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Latest Nuveen survey reveals stronger investor appetite for private assets
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The results from survey point to a growing risk-on sentiment among investors, with plans to expand into niche areas of private fixed income.
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Every year since 2021, Nuveen’s annual EQuilibrium survey has chronicled significant change, marked by economic shifts, geopolitical uncertainty and the evolution of private markets.
The findings in 2025 continue this trend: investors are taking cash off the sidelines and seeking new opportunities.
In particular, institutions are adapting with greater agility, giving them more flexibility to pursue growth assets and sectors. In this new environment, we see three themes becoming increasingly prominent:
1. Geopolitical uncertainty remains as economic concerns ease
2. A risk-on approach is returning
3. Investors are going deeper into private markets
Theme 1: Uncertainty eases but risks linger
As global uncertainty begins to moderate, the survey shows institutional investors cautiously optimistic, remaining mindful of persistent risks.

While a lack of confidence about capital markets and economic growth has declined over the past year, perceptions of uncertainty related to geopolitical tensions, as well as monetary and fiscal policy, have eased only slightly.
Reflecting this, institutions are responding in several ways:
- Assessing the adaptability of companies and sectors to changing regulations
- Evaluating direct and indirect country exposures, including supply chains
- Adjusting sector exposures with both defensive and opportunistic strategies
- Reevaluating overall portfolio diversification to mitigate risk
Theme 2: Risk is back on the menu
A growing number of institutions are planning to take a more risk-on approach to allocations, according to the survey findings.
In 2024, 40% of respondents were reducing their equity exposure, with 28% increasing it. In 2025, this has reversed, with 54% of respondents planning to increase allocations to equity, whereas only 17% plan on a decrease. This sentiment is more pronounced in specific countries. In Korea, for example, 63% of surveyed investors plan to increase equity exposure, with only 8% decreasing it. And in Australia, 69% are increasing, versus 12% decreasing.
These changes in equity exposure mean a growing number of respondents are seeking to decrease cash holdings compared with 2024, with 39% (versus 37% last year) of those surveyed globally looking to reduce cash reserves, and only 19% increase them, rather than 21% in 2024.
In line with the increasing optimism that these moves highlight, the focus now shifting to longer-term growth opportunities. Asset classes such as real estate and infrastructure remain attractive for respondents, offering a combination of growth, income and inflation hedging.
Theme 3: Embracing private markets
Another notable trend in this year’s survey is investors increasing allocations across private markets, with 92% of respondents holding both private credit and private equity in portfolios. These figures have increased each year since 2021.
Results from 2025 show 66% of respondents planning to expand their private market allocations over the next five years. This is even more pronounced in Asia Pacific (Apac), where 75% of responses from Japan and Australia said they plan to increase allocations to private markets.
Most Apac investors picked private equity as the alternative asset they plan to increase, but there is also strong interest in private placements. For example, 51% of surveyed investors in Japan, and 47% in Korea, plan to increase allocations to private placements.
Meanwhile, respondents from Korea and Australia are showing particular interest in diversifying private fixed income allocations. Of those investors surveyed, 68% in Korea and 59% in Australia plan to invest in more niche sectors of private credit, including private asset-backed securities, net asset value lending and energy infrastructure credit.
Not surprisingly, investors who have larger portions of their portfolios already dedicated to alternatives are more likely to have specialised private investment decision-making groups. However, investors with alternative allocations below 20% are twice as likely to manage private infrastructure debt within their general fixed income team compared with investors with higher alternatives allocations. But, overall, most institutions believe their expansion into private markets is enhancing their investment knowledge and decision-making capabilities.
Insurers continue march towards alternatives
When looking at trends across different types of institutions, insurers continue to demonstrate an appetite to diversify portfolios by asset class and investment need.
This is most notable in allocations to private alternatives, with 64% of Apac-based insurers saying they plan to add to their private credit exposure, up from 51% in 2024. Similar jumps exist for private infrastructure, with 48% planning to increase allocations, versus 35% last year.
This growing demand for infrastructure reflects a burgeoning interest in specific pockets of responsible investing, where insurers are leading the way from an allocation perspective. Asked which factors they take into account when making investment decisions, 67% of Apac insurers said the energy transition was an important factor, up from 46% in 2024.
There were similar gains for net zero commitments playing a more important role in decision making, with 60% agreeing it was an important factor, up from 44% in 2024. Further, for 86% of respondents this year, impact strategies increasingly influence investment choices, versus 78% last year.
Explore the complete findings from our 2025 institutional investor survey at www.nuveen.com/equilibrium.
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