The evolution of private markets

The evolution of private markets

The need for return, income and diversification brought private assets to prominence, but investors still face hurdles in putting them to work.

The road ahead in a competitive landscape

Private markets now play a key role in institutional portfolios and as vital sources of equity and debt financing for companies, real estate and infrastructure. Yet investors still face hurdles in putting private assets to work—problems of access, integration, risk measurement and investment structure. The way forward is for investors to lean into the evolution of private markets, seeking out innovation and sharpening their focus on desired outcomes.

Focus on outcomes

The need of investors for return, income and diversification brought private assets to their current prominence. To target these goals most effectively, investors need to move from a narrow focus on individual asset classes to a broader perspective that compares private assets on the basis of their risk-return and cash-flow characteristics, and their alignment with desired outcomes.

Embrace innovation

Innovation means refining strategies and investment vehicles at the sector level while also looking across sectors and thinking in terms of overall portfolio construction. By working to expand opportunity sets and align investments with desired outcomes, we believe investors and managers can help private market investing realize its full potential.

 

The latest insights from BlackRock’s private markets experts

Embrace innovation

Innovation means refining strategies and investment vehicles at the sector level while also looking across sectors and thinking in terms of overall portfolio construction. By working to expand opportunity sets and align investments with desired outcomes, we believe investors and managers can help private market investing realize its full potential.

The latest insights from BlackRock’s private markets experts

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