Are Private Markets Worth It? Vanguard's Fran Kinniry on Risks, Rewards, and Realities (EP.202)

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Private equity and private credit are booming—but should they have a place in your portfolio?

Vanguard's Fran Kinniry joins Peter Lazaroff to break down the real opportunities, the hidden risks, and the essential considerations for investing in private markets.

 

Listen now and learn:

► Why companies are staying private longer—and how that changes public markets 

► What investors need to understand about the illiquidity premium

► Why access and manager selection are critical to private investment success

► How private equity and private credit could (or could not) fit into your retirement strategy

 

Fran also shares his perspective on whether private assets might someday appear in 401(k) target-date funds—and what that could mean for the future of investing.

Show notes and links available at thelongterminvestor.com.

 

(00:00) Introduction to Smart Investing

(02:03) The Value of Private Investments

(04:30) Understanding Illiquidity Premium

(06:29) The Importance of Manager Selection

(09:39) Risks of Democratizing Private Equity

(11:39) The Rise of Private Credit

(14:18) Portfolio Construction Challenges

(16:18) Current Income vs. Diversification

(18:07) Allocating to Private Markets

(20:34) Accessing Private Investments

(22:11) Questions for Advisors

(24:03) The Future of Private Assets in Retirement Accounts

(28:45) Incremental Benefits of Private Assets

 

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