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A clear-eyed introduction to the asset class driving long-term value for sophisticated investors, what it is, why it matters, and how to think about it in your portfolio.
Private Markets
fundamentals
GLOBAL AUM
13
Capital managed in traditional closed-end private market funds globally.
T+
FORECASTED GROWTH
32
T
Projected private markets AUM by 2030, up from $11T pre-pandemic.
Source: Preqin Private Markets in 2030
LONG-TERM OUTPERFORMANCE
5
%
25-year annualized net premium of private equity over the MSCI World Index.
ALLOCATION
21.9
Average institutional investor allocation to private markets.
%
WHAT WE INVEST IN
The role of private markets
in a portfolio
Private markets encompass investment opportunities that exist outside of publicly traded exchanges, including areas such as private equity, private lending, and tangible assets like real estate and infrastructure. Investors typically access these opportunities by partnering with specialized managers who have the experience and insight to identify, acquire, and operate assets within these markets. Investment outcomes are often driven by long-term value creation, recurring income, and eventual liquidity events.
As part of a diversified portfolio, private market investments can help broaden exposure beyond public securities, potentially increase overall returns, and introduce stable income components that are less correlated with traditional markets.
Unlocking value
WHY IT MATTERS
Three structural advantages explain why institutional investors have steadily grown their allocations to private markets, and why thoughtful individuals are following suit.
Strategic land positions in growth corridors are advanced through entitlement and horizontal development. Captures value uplift before vertical construction and end-user delivery.
01
Access to exclusive opportunities
Single-family and multifamily land tracts and lot positions in growth submarkets advanced through entitlement and site work for delivery to regional and national homebuilders.
02
Active value creation
Multifamily developments are driven by housing undersupply, demographic trends, and the rent-to-own affordability gap, with a focus on entitled value uplift and appreciation rather than operations.
03
Long-term investment horizon
Private vs. Public
SIDE BY SIDE
The two markets serve different purposes. Understanding how they differ across liquidity, horizon, and return drivers is essential to building a balanced portfolio.
Private Markets
Public Markets
Limited to qualified investors, often via specialized managers.
Open to all investors via exchanges and funds.
ACCESS
Operational improvements, active management, illiquidity premium.
Market beta, earnings cycles, sentiment.
RETURN DRIVERS
Long term; typically 3–10+ year investment periods.
Short to medium term; performance measured quarterly.
HORIZON
Limited; capital is committed for defined holding periods.
Daily trading; immediate entry and exit.
LIQUIDITY
Periodic reporting; relationship-driven communication.
Continuous public disclosure and price discovery.
TRANSPARENCY
Advantages & Considerations
Three structural advantages explain why institutional investors have steadily grown their allocations to private markets, and why thoughtful individuals are following suit.
BEFORE YOU INVEST
O
+
Key Advantages
Access to opportunities outside public markets, including off-market and specialized investments.
Greater flexibility in deal structuring to align with specific investment objectives.
Exposure to a broader and growing universe of private companies and real assets.
O
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Important Considerations
Investments are typically less liquid and require longer holding periods.
Access often requires partnering with experienced managers or sponsors.
Risk profiles may vary, with the potential for higher returns alongside increased complexity.