Private equity confidence grows but only 2 in 5 investors understand what they hold

Sydney, Australia - 23rd September, 2025 - A new survey from Apt Wealth Partners of 889 high net worth individuals has revealed a significant disconnect between investor confidence and actual understanding of complex asset classes, raising red flags for advisers, regulators and investors alike.
 

According to the research:
● 82% of clients say they understand their investment portfolios
● Only 42% strongly agree they understand how private equity works
● Just 35% strongly agree they grasp liquidity and exit strategies
 

This confidence gap, particularly as access to private markets becomes more common, could have serious consequences, including misaligned expectations, unexpected losses and long-term impacts on retirement goals.
 

"There's a growing trend of investors wanting access to private equity, but only around a third understand key aspects like liquidity and exit strategies," says Andrew Dunbar, Director and Head of Advice, Apt Wealth Partners. "Advisers need to move beyond 'tick-the-box' education and ensure clients truly grasp what they're invested in."
 

Confidence vs. Understanding
Apt Wealth Partners' survey also found that 84% of respondents say understanding their investments provides them with confidence. This highlights a troubling dynamic - when that understanding is incomplete or based on general portfolio familiarity rather than specific asset knowledge, the risk of overconfidence grows.

This gap matters most when markets turn. 

In periods of volatility or downturn, investors who haven't fully understood the risks or
lock-up periods associated with private equity and private credit may find themselves unable to act, leading to financial stress, unmet goals or erosion of retirement plans.

The growing inclusion of private assets in advised portfolios, alongside the rise of platforms offering retail access to alternatives, has sparked increasing scrutiny from ASIC. The financial regulator has flagged investor comprehension and product suitability as priority issues in regulatory guidance.
 

Advocating for Deeper Client Education
Apt Wealth is calling for a renewed focus on financial education at the point of advice, not just in general portfolio terms, but specifically around complex, illiquid and alternative investments. The firm advocates for deeper client conversations that test true understanding and align asset structures with individual goals, timeframes and risk tolerance.
 

"Private equity has a place in many modern portfolios, but only when the investor
understands the full picture," says Dunbar. "At Apt Wealth Partners, we take the time to
unpack these strategies with clients, ensure clarity around timelines and liquidity and adjust plans accordingly."
 

As interest in alternatives continues to grow, advisers and investors alike must guard against the pitfalls of partial understanding. When confidence outpaces comprehension, the consequences can be costly.
 

About Apt Wealth Partners:
Apt Wealth Partners is an award-winning Australian financial advice firm helping clients live for today while planning for tomorrow. With offices in Sydney and Melbourne, Apt Wealth Partners delivers personalised, transparent and values-based advice to individuals, families and business owners across Australia.
 

Media enquiries
Media Contact:
Andrew Dunbar
Director, Head of Advice
Apt Wealth Partners
Email: andrewd@aptwealth.com.au
Phone:03 8779 5262
Website: https://aptwealth.com.au/