Private equity and private debt are seeing robust demand across Europe as fund selectors continue to increase their allocations to private market assets, according to new findings from Neuberger Berman’s European Fund Selector Study (EuroFSS).

The research, based on responses from 894 fund selectors across Europe and the UK, highlights growing demand for private market exposure. Diversification (74%) and high return potential (60%) were cited as the top motivations, followed by long-term focus (45%), capital growth (33%), and low volatility (33%).

At the same time, liquidity constraints remain the most commonly cited barrier (57%), with transparency (41%) and high minimum investment thresholds (36%) also posing concerns.

Private equity leads in average allocation across the region, particularly in the Nordics (9.4%), Germany (9%), and Switzerland (8.2%). The UK lags behind with 4.4%, largely due to local preference for listed investment trusts.

Private debt, however, is gaining significant traction. The proportion of selectors planning to increase exposure has jumped from 19% last year to 47% this year, with particularly strong momentum in Spain (67%) and France (65%).

European Long-Term Investment Funds (ELTIFs) are also seeing wider adoption. Awareness has increased from 50% to 69% year-on-year, and 37% of selectors now plan to allocate to ELTIFs over the next 12 months, compared to just 11% intending to favour UCI Part II funds. Italy leads both in awareness (85%) and in adviser recommendations (24%).

Commenting on the findings, José Cosio, Head of Intermediary – Global ex US at Neuberger Berman, said that private markets have “become an indispensable tool” for fund selectors and noted the “continued momentum behind ELTIFs as an efficient access point” for these strategies.

To support this shift, Neuberger Berman recently launched the NB Private Markets Academy, an on-demand educational platform for financial advisors and investors navigating private asset allocations.

The firm manages $515bn in global assets, including over $135bn dedicated to private market strategies spanning primaries, secondaries, co-investments, and private credit.

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