Private markets get the nod over the long term

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Investors are confident in the future of private markets, but fund managers have shown combining public and private market investment through flexible mandates can work well.

Our recently published LP Perspectives 2024 study asked investors to compare prospects for public and private markets over the short, medium and long term. What it found was that respondents favoured public markets over the short term and private markets over the longer term.

The poll recognises the lack of correlation between the two. In times of crisis, public markets will tend to be quicker to take the hit – through marking to market, problems will become visible more quickly and buyers able to take advantage of discounts. This process tends to be slower in private markets, and there is more time to address issues outside the public gaze – they may indeed be dealt with successfully and therefore never surface at all.