Unmet HNW advice needs centring around inheritance and private markets
High-net-worth clients with between $5-10 million are found to have the greatest unmet advice needs, according to LGT Crestone, with inheritance planning viewed as the most-sought after advice need.
The wealth manager’s LGT Wealth Management State of Wealth report surveyed over 1,100 HNW and ultra-HNW individuals and found 58 per cent of wealthy Australians still report gaps in knowledge and capability.
Some 63 per cent of those with $5-10 million of investable assets say they had unmet advice needs, up from 57 per cent in 2024, a rise of 10 per cent, and from 55 per cent in 2023.
On the other hand, the proportion of HNWs with $1-2.5 million or more than $10 million saw their unmet advice needs decline year-on-year.
Those with $2.5-5 million saw a small increase from 55 per cent to 56 per cent.
“Areas of most need included inheritance and estate planning, strategies to reduce tax obligations, investment strategy and portfolio reviews, and retirement planning. Intergenerational advice and protecting assets or income against market falls figured amongst the key areas HNW investors would like to be – but currently aren’t – receiving advice.
“Tax strategy and retirement planning were also nominated as areas of need, highlighting a continuing opportunity for professional advisers to expand their value proposition and client horizons.”
Use of advisers by HNWs has risen from 24 per cent of HNWs last year to 26 per cent with this allocation controlling over a third of assets, some $1.4 trillion, with unadvised HNWs controlling 65 per cent, some $2.6 trillion.
While inheritance and estate planning came out as the top concern for HNWs with unmet advice needs, it actually has been declining since 2023, indicating people are actively taking steps to address their concerns. Following this was strategies to reduce tax obligations and investment strategy.
Private markets
In terms of which areas have seen rising interest this year, more advice was sought on private markets, setting up a trust and protecting income.
The number of HNWs invested in private markets grew from 146,000 in 2024 to 171,000 in 2025, representing a 17 per cent increase.
Within the overall private market sector, the growth in appetite for private credit solutions was particularly strong and if this continues, it is expected to mean private credit allocations overtake those to private equity over the next 12 months.
In particular, private credit could gain $15.1 billion in the next 12 months from HNWs, while private equity could gain $10.3 billion. This would bring the total investment to $44.8 billion and $76.1 billion, respectively.
Among those who already invested in the space, the most common reason was the expectation of higher returns and the diversification benefits.
However, it varied between asset classes, with 88 per cent of investors wanting higher returns in private credit compared to 81 on private equity investors. Meanwhile, manager expertise was important for over half of private credit investors but just 38 per cent of private equity ones, who instead favoured the access to unlisted markets.
In terms of adviser recommendations, 52 per cent of HNWs said they had been recommended to invest in private equity, 57 per cent had been recommended private infrastructure but just 41 per cent had been recommended private credit.
LGT said: “Adviser recommendations also play an important role in shaping investor appetite across the entire private market spectrum. While the growth in private market opportunities is providing investors with a greater array of choice, trends can be challenging for individuals. Advisers play a central role in connecting investors to new strategies, funds, and co-investment opportunities that can otherwise be difficult to reach.
“The role of advisers in helping clients navigate the landscape of this growing sector is likely to increase in importance, as a flight to higher quality private credit assets unfolds.”
AUTHOR
Laura Dew
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