Private market investments for your portfolio 

Given the potential to broad dispersion of returns across private markets, it’s important to diversify across a broad range of strategy types, geographies, and vintages. 

Investors tend to be drawn to private markets for two key reasons: higher potential returns and diversification. 

Capital invested in private markets tends to take a medium to long term view, typically translating to a so-called “illiquidity premium” relative to investments made in public market equities or debt.  

Private market investments may therefore potentially provide a source of uncorrelated returns relative to listed equity or debt held elsewhere in portfolios. 

A surge of interest in private markets has driven both investor demand and manager supply over recent years, with considerable fundraising driving structural growth in the industry and massive expansion of the number of strategies across the private markets universe. 

This expansion has opened up investor choice, competition and access to high-quality managers, as well as providing potential opportunity for diversification within individual asset classes. 

Innovation in the form of new evergreen and semi-liquid structures, in some cases allowing for quarterly drawdowns, has also helped democratise private markets to a broader set of investors. 

While the rapid growth of the private markets universe presents the opportunity for enhanced diversification and, potentially, returns, it also makes identifying the best opportunities more complex – often requiring strong relationships with managers to access them.  

Diversified opportunity set

Diversification and potentially higher potential returns can often be the two primary attractions of private markets and they typically benefit from an illiquidity premium. So it is important to take a medium to long-term view when investing.

Discover how to implement this asset class into your investment portfolio. 

Due diligence takes precedence

During the period of ultra-low interest rates, some private markets managers were able to rely on margin expansion and cheap leverage to drive their returns.

That is no longer the case. Outperformance going forward will be driven by those who are able to create positive transformation in the companies they invest in. It’s more important than ever for investors to drill down into the historical drivers of managers’ returns.

Simplifying access

Given the broad dispersion of returns across private markets managers, it’s important to diversify across a broad range of strategy types, geographies, vintages and general partners.

We seek to add value by unlocking capital constraints via streamlining access to an array of globally researched managers through a single investment vehicle.

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