24 September 2025 · Morgan Spencer
For decades, public markets were the ultimate arena for serious investors — FTSE, AIM, global indices. But in 2025, that story is changing. High-net-worth individuals (HNWI) and sophisticated UK investors are quietly moving capital into private markets — a world where opportunities are less visible, but often more rewarding.
At Morgan Spencer, we believe Autumn is the season to reassess not just allocation but philosophy. The question isn’t should you look at private markets — it’s: can you afford not to?
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Why Public Markets Are Losing Their Shine
- Short-term sentiment: Prices swing on headlines, not fundamentals.
- Crowded trades: When everyone piles into “the next big stock,” alpha evaporates.
- Regulatory drag: FCA-regulated products offer comfort, but reduce flexibility.
For many HNWI, public markets are a well-trodden path with diminishing edge.
What Private Markets Offer Sophisticated Investors
- Control & influence: A seat at the table — not just a ticker.
- Portfolio diversification: Lower correlation with stock-market trends.
- Risk-adjusted returns: Illiquidity risk is often compensated by higher upside.
- Access to innovation: Many themes (tokenisation, sustainable property) start privately.
Key Sectors to Watch in Autumn 2025
Private Equity Funds & Co-Investments
Allocations to specialist managers targeting renewables, healthtech, and industrial real estate continue to grow among UK HNWI.
Off-Market Property Deals
While institutions dominate prime assets, regional developments and selective off-plan opportunities remain attractive for nimble investors.
Sustainable & ESG-Driven Alternatives
Green bonds, ethical gold, farmland, and timberland attract capital seeking returns with measurable impact.
Digital & Blockchain Trends
Volatility persists, but tokenised real estate and blockchain-enabled funds are gaining traction among sophisticated investors who value early exposure.
The Liquidity Trade-Off
The common objection to private markets is illiquidity. You can’t exit at the click of a button. Yet for long-horizon investors, illiquidity can be a feature, not a bug — forcing discipline and enabling managers to prioritise operational improvements over quarterly optics.
We see an opportunity for HNWI to take the long view — harvesting returns when the timing is right, not when the market dictates.
Strategic Role in a Diversified Portfolio
- Public Equities + Private Equity → Growth balanced by liquidity.
- Bonds + Litigation Finance → Income with diversification.
- Property + Timberland → Hard assets with inflation protection.
Blending public and private allows investors to pursue growth while actively managing risk.
Conclusion: Time to Rethink Your Allocation
This Autumn, capital is turning with the leaves. Public markets will always have their place, but sophisticated investors increasingly recognise that private markets are where enduring wealth creation happens.
At Morgan Spencer, diversification isn’t just about what you invest in, but where. If you’re willing to look beyond the exchange, the rewards can be significant.
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Speak with our team about allocations suited to HNWI and Sophisticated Investors.
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Important: For UK High-Net-Worth and Sophisticated Investors only. This article is for information only and does not constitute investment advice or an offer to invest. Capital is at risk. Private investments are illiquid and may be suitable only for certain investors. Past performance is not a reliable indicator of future results.
FAQs
Are private market investments only for the ultra-wealthy?
They are typically restricted to HNWI and Sophisticated Investors under UK exemptions. Minimum tickets vary by deal and manager.
How should I think about illiquidity risk?
Match private allocations to long-term objectives and cash-flow needs. Illiquidity can enhance discipline and potential returns but requires planning.
What’s a sensible blend of public and private assets?
It depends on risk tolerance and horizon. Many HNWI use a core public sleeve for liquidity, complemented by targeted private equity, property, and alternative income.