March 14, 2024

Navigating private markets misconceptions

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

Key takeaways

  • Advisors need to be mindful that investor perceptions of private markets may have been shaped by earlier negative experiences.
  • Many may perceive fees in private markets as excessive, but private fund managers are compensated largely based upon performance, and higher fees may be justifiable if they generate better risk-adjusted returns, net of fees.
  • It is important to remember that - in most cases - a share of fees are attributable to important due diligence processes for underlying companies, which are vital to fund managers generating returns.

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