Understanding the Role of Private Markets in a Portfolio

Most investors have built their portfolios the way they were taught to: stocks, bonds, and the occasional target-date fund. But private markets, long the domain of university endowments and big pension plans, are now opening up to individual investors, and a lot of people are asking whether they belong in a portfolio at all.

On the latest episode of Dime After Dime, host Tony Stich sits down with Charlie Chesebrough to cover what private equity and private credit actually are, why access has changed so quickly, and the skeptic’s questions that deserve straight answers. Tony says up front that he’s coming at this with healthy suspicion, and Charlie doesn’t dodge any of it.

Why Private Markets, and Why Now?

Charlie takes a step back to explain where this asset class came from, who had it to themselves for decades, and what changed in the last few years to put it in front of everyday investors. He also makes the case that the way companies grow has shifted, with more of that growth now happening before a company ever goes public. Tony ties that to a headline-making IPO that has a lot of listeners wondering whether they missed their shot.

Then comes the question every skeptic is thinking: why does anyone want my money now? Charlie’s answer involves how concentrated public markets have become and why he asks whether portfolios should be limited to two asset categories. Whether you agree with him or not, it frames everything else in the conversation.

How Private Funds Actually Work

Private funds don’t behave like a brokerage account. Charlie walks through how investors get in, how they get out, and a built-in feature that can limit withdrawals when markets get shaky, which, in his words, everyone needs to know about before they invest. Tony also asks him to translate the alphabet soup of interval funds and non-traded BDCs, and Charlie flags a common mix-up investors make when they watch the stock price of a well-known private markets firm.

Then there’s the question of what you actually own when you write the check. Charlie breaks down what’s inside a private equity fund and how it’s valued, and explains why private credit runs on completely different logic, including why diversification matters differently in each.

The Questions a Skeptic Should Ask

Tony doesn’t let Charlie off easy. He asks whether the hot companies are already too big to benefit from, and Charlie shares where he looks instead, along with a blunt warning about one kind of pitch you might hear from a friend on the golf course. They also take on the usual first question, how much of a portfolio belongs in private markets, and Charlie suggests starting with a different question entirely, one that puts your own liquidity needs in the driver’s seat.

And then there are fees. Comparing a private fund to an index fund isn’t apples to apples, and Tony presses Charlie on whether do-it-yourselfers can even do the math. Charlie explains why he thinks about the problem differently and what he’d rather investors focus on.

Why Charlie Is Paying Attention, and Where to Start

As a self-described public equity guy, Charlie shares a personal concern about what could be ahead for traditional markets after a long and unusually strong stretch. He’s clear that it’s a view, not a forecast, and it’s a big part of why this part of the market has his attention.

The conversation closes where most investors get stuck: with ads and email pitches promising early access, how do you even begin? Charlie explains why he believes beginners should go slowly, why he thinks an advisor matters here, and how his team approaches vetting before anything reaches a client.