Key Takeaways
- • Northern Trust's 2026 Global Asset Owner Peer Study finds 94% of respondents now invest in private markets, up from 86% in 2025, with private equity the largest exposure.
- • 31% of respondents cite difficulty gaining entry to desired funds and managers as a top investment challenge, while 60% say liquidity has become increasingly important in 2026.
- • 47% of global respondents report some form of current digital asset exposure, which Northern Trust describes as having moved "into the institutional mainstream," though adoption remains cautious over risk tolerance and regulatory clarity.
- • 68% of respondents identify "harnessing the power of AI" as a top operational challenge, as AI moves from experimentation toward operational priority.
Summary
Institutional asset owners continued to expand allocations to private markets and digital assets in 2026 while accelerating investment in data, technology and artificial intelligence, according to Northern Trust's 2026 Global Asset Owner Peer Study. The share of respondents investing in private markets rose to 94% from 86% in 2025, with private equity representing the largest exposure. Per the publisher's related coverage, average private market allocations rose to 17% of portfolios from 13% the prior year.
Access constraints are tightening alongside this growth. Thirty-one percent of respondents identified difficulty gaining entry to desired funds and managers as a top investment challenge. Liquidity also remained a central concern, with 60% of respondents saying it had become increasingly important in 2026. While interest rates remained influential, asset owners were increasingly focused on changes in risk strategy, which Northern Trust linked to broader concerns about geopolitical uncertainty and financial system resilience.
Digital asset participation has broadened. Forty-seven percent of global respondents reported some form of current investment exposure. Northern Trust said this suggested digital assets had "moved into the institutional mainstream," although adoption remained cautious because of concerns around risk tolerance and regulatory clarity. Regulatory and compliance support was the most-cited servicing requirement for digital asset portfolios, selected by 46% of respondents.
On technology, asset owners are accelerating investment in data, technology and AI, but operational hurdles persist. Data integration and data accuracy were each cited as the biggest operational challenges by 57% of respondents. Sixty-eight percent identified "harnessing the power of AI" as a top operational challenge, indicating AI adoption is shifting from experimentation to operational priority. Northern Trust also reported that 38% of respondents place increasing emphasis on service providers' ability to manage complex investment structures.
Access constraints are tightening alongside this growth. Thirty-one percent of respondents identified difficulty gaining entry to desired funds and managers as a top investment challenge. Liquidity also remained a central concern, with 60% of respondents saying it had become increasingly important in 2026. While interest rates remained influential, asset owners were increasingly focused on changes in risk strategy, which Northern Trust linked to broader concerns about geopolitical uncertainty and financial system resilience.
Digital asset participation has broadened. Forty-seven percent of global respondents reported some form of current investment exposure. Northern Trust said this suggested digital assets had "moved into the institutional mainstream," although adoption remained cautious because of concerns around risk tolerance and regulatory clarity. Regulatory and compliance support was the most-cited servicing requirement for digital asset portfolios, selected by 46% of respondents.
On technology, asset owners are accelerating investment in data, technology and AI, but operational hurdles persist. Data integration and data accuracy were each cited as the biggest operational challenges by 57% of respondents. Sixty-eight percent identified "harnessing the power of AI" as a top operational challenge, indicating AI adoption is shifting from experimentation to operational priority. Northern Trust also reported that 38% of respondents place increasing emphasis on service providers' ability to manage complex investment structures.
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