According to surveyed CAIA Members, nearly 70 percent view the main objective of allocating to private equity as return enhancement. About 29 percent of members also noted that their private equity and venture capital allocation was between 5 percent and 15 percent, with another 18 percent holding more than 15 percent of assets in this category. More than 50 percent of CAIA Association Members expect to have a greater allocation to private equity and venture capital in 2025 than they currently hold.
Steps must be taken by industry participants, product providers and regulators to ensure that the end investor clearly understands just what they are adding to a portfolio, notes the report.
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