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THE VALUE OF PRIVATE MARKETS IN AN INDIVIDUAL PORTFOLIO

3 MIN WATCH

February 8, 2024

The value of private markets in an individual portfolio

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

Key takeaways

  • For many people, the immediate and wide availability of information in public markets has engendered a day-trading mindset. The illiquidity of private markets may provide some balance, necessitating longer-term thinking among investors.
  • Private markets allow investors to tap into a large segment of the US economy - the 87% of US companies with revenue exceeding $100M - not available for investment through public markets.
  • Manager selection is key to successful private markets investing. Information is scarcer than in public markets, and it takes experience and expertise to be able to perform proper due diligence.

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Endnotes

Data on % of companies with revenue >$100M, from Capital IQ, as of February 2021.

Important disclosures

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