Investment capability
Illiquidity should earn its place in the portfolio.
Private equity, private credit, venture, infrastructure and other alternatives can expand the opportunity set, but they also introduce commitment pacing, manager dispersion, valuation, fee and liquidity risks that public-market portfolios do not carry in the same way. We evaluate the exposure as part of the whole mandate.
Manager diligence
Assess strategy, team, sourcing, underwriting discipline, incentives and evidence behind the stated edge.
Portfolio fit
Size commitments around liquidity, concentration, pacing and the investor's ability to fund capital calls.
Terms and structure
Review fees, governance, valuation, leverage, key-person provisions, liquidity mechanics and exit routes.
What deserves scrutiny before a private-market commitment?
A compelling narrative is not enough. The decision should connect manager quality, strategy economics, terms, portfolio role and the investor’s liquidity profile. The most important risk is often not whether an opportunity can perform, but whether the investor can remain committed through the full life of the investment.
Private client
Business owner
Company / institution
Adviser / partner
Private-market diligence should test the story from several directions.
We start with the strategy itself: what inefficiency or operational capability is expected to create value, and why should that opportunity persist after fees and competition?
Manager diligence examines decision makers, team stability, ownership, sourcing, underwriting, portfolio construction and how prior outcomes were produced. Headline returns are less useful without understanding the path and the risks taken.
Terms can materially change investor outcomes. Management fees, carried interest, preferred returns, subscription lines, leverage, recycling, extensions and expense allocation all deserve attention.
Liquidity planning is essential because reported valuations do not create cash. Commitment pacing and expected capital calls should be evaluated alongside the rest of the investor’s portfolio and known obligations.
Concentration can arise by vintage, manager, geography, sector or underlying economic exposure even when multiple funds are held. A pacing plan can help avoid committing too much capital to one market environment.
Monitoring continues after commitment. Manager changes, fundraising behavior, portfolio-company developments, leverage, valuation methodology and distribution patterns can all alter the original investment case.
The category can include private equity, venture capital, private credit, infrastructure, real estate, hedge-fund strategies and other structures not traded like conventional public securities. The legal structure, liquidity and investor eligibility vary significantly by opportunity.
There is no universal allocation. The appropriate level depends on spending needs, income stability, other liquid assets, outstanding commitments, time horizon, risk capacity and the investor's ability to fund capital calls without forced sales.
Private-market strategies often give managers more discretion over sourcing, leverage, operations, valuation and timing. Outcomes can therefore vary widely between managers pursuing similar labels, making team, process, incentives and evidence especially important.
Commitments are not the same as invested capital. We consider expected call patterns, existing unfunded commitments, distributions, cash reserves and stressed scenarios so the investor has a credible funding plan throughout the life of the program.
Key areas can include management fees, carried interest, hurdle rates, leverage, expense allocation, fund duration, extensions, recycling, key-person clauses, governance rights, valuation policy, transfer restrictions and reporting.
Comparisons require care because cash-flow timing, leverage, valuation frequency, fees and illiquidity differ. Any comparison should use an appropriate methodology and should not imply that a less frequently priced asset is automatically less risky.
Investor FAQs
Questions to clarify before a private markets & alternatives engagement
Use the private markets review form below to describe the decision, timing and constraints that matter. Please do not include account passwords, full Social Security numbers or other highly sensitive information.
1. Define the decision
State the objective, time frame and what would make the outcome useful.
2. Share context
Provide high-level portfolio, liquidity or transaction context without sending sensitive credentials.
3. Confirm fit
We can then identify the next information needed and whether the request fits the relevant capability.