Why SA’s Wealthy Are Looking Beyond the Stock Market
Major investment news is pointing to a clear shift: private markets are no longer just for the mega-funds—they’re becoming a core part of the wealthy investor’s toolkit. We’re taking a quick look at a major move by Sanlam in South Africa and connecting it to the broader global outlook for private investments.
Sanlam’s Big Push: Diversifying for SA’s Rich
South African financial giant Sanlam is making waves with its plan to significantly boost its allocation to private markets. What does this mean? They are encouraging their high-net-worth clients—SA’s rich—to put more money into investments that aren’t traded on a public stock exchange.
The goal is simple: diversification. By investing in things like structured products, real estate, private equity and private debt, you can get exposure to different kinds of companies and assets than the usual publicly listed giants. Think of it as a way to spread your risk and potentially capture returns that are uncorrelated (not connected) with the ups and downs of the stock market.
This strategy is about building a more resilient portfolio for a complex world, steering clients away from having all their eggs in the public company basket.
Global Context: Private Markets Are Booming
Sanlam’s push mirrors global trends. BlackRock wants to boost individual investor allocations to private markets from under 5% to 20%. Bain & Co forecasts private market assets under management could hit $65 trillion within a decade.
Five Key Takeaways for Wealth Investors (From Schroders)
A recent Q4 2025 outlook from Schroders offers timely insights for investors navigating this evolving space:
- Calm on the surface, risks underneath: Inflation is easing, but geopolitical tensions and fiscal concerns remain.
- Private markets offer insulation: Their long-term nature and low correlation to public assets help buffer against volatility.
- Selectivity is key: With stretched valuations in public markets, investors must be discerning in private allocations.
- Domestic exposure matters: Private markets can tap into underrepresented local growth opportunities.
- Active ownership drives value: Long-term engagement and strategic management are essential to unlocking returns.
Why It Matters for South African Investors
South Africa has a unique opportunity. With a high concentration of uninvested cash and a shrinking public market, private assets could offer inflation-beating returns, diversification, and access to sectors like infrastructure, real estate, and private credit.
Sanlam’s move signals a broader shift in how wealth is managed—and it’s one that savvy investors should watch closely.
