Considering private markets in your portfolio
October 2025
Most people are familiar with shares, bonds and cash. These are common holdings in portfolios and traded on public markets like the ASX or London Stock Exchange, for example.
But more investors can now gain access to “private markets” that were once available only to institutional investors, such as super funds and insurers.
Private market investments aren’t traded on a market like a stock exchange. They can include:
- Private equity: Shares in private companies. These companies might later list on the stockmarket or just stay private.
- Private credit: A private credit fund raises money from investors and uses it to provide loans to companies, generating regular income from the interest repayments.
- Real assets: Tangible assets like property, infrastructure and commodities that can provide income and diversification.
These types of investments are growing rapidly across the world, representing trillions of dollars. For suitable investors, they can broaden investment opportunities and provide alternative sources of return.
Private markets don’t always move in the same direction as public markets, which can help steady overall portfolio ups and downs too.
While private markets can be a valuable addition to a portfolio, they aren't suitable for everyone. Given their higher risk profile, they are generally more appropriate for those with a long investment timeline and higher risk tolerance. They are harder to sell as quickly as other investments, and some funds may temporarily restrict withdrawals. Valuations are updated less often than listed assets, so price movements are not as visible day-to-day.
In many instances, people must be prepared to hold a private market investment for at least 10 years to reap the benefits. And the need for specialist managers and complex structures in the private markets space often means fees are higher than for traditional investments.
How to invest
Due to the complexity of private markets, it’s important to approach them as part of a carefully considered, diversified investment strategy.
Reflecting the growing interest in this area, Invest Blue has recently launched the Cornerstone Private Markets Managed Portfolio, developed in partnership with Russell Investments. The portfolio provides clients with access to private equity, private credit and real assets through a managed portfolio structure designed for retail investors.
If you’re considering whether private markets could play a role in your long-term strategy, your Invest Blue financial adviser can help assess if this type of investment is suitable for your goals and circumstances.
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Cornerstone Financial Group Pty Ltd is a wholly owned subsidiary of Invest Blue Pty Ltd , is an authorised representative and credit representative of Akumin Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licence and Australian Credit Licence No. 232706.
This website contains factual information only about the Cornerstone Portfolios. The information provided is not intended to imply any recommendation or opinion about a financial product. This website has not been prepared having regard to any retail investor’s objectives, financial situation or needs. Before making an investment decision, an investor should also consider the latest disclosure document in respect of the Cornerstone Managed Portfolio (‘‘Disclosure Document’’) and / or seek financial advice in deciding whether to make or continue to hold, an investment in the Cornerstone Managed Portfolio. The Disclosure Document can be obtained by contacting a financial adviser or the platform operator(s) offering the Cornerstone Managed Portfolio.
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