Private Investments: A Primer for Ambitious Advisors

82% of financial advisors say private investments help them attract new clients. But many are still unsure how to engage with these opportunities – and this page offers a comprehensive overview of the subject.

Why Private Investments?

The Third Pillar of Forward-Thinking Portfolios

Private investing is an opportunity to invest in companies or assets that aren’t publicly traded on the stock market, like private equity, private credit, real estate, infrastructure, venture capital and hedge funds.

How Advisors Use Private Investments

The Benefits of Investing Outside Public Markets

Investing early in the company or asset’s lifecycle can deliver greater upside potential – and allow investors to go beyond public markets. These opportunities have become a critical part of a sophisticated, forward-thinking portfolio, offering:

  • Portfolio Diversification
  • Risk-Adjusted Return Potential
  • Early Access to Unique Growth Opportunities

Four Challenges for Private Investments

Private investments offer enhanced upside potential – but that comes with risks, blind spots, and operational complexity that can overwhelm even experienced Advisors:

Not traded on public markets

Demands higher investment minimums

Requires thorough due diligence and manager selection

Involves complex legal and fund structures

Private Investments are Shaping the Future of Wealth Management

The fastest growing companies are staying private longer - and fewer of them are ever reaching public markets. That means investors are at risk of missing out

In 1980, companies went public after just 6.5 years. [1]
6.5 Years
Today, they often wait 15 years or more. [1]
15 Years
There are fewer than 3,000 public companies today, down from over 6,500 in the 1980s. [1]
3,000
1 For illustrative purposes only. Past performance is no guarantee of future performance. Left display: Source - University of Florida, of 1/2/2023. Initial Public Offerings: Median Age of IPOs Through 2022. Example reflects median age to IPO for Tech IPOs. Right display: Source – Nasdaq, “As Companies Stay Private Longer, Advisors Need Access to Private Markets,“ as of 8/11/22. Shown for illustrative purposes only. Past performance is no guarantee of future performance. https://hamiltonlane.maglr.com/a-guide-to-private-markets/why-should-investors-consider-private-markets-in-their-portfolio

Your Clients Expect Access to Private Markets

Investors — especially high-net-worth and next-generation investors — expect more from their portfolios and financial advisors. They want investments that generate meaningful, long-term value – and that means going beyond traditional 60/40 portfolios.

Private markets — including private equity, credit, and real assets — have consistently outperformed public markets over time.

Navigate Private Investments with Confidence

We can help simplify the complexities of private investing by offering access to unique, carefully selected solutions and backing them with experience.

Get in Touch