Interest and participation across institutional, wholesale and intermediary investors, and private wealth investors in private markets, continue to grow. While most investors would agree that the private markets investment proposition is compelling and demands more of a place as part of their strategic asset allocation mix, there perhaps is less agreement on what represents the optimal approach to implementing a private markets investment program.
The purpose of this paper is threefold:
- Understand the additional complexity that is associated with building a high-performing private assets portfolio.
- Focus on the how to invest in private markets by considering key practical aspects of manager selection and portfolio construction.
- Outline why investors should consider a fund-of-funds (FoF) approach, and how this approach to implementation can help unlock the benefits of private investments while addressing the potential risks to create a powerful addition to your total portfolio.