One of the primary benefits of investing in private markets is the potential for higher returns. Private market investments tend to be less liquid than public market investments. This is because there are fewer buyers and sellers so transactions take longer to complete.
Whilst lower liquidity isn’t a good thing to investors, such illiquidity can result in a premium for investors. Investments are held for a longer period of time and there’s good evidence that private companies have higher growth potential than publicly traded firms.