Private market investments aren’t “hiding” risk, they’re valuing it differently.

Unlike public securities that are marked-to-market every second, private assets are priced through conservative, audited, and institutionally governed processes. While they’re typically valued quarterly; the methods use: discounted cash flows, public comps, third-party appraisals, are designed to reflect fair value based on real fundamentals, not market sentiment.

The result?

• Valuations that are disciplined, not delayed
• Typically reduced drawdowns during public market stress
• Greater portfolio resilience through structure, not opacity

Yet despite their growing use, private markets are still misunderstood. One of the most persistent objections is that they only appear stable because they’re not marked daily. This paper addresses that concern head-on, using historical data, institutional valuation practices, and real-world performance to show how private assets truly behave, and why that matters.

Whether you’re a financial advisor educating clients or an investor looking to diversify beyond traditional markets, this paper will help you understand:

• How private market valuations are calculated
• Why they hold up during volatile periods
• And how to structure private market allocations appropriately

With the right education, access, and framework, private markets can move from the sidelines of a portfolio to a core pillar of modern wealth management.

Proof Under Pressure: Private Markets in Past Crises

One of the most compelling reasons to allocate to private markets is their historical resilience during periods of public market stress. Financial advisors know that volatility is inevitable, but how portfolios respond to it is where real diversification earns its keep.

Private market strategies, especially when implemented thoughtfully through diversified, professionally managed funds, have historically offered meaningful protection against drawdowns. Not just by avoiding daily repricing, but by being structurally insulated from the behaviors that cause most public market selloffs: panic selling, short-term earnings pressure, and index crowding.

Read the article

If you would like to discuss your portfolio, please connect directly with your investment advisor.

Disclaimer

I, David Ferreira, have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management Inc. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.