The objectives of portfolio construction have not changed, investors still seek growth, income, diversification, and risk management. What has changed is the opportunity set. As private markets continue to mature and access expands, advisors now have more tools than ever to build resilient, outcome-oriented portfolios.
Over the past decade, private markets have become increasingly accessible to financial advisors and investors. While institutions have allocated to private equity, private credit, infrastructure, and real estate for decades, advancements in fund structures and investment vehicles have expanded access across the wealth management landscape.
During a recent episode of Advising the Modern Allocator on Wealth Unfiltered, Phil Shankweiler, Managing Director and Head of RIA Sales at Partners Group, shared his perspective on the growing role of private markets, the rise of evergreen investment structures, and the opportunities emerging across infrastructure and other private asset classes.
Why Private Markets Are Becoming a Larger Part of Portfolio Construction
Not long ago, gaining exposure to private markets was difficult for all but the largest investors. Institutional allocators, family offices, and ultra-high-net-worth individuals had a distinct advantage, benefiting from opportunities that often came with high investment minimums, limited availability, and operational complexities that placed them out of reach for many advisors and their clients. Over time, however, the private markets ecosystem has evolved, creating greater access and a wider range of investment structures for qualified investors.
As access has expanded and education around private markets has improved, advisors have become more comfortable evaluating these strategies alongside traditional investments. Rather than occupying a small, opportunistic sleeve of a portfolio, private assets are increasingly being considered as a strategic allocation that can complement public equities and fixed income while potentially enhancing diversification and portfolio resilience.
According to Shankweiler:
“It has moved from more of a satellite position or investment opportunity in a portfolio for a segment of clients, to something that has truly become core building blocks.”
This shift reflects a broader focus on outcomes-based investing. Advisors are evaluating how diverse asset class contributions enhance portfolio objectives such as growth, income generation, diversification, and risk management.
Private markets provide additional tools that may help investors pursue those objectives through exposure to investments that are often unavailable through public markets alone.
How Evergreen Funds Are Expanding Access to Private Markets
One of the primary drivers behind increased adoption has been the growth of evergreen investment structures. Unlike traditional closed-end private equity or real estate funds, which typically require investors to commit capital for a defined period and navigate capital calls and distributions, evergreen funds are designed to provide ongoing access through a more streamlined investment experience.
For advisors, this evolution has helped address several of the practical challenges historically associated with private market investing. Many evergreen structures offer periodic subscription opportunities, simplified administration, and varying degrees of liquidity, making them easier to incorporate into ongoing portfolio management processes. While liquidity terms and investment strategies vary by fund, these structures can provide greater flexibility than traditional drawdown vehicles.
The result is a vehicle that more closely aligns with how advisors construct and manage portfolios today. Rather than treating private markets as a separate or highly specialized allocation, advisors can evaluate evergreen funds alongside other long-term portfolio holdings, allowing private assets to play a more integrated role within a broader investment strategy.
As access continues to improve, evergreen funds are helping bridge the gap between traditional portfolio construction and the growing opportunity set available in private markets.
As Shankweiler explained:
“The promise of evergreen is getting your dollar invested on day one, compounding the return from that investment into perpetuity.”
In addition to immediate deployment, evergreen structures often provide broader diversification, lower investment minimums, and simplified reporting. These features have made private market exposure more practical for many advisors and investors.
The result has been a meaningful expansion of access across private equity, private credit, infrastructure, and real estate strategies.
Infrastructure Investing: A Growing Opportunity Within Private Markets
Among private market asset classes, infrastructure has emerged as one of the most closely watched areas for long-term capital allocation.
At its core, infrastructure encompasses the physical systems and networks that power economic activity and support daily life. This includes transportation networks, utilities, energy systems, communications infrastructure, and the digital platforms that enable an increasingly connected economy.
Historically, infrastructure investing was often associated with assets such as toll roads, airports, and pipelines, the landscape has evolved significantly. Today, investors are evaluating opportunities across a much broader range of assets, including data centers, power generation facilities, energy storage systems, fiber networks, and projects designed to modernize aging electrical grids.
Several characteristics have contributed to growing investor interest.
Several factors have contributed to the sector’s growing appeal. Many infrastructure assets provide essential services, are supported by long-term demand drivers, and generate revenue through contractual or regulated cash flow structures. Their tangible nature and critical role within the economy have also made them an attractive consideration for investors seeking durable, long-term investment opportunities.
At the same time, powerful secular trends are creating new sources of demand. The rapid expansion of artificial intelligence, cloud computing, domestic manufacturing initiatives, and accelerating data consumption is increasing the need for reliable power, digital connectivity, and supporting infrastructure across the United States. As these trends continue to unfold, infrastructure remains positioned at the intersection of economic growth, technological advancement, and long-term capital investment.
Shankweiler highlighted the magnitude of this opportunity when discussing long-term infrastructure demand:
“The structural demand for these assets is, as some say, the investment opportunity of our lifetime.”
While no investment is without risk, infrastructure remains an area many investors are watching closely as capital requirements continue to grow.
Understanding Liquidity Risk in Private Market Investments
Although access has improved significantly, private markets remain fundamentally different from publicly traded securities. One of the most important considerations is liquidity.
Private assets are generally designed to be held for extended periods and should be evaluated within the context of a long-term investment strategy. Unlike publicly traded stocks or ETFs, many private investments cannot be bought and sold on demand.
As Shankweiler noted:
“You are buying an illiquid asset.”
This distinction is particularly important for investors considering private market allocations for the first time.
While newer structures may offer greater flexibility than traditional private funds, the underlying investments often remain illiquid by nature. As a result, investors should evaluate private market exposure alongside their liquidity needs, risk tolerance, and overall financial objectives.
Understanding these tradeoffs is a critical component of successful portfolio construction.
How RIAs Are Incorporating Private Markets Into Client Portfolios
The increasing adoption of private markets reflects a broader trend within wealth management. Institutional investors have allocated meaningful portions of their portfolios to private assets for decades. Today, many advisors are exploring similar opportunities as access expands and educational resources become more widely available.
This does not necessarily mean replacing traditional asset classes. Instead, many advisors view private markets as an additional source of diversification and portfolio flexibility. Private equity, private credit, infrastructure, and real estate each offer distinct risk and return characteristics that may complement existing allocations.
For advisors, the conversation has increasingly shifted from whether private markets belong in portfolios to how they can be incorporated thoughtfully and appropriately.
Key Considerations Before Adding Private Markets to a Portfolio
Private markets continue to evolve, but the principles of investing remain unchanged.
Before adding any private market investment, investors should understand:
- The underlying investment strategy
- Expected holding periods
- Liquidity considerations
- Potential risks
- Fee structures
- How the investment fits within broader portfolio objectives
Private markets may offer compelling opportunities, but successful implementation requires careful evaluation and alignment with an investor’s long-term goals. As access continues to expand, education remains one of the most important factors in helping investors make informed decisions.
Investor Takeaways on Private Market Investing
Private markets are becoming an increasingly important component of portfolio construction across the wealth management industry. Improved access, evolving fund structures, and growing investor familiarity have expanded the role that private equity, private credit, infrastructure, and real estate can play within diversified portfolios.
At the same time, investors must remain mindful of the unique characteristics that differentiate private assets from traditional investments, particularly when it comes to liquidity, investment horizons, and portfolio fit.
For advisors and investors alike, the continued growth of private markets represents an opportunity to access a broader range of investment strategies while maintaining focus on the principles that drive long-term portfolio success: diversification, discipline, and alignment with investment objectives.
Interested in learning how leading advisors are incorporating private markets into client portfolios? Explore more Wealth Unfiltered insights and conversations with institutional investment leaders.
Watch the full episode with Phil Shankweiler here.
