Talking Point  

How much private markets exposure is right for a multi-asset portfolio?

How much private markets exposure is right for a multi-asset portfolio?
(cait00sith/Envato Elements)

The value of private markets is projected to reach more than $15tn (£11tn) by 2025, and more than $18tn by 2027.

Among the commonly cited benefits of investing in private market assets includes diversification and potentially higher returns.

But while allocating part of an investor portfolio to private assets can provide access to sectors and companies that are underrepresented in public markets, and have the potential for generating alpha, they also reduce investor flexibility.

Article continues after advert

They are typically illiquid assets and this makes it harder to react to unforeseen changes in personal circumstances or the market.

As the sector continues to grow it would be hard to deny its place in a portfolio.

But how much would you consider to be appropriate?

Please click on this link to complete the survey.

ima.jacksonobot@ft.com