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What kind of returns can investors expect from private markets investments?

Curious about private markets

What kind of returns can investors expect from private markets investments?

The potential returns from private markets investments can vary widely depending on the specific investment, the stage of the company or asset being invested in, and a number of other factors.

In general, private market investments have the potential to generate higher returns compared to public markets investments, but they also come with higher risks. According to a study by Cambridge Associates, private equity investments had an average annualized return of 13.9% over the 10year period ending in 2020, compared to 11.2% for the S&P 500 over the same period. However, it is important to note that these returns can vary widely depending on the specific investment.

In addition, the potential returns from private markets investments may not be realized until the investment is sold or the company goes public, which could take several years or more. This means that private market investments may require a longer investment horizon compared to public market investments.

Overall, the potential returns from private markets investments can be attractive, but it is important to understand the risks associated with these investments and to do your due diligence before investing.

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