A curated fund range, accessible through an AMF-regulated digital platform.
What Is Private Markets Investing?
Definition: Investing Outside the Public Markets
Private markets (or "private assets") refer collectively to investments made in companies or assets that are not traded on a public exchange. Unlike a listed share, which can be bought and sold at any time through a securities account, a private asset benefits from no organised market: the investor commits over the long term and finances the real economy directly (SMEs, mid-caps, infrastructure). It is a diversification vehicle, complementary to traditional listed assets.
The Principal Private Market Asset Classes
Private markets encompass several distinct families of assets, each with a differentiated risk-return profile. Private equity consists of taking equity stakes in unlisted companies, supporting them operationally before ultimately realising a capital gain on exit. Private debt finances those same companies through lending, generating interest income for investors. Infrastructure finances tangible, long-life assets (energy, transport, digital). Private real estate frequently completes the picture. Taken together, these asset classes allow for the construction of a diversified private markets allocation. For technical definitions, investors may consult our private markets glossary.
- Investing in private markets means financing companies or assets outside the public markets (private equity, private debt, infrastructure).
- Objective: diversification, decorrelation from listed markets, and long-term return potential.
- In return: illiquidity and a long investment horizon, typically 8 to 10 years.
Why Invest in Private Markets?
Diversifying and Decorrelating from Listed Markets
The primary appeal of private markets lies in diversification. Private assets exhibit low correlation with listed markets: their valuation does not respond to the daily fluctuations of the stock exchange, which contributes to reducing a portfolio's overall volatility. Introducing a private markets allocation is, in effect, adding a return driver governed by a different logic to that of listed assets.
Seeking Superior Long-Term Returns
Historically, private markets, and private equity in particular, have delivered superior returns relative to listed markets over the long run. According to the 32nd edition of the France Invest / EY study, published in June 2026 (net performance to end-2025), French private equity delivered a net IRR of 10.8% per annum since inception (1987) and 10.7% per annum over the past ten years (2016-2025), against 9.5% per annum for the CAC 40 over the same period (PME methodology), representing outperformance of the order of 1.2 points per annum. The study notes a decline in returns between 2024 and 2025, set against a more complex economic and financial backdrop, even as levels remain elevated over the long term. Funds raised since 2008 and fully liquidated delivered a net IRR of 14.6% per annum, at a multiple of 1.91x.
(Source: France Invest / EY, study on the net performance of French private equity to end-2025, June 2026)
Financing the Real Economy
Investing in private markets also confers meaning to one's capital, by financing SMEs, mid-caps and infrastructure projects directly. This "real economy" dimension appeals to investors seeking investments aligned with their convictions, particularly around the energy transition, healthcare and regional development.
How to Invest in Private Markets? Access Vehicles
Private markets can be accessed in several ways, ranging from the most direct to the most pooled. The choice of vehicle determines the level of diversification, the minimum ticket size and the operational complexity involved.
Direct Investment: Reserved for Seasoned Investors
Direct investment in the capital of an unlisted company, whether as a business angel or through a club deal, is the most direct route, but also the riskiest: high concentration, elevated ticket sizes, and an outcome heavily dependent on human factors. It requires a level of expertise and analytical capacity that few private investors possess.
Specialised Funds (FCPR, FPCI, FPS)
The most common route consists of delegating selection to an authorised management company, through a fund. Different vehicles exist depending on the target audience: FIP and FCPI funds, aimed at a broader retail base and often accompanied by tax incentives; and FPCI (Fonds Professionnels de Capital Investissement) and FPS (Fonds Professionnels Spécialisés), reserved for professional or sophisticated investors, which provide access to institutional-grade strategies. The fund pools investments, delivering immediate diversification.
Funds of Funds: Turnkey Diversification
To smooth the considerable dispersion of returns observed in private markets, funds of funds spread capital across multiple managers, vintages, strategies and geographies. They represent the most efficient solution for a private investor seeking diversified exposure without managing a multitude of individual lines.
Via an AMF-Regulated Investment Platform
The best-performing institutional strategies typically require tickets of €5 to €10 million, out of reach for most private investors acting directly. An investment platform backed by an AMF-regulated management company pools demand to render these funds accessible from several tens of thousands of euros, within a regulated framework, through financial advisers (wealth managers, family offices or private banks).
| Vehicle | Investor Profile | Diversification |
|---|---|---|
| Direct (business angel, club deal) | Seasoned investors | Low (concentrated) |
| FCPR / FIP / FCPI | Broader retail base | Moderate |
| FPCI / FPS | Professional / sophisticated | Moderate to high |
| Fund of funds | Professional / sophisticated | High |
Risks and Key Considerations
Illiquidity and a Long Investment Horizon
Private markets are illiquid by construction: capital remains committed over an extended period, typically 8 to 10 years, with no ability to exit at will. Deployment itself is staggered, as funds call capital progressively, often over 4 to 5 years. This illiquidity is not a shortcoming but a defining characteristic: it is the counterpart of the long time horizon required for value creation, and it insulates investors from impulsive decision-making. A useful corollary follows: market timing is largely irrelevant in private markets, since the gradual deployment of capital naturally smooths entry points.
Risk of Capital Loss and Return Dispersion
Private markets carry a genuine risk of capital loss. More significantly, the dispersion of returns across funds is considerable: the gap between the strongest and weakest managers is far more pronounced than in listed markets. Investors cannot simply "buy the index": fund selection and diversification are therefore decisive to realised performance.
Fees and Manager Selection
Fees, which run higher than for listed products, widen the gap between gross and net performance and warrant close attention. It is ultimately the quality of the manager, its track record across multiple cycles, the stability of its team, and the alignment of its interests, that makes the difference. This underscores the importance of relying on rigorous selection conducted by teams experienced in the exercise.
Through a digital platform backed by an AMF-regulated management company.
What Allocation to Private Markets?
A Market That Remains Under-Allocated in France
In France, private markets still account for only a marginal share of individual investors' portfolios, in the order of 0.5% to 1% according to available studies, whereas American and European family offices allocate closer to 15% to 20%, or more, of their assets: the scope for growth remains considerable, and the broader opening of private wealth to private markets is only beginning. This gap illustrates the asset class's potential as a structuring component of a wealth allocation. For further reading on this dynamic, see our article on the democratisation of private equity.
(Sources: a 2022 study cited by wealth management firms on the allocation of French individual investors to private equity; UBS Global Family Office Report 2024, on family office allocations to private markets)
A Variable Determined by Investor Profile and Horizon
There is no universal rule, though market practice generally points to an allocation to private markets of the order of 5% to 15% of financial wealth for a private investor. From Private Corner's perspective, a target allocation of approximately 5% constitutes a reasonable starting point for an investor beginning to build private markets exposure, to be adjusted according to one's capacity to commit capital over the long term. The most sophisticated investors, family offices and substantial fortunes, frequently allocate between 10% and 15%. The adviser plays a central role in calibrating this exposure.
Diversifying Within Private Markets Itself
Beyond the overall allocation, the key lies in diversifying within the private markets portion itself: combining multiple asset classes (private equity, private debt, infrastructure), multiple strategies, multiple vintages and multiple geographies. This internal diversification reduces dispersion and smooths the return profile over time.
Investing in Private Markets with Private Corner
Private Corner is a French digital asset management company, authorised by the AMF (no. GP-20000038), which institutionalises access to private assets for wealth and asset management professionals and their clients. Its fully digital platform provides access to a range of funds, private equity, private debt, infrastructure, co-investment and "apport-cession" strategies, typically reserved for institutional investors, by pooling ticket sizes to render them accessible from €100,000 (and in certain cases from €20,000 through specific vehicles). Having supported several thousand private investors through their advisers and surpassed €1 billion raised, the firm relies on rigorous due diligence and leading fund managers, enabling wealth advisers and their clients to achieve diversified, well-structured exposure to private markets.
Conclusion
Investing in private markets allows an investor to diversify a portfolio, decorrelate it from listed markets and pursue superior long-term returns, while financing the real economy directly. This asset class nonetheless requires investors to accept illiquidity, contend with pronounced dispersion in returns, and pay particular attention to manager selection and fee levels. For private investors, access most commonly proceeds through funds, ideally diversified funds of funds, offered by an AMF-regulated management company, through their adviser. Properly constructed, a private markets allocation becomes a durable performance driver within a wealth portfolio.
Our teams are on hand to help structure your offering.
FAQ – Investing in Private Markets
What distinguishes a listed asset from a private asset?
A listed asset trades freely on an exchange, with continuous valuation and immediate liquidity; a private asset has no organised market, its value is assessed periodically, and capital remains committed for several years. This absence of daily quotation accounts for both the illiquidity and the comparatively lower volatility of private markets.
Is private markets investing reserved for professional investors?
Institutional-grade strategies are designed for professional or sophisticated investors. A private investor may nonetheless gain access, invariably through their adviser (a wealth manager, family office or private bank), who assesses the suitability of the investment relative to their circumstances.
For how long is capital typically committed?
Investors should anticipate a horizon of 8 to 10 years, with capital drawn down progressively over the first 4 to 5 years and distributions concentrated in the latter half of the fund's life.
Does market timing matter when investing in private markets?
No: the staggered deployment of a fund's capital mechanically smooths entry points, which neutralises the question of market timing. Consistency and vintage diversification matter considerably more than the timing of entry.
What is the minimum investment to invest through Private Corner?
From €100,000, and in certain cases from €20,000 depending on the vehicle, for professional or sophisticated investors, through their advisers.
