Why Private Markets

Overview

Despite the hurdles and distinct challenges that come with adding private markets to an investment portfolio, many of the most sophisticated institutional investors are allocating to private markets. Historically, the asset class has generally outperformed public markets due to a range of factors, including the broader investment landscape, information inefficiencies, and operational control. Fueled by a less efficient market and significant operational control, private markets are likely to continue their track record of outperformance. For investors who can bear the increased illiquidity and higher fees, allocation to private markets can enhance a portfolio and provide a return premium.

For an introduction to private markets investing, see the primer.

Advisor Thinking