Beware the risks of private markets, experts say

Investment experts warn of heightened risks in private markets, citing limited liquidity, opaque valuations, long lock-ups and concentration that can magnify losses. Portfolio managers should reassess private allocations, stress-test liquidity and exit scenarios, and limit concentration given the potential for valuation corrections and constrained exits.

Analysis

Investment experts warn of heightened risks in private markets, citing limited liquidity, opaque valuations, long lock-ups and concentration that can magnify losses. Portfolio managers should reassess private allocations, stress-test liquidity and exit scenarios, and limit concentration given the potential for valuation corrections and constrained exits.