Pathway: Private Markets

Public securities trade continuously on exchanges and can usually be sold within days; private investments are held through long-dated commitments (often 10+ years) with no ready market, so exits depend on GP-controlled events or discounted secondary sales.

Private companies are not subject to public disclosure rules, so the GP (and management) hold far more information than outside investors, and LPs rely on periodic, GP-prepared reports rather than continuous market-wide disclosure.

Private equity investors (especially buyout GPs) often take majority or board-level control and can direct strategy, management and capital structure; public equity investors usually hold small minority stakes and influence firms only through voting and engagement.

Public assets are marked to market prices continuously; private assets are valued periodically (often quarterly) by the GP using models or appraisals, so reported values lag and smooth true economic value, and transaction prices are negotiated rather than set by an order book.

Private deals use bespoke terms negotiated between parties, reporting formats vary by manager, and holdings are not publicly visible, so LPs face less transparency on fees, positions and valuations than holders of registered public securities.

A closed-end vehicle in which the general partner (GP) manages the fund with unlimited liability and decision authority, and limited partners (LPs) commit capital that is called over time, with liability limited to their commitment and no role in day-to-day management.