Alpha is in the Blend

The diversification offered across private markets’ vintages, strategies, asset classes, geographies, and instruments offer structural premiums, but a hyper-diversified private markets solution across multiple funds and managers, and therefore across numerous underlying asset holdings provides a significant reduction in defaults, significantly increasing the premium offered compared to public markets.

It is in the blend, typically utilising two to four mid-market specialists in their field, where the alpha really sits. We believe the optimal way to get exposure to private markets is to allocate tactically to the funds that best represent your thematic views at that time and have other attractive attributes, such as having high levels of deployment in the markets already. A strong focus on selection and sourcing for targeted outcomes with specialist managers is key in maintaining returns and outperformance across private markets’ portfolios.