Private Market

Background

At Capital IQ, we recognize that many investors are constrained by the boundaries of public markets. While listed equities and fixed-income instruments form the backbone of most portfolios, they can also expose clients to concentration risks and limit potential upside. Our experience has shown that introducing carefully selected private market opportunities—such as private equity and real estate—can significantly enhance both diversification and long-term returns.

The Challenge

One of our high-net-worth clients came to us with a portfolio exclusively built on traditional equity and debt securities. While the portfolio was relatively well-structured within public markets, it was heavily influenced by global market cycles and interest rate trends. This left the client exposed to volatility and reduced the scope for meaningful alpha generation. The central challenge was clear: how could we broaden the opportunity set while managing the risks inherent in illiquid assets?

The Solution

Capital IQ conducted a structured review of the client’s objectives, liquidity requirements, and risk tolerance. With this foundation, we designed an allocation strategy that gradually introduced alternatives into the portfolio.

Our first step was to identify private equity opportunities with proven track records, strong governance structures, and sectoral themes aligned with long-term growth. Simultaneously, we incorporated real estate investments in carefully vetted projects that offered both income stability and appreciation potential. Each investment was subjected to rigorous due diligence, including financial modeling, sponsor evaluation, and stress-testing under different macroeconomic scenarios.

Equally important, we provided the client with a clear roadmap on capital commitments, exit horizons, and expected return profiles. This transparency helped align expectations and ensured that private market exposure complemented, rather than complicated, the broader wealth plan.

The Outcome

The integration of private equity and real estate transformed the client’s portfolio profile. Over time, returns became more resilient, with the alternatives allocation acting as a stabilizing counterbalance to the volatility of public markets. The portfolio not only delivered superior risk-adjusted returns but also achieved greater diversification across asset classes and economic drivers. Importantly, the client gained access to opportunities that were previously unavailable through conventional investment channels.

Key Takeaway

This case illustrates how Capital IQ helps clients go beyond the ordinary. By carefully curating and introducing private market opportunities, supported by thorough due diligence and ongoing monitoring, we unlock avenues of wealth creation that extend far beyond traditional stocks and bonds. The result is a portfolio that is stronger, more diversified, and better positioned for long-term success.