BlackRock indicated that as its own business footprint in private markets rapidly expands, various European institutions are increasingly allocating more capital to private markets to navigate a "new paradigm of heightened volatility."
Dominik Rohé, the Deputy Head of International Business at the world's largest fund management company, revealed that clients from the Europe, Middle East, and Africa (EMEA) region contributed approximately 35% to BlackRock's private assets fundraising total last year.
In absolute terms, fundraising by institutions in this region surged by over 50% compared to 2024, a figure that underscores the rapidly growing acceptance of private assets in this market. Rohé pointed out that European institutions, such as pension funds, are gradually shifting their focus away from public equity and bond markets toward the domain of private assets.
This move is partly a response to market turbulence and also a quest for investment targets whose returns are not correlated with the movements of stock and bond markets.
"European institutions are increasing their allocations to private markets because they recognize that we are in a new paradigm with higher volatility and changing correlations between stocks and bonds," he stated.
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