Such schemes need to ensure they have the liquidity required to act, and also to carefully consider the time horizons for investments. However, within some private markets, investment terms are getting longer. Illiquidity is a common feature of private markets, and the reason why they usually offer a return premium. But now, given some investors’ shorter time horizons, a liquidity mismatch is emerging, limiting opportunities in private markets. 

Even investors that are less time constrained still want to access the best opportunities – which means keeping up with evolving markets. That involves considering if a market is best accessed through debt or equities or through closed or open-ended funds, given considerations such as extension risks.

To help understand these considerations, this article revisits key private markets and weighs up the liquidity considerations for investors. Please note, these are brief market profiles – in future editions of Investment Perspectives, we will explore each market in more depth.

Read the full article including more on:

• Private equity
• Property
• Private debt
• Infrastructure
• Key takeaways