Why Manager Selection Matters in Private Markets

Investing in private markets — whether it’s private equity, real assets, or credit — offers significant potential. But one factor plays a bigger role than most people realize: who you invest with. 

In public markets, most stocks and bonds are widely accessible and prices are generally efficient. In private markets, the difference in performance between the top managers and the rest can be significant.

The Performance Gap Is Wide

Top-tier private market managers consistently outperform their peers. Studies show that the best managers can deliver double the returns of the average manager. The graph below illustrates the impact of manager quality on returns.

Why? Because they have unique advantages:

  • Access to the best opportunities: Top managers see deals before anyone else. 
  • Proven operational expertise: They know how to grow, restructure, and exit assets successfully. 
  • Access to world-class talent and capital: They attract the best teams and largest global investors. 
  • Discipline across market cycles: They’ve built a long-term track record of performance, risk management, and resilience.

Not All Managers Are Equal

Unlike public markets — where buying a stock like Apple gives everyone the same exposure — returns in private markets vary dramatically depending on who’s managing the capital.

That’s why institutions like sovereign wealth funds, pension funds, and endowments spend so much time on manager selection. They don’t just invest in private markets — they invest with the best in private markets.

Access Has Been the Problem

Historically, these top-tier managers have been invitation-only. They raise funds from a select group of institutional investors, and often have high minimums and long onboarding processes. Individual investors, no matter how sophisticated, were usually left out.

How Tanami Opens the Door

At Tanami, we do the heavy lifting — identifying, evaluating, and gaining access to some of the most respected and proven private market managers globally. We: 

  • Select and vet top-performing private market managers globally 
  • Simplify the experience with a fully digital, user-friendly interface 
  • Eliminate traditional barriers — no capital calls, no minimum investment 
  • Offer quarterly liquidity, so you can manage your portfolio with more flexibility 

You no longer need deep networks or large capital to invest alongside the world’s best.

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