What Are Investors Really Getting from Private Markets?

Private markets are offering investors more than simple market exposure, but they are not a free source of extra return. In private credit, our analysis suggests that broader credit conditions still matter, yet a large share of results comes from non-market factors such as underwriting, leverage management and portfolio construction.

That means illiquidity can be rewarded, but only if investors are truly paid for giving up flexibility. The evidence also points to wide performance differences across managers, which makes selection especially important in private assets.

For advisors and investors, the message is balanced rather than bullish or bearish. Public markets remain the cleaner way to access liquidity and broad beta, while private markets may add return potential and diversification for those with longer horizons. The key risk is assuming all private exposure is the same when outcomes can vary sharply by manager and structure.