Liquidity, time horizons, and illiquidity premium

Private markets are moving from the sidelines of institutional portfolios into the mainstream of wealth management. As companies stay private longer and financing increasingly happens outside public exchanges, investors are beginning to rethink how broad the traditional investment universe really is. The shift is raising a new question for portfolios: should investors be looking beyond public markets to access the full range of opportunities across capital markets?

In this episode of The Bid, host Oscar Pulido speaks with Jon Diorio, Head of Product and Alternatives for BlackRock’s U.S. Wealth Business, live from the Future Proof Citywide conference in Miami. Together they explore why interest in private markets has accelerated in recent years, how access for individual investors has expanded, and what’s driving greater adoption among financial advisors.

They also discuss how private markets differ from public markets — including liquidity considerations, longer investment horizons, and the potential role of what’s often called an “illiquidity premium.” The conversation explores how private equity, private credit, infrastructure, and real estate investments may fit within diversified portfolios, why education and due diligence remain essential, and how the industry is evolving to integrate private assets more seamlessly into modern portfolio construction.

Key insights from this episode:

00:00 Introduction

02:11 What are private markets and alternatives and Why Now?

03:09 Why companies are staying private longer

04:54 How access to private markets has expanded

06:46 Are Private Markets for Everyone?

08:33 Liquidity, time horizons, and the illiquidity premium

11:33 How advisors integrate private markets into portfolios

13:58 Challenges and due diligence in private markets

15:21 Next Steps and Wrap Up

16:59 Outro and Disclosures

Sources: Bloomberg as at 12/31/2025, BlackRock US Wealth Survey Internal 

private markets investing, private equity, private credit, alternatives investing, portfolio diversification, capital markets, wealth management, investment strategies

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