However, many characteristics of private markets – such as long lock-in periods, illiquidity and complex structures – heighten the importance of understanding the culture of the investment managers entrusted with these assets.
In public markets, investors can vote with their feet. If a fund underperforms, lacks transparency or falls short on governance, they can exit quickly.
Private markets, however, demand a different level of trust. Capital is often locked in for long periods with limited avenues for exit. By the time poor governance or cultural failings come to light, it can be to…
