Moondog
Term

Private Markets

Also: private equity, private credit

Investments not traded on public exchanges, such as private equity and credit.

Private markets cover private equity, venture capital, private credit and real assets. They can offer a return premium for illiquidity, but require longer horizons and careful liquidity planning.

For families, a long horizon is one of the few real advantages a patient investor has, and private markets reward it. The cost is illiquidity and complexity, which is why a private-markets programme needs a pacing plan and a liquidity floor far more than it needs another exciting fund.

Related terms

Correlation The degree to which two assets move together. Custodian The institution that safekeeps a portfolio's assets. Discretionary mandate An arrangement in which the adviser makes investment decisions within agreed limits. Diversification Spreading capital across assets that don't move together to reduce risk. Efficient frontier The set of portfolios offering the highest expected return for each level of risk. ESG investing Investing that takes environmental, social and governance factors into account.

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