Private Markets & Alternatives
Less-liquid exposures assessed on structure, terms, diligence and their fit with the portfolio's liquidity plan.
Purpose
Private market and alternative exposures trade infrequently or not at all, and typically involve multi-year commitments. Their portfolio role must be justified against the liquidity the investor gives up, and the diligence burden is materially higher than in public markets.
Approach
- 01
Evaluate structure, fees, alignment, governance rights and reporting quality alongside the underlying strategy.
- 02
Model commitment pacing and capital calls against the portfolio's overall liquidity plan.
- 03
Treat valuation of unlisted holdings as an estimate, and understand the methodology behind it.
- 04
Apply the same portfolio-role test used elsewhere: what does this exposure do that listed markets cannot?
Where it fits
Diversification and exposure to return sources not available in listed markets, in exchange for illiquidity.
- Investors able to commit capital for extended periods without requiring access to it.
- Portfolios with sufficient scale and liquidity elsewhere to absorb capital calls.
Risk considerations
- Illiquidity is a genuine constraint, not a technicality; committed capital may be inaccessible for years.
- Reported valuations of unlisted assets are estimates and may differ from realised proceeds.
- These exposures are not suitable for all investors and eligibility requirements may apply.
Next capability
Real Assets
Contact the firm
Start a conversation
Mandates begin with a discussion of objectives, horizon and constraints, before any portfolio is proposed.
Begin an enquiry