Understanding the Pace of Private Markets Before Pursuing Performance
Private equity should not be approached like a publicly traded stock or a bond fund. It operates on a long-term perspective, where illiquidity is not a drawback but a structural feature. Investing in private equity typically commits an investor for a period of five to ten years, with performance that may be negative in the initial years before gradually improving. This phenomenon, widely recognized as the J-curve, requires a specific understanding of returns and a real capacity to absorb initial volatility.
Another often underestimated aspect is the system of successive capital calls. Unlike a « one-shot » investment, capital is…
