Deep Dive: Investors should allocate to private markets

Estimated $10trn in size

Vincent Ropers, a portfolio manager at Wise Funds, dives into private markets.

Private markets have grown exponentially since the turn of the century and, particularly, over the past decade. Private equity and debt markets are now estimated to be over $10trn in size according to The Economist, more than four times their size in 2008. The combination of premium returns for the extra risk of tying up capital in a less liquid asset, leverage and skills have helped private equity funds to outperform listed equities benchmarks, attracting an ever-increasing demand from investors struggling for performance in the more traditional markets. Those investors were, until r...