The rapid buildout of artificial intelligence is fundamentally reshaping how portfolios are constructed. Executives at BlackRock are describing the surge in AI investment opportunities as a once-in-a-century shift that is accelerating the growth of private markets and pushing investors away from the traditional 60/40 stock-and-bond framework that has dominated for decades.

Speaking to CNBC on the sidelines of the IPEM global conference in Paris, BlackRock's EMEA Wealth business managing director for the alternative investments specialist team, Fabio Osta, said both institutional investors and high-net-worth individuals are showing intense interest in private markets. He explicitly recommended adjusting the classic 60/40 allocation to a 50/30/20 split—50% equities, 30% fixed income, and 20% private market assets.

This suggestion comes at a time when the effectiveness of the traditional 60/40 portfolio is facing increasing scrutiny, squeezed by supply shocks, inflationary pressures, and bond market volatility. Osta believes private markets are entering a new growth era, becoming more accessible, more comprehensive, and more transparent for wealth clients.

Global alternative assets projected to hit $30 trillion by 2030

BlackRock forecasts that global alternative assets under management will climb from $20 trillion today to $30 trillion by 2030, fueled by demand from both institutional and wealth clients. Osta characterizes this trend as a new continuum of public-private market convergence—investors are moving away from the clear-cut binary of public versus private markets and toward a more integrated allocation model.

The 20% allocation to private markets will span what BlackRock defines as multiple supertrends, including AI infrastructure, the energy transition, demographic changes, and urbanization.

AI elevated from micro theme to macro narrative at the core of private allocations

Among the many opportunities in private markets, Osta sees AI as the central driving force. He noted that AI has evolved from a niche industry theme just a few years ago into a macro theme with implications across regions, sectors, and asset classes. BlackRock breaks down AI development into three phases: the first, current phase involves the infrastructure buildout requiring massive innovation investment; the second is the adoption phase; and the third is a deep structural transformation over the next decade. "We are in the early stages of the AI buildout," Osta said.

BlackRock participated in the recent €3 billion (approximately $3.49 billion) funding round for French AI startup Mistral, which Osta cited as a textbook example of the convergence between AI and private market opportunities.

Stock selection remains critical; non-AI themes cannot be overlooked

While AI garners the lion's share of attention, Osta also emphasized that the energy transition, demographic changes, and urbanization are the other three supertrends shaping the private market landscape, collectively forming the opportunity set for private allocations. Given this vast field of opportunities, Osta highlighted the importance of selectivity—"within this opportunity set, picking ability is crucial." This means that even as private markets expand broadly, not all assets or managers will deliver expected returns, and investors must remain discerning in their choices.