Investment Uncut: Tony Davidow - is the illiquidity premium still justified?

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The illiquidity premium (the extra return investors seek for locking up capital in private markets) has long been a cornerstone of alternative investing. But with rising interest rates, massive inflows into private markets, and evolving macro conditions, how reliable is this premium today, and how should investors think about capturing it? 

In this episode of Investment Uncut, we speak to Tony Davidow (Senior Alternative Investment Strategist at the Franklin Templeton Institute), a leading expert in private markets and alternative investments, to explore the nature of the illiquidity premium. We discuss how it has evolved over the past decade, the risks and rewards across private equity, credit, and real assets, and what investors should watch for over the next 5–10 years.  

What’s one thing you would like listeners to take away?

“The reality is that we need to focus on the long term. These are long term investments and you should capture this illiquidity premium if you are patient and you hold your investment for an extended period of time. Private markets are a growing and richer opportunity set” 

Any recommendations?

• Alternative Allocations podcast 
• Private Markets: Building Better Portfolios with Private Equity, Private Credit, and Private Real Estate