by Antonello Di Mascio (Chief Research Officer, Gruppo Excellence) and Alessandro Mattioli (Manager, Gruppo Excellence)

Building a long-term investment portfolio today requires a more sophisticated approach than the traditional asset allocation across equities, bonds and cash. Market volatility, geopolitical uncertainty and the growing spread of passive management are prompting investors and advisers to seek new sources of diversification and return.

In this context, Private Markets represent one of the main opportunities for gaining exposure to the real economy. These investments are characterised by a lower degree of liquidity, but may potentially be less exposed to the dynamics of listed markets and more closely linked to the growth of companies, infrastructure and development projects.

Accessing the real economy through Private Markets

A well-informed investor has access to several broad categories through which to invest in productive capital, and therefore in the corporate sector, either directly through listed equities or indirectly through instruments such as mutual funds and ELTIFs.

For private clients, club deals, investments through equity crowdfunding or private asset funds represent further possible opportunities. The term Private Markets refers to investments in unlisted assets, including private equity, private debt, infrastructure, real estate and other forms of financing for the real economy.

Almost all private banking client segments are currently exposed to Private Markets, through direct or indirect approaches that vary according to their wealth and risk profile. For HNWIs, for example, club deals are among the most interesting options.

Italian investors currently allocate only 0.3% of their investable financial wealth to Private Markets. This is an extremely low percentage, highlighting how the growth potential of this asset class remains largely unexplored in Italy.

Out of approximately €3,765 billion in investable financial wealth (based on Bank of Italy data – Distributional Accounts on Household Wealth), exposure to private markets amounts to just under €11 billion.

The contribution of private savings to companies and infrastructure

In addition to financing the productive economy, the private assets market plays a key role in meeting the funding requirements for the maintenance and construction of strategic and priority infrastructure in Italy. In 2025, this requirement is estimated at approximately €170 billion, equal to 33% of the overall cost of €522 billion (Italian Chamber of Deputies report Strategic and Priority Infrastructure 2025).

Resources already available amount to €351.9 billion (67% of the total), of which €311 billion comes from public sources (88%) and approximately €41 billion from private sources (12%).

Pending an update of these figures, we can meanwhile consider the role of private savings. Support for infrastructure projects already involves private investors in various forms, such as pension funds, which have a long-term investment horizon. However, further resources could still be allocated to this purpose.

We have estimated that the wealth held by the top 5% of the wealthiest households in the country amounts to approximately €2,000 billion in investable financial assets, of which €1,172 billion is allocated to deposits, listed equities and mutual funds.

Even a limited and voluntary reallocation of approximately 5% of the assets currently held in deposits, mutual funds and equities could free up resources in the region of €60 billion to be allocated to infrastructure and productive investments.

Under such a scenario, the amount of capital still required would be significantly reduced. Clearly, this reallocation would have an impact on clients’ portfolios, resulting in lower liquidity, reduced asset liquidity and an increase in the overall risk profile.

For this reason, it is considered that, regardless of the range of instruments available on the market, this form of participation in economic development could be limited to the wealthiest 5% of households in the form of private assets, while the rest of the population could participate through instruments with a lower minimum investment threshold.

These clients must be able to accommodate a proportion of illiquid assets within their portfolios and must have a risk profile compatible with this type of investment.

Advisory services as a key factor in the allocation of illiquid assets

In this context, financial advisory services play a central role. The inclusion of illiquid instruments requires an appropriate assessment of the investment time horizon, liquidity needs and the investor’s ability to tolerate a lower level of liquidity within their assets.

The challenge is not simply to identify investment opportunities, but to build portfolios that are consistent with each client’s objectives and characteristics.

The Italian Private Markets sector is undergoing a period of structural and cultural transition, also supported by the investments in resources, expertise and partnerships made by intermediaries.

A targeted allocation to illiquid assets within the portfolio of well-informed and knowledgeable clients can undoubtedly contribute to overall medium- and long-term performance. At the same time, an inflow of resources towards the country’s productive and infrastructure system can generate a positive impact at national level.

Even a modest reallocation of the wealth of the most affluent households could generate significant effects both on portfolio quality and on the country’s ability to finance infrastructure, innovation and business growth.

From this perspective, Private Markets represent not only a new investment opportunity, but also an instrument through which private savings can contribute more directly to the development of the real economy.