The Growing Importance of Private Markets

The increase in the relevance of private markets in institutional portfolios has reached a point where they are nearly on par with public markets. The discussion highlights how asset allocators must consider long-term strategic issues, particularly as private markets have expanded significantly in recent years. This evolution has led to a reevaluation of asset allocation models, prompting the need to recognize the risks associated with public and private investments, which are often closely aligned. Ultimately, the focus is on achieving better diversification and enhanced returns by thoughtfully combining both asset classes.