Nuveen’s Fifth Annual EQuilibrium Global Institutional Investor Survey: Institutional Investors Broaden Their Reach in Private Market Allocations

Key findings:

• 66% of investors plan to increase their private asset allocations over the next five years; over 90% now hold both private equity and private credit compared with 45% in 2021
• Among alternative asset classes, private infrastructure and private real estate had the largest year-over-year jump in investors planning to increase allocations
• 65% of investors planning to increase allocations to real estate focused on digital infrastructure

Institutional investors globally are pivoting to more of a risk-on posture, seeking new opportunities in niche markets as macro conditions shift. Capturing the views of the largest investors in the world with participation of 800 institutions representing $19 trillion in assets under management, Nuveen’s EQuilibrium Global Institutional Investor Survey examines how evolving perspectives on market, geopolitical and climate-related issues are influencing asset allocation decisions.

“Aligned with what we’re hearing from clients on a day-to-day basis, three main themes emerged from the survey this year,” said Harriet Steel, Global Head of Institutional at Nuveen. “First, investors are considering ways to play the next real estate cycle; second, private markets will play an expanded role in portfolio construction with nearly 40% of investors seeking out a broader selection of asset managers to help grow these allocations; and third, among the insurance cohort – a client segment with a unique set of challenges and objectives – respondents indicated both a greater appetite for complexity and specialization within private markets compared to last year and a greater focus on impact investing compared to other investors.”

Returning Interest in Real Estate & Real Assets

“As institutions sharpen their focus on specialized real asset opportunities, the trend toward private market solutions continues to accelerate, reinforcing the role of real estate and infrastructure as core components of institutional portfolios,” said Steel. “Long-term growth opportunities are back in focus and investors are reassessing the attractive return potential and effective inflation hedges of real estate and infrastructure, amid lingering concerns over deficits, trade policy and structural inflation risks.” 

Private infrastructure and private real estate saw the biggest year-over-year increases in the percent of investors planning to increase allocations from 35% and 24%, respectively, in 2024 to 50% and 37%, respectively, in 2025. Further, investors are being selective in targeting specific high-growth areas within both markets, such as data centers and private infrastructure debt.

Data centers have emerged as a leading priority, with 65% of investors planning to increase allocations to real estate focused on digital infrastructure, reflecting the rapid expansion of cloud computing and AI-driven demand. Government initiatives aimed at modernization and sustainability are further fueling investor interest in infrastructure. Over 30% of investors who are planning to increase private fixed income assets are looking at energy infrastructure credit.

Insurers based in EMEA indicated particular conviction in private real estate, with 46% of this cohort planning to increase allocations over the next two years, compared with only 27% last year.  

Within Europe, the strongest interest is coming from German investors where more than half (51%) plan to increase allocations to private real estate compared with 24% last year.

Private Markets Powering Portfolio Construction

Institutional investors continue to deepen their commitment to private markets, with 66% planning to increase allocations to private assets over the next five years. More than 90% now hold both private equity and private credit, a sharp rise from 45% in 2021, underscoring the expanding role of private markets in institutional portfolios. 

“Private market flows remain resilient, with funding sourced from public asset outflows, cash reserves, and new capital,” said Steel. “Even those adjusting allocations within private markets are largely reallocating rather than exiting.” 

Private infrastructure, credit and equity continue to attract significant attention, with nearly half of investors planning to expand allocations to these areas. Within these categories, investors indicated that private equity is where they plan to make the greatest increase. 

A trend toward higher-yield, higher-risk fixed income is also emerging, with private fixed income now a leading focus. Nearly half of respondents are exploring new niche areas within private credit, such as energy infrastructure credit and fund finance (e.g., NAV lending).  

As allocations to alternatives grow, nearly 40% of institutions are expanding their roster of asset managers to navigate increasing complexity and specialization.

Investors with higher allocations to alternatives are more likely to have dedicated investment teams, signaling a shift toward increasingly sophisticated decision-making in private market investments. 

Insurers Lean into Private Markets and Impact Investing

Insurers are shifting toward strategic growth and specialization. While geopolitical risks and market volatility remain on their radar, insurers are expressing less concern over economic growth and recession risks in 2025 than they did in 2024. 

This confidence is reflected in their foresight and early moves in reformulating their capital market assumptions, with only 27% adjusting their methodologies due to shifting fundamentals this year—down from more than half in each of the past two years.

As insurers look beyond short-term risks, private market allocations continue to expand, with nearly seven in 10 (69%) planning increases over the next five years. Private credit remains a particular area of focus, with insurers not only boosting allocations to private real estate debt (45%) but also broadening their exposure to niche opportunities, including energy infrastructure credit (46%), private asset-backed securities (34%) and fund finance (26%). These shifts underscore a growing appetite for complexity and yield-enhancing strategies within insurance portfolios.

Insurers are also evolving their approach to responsible investing, placing greater emphasis on positive impact metrics and benchmarking to the United Nations’ Sustainable Development Goals. Currently, 93% either incorporate or plan to incorporate environmental and social impact factors into their investment strategies—signaling a continuing evolution toward measurable, outcome-driven approaches. Over half (55%) report managing a separate sleeve in their portfolio for impact investments, compared with only 26% in our 2023 survey.

“Insurers are demonstrating an increasingly confident and sophisticated approach to portfolio construction, balancing long-term private market exposure with a commitment to impact-driven investing,” said Steel. “Their focus is shifting to targeted opportunities in private credit, infrastructure, and sustainability-aligned investments.”

This evolving strategy highlights insurers' role as forward-thinking institutional investors, leveraging private markets and impact-driven approaches to navigate a shifting financial landscape. 

Balancing Pragmatism, Progress in Environmental Priorities

Institutions are grappling with the dual imperatives of addressing climate risk and capturing attractive return opportunities. 

Investors are adopting a more balanced and pragmatic view of the energy transition, with 73% of respondents agreeing that near-term energy needs cannot be met without incorporating both traditional and renewable energy sources. 

“We are seeing a shift toward strategies that combine the practicalities of current energy needs with the ambitions of a sustainable future,” said Steel.

While fewer investors now view the low-carbon transition as inevitable — 61% compared with 79% in 2022 — the commitment to clean energy remains strong, with most institutions prioritizing clean energy and carbon reduction either as part of net zero goals or to capture compelling risk-return opportunities. 

Overall, 44% of institutions have net zero commitments while another 25% plan to in the coming 12 months. Even among the roughly 30% who do not intend to set net zero commitments, the majority (64%) say they are still investing in clean energy strategies or reducing carbon in their portfolios.

Interim milestones are gaining traction: More than half of institutions (51%) with net zero goals have set interim 2030 targets, while 37% have established 2025 benchmarks to guide short-term progress. The vast majority of investors with 2025 goals (95%) say they are on track or partially on track to meet those targets.

While 45% of institutions identify nature loss as a top five economic risk, only three in 10 are increasing their focus on nature-related themes within their portfolios. This likely reflects the fact that nature-related investing is still a developing area, with many allocators in the process of educating themselves and building their understanding.

Among those prioritizing nature-based investments, 79% are seeking strategies that go beyond sustainability to proactively mitigate environmental degradation. Sectors such as water and waste management, pollution reduction and recycling are emerging as key opportunities, offering a dual benefit of environmental risk mitigation and attractive return potential.

About the Survey

Nuveen and CoreData surveyed 800 institutions globally spanning North America (NORAM); Europe, Middle East and Africa (EMEA); and Asia Pacific (APAC) in October and November 2024. Respondents were decision-makers at corporate pensions, public/governmental pensions, insurance companies, endowments and foundations, superannuation funds, sovereign wealth funds, and central banks. Survey respondents represented organizations with assets of more than $10B (55%) and less than $10B (45%), with a minimum asset level of $500 million. The survey has a margin of error of ± 3.5% at a 95% confidence level.