
Introduction to Private Investments
One of the biggest trends of 2021 has been the rise of private investments. At the moment, we are in the midst of a historical shift between the roles of public and private markets. On the private equity side, there has been a long-term secular decline in public ownership of companies. Because of the restrictions imposed after the 2008 Great Financial Crisis, banks can no longer provide loans to several businesses, creating an opportunity for private credit investors to tap into a new market. And given that a real estate investment thesis takes years to play out, private real estate can lead to better long-term returns than publicly-traded REITs. Lastly, because of the inefficiencies of the private markets, skilled investors can generate higher expected returns for the same amount of risk than in the public markets