With publicly listed equity representing a small fraction of US GDP, why aren’t more advisors talking to their clients about true diversification? Impartial investment advice should incorporate both public and private market asset classes and true diversification can only be achieved by considering the entire investable universe.

Warren Buffett, Peter Lynch, and John Bogle have each earned their place in the pantheon of world-renowned investors. Yet, all of the greats achieved wealth and success through different strategies. There is not a one-size-fits-all approach to investment management – nor should there be.

BRPW Wealth Advisor Joe Miller discusses the evolution of Private Credit as an asset class.

BRPW’s Senior Wealth Advisor and Portfolio Manager Jim Carroll presents the 2024 Volatility Halftime Report

Learn why other advisors are not talking about private market investing.

Earlier this Spring, we wrote two articles about the tailwinds providing extremely attractive risk-adjusted returns in the private credit markets, especially direct lending. Since then, the financial environment has only improved for private credit lenders, and large financial institutions are now beginning to wholeheartedly recommend the strategy.

Learn why accredited investors should consider private assets for their portfolios.

Private market investments are not passive investments. Because of how disruption and innovation affect our economy, active management of private market investments by advisors and family offices is critical to identify the innovative companies taking advantage of the opportunities caused by broad economic, environmental and social changes.

Given the current stress on the banking sector, we strongly feel that private credit funds, especially middle-market direct lending platforms, can potentially offer attractive investment opportunities for suitable investors.

Last month, we highlighted how the interest rate environment and disruptions in the banking sector indicated that direct lending platforms are stepping into the void left by traditional banks as they deleverage their balance sheets and reduce their loan portfolios. As a result, we expect private credit funds to provide a solid source of income and deliver outsized risk-adjusted returns for their investors.

Given current market dynamics, secondary private equity funds now offer a particularly attractive avenue for investors looking to participate in the private equity market. “Secondary funds” or “secondaries” are investment vehicles run by managers that specialize in acquiring interests in existing private equity assets from the original investor.

In the United States, when most people put cash in the bank, they assume it’s still going to be there when they wake up the next day. This fundamental assumption was recently tested in the second- and third-largest bank failures in U.S. history.