Summary

• As private market allocations are integrated into investor portfolios, managing liquidity needs will be an important aspect of portfolio construction.
• In this article, we explored liquidity needs across an investor's lifecycle and then introduced a framework to ensure sufficient liquidity needs for different life stages.
• Further, we lay out the interplay of growth (equity) and liquidity exposure in managing unforeseen cash flow (liquidity) needs throughout an investor's lifecycle.

Private assets can enhance portfolio efficiency, helping investors achieve long-term objectives. Private investments typically have higher forecasted returns and lower volatility (from appraisal-based pricing) than listed investments. However, investors need to carefully work through the liquidity characteristics of private assets alongside