Private markets allocation refers to the distribution of a portfolio across assets that are not traded on public exchanges, such as:
- Private Equity (buyouts, growth capital, secondaries).
- Private Debt (loans to private companies).
- Infrastructure (energy, transport, telecoms).
- Private real estate (offices, housing, warehouses).
This asset class allows investors to diversify their portfolio, access exclusive opportunities and benefit from returns that may exceed those of traditional markets, in exchange for a risk of capital loss and lower liquidity.
💡 Good to know: It is common practice to recommend introducing between 5% and 20% of private market assets into an overall allocation, depending on the investor's personal situation, projects and level of wealth. This range balances diversification, liquidity and exposure to promising themes while adapting the allocation to each investor's objectives and constraints.
Investing in private markets has gradually become a core component of wealth allocations. Long reserved for institutional investors, it is now accessible to a broader wealth management clientele thanks to the evolution of investment vehicles and distribution solutions.
However, investing in private assets does not mean picking a single private equity fund. As in public markets, portfolio performance depends above all on how it is built.
An investor can have access to the best managers on the market and still end up with a disappointing result if the allocation is poorly structured. Conversely, a coherent combination of complementary strategies often makes it easier to navigate economic cycles while multiplying sources of value creation.
This is precisely the purpose of the so-called "core-satellite" approach, widely used by institutional investors, insurance companies and family offices.
Introduction
In public markets, an investor can achieve significant diversification with a handful of index funds. In private markets, the reality is different. Each strategy has its own characteristics:
- investment horizon;
- distribution pace;
- level of diversification;
- sensitivity to economic cycles;
- value creation driver.
A US buyout fund does not behave like a secondaries fund. A private debt strategy does not generate the same cash flows as an infrastructure fund. A vehicle exposed to technology does not necessarily move at the same pace as a portfolio centred on transport infrastructure.
The question is therefore not only which fund to invest in. The real question is: how do you combine several strategies to build a coherent portfolio?
Before building your allocation, it is useful to go back to the fundamentals of investing in private markets and the different access options available to investors.
The core-satellite approach: the method favoured by institutional investors
The core-satellite approach consists of distinguishing two categories of strategies within the same allocation. The core of the portfolio is meant to provide visibility, resilience and diversification. Satellites complement this foundation with more specific growth drivers. This construction avoids two common pitfalls:
- a portfolio that is too cautious and would limit its value creation potential;
- a portfolio that is too aggressive and would depend on a limited number of investment bets.
The goal is to strike a balance between stability and performance.
Why choose a core-satellite approach?
| Criterion | Core | Satellites | Combination |
|---|---|---|---|
| Stability | ⭐⭐⭐⭐⭐ | ⭐⭐ | ⭐⭐⭐⭐ |
| Return potential | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ |
| Diversification | ⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| Resilience through cycles | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐ |
| Cash flow visibility | ⭐⭐⭐⭐ | ⭐⭐ | ⭐⭐⭐⭐ |
No single strategy ticks every box. Core strategies generally offer more visibility but a more moderate performance potential. Satellite strategies can deliver higher performance but often come with greater economic volatility. Combining the two produces a more balanced portfolio.
The core of the portfolio: the foundations of the allocation
The core of the portfolio is the base of the wealth construction. It brings together strategies able to provide a degree of stability while fully participating in value creation.
Secondary Private Equity
The secondary market consists of acquiring fund interests or stakes in funds that are already invested. Unlike a primary fund, which starts a new investment cycle, a secondary gives access to portfolios that are already built and often more mature. This characteristic generally offers better visibility on the assets held and helps reduce the effect of the J-curve. Secondaries are now one of the cornerstones of many institutional allocations.
Example: Private Corner Secondary Fund 2026 (Committed Advisors)
GP Stakes
GP Stakes strategies consist of investing in asset management firms rather than directly in the underlying companies. The investor thus benefits indirectly from the revenues generated by these platforms: management fees, carried interest and growth in assets under management. This strategy often shows a particularly resilient profile thanks to the recurring nature of these revenues.
Example: Blue Owl GP Stakes Strategy
Private Debt
Private debt consists of financing companies through private loans. Unlike traditional private equity, where value creation relies mainly on the future sale of a company, private debt generates regular income through interest payments. This strategy generally brings more visibility and often plays a stabilising role in an allocation.
Example: Private Corner Credit Yield
Infrastructure
Infrastructure allows investment in essential assets such as roads, hospitals, energy networks and social infrastructure. These assets frequently benefit from contracted revenues over long periods, sometimes indexed to inflation. For this reason, infrastructure is often regarded as one of the most wealth-oriented asset classes in private markets.
Example: Meridiam Global Infrastructure Strategies
US Buyout
The United States is the world's largest private equity market. This exposure provides access to a particularly dynamic economy as well as some of the most experienced managers in the industry.
Example: US MidCap Buyout Strategies (Neuberger Berman)
Satellites: the growth drivers of the portfolio
Once the foundations are in place, satellites add complementary performance drivers. They are meant to capture the major long-term economic and geographic trends.
European Buyout
This strategy mainly targets European family-owned companies that have reached a key stage in their development. Value creation generally relies on operational improvement, external growth and internationalisation.
Example: Private Corner Wealth Buyout 2026 (Ardian)
Asia ex-China
Asia is now one of the main drivers of global economic growth. This strategy benefits from the development of services, the rise of the middle classes and the expansion of sectors such as healthcare and technology.
Example: Private Corner Buyout EQT Strategy
Technology & Healthcare
Technology and healthcare are among the most powerful structural trends in the global economy. Investing in these sectors means backing companies that benefit from growth dynamics likely to extend over several decades.
Example: PC Feeder Keensight Nova VII
A concrete core-satellite allocation example
Consider an investor wishing to allocate €2.4 million to private assets. A balanced construction could look like this:
Core portfolio (60%)
| Fund | Weight |
|---|---|
| Blue Owl GP Stakes Strategy (Blue Owl) | 20% |
| Private Corner Secondary Fund 2026 (Committed Advisors) | 20% |
| Meridiam Global Infrastructure Strategies (Meridiam) | 20% |
| Total core | 60% |
Satellites (40%)
| Fund | Weight |
|---|---|
| Private Corner Buyout EQT Strategy (EQT) | 15% |
| PC Feeder Keensight Nova VII (Keensight Capital) | 10% |
| PC Feeder Mérieux Innovation II (Mérieux Equity Partners) | 15% |
| Total satellites | 40% |
This split aims to combine strategies offering visibility and resilience with more specific growth drivers. It is presented for illustrative purposes only and constitutes neither investment advice nor a personalised recommendation.
⚠️ Warning: investing in private markets carries a risk of capital loss, illiquidity over several years and possible dispersion of performance between funds. Past performance is not indicative of future results. Any allocation must be adapted to each investor's wealth situation, objectives and horizon.
Key takeaways
Success in a private markets allocation depends less on finding the perfect fund than on the ability to combine several complementary strategies.
The core-satellite approach makes it possible to build a balanced portfolio by combining:
- a core made up of strategies providing visibility, diversification and resilience;
- satellites capturing the major long-term economic and geographic trends.
This methodology, widely used by institutional investors, is now one of the most relevant approaches to building a lasting exposure to private assets.
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FAQ
What share of your wealth should you invest in private markets?
It is generally accepted that an allocation of between 5% and 20% of financial wealth can be a relevant starting point, depending on the investor's personal situation and investment horizon.
Why not invest only in private equity buyout?
Because buyout is only one source of value creation. Institutional investors generally seek to combine several performance drivers in order to reduce concentration risk.
Why include secondaries?
Secondaries often help reduce the J-curve, accelerate distributions and improve visibility on the underlying assets.
How many funds should you hold?
There is no ideal number. The goal is above all to diversify performance drivers, geographies and management styles.
What are the risks of investing in private markets?
Investing in private markets carries a risk of capital loss, illiquidity over several years and a potential dispersion of performance between funds. Past performance is not indicative of future results. These characteristics justify a diversified approach and a long investment horizon.
Disclaimer
This document is provided for information purposes only and constitutes neither an offer to subscribe, nor a personalised recommendation, nor investment, legal or tax advice.
The information presented (investment strategies, sectors, geographies, taxation, minimum amounts, fundraising schedules and closing dates) is subject to change and may be modified at any time by the management companies.
Any investment in private equity, private debt, secondaries or infrastructure funds carries, in particular, a risk of partial or total loss of capital and a risk of illiquidity, and requires a long-term investment horizon. Past performance is not indicative of future results and management objectives do not constitute a guarantee of return.
Any investment decision must be made after reviewing the regulatory documentation of the fund concerned and assessing its suitability with regard to the investor's situation, objectives, investment horizon and capacity to bear risk.
