset owners reached 94% in 2026, up from 86% in 2025, with allocations now averaging 17% of total portfolios, according to Northern Trust's second annual global peer study of 180+ asset owners.
- • Liquidity management has intensified as a strategic priority, with 60% of respondents reporting increased importance over the past year, reflecting evolving portfolio resilience and risk management frameworks.
- • Digital asset exposure is now present in 47% of surveyed asset owner portfolios, with adoption patterns shaped by regulatory environments, governance structures, and servicer capabilities rather than speculative positioning.
- • Artificial intelligence and data infrastructure investments are accelerating, though nearly 70% of respondents identify "harnessing AI power" as a top operational challenge, while 57% cite data integration and accuracy as persistent obstacles limiting implementation.
- • The shift toward private markets reflects broader structural changes in institutional investment strategy, driven by elevated liquidity demands, technological advancement, and the need for operational model adaptation across pension funds, insurance general accounts, endowments, superannuation funds, and multi-managers globally.
Summary
Asset owners are deepening their commitment to private markets at an accelerating pace. Northern Trust's "Asset Owners in Focus" study, based on responses from over 180 institutional investors across pension funds, insurance companies, endowments, foundations, and superannuation funds globally, reveals that 94% of asset owners now have private market exposure—a significant increase from 86% recorded in 2025. More notably, private market allocations have risen to represent 17% of the average portfolio, positioning illiquid assets as a core rather than peripheral component of institutional investment strategy.
This structural shift is being driven by multiple interconnected factors. Liquidity management has become increasingly sophisticated and risk-centric; 60% of respondents report that liquidity has grown more important over the past year, with asset owners now framing liquidity decisions within broader portfolio resilience and risk management frameworks rather than treating it as a standalone operational function. Simultaneously, asset owners are making deliberate capital commitments to digital assets, with 47% reporting current exposure. Notably, adoption patterns are not driven by speculative fervor but rather by regulatory clarity, governance maturity, and the availability of institutional-grade servicing infrastructure.
The acceleration of investment in data infrastructure and artificial intelligence reflects recognition that managing increasingly complex, multi-asset portfolios requires technological capability upgrades. However, execution challenges remain significant. Nearly 70% of respondents identify "harnessing the power of AI" as a top operational challenge, while 57% cite data integration and accuracy issues as critical obstacles preventing full deployment of advanced analytics and decision-support systems. These gaps point to a widening divide between strategic intent and operational capacity among institutional investors.
The survey encompasses respondents across the Americas, EMEA, and APAC regions, providing global perspective on how different institutional archetypes—from large pension funds to smaller endowments and family office structures—are adapting investment and operating models. The study underscores that private market expansion is no longer a strategic experiment but a structural reorientation of institutional capital allocation, coupled with urgent operational imperatives around data quality, governance, and technology adoption.
This structural shift is being driven by multiple interconnected factors. Liquidity management has become increasingly sophisticated and risk-centric; 60% of respondents report that liquidity has grown more important over the past year, with asset owners now framing liquidity decisions within broader portfolio resilience and risk management frameworks rather than treating it as a standalone operational function. Simultaneously, asset owners are making deliberate capital commitments to digital assets, with 47% reporting current exposure. Notably, adoption patterns are not driven by speculative fervor but rather by regulatory clarity, governance maturity, and the availability of institutional-grade servicing infrastructure.
The acceleration of investment in data infrastructure and artificial intelligence reflects recognition that managing increasingly complex, multi-asset portfolios requires technological capability upgrades. However, execution challenges remain significant. Nearly 70% of respondents identify "harnessing the power of AI" as a top operational challenge, while 57% cite data integration and accuracy issues as critical obstacles preventing full deployment of advanced analytics and decision-support systems. These gaps point to a widening divide between strategic intent and operational capacity among institutional investors.
The survey encompasses respondents across the Americas, EMEA, and APAC regions, providing global perspective on how different institutional archetypes—from large pension funds to smaller endowments and family office structures—are adapting investment and operating models. The study underscores that private market expansion is no longer a strategic experiment but a structural reorientation of institutional capital allocation, coupled with urgent operational imperatives around data quality, governance, and technology adoption.
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