Sizing private-market allocations: part one
Interest in private-market allocations appears to be continuing its steady ascent in 2025. Historical returns and diversification potential are attracting a wide variety of asset owners, who are accessing everything from early-stage venture capital to investment-grade private placements through an expanding set of vehicles.
But critically, asset owners are often less familiar with how to properly size these private-market allocations to meet their portfolios’ distinct objectives. In this four-part series, we provide an actionable framework to help asset owners evaluate three core components of this decision: the capacity to take on illiquidity, the need for excess return and the ability to consistently allocate to “good” investments.
Here, in part one, we briefly highlight the main reasons we think asset owners allocate to private assets , introduce our approach to sizing private investments and outline the three remaining parts of the series .
