Private Markets: The New Frontier in Thematic Investing Revealed
Delve into how private markets are reshaping the investment landscape, as unveiled by BNP Paribas's latest Thematics Barometer.
The latest insights from BNP Paribas’s 2025 Thematics Barometer are reshaping the narrative around thematic investing. As investors across the globe pivot towards private markets, the allure of innovation and disruption shines brighter than ever.
Thriving Interest in Private Markets
Drawing on insights from 180 institutional and intermediary investors, the Barometer reveals a compelling shift towards private market strategies. While equities still hold sway among intermediary investors, institutional investors are increasingly entranced by the potential of private markets. The move is mainly driven by themes like Artificial Intelligence (AI), which dominates with 79 percent of respondents pointing to AI as a primary focus.
A Strategic Pivot for Global Investors
In Europe and North America, there is a notable increase in allocations towards private markets. More than 20 percent of assets are now directed to these strategies, showing a robust shift from traditional asset classes. This aligns with the revelation that 53 percent of North American investors plan to further increase their exposure to private market strategies in the coming years.
Thematic Investing: Performance Over Impact
Notably, the report highlights a shift in investor motivations. Performance is now taking center stage, as 69 percent of investors prioritize returns over impact. This marks a pivotal moment, as investors find a balance between pursuing alpha and addressing sustainability issues. According to FinanceFeeds, thematic investments are being viewed increasingly as a means of combining risk diversification with robust returns.
Sustaining Insights into the Future
Sustainability-related themes like renewable energy hold unwavering appeal. Solar, wind, hydro, and geothermal sectors are highlighted as areas of key interest. Additionally, the focus on climate change adaptation and mitigation continues to dominate the agendas of those invested in sustainability outcomes.
Outlook for Thematic Strategies
Despite a slight decline in overall adoption, the expectations for thematic investing remain optimistic. Long-term structural changes in technology, demographics, healthcare, and sustainability are set to keep thematic investing at the forefront of both private markets and public equities. The complete Thematics Barometer is available on BNP Paribas Asset Management’s website, offering an extensive look into the future of thematic strategies.
Embark on the journey of thematic investing as private markets reveal unprecedented opportunities for growth and innovation, guiding investors toward transformative horizons in 2025 and beyond.
