Access to alternative investments is expanding in ways that were almost unthinkable a decade ago. Evergreen funds and interval funds now offer individual investors exposure once limited to larger institutions. On the surface, that looks like progress: more tools to work with and more ways to build resilient portfolios.
But when access expands this fast, complexity tends to follow. And that is exactly what investors face today.
Alternatives include private market investments that come with different liquidity, valuation methods, and drivers of return than public markets. They span a wide range of strategies including private credit, private equity, growth equity and venture capital, real estate, and infrastructure. “Secondary” investments, or the purchase of existing private market investment interests, are also growing in popularity.
Investors are being offered more alternative strategies than ever, yet many still lack clarity about what these exposures are, what role they can play, and how much of their wealth they should allocate. Additionally, managers vary widely in how they source deals, assess risk, and build portfolios. Access has arrived but understanding and manager quality vary widely.
