A strong investment portfolio is like a well-balanced team — each part plays a different role, but together, they deliver better performance. One of the most important — and often overlooked — players on that team? Private market investments. 

For years, private markets were only available to institutions and ultra-wealthy families. But today, individual investors are increasingly adding private market assets to their portfolios — and for good reasons. 

Why Diversification Matters

Diversification is the foundation of smart investing. It means spreading your capital across different asset classes, so you’re not overexposed to any single market, sector, or type of risk. 

Public stocks and bonds — while useful — tend to move together during periods of market stress. That’s why portfolios that rely only on public markets often experience higher volatility and limited downside protection.

The graph below shows where private versus public markets asset classes stand in an 8-year period risk-return relationship. 

What Are Private Market Investments?

Private market investments include a broad range of opportunities outside of public markets, such as: 

• Private equity: Investing in private companies with long-term growth potential
• Private credit: Lending directly to businesses in exchange for yield 
• Real assets: Investing in private real estate and infrastructure. Private real estate investments entail income-generating properties like logistics hubs or residential assets, while infrastructure refers to essential assets like data centers, ports, and energy facilities 

These investments are typically less correlated with public markets and often have a longer-term outlook, making them valuable diversifiers.

The Benefits of Adding Private Market Investments

1. Enhanced Return Potential
   Private markets have historically outperformed public markets over the long run — especially when accessed through top-tier managers. 
2. Lower Volatility
   Because private assets are not priced daily, they tend to show more stability and less emotional swings during turbulent times. 
3. True Diversification
   Private market investments behave differently from public stocks and bonds, helping smooth out performance across market cycles. 
4. Access to Unique Opportunities
   From high-growth private companies to niche real estate, private markets offer exposure to sectors that public investors can’t easily reach. 

How Tanami Helps You Diversify Smarter

At Tanami, we give individual investors access to high-quality private market investments through a fully digital platform — including: 

• Private equity: Growth-oriented strategies with long-term upside 

• Private credit: Yield-focused lending to businesses and projects 

• Real assets: Stable, income-generating properties across sectors and essential assets with long-term cash flow visibility