EM attract a record share of listed‑equity interest from bfinance clients, while private markets regain majority share of overall research activity

There was a shift towards real assets within private‑markets activity, while market‑independent hedge‑fund strategies were another hotspot

​London, 16 February 2026 – The latest quarterly Manager Intelligence and Market Trends report from independent global investment consultancy bfinance shows that institutional investors are placing greater emphasis on diversification, income stability and inflation protection as markets continue to perform strongly despite an uncertain geopolitical and policy backdrop.

The report, which analyses asset manager research activity and market developments across bfinance’s global client base, indicates that allocators are maintaining exposure to risk assets but are increasingly focused on portfolio resilience, uncorrelated sources of alpha and selective regional opportunities.

Institutional investors are increasingly navigating a “two-track reality”, balancing abundant liquidity and supportive monetary policy conditions against uneven growth momentum, persistent inflation pressures in some sectors, and geopolitical vulnerabilities. 

Notable shifts within liquid and private markets

Private markets reclaimed a majority share of manager research ac

tivity in 2025, accounting for 55% of mandates, continuing the longer-term trend toward illiquid assets among institutional investors.

Within private markets, real assets including real estate, natural capital and infrastructure represented 44% of private market mandates and 25% of all new manager research activity. This was supported by investor interest in energy transition and digital infrastructure themes and the perception of infrastructure as both a yield substitute and inflation hedge.

Private debt searches represented 37% of private market activity, with investors attracted by credit spreads which remain attractive by longer-term

historical standards, and resilient underlying company fundamentals, while private equity manager research remained focused on secondaries and lower-mid market buyout strategies.

Equity mandates accounted for 21% of total mandates. Demand shifted decisively away from global equity strategies and toward emerging markets (EM), which represented close to 60% of all equity mandates, the highest level on record for bfinance clients.

This represented one of the busiest periods on record for EM equity mandates, as investors sought to diversify regional exposure and take advantage of improving relative valuations in several EM.

Search for uncorrelated return streams

In fixed income, institutional demand continued to centre on high-quality assets in developed markets. Investment-grade corporate bonds remained a key area of activity despite tight credit spreads, reflecting the ongoing requirement for stable income and capital preservation within long-term portfolios.

Diversifying strategies also saw elevated activity. Hedge fund activity accounted for 69% of diversifying strategies mandates in 2025, and market independent strategies represented two thirds of this activity as investors sought uncorrelated return streams and greater portfolio resilience in a volatile macroeconomic environment. 

Private markets- secondaries and due diligence

Private markets fundraising remained uneven in 2025, with overall activity modestly below trend despite pockets of strength. Transaction volumes in the private equity secondaries market reached record levels of approximately $240 billion, reflecting strong demand for liquidity solutions and continuation vehicles. This played out in the types of research activities we undertook, with clients looking to focus on private equity managers who have demonstrated faster DPI (distributions to paid-in) development as well as those taking a more thematic approach to i.e. targeted transaction sizes for example. The demand for lower-mid market buyout exposure has also been a focus area for our clients with this part of the market less affected by ongoing geo-political activity and the lower reliance on leverage continuing to appeal.

For more on the secondaries theme see here: As Private Market Secondaries Soar, Investors Must Demand Discipline, and the Manager Intelligence and Market Trends Report.

The report also highlights the growing importance of operational due diligence, particularly in private debt and other less transparent markets. Investors are placing greater scrutiny on governance, collateral verification, valuation processes and reporting standards to better understand risk beyond headline performance metrics.

Recent market events have demonstrated how complex financing structures and insufficient transparency can obscure risks, reinforcing the need for robust operational frameworks and disciplined due diligence processes.

Simon Keane, Investment Content Lead at bfinance, said:

“Institutional investors are operating in an environment where strong market performance coexists with persistent macroeconomic and geopolitical uncertainty. The response has not been to retreat from risk, but to become more selective. We are seeing greater emphasis on diversification, income stability and uncorrelated return streams, alongside a clear shift toward emerging market equities, real assets and market-independent strategies.

“At the same time, the growing complexity of private markets is reinforcing the importance of operational due diligence. Investors are looking beyond performance to understand how managers manage risk, liquidity and governance across different market conditions. The focus is on building portfolios that can remain resilient across a wide range of scenarios.”