Selecting Private Market Managers and Evaluating Performance

This is the fourth of a four-piece series, "Investing in Private Markets: Best Practices for Family Offices".

This article explains how manager selection is a critical driver of success in private markets, where performance dispersion between top and average managers is significantly wider than in public markets. It outlines best practices such as leveraging consultants for access, avoiding performance-chasing, and conducting rigorous, ongoing due diligence for each commitment. The piece highlights how private market performance should be evaluated using specialized metrics and assessed over the long term rather than relying heavily on benchmarks.