Private markets are increasingly recognised for their pivotal role in enhancing the effectiveness of modern asset allocation strategies, offering access to unique opportunities that are not available in public markets. Beyond the potential for enhanced returns, private market investments provide diversification benefits and exposure to high-growth businesses. These assets can complement traditional investments, helping to build a resilient and balanced portfolio.
Discover how private market investments could elevate your portfolio by providing bespoke opportunities tailored to your investment goals.
Key benefits of Private Markets
Potential
for enhanced returns
Private markets could offer the potential for better long-term returns than compared to public markets due driven by factors such as the including illiquidity premium (the extra return investors demand for holding assets that are difficult to convert quickly to cash), active management and access to unique investment opportunities.
Access to more investment
opportunities
Invest in innovative companies and industries not yet available in public markets.
Enhanced portfolio
diversification
Adding private market investments could enhance diversification, offering exposure to assets that are less correlated with traditional stocks and bonds.
Important Information
• Professional Investors only
• Investing puts your capital at risk.
• The value of your investments can go down as well as up, and you could lose some or all of the money invested.
• Alternative investments (including private market investments) are illiquid, high risk and not suitable for all investors.
Private markets refer to investment opportunities that are not listed on public stock exchanges. These include private equity, private debt, infrastructure, and real estate. Each of these asset classes provides access to different types of investments with distinct characteristics.
Private equity typically involves investing in private companies that are not publicly traded. Private debt refers to loans made directly to private firms. Infrastructure investing focuses on essential physical systems such as roads, utilities, and energy projects. Real estate investing involves the direct ownership or financing of property assets.
Private markets are known for offering diversification benefits, access to unique opportunities, and the potential for higher risk-adjusted returns. However, they can also present challenges, such as limited liquidity and complex valuation processes, which require careful consideration.
Investing in private markets provides an opportunity to enhance portfolio diversification and pursue higher risk-adjusted returns. These markets offer access to innovative companies and sectors that are not typically available through public markets, enabling investors to benefit from emerging trends and high-growth opportunities.
Private equity, private debt, infrastructure, and real estate investments can support long-term growth and improved returns, partly due to the illiquidity premium. In addition, private market investments tend to show lower correlations with traditional public markets, which can help reduce overall portfolio risk.
While private markets provide benefits like higher risk adjusted returns and long-term growth potential, they also come with risks, including liquidity constraints and complex valuations. Careful due diligence and expert guidance are essential for successful integration. Eligible investors may seek to incorporate private markets into their strategic asset allocation, to build more resilient and diversified portfolios, to meet their financial objectives and adapt to the changing global economy.
I have been very happy with the level of advice and support our Client Advisor has provided. They always take the time to explain things clearly and deal with any queries promptly, and they have listened to what I have to say. The management of my portfolio has so far met my requirements.
General client feedback – Mr Morrish, Brown Shipley Client
Download our Private Markets Investment Guide
Our guide offers clear insights, explaining what you need to consider and how to balance risk and reward.
Learn more about:
- The growth potential of private markets
- The advantage of long-term portfolio diversification
- For eligible investors what asset allocation we would typically recommend
- 5 factors to consider before investing
Overview of Private Market assets
Private equity
Private equity involves investing in private companies, often to acquire a significant stake or control of the company, with the intention of improving its value over time before eventually selling the stake at a profit.
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Private debt
Private debt refers to lending money to private companies or buying their debt, which is not traded on public markets.
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Infrastructure
Infrastructure investing consists of investments in physical systems and facilities such as roads, bridges, and utilities, which are essential for the operation of society.
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Real estate
Investments in private Real Estate involve purchasing direct properties to generate rental income and potential price appreciation.
Why partner with Brown Shipley for Private Markets?
Our personal approach
We take a personal approach, sitting down with you for a discovery session to understand your lifestyle, needs and ambitions.
Preparing for the future
We can support you at every stage of your investment journey by sharing our experience and making tailored recommendations.
Variety of expertise
We have expertise across Investment Management, Wealth Planning and Lending to create a tailored plan that meets your specific needs.
Long-term strategy
We’re with you every step of the way — when life changes, we’ll help you adjust your investment plan to ensure it stays aligned to your goals.
Explore Private Markets Opportunities
Get our guide or speak with a Client Advisor about tailored investment solutions
To receive advice and to become a client of Brown Shipley, you must have a minimum of £1m of investable assets.
Our awards
At Brown Shipley we’re committed to becoming one of the UK’s leading private client wealth managers, built on strong, long-term relationships and an unrivalled level of service. It’s an approach that means our people are our most valued asset. So we’re always proud when the industry acknowledges our hard work and expertise.
Important Information
-
Professional Investors only
-
Investing puts your capital at risk.
-
The value of your investments can go down as well as up, and you could lose some or all of the money invested.
-
Alternative investments (including private market investments) are illiquid, high risk and not suitable for all investors.