The Rise of Private Market Investing
In recent years, private-market investments—such as private equity, real-estate funds, and alternative investment platforms—have been increasingly marketed to individual investors as opportunities for higher potential returns and diversification.
It sounds appealing. Who wouldn’t want access to the kinds of investments once reserved for institutions?
But recent industry headlines remind us: when it comes to private markets, what you don’t know can matter as much as what you do.
Private markets can offer exclusivity, but liquidity and transparency may be limited compared with public markets.
When Private Markets Go Wrong
According to ThinkAdvisor (September 30, 2025), two recent cases illustrate the risks investors can face when liquidity and structure aren’t fully understood. Read the full article on ThinkAdvisor.
Linqto’s Bankruptcy and Frozen Investor Capital
Linqto—a private-market investing platform—has filed for bankruptcy, leaving thousands of retail investors unable to access their funds. The collapse underscores how convenient platforms can sometimes mask severe liquidity and structural risks.
Bluerock Real Estate Fund Under Pressure
A Bluerock private real-estate fund came under stress when declines in property values triggered a wave of redemption requests. Because private real-estate funds aren’t designed for frequent withdrawals, the mismatch between illiquid holdings and investor liquidity needs created significant strain.
Together, these examples highlight a long-standing concern: many private vehicles may understate risk, overstate accessibility, or include terms that favor institutional participants over retail investors.
Why These Risks Matter
For individual investors, private markets present several structural challenges that are important to understand before committing capital:
Illiquidity & Lockups
Private funds often require long-term commitments, with limited or no redemption opportunities. If circumstances change, investors may not be able to access their money quickly.
Valuation Opacity
Without public-market pricing, valuations are estimates that can lag reality—especially during volatile or declining markets.
Unequal Terms
Institutional investors frequently negotiate more favorable fees, redemption rights, or reporting access. Retail investors typically invest on standardized terms with less flexibility.
Redemption Mismatches
When many investors seek withdrawals simultaneously, funds may have to sell illiquid assets at unfavorable prices, potentially reducing overall fund value.
Limited Oversight
Private investments operate under different regulatory frameworks than publicly traded securities, resulting in fewer reporting and disclosure requirements.
A Balanced Approach to Private Investing
Private investments can play a role in a well-constructed portfolio—but only when used thoughtfully and in moderation. Consider these steps before moving forward:
- Align with your timeline.
If you anticipate needing access to your funds within a few years, private investments may not be suitable. - Ask detailed questions.
Review fee structures, redemption policies, and valuation procedures. It’s appropriate to ask whether some investors receive preferential terms. - Keep allocations modest.
A smaller allocation can help protect the broader portfolio if liquidity events or valuation changes occur. - Diversify across managers and strategies.
Spreading exposure can help reduce concentration risk and smooth outcomes. - Consider hybrid or registered structures.
Vehicles that combine private exposure with public oversight may offer better liquidity and disclosure. - Work with a fiduciary advisor.
An experienced advisor can help you evaluate whether private investments align with your objectives and risk tolerance.
Finding Clarity in a Complex Landscape
The challenges seen with Linqto and Bluerock underscore a simple truth: complexity and opportunity often arrive together. For many investors, the path forward isn’t about avoiding private markets entirely—but about approaching them with eyes open, expectations realistic, and guidance you can trust.
At Mendel Money Management, we help families and professionals make confident, well-informed decisions about where and how they invest—so their money serves their life, not the other way around.
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Disclosure
This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.
