Private markets have become an essential part of strategic asset allocation, offering investors access to unique opportunities that are not available in public markets. Beyond the potential for enhanced returns, private market investments provide diversification benefits and exposure to high-growth businesses. These assets can complement traditional investments, helping to build a resilient and balanced portfolio.
Discover how private market investments can elevate your portfolio with bespoke opportunities tailored for you.
Key benefits of Private Markets
Potential
for higher returns
Private markets can offer better long-term returns than public markets due to several factors, including illiquidity premium, active management and lower volatility.
Access to more investment
opportunities
Invest in innovative companies and industries not yet available in public markets.
Better portfolio
diversification
Adding private market investments can help reduce risk, as stocks and bonds have become more closely linked, making them less effective for diversification.
Private markets refer to investment opportunities that are not listed on public stock exchanges. These include private equity, private debt, infrastructure, and real estate. Each of these asset classes provides access to different types of investments with distinct characteristics.
Private equity typically involves investing in private companies that are not publicly traded. Private debt refers to loans made directly to private firms. Infrastructure investing focuses on essential physical systems such as roads, utilities, and energy projects. Real estate investing involves the direct ownership or financing of property assets.
Private markets are known for offering diversification benefits, access to unique opportunities, and the potential for higher risk-adjusted returns. However, they can also present challenges, such as limited liquidity and complex valuation processes, which require careful consideration.
Investing in private markets provides an opportunity to enhance portfolio diversification and pursue higher risk-adjusted returns. These markets offer access to innovative companies and sectors that are not typically available through public markets, enabling investors to benefit from emerging trends and high-growth opportunities.
Private equity, private debt, infrastructure, and real estate investments can support long-term growth and improved returns, partly due to the illiquidity premium. In addition, private market investments tend to show lower correlations with traditional public markets, which can help reduce overall portfolio risk.
While private markets provide benefits like higher risk adjusted returns and long-term growth potential, they also come with risks, including liquidity constraints and complex valuations. Careful due diligence and expert guidance are essential for successful integration. By thoughtfully incorporating private markets into a strategic asset allocation, investors can build more resilient and diversified portfolios, better equipped to meet their financial objectives and adapt to a changing global economy.
Download our Private Markets Investment Guide
Our guide offers clear insights, explaining what you need to consider and how to balance risk and reward.
Learn more about:
- The growth potential of private markets
- The advantage of long-term portfolio diversification
- What asset allocation we would typically recommend
- 5 factors to consider before investing
Overview of Private Market assets
Private equity
Private equity involves investing in private companies, often to acquire a significant stake or control of the company, with the intention of improving its value over time before eventually selling the stake at a profit.
Private debt
Private debt refers to lending money to private companies or buying their debt, which is not traded on public markets.
Infrastructure
Infrastructure investing consists of investments in physical systems and facilities such as roads, bridges, and utilities, which are essential for the operation of society.
Real estate
Investments in private Real Estate involve purchasing direct properties to generate rental income and potential price appreciation.
Why partner with Quintet Luxembourg for Private Markets?
Our personal approach
We take a personal approach, sitting down with you for a discovery session to understand your lifestyle, needs and ambitions.
Preparing for the future
We can support you at every stage of your investment journey by sharing our experience and making tailored recommendations.
Variety of expertise
We have expertise across Investment Management, Wealth Planning and Lending to create a tailored plan that meets your specific needs.
Long-term strategy
We’re with you every step of the way — when life changes, we’ll help you adjust your investment plan to ensure it stays aligned to your goals.
Explore Private Markets Opportunities
Get our guide or speak with a Client Advisor about tailored investment solutions
To become a client of Quintet Luxembourg, our services start from a combined investment amount of €1 million.
We see private markets as a cornerstone for diversifying investor portfolios, offering unique opportunities through innovative fund structures and regulatory advancements.
Vladislava Cicchelli
Alternatives Investment Specialist
An award-winning private bank
We are proud to be recognized as a trusted fiduciary of family wealth,
where client interests always come first
Important Information
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Investing puts your capital at risk.
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The value of your investments can go down as well as up, and you could lose some or all of the money invested.
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Tax treatment depends on individual circumstances and is subject to change.
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Tax planning is not regulated by the Commission de Surveillance du Secteur Financier.