Private markets

Diversification

While select private markets solutions have some correlation to public markets, added diversification benefits include:

• Allocations to strategies often inaccessible via public markets
• Investment in emerging and disruptive technologies
• Exposure to higher levels of potential alpha

Higher return potential

While private markets are perceived to have higher risks than public markets, they can offer potentially higher returns in compensation for their illiquidity. This is driven by:

• Private market managers' increased industry knowledge, networks, and ability to attract, leverage and deploy senior executives of high quality
• Ability to implement long term corporate strategies without the burden of having to meet short-term earnings obligations
• The use of asymmetric information that doesn't exist in the public sphere, to capitalize on opportunities

Explore the array of alternative investment strategies:

Hedge funds   Real estate
Infrastructure   Commodities

Return to Funds and strategies

While some industry participants lament private market's inherent illiquidity, this feature also serves as a strength. Longer-term investments have historically outperformed the broader public markets.¹ We believe many of the same characteristics that contributed to private markets' returns in the past, continue to exist and will hold true in the future.

¹Based on a growth of a dollar calculation for 10 and 20 years, using quarterly returns from Thomson Reuters for Private Equity and the following indexes to represent each asset class: S&P 500 Index, Bloomberg US Aggregate Bond Index, NCREIF Property Index, NCREIF Open-End Diversified Core Index (ODCE), and FTSE/EPRA NAREIT Developed Markets Real Estate Index.