Alternative Investments in a Wealth Portfolio
Explore the role of private equity, private debt and real assets in a wealth portfolio, including illiquidity, complexity and investment risk.
Alternative investments — private equity, private debt, real-estate strategies, infrastructure or selected real assets — open up sources of return beyond the listed markets. For wealth with a long-term orientation, they can be a sensible building block.
Plan consciously for illiquidity
The price is illiquidity: capital is often committed for years, valuations occur less frequently, and manager selection is a decisive factor in the outcome. Alternative investments therefore belong only in portfolios whose liquidity planning can bear this commitment — carefully selected and embedded in the overall strategy.
In closed-end structures, capital calls and distributions may diverge from initial schedules. The portfolio therefore needs reserves that do not depend on a quick sale of the holding. Valuations are also often model-based and can reflect market changes with a delay.
