Private Markets Unpacked: Revisiting the case for private equity

Private and public equity play different but complementary roles in a portfolio, which we explore in greater depth in this report

• Public equities provide more liquidity, transparency, and broader market exposure, while private equity may enhance returns through the illiquidity premium, operational improvements via active ownership, and access to earlier-stage growth companies

• Private equity has historically delivered a modest return premium, operational control, and exit timing but with higher illiquidity, leverage, and manager dispersion. This makes sizing, pacing, and GP selection critical

• With moderate correlation to public markets, private equity can enhance diversification and risk efficiency within an equity allocation when thoughtfully integrated alongside liquid assets