Institutional Portfolio Construction
The traditional 60/40 portfolio is fundamentally challenged. HNW investors must increasingly look to institutional models (e.g., the Yale Model) incorporating significant allocations to private markets, real assets, and absolute return strategies.
The Illiquidity Premium
Investors who do not require immediate liquidity can capture an illiquidity premium by investing in Private Equity, Venture Capital, and Private Credit. These asset classes historically offer 200-400 bps of outperformance over public equivalents.