Unlocking the Potential of Private Markets

Private markets are increasingly integral to diversified investment portfolios. NS Partners has introduced the Private Markets Evergreen Fund, a fund-of-funds designed to provide investors with access to private equity and infrastructure opportunities.​

Strategic Allocation in Private Markets

For smaller mandates, an allocation of 10–15% to private markets is considered appropriate. Larger, more sophisticated mandates, particularly among institutional investors, may allocate up to 30–40%, with some U.S. endowment funds reaching 50%. However, private clients often require greater liquidity and flexibility, making such high allocations less feasible.​

Performance and Market Size

Over the past decade, private equity and venture capital have delivered returns around 15%, while direct lending and infrastructure investments have yielded approximately 10%. The private markets sector has grown substantially, now representing nearly $15 trillion, with private equity comprising about one-third of this volume.​

Emerging Trends

Infrastructure investment is poised for significant growth, with an estimated $100 trillion needed by 2050, particularly in Asia. Artificial intelligence is also driving demand for funding, especially for data center development. Additionally, private debt is becoming a viable alternative to traditional bank financing, especially in Europe where regulatory constraints limit banks’ lending capacities.​

Advantages of Evergreen Funds

Evergreen funds offer quarterly liquidity, allowing for more immediate capital deployment compared to traditional private equity funds. They also feature lower investment thresholds, providing investors with immediate diversification opportunities.​

Investment Strategy

The Private Markets Evergreen Fund invests in seven funds: five in private equity and two in infrastructure, including notable names like Blackstone, Partners Group, and Hamilton Lane. This diversified approach aims for a net annual return of 10% with controlled volatility, enhancing portfolio performance and resilience.​

Incorporating private markets into investment strategies offers a compelling avenue for achieving long-term growth and diversification.