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Download this factsheet to learn more about private markets, including:

Private Markets Factsheet

Just ten days later, the S&P 500 began a sharp decline, losing over 1,000 points in under two months. Since then, the CBOE Volatility Index (VIX) has surged from a range of 15–20 to more than double that figure, reaching as high as 60 on April 7th.

Market cycles inevitably include periods of turbulence. While catalysts – in this case, the sweeping tariff measures introduced by the Trump administration

 - may take different forms, volatility is a recurring theme that investors must be prepared to face.

That said, many believe the current turmoil may not pass quickly, especially if, as some commentators suggest, the U.S. is indeed aiming to implement a structural shift in global trade and international relations.

 Until a new equilibrium is reached, investors should consider how to better insulate their portfolios from ongoing volatility.

We have previously explored how private market investments, across private equity, credit, infrastructure, and real estate, can serve as valuable diversification tools. In fact, diversification remains one of the few reliable ways to navigate uncertainty.

Private investments offer two key advantages over public markets: insulation and control. Their valuations aren't subject to real-time pricing, which helps protect investors, and portfolio company’s internal management, from the emotional swings of daily market noise.

What’s more, active ownership in private firms enables a more flexible and strategic response to real-world change, unlike the passive nature of holding a small stake in a large public company.

It’s not just about resilience during periods of higher volatility. Evidence continues to show that private markets may actually outperform during times of crisis.

A report by Schroders Capital released in October 2024

 showed that private equity not only outperformed public markets over the past 25 years overall (by approximately 4%), but that this outperformance margin widened during the five major crises that occurred over that period.

Looking specifically at performance during the crises, private equity outperformed the MSCI ACWI Gross Index by an average annualized excess return of 8%, twice the overall average. In other words, outperformance is the norm, and the stormier the environment, the higher the outperformance. As a result, private equity stands out not just for its return potential, but also for its value in managing portfolio risk.

A separate study from a few years earlier by Neuberger Berman

 found similar patterns when analyzing private equity performance during periods of market stress. During the Global Financial Crisis of 2007–2009, for instance, the U.S. Buyout sector saw a total decline in asset value of 28% - roughly half the 55% drop recorded by the S&P 500.

The Neuberger Berman report also offers additional data showing how the structural features of private equity make such strong outcomes not only possible, but also likely. Thanks to their structure and pre-committed capital, private equity funds are able to continue deploying capital during downturns. This can lead to a stronger recovery later on, as funds are buying just when public investors are fleeing to safety, leaving oversold and attractively priced companies for the taking.

Additionally, private equity funds, with their long-term investment horizon, are not forced to sell at distressed valuations during periods of market pessimism. Their investors have already committed to the same long-term timeline, which means the fund is not forced to act reactively when public sentiment turns negative.

The case for private markets, as demonstrated above, is a very strong one. Private equity in particular, has shown 25 years of outperformance, and even stronger results during times of crisis. By contrast, public markets often appear overvalued by historical standards, exposing investors to a higher probability of loss.

On a more fundamental level, the smaller companies that private market investors deal with tend to have naturally higher upside potential, greater agility due to their smaller scale, and are free from the pressure of meeting short-term targets.

However, it’s important to remember that not all private deals are created equal. The headline figures represent an aggregate view of a highly segmented market, one with many different approaches and teams.

While they enjoy some independence from the wider market, private deals depend heavily on the individuals involved: the lead investors and the management team. The advantages of private markets are real, but they are not easily or cheaply bought. They require access, judgment, and experience.

At The Family Office, we’ve been helping clients diversify into private markets for more than two decades. That’s why we make our recommendations with conviction, especially in times like these, when clarity is rare and confidence is in short supply.

Private Markets in Turbulent Times: Resilience and Opportunity

The Global Forces Reshaping Investment Decisions

Today’s investors are facing the impact of four powerful long-term trends that are reshaping economies and capital markets. These forces are often referred to as the “4Ds”: decarbonization, deglobalization, demographics, and digitalization.

These trends are not temporary. They are changing how capital moves and where long-term value is created.

Why Investors Are Looking Beyond Public Markets

As these structural changes unfold, many investors are finding that traditional portfolios are no longer enough. The typical mix of public stocks and bonds has become more vulnerable to market swings and rising correlations. In simple terms, when both stocks and bonds move in the same direction, diversification loses its protective power.

This is one reason private markets are receiving growing attention. Private investments—including private equity, private credit, infrastructure, and real estate—offer exposure to companies and projects that are not listed on public exchanges. They often provide more stable performance and allow for long-term strategies that are less influenced by short-term headlines.

Private markets are also gaining traction among institutional investors. According to McKinsey’s Global Private Markets Review 2025, global private equity dealmaking rose by 14 percent in 2024, reaching a total of 2 trillion US dollars.

 This marked the third most active year on record by value. Meanwhile, a recent survey by Adams Street Partners found that 85 percent of institutional investors expect private markets to outperform public markets over the long term.

Access to these opportunities, once limited to large institutions, is now expanding. The Family Office is helping lead this shift by offering digital tools that open private market investments to clients across the GCC. These solutions make it easier to explore alternative assets with more transparency, flexibility, and control.

Private market investments offer several advantages that align well with the current economic landscape.

Of course, private markets also come with longer investment periods and reduced liquidity. But for investors with a long-term mindset, these trade-offs can enhance discipline and reduce emotional decision-making.

The Importance of Selection and Expertise

While private markets offer great potential, not all investments are created equal. The gap between top-performing and underperforming managers is widening. This makes selection more critical than ever.

Recent analysis by StepStone Group showed that between 2010 and 2022, most private equity returns came from financial engineering—using debt and valuation changes.

 Going forward, returns are expected to come increasingly from operational improvements, strategic repositioning, and management quality.

In other words, investors need more than just access. They need experienced partners who know how to find, evaluate, and manage the right opportunities.

During uncertain times, experience becomes a powerful advantage. When markets are volatile, it is not enough to follow broad trends. Success depends on deep research, careful risk management, and the ability to think beyond the short term.

At The Family Office, we have spent more than 20 years building investment strategies in private markets. Our approach is based on discipline, selectivity, and long-term alignment with our clients’ goals. We work closely with leading asset managers and focus on identifying strategies that offer consistent, risk-adjusted returns across market cycles.

Our role is not only to provide access to opportunities, but also to guide our clients through them with clarity and confidence.

Today’s investment environment calls for a new kind of thinking. Long-term success is not about reacting to headlines. It is about staying focused on the fundamentals, making informed decisions, and choosing the right partners.

Private markets offer a way to build more resilient portfolios and unlock opportunities that are often hidden from public view. For investors who are looking to strengthen their financial future, this path requires insight, patience, and a clear strategy.

At The Family Office, we are here to help you navigate this new reality—so you can invest with purpose and grow your wealth with confidence.

The Rise of Private Debt: A New Era for Capital Markets and Portfolios

Wednesday, November 8, 2023

4:00 pm (GMT+3)

Language: English

Shahab Rashid discusses the rise of private debt, marking a new era for capital markets and portfolios, including:

Speaker

Shahab Rashid

Moderator

Naji Nehme, CFA

Register Now

Keep watching

Private Markets Factsheet

Private Markets in Turbulent Times: Resilience and Opportunity

Investing in Private Markets During Times of Uncertainty