Understanding Semiliquid Private Portfolios

While often sold as highly differentiated portfolios from private-asset managers like Blackstone, Blue Owl, and Apollo, private-asset-focused semiliquid funds typically have as much portfolio overlap as small-cap public equity or bank loan funds. 

What is the significance of industry concentration in semiliquid funds? 

Semiliquid funds often claim diversification advantages, but how distinct are they from public peers? Semiliquid funds take on significantly more industry concentration than public markets. Looking at the 500 largest holdings across funds, about 27% of invested assets are in software companies—far higher than the S&P 500’s 6%. With AI disrupting software-as-a-service models, this concentration introduces severe long-term risks.

Download the report now to uncover more on risks, trends, and recommendations on incorporating semiliquid assets in your investment strategies.