April 10, 2024

Framework for incorporating private markets into a portfolio

Robert Picard - Head of Private Market Solutions, Hightower Advisors
Private Assets

Key takeaways

  • Traditional stocks and bonds provide a high level of transparency and instant access, but may offer limited upside. Private markets are often more opaque, but there is greater potential for higher risk-adjusted returns.
  • Individual investors often invest less than 5% of their portfolios in private markets, while institutions and billionaires may allocate as much as 50%. Advisors must help clients determine their level of comfort with more illiquid investments.
  • Ten years ago private investors had very limited access to private investments, but today there are multiple ways for RIAs and their clients to access them via democratization and miniaturization processes.

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