The Basics of Private Market Investing | AWM Insights #149

Private Markets come with a very different set of challenges and rewards when compared to Public Markets.

Unlike the Public Markets, there are requirements that need to be met for investors to be able to access Private vehicles as they are illiquid. Private Markets are also much less transparent than their public counterparts and, for that reason, require significantly more due diligence.

There is a large dispersion of returns between Private Market funds due to expertise and manager’s skill, which is not true of Public Markets. Access to these best-in-class managers is very competitive and cannot always be obtained with “just a check”.

All these dynamics make it extremely important to work with a trusted and experienced advisor when thinking about allocating to the Private Markets.

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Episode Highlights

• 0:00 Intro
• 1:40 What are Private Markets
• 3:04 How Venture Capital and Private Equity fit into Private Markets
• 4:50 Differences between Public and Private Markets
• 7:54 Who can invest in Private Markets
• 9:03 Money alone isn’t enough to get access to the best funds
• 10:50 The logic behind limiting participants and access in Private Markets
• 12:06 Why vintage diversification is so important
• 13:24 Why would you want to participate in Private Markets?
• 14:00 Text us