Why ‘Throwing Darts’ in Private Markets Isn’t Enough
Once the exclusive playground of the wealthy, private markets are now the hot area of interest for financial advisors.
The appeal is multifaceted, with a heavy focus on the benefits of diversification and performance beyond the broad market stock and bond allocations that dominate most retail and mass-affluent investor portfolios. But there are also issues, specifically around suitability and liquidity, that advisors need to consider before jumping in.
Historically, the theory behind them is that they’re not perfectly correlated with public debt and equity, said John Clark, founder of Wolf Bay Wealth Partners. “By adding private assets into a portfolio, investors can achieve higher returns, or lower risks, relative to their…
