Private Markets Fundamentals

Overview

What role can private markets play in a portfolio?

Private markets refer to investments that are not traded on public exchanges, such as private equity, private credit, and real assets such as real estate and infrastructure. To access these markets, investors typically provide capital to sponsors they believe have the knowledge and expertise to assess and access these markets, with the goal of receiving positive returns on their capital over the long-term. Returns are typically realized through company exits, interest payments, or asset appreciation.

Within an investment portfolio, private market investments are commonly used to increase diversification¹, enhance return potential, and generate income.²

Diversification

Reducing reliance on public markets by spreading risk across different asset types.

Potential for higher returns

Private market investments seek to offer higher returns, often due to niche opportunities and illiquidity premiums.

Income generation

Private credit, for example, can provide consistent cash flows, particularly appealing in falling interest rate environments.

Fundamentals

The difference between private and traditional markets

Traditional markets involve assets that are publicly traded, highly liquid, and widely accessible to everyday investors. Private markets involve direct investments in companies or assets, typically through an investment firm. These markets are typically less liquid and may have longer investment horizons.

Potential Benefits

• Access to deals not commonly found in public markets
• Flexible structuring means private deals can be tailored to meet specific financial goals
• Growing opportunity set with larger universe of private companies vs. public companies

Considerations

• More complex and generally only accessible through a manager
• Generally less liquid than public markets
• Potentially more risk in exchange for return premium

^{Asset class characteristics are presented for educational purposes only and are summary in nature. They are not intended to reflect past or future performance and should not be relied upon as investment advice or a recommendation.}

Perspectives in private markets

In Conversation: economic resilience and the evolving opportunity set

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Economic resilience and the evolving opportunity set

Shane Clifford, Head of Global Wealth, sits down with Jason Thomas, Head of Global Research & Investment Strategy, to discuss economic resilience, the affordability challenge, AI's growing influence on the real economy, and the evolving role of private markets in today's investment landscape

Private Market Fundamentals

Pacharbor Capital Group Global Wealth

How does Pacharbor Capital Group help you connect to private markets?

Advisors play an important role in facilitating client access to alternative investments. Pacharbor Capital Group seeks to empower advisors by providing resources and solutions to support that access.

With expertise across private equity, global credit, and global wealth, we strive to bring advisors access to valuable insights, differentiated strategies, and the clarity to navigate the complex landscape of private markets with confidence.

Our approach is grounded in creating a collaborative partnership. We seek to understand your objectives and priorities, working to identify relevant opportunities across our differentiated platform. Our focus is on supporting your efforts to meet client needs, with the aim of delivering long-term performance.

Discover Private Markets

The brief case: private markets

Learn more about the role of private markets in an investment portfolio.

Download the full brochure

Private Equity Explained Private Credit Explained

^{1. Diversification does not eliminate the risk of loss.}

^{2.There is no assurance that any portfolio construction objectives can be achieved or that any such portfolio will be profitable.}

^{Investing in a Fund involves a high degree of risk, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. There is no assurance that any portfolio objectives can be achieved or that any such portfolio will be profitable. Diversification does not eliminate the risk of loss. The information provided herein is for educational purposes only. It does not constitute investment advice or recommendations and should not be relied upon as a basis for making an investment decision. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors.}^{Click here}^{for a copy of the Form CRS for TCG Capital Markets.}^{Click here}^{to check the background of the firm on FINRA’s Broker Check.}

Expand Access to Private Markets

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Private Markets Fundamentals

What role can private markets play in a portfolio?

Diversification

Potential for higher returns

Income generation

The difference between private and traditional markets

Potential Benefits

Considerations

Perspectives in private markets

Economic resilience and the evolving opportunity set

Access the power of portfolio allocation

Brief case on manager selection

Brief case on comparing fund returns

Six questions for today's market

Access the power of evergreen funds

The brief case on the J-curve in private equity

Understanding evergreen structures

The brief case on liquidity in evergreen private market funds

The brief case on the history and evolution of liquid structures

How does Pacharbor Capital Group help you connect to private markets?

The brief case: private markets