Built for an evolving investment landscape

Private markets provide exposure to investments and return drivers that are not fully available through traditional public equity and fixed income markets. Depending on the strategy, they are used to pursue long-term growth, income, diversification, or exposure to assets with different economic drivers, including private equity, private credit, and real assets. Private markets involve risks, including illiquidity, valuation uncertainty, complexity, and possible loss of capital. Diversification cannot assure a profit or protect against loss in a declining market.

Public markets generally provide liquidity, transparency, and broad exposure to listed equities and fixed income. Private markets may complement those allocations by expanding the opportunity set to include privately held companies, privately negotiated credit, real assets, and other non-public investments. Together, they can provide perspective across the company lifecycle, from private growth through the public markets. Public and private market capabilities can also provide complementary perspectives when evaluating companies, sectors, capital structures, and market opportunities. Private market allocations should be considered within a broader portfolio, not as a replacement for traditional public market exposure.

Private markets may be incorporated into certain retirement or multi-asset solutions when supported by appropriate governance, diversification, liquidity management, and risk controls. Because these portfolios often have long-term objectives, private markets provide exposure to opportunities outside traditional public markets. Investors, plan sponsors, and fiduciaries. Considerations include vehicle structure, fees and expenses, valuation practices, liquidity terms, participant objectives, and the role private markets are expected to play within the broader portfolio.

Investors should understand the strategy, investment vehicle, liquidity terms, fees and expenses, valuation process, tax considerations, transparency, use of leverage, and key risks. Private market investments are often less liquid than publicly traded securities and may require a longer investment time horizon. Fees and expenses can reduce investment returns, and outcomes can vary by strategy, market environment, and manager.
Investors should evaluate whether a private markets allocation aligns with their objectives, risk tolerance, liquidity needs, and overall portfolio construction.

Liquidity can vary significantly across private market strategies and vehicles. Some private market investments have long lockup periods, while others offer periodic repurchase or redemption features. These features are typically limited and do not guarantee that investors can access capital when desired. Investors should review liquidity terms, notice periods, repurchase or redemption limits, potential gates, capital call requirements, and expected holding periods. Liquidity should be evaluated alongside cash needs, time horizon, and broader portfolio allocation.

Private market investments are generally not priced continuously on public exchanges, and valuations may rely on less observable inputs than publicly traded securities. Investors should understand a manager’s valuation policies, governance, oversight, and reporting process, as well as how the manager monitors underlying fundamentals, liquidity, and risk over time. Valuation practices can vary by strategy, vehicle, and market environment.

Manager selection is important in private markets because results can vary widely across strategies and market environments. Investors should evaluate a manager’s investment experience, sourcing capabilities, underwriting discipline, risk management, valuation policy and process, portfolio construction approach, team depth, transparency, reporting, and alignment of interests. It is also important to understand how the manager has navigated different market cycles. Past performance is not a reliable indicator of future results.

T. Rowe Price approaches private markets with a focus on research, selectivity, long-term perspective, and active oversight. Our capabilities include private equity, private credit through Oak Hill Advisors, real assets, and broader private market solutions. We seek to apply public and private market insights to evaluate opportunities and risks across asset classes. Our approach emphasizes disciplined implementation and helping investors understand how private market strategies can fit within a diversified portfolio.