Private markets’ assets of all types are being repriced due to valuation and liquidity concerns, according BNY Mellon in its recent report.
But this could prove potentially advantageous for future returns. Moreover, certain experts believe including alternatives in portfolios could reduce overall volatility and enhance yield stability at a time of market challenges and lower return expectations for traditional asset classes.
Private market managers are seeking a new growth engine as the defined-benefit plans that have been a mainstay of investment in recent decades start to decline. Retail investors are a growing force, and defined-contribution plans are now predominant in most countries, making these investors ideal new sources of investment.
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