Private market investments – more than a niche asset class
Private market investments have increasingly gained in importance for investors in recent years. This asset class comprises investment forms that are not traded on public exchanges. These include: 

• Private equity: investments in companies  
• Private debt: e.g. corporate lending
• Private infrastructure: infrastructure projects such as energy, transport or supply network
• Private real estate: property investments 

Private market investments generally follow a long-term investment approach. Companies, infrastructure projects and property are actively developed over several years, with the aim of creating sustainable value. At the same time, the fact that valuations are not carried out on a daily basis often results in lower short-term volatility. Historically, private equity has delivered an excess return of 3% to 4% per annum over the public equity markets during the past 25 years.

Rolling value development over 10 years (in USD)

Source: Hamilton Lante Data, Bloomberg (January 2026)

In addition, almost 90% of all companies with an annual turnover of more than USD 100 million are now private. The number of IPOs has fallen dramatically in recent years and in times when companies are tending to go public later or not at all, the private market offers investors the chance to participate in their value creation.

Source: Apollo Academy (based on data from S&P Capital IQ), May 2024

Reasons for the attractiveness of the private market

1. Long-term return opportunities: time as an advantage
   Private market investments are built on long-term thinking. The greatest value creation often occurs not over a few months, but rather over many years – as companies grow, infrastructure projects deliver returns or real estate assets renew lease agreements.

• Private companies and mid-sized businesses often have the ability to grow strategically and sustainably - without the short-term pressure of quarterly market expectations.
• Infrastructure and real estate investments can generate stable, ongoing income. Energy projects, logistics centres or residential properties can deliver distributions for decades.

Investors with patience and staying power can benefit from the sustainable value creation – often with return potential exceeding that of traditional assets classes. 

2. Diversification and stability: independence from market flucturations
   A key advantage of private market investments lies in their independence from stock market cycles. As they exist outside daily trading, they are less susceptible to short-term market panic or speculation.

• Stable income: many investments generate ongoing distributions – whether through rents, usage fees or corporate profits.
• Risk diversification: combining taditional investments with alternative investments can make the overall portfolio more robust and less volatile. 

Especially in turbulent market phases, such investments can help to offset sharp fluctuations and stabilities assets over the long term

3. Inflation protection through real assets and long-term distributions
   In periods of rising inflation rates, real assets and inflation-indexed income come increasingly into focus. Many private market assets offer precisely this advatage:

• Real estate: rents and property values tend to grow in line with the general price lever.
• Infrastructure: energy, transport and utility investments often have revenues linked to inflation or indexes
• Corporate investments: companies can adjust their prices, fees or wages more flexibly than many regulated asset classes. 

This means that private market investments can help provide more realistic protection against inflation - an important consideration for investors with a long-term plan. 

Tangible examples from practices
To make the concept more comprehensible, it is worth looking at a few specific examples:

• Corporate investments (private equity/mid-sized businesses): participating in companies that are growing, investing and developing - with return potential that may exceed the average.
• Renewable energies: a wind farm or solar park - stable and predictable income from electricity sales over decades.
• Real estate: rental apartments or commercial properties offer ongoing rental income and potential for value appreciation.

These examples illustrates that alternative investments are not abstract - they are rooted in tangible assets such as companies, real estate or energy infrstructure. For many investors, this is precisely what makes them so appealing. 

Who are private market investments suitable for?
This asset class is not intended for short-term speculation, but for investors with:

• a medium- to long-term investment horizon.
• a desire for stability and diversification.
• the objective of, investing in real economic assets.
• an understanding that, redemptions are not possible at all times (illiquidity).

Those who are willing to be patient and focus on long-term value growth can find private market investments to be a worthwhile addition to traditional investments.

Conclusion: the private market as a forward-looking addition
Private market investments offer attractive combination of potential returns, stability, inflation protection and exposure to real assets. For investors with foresight, they can help to make a portfolio more robust, allowing them to participate in economic progress.

In times when traditional markets face increasing uncertainty, alternative investments are gaining in importance. The private market is therefore not merely a niche, but a perspective.

A well-structured mix of traditional and private investments can help pave the way towards stable and sustainable asset growth.

This publication is intended for information and marketing purposes only, and is not geared to the conclusion of a contract. It only contains the market and investment commentaries of Maerki Baumann & Co. AG and an assessment of selected financial instruments. Consequently, this publication does not constitute investment advice or a specific individual investment recommendation, and is not an offer for the purchase or sale of investment instruments. The future performance of investments cannot be inferred from past price performance. In other words, the value of investments may increase but may also decrease, and the investor may be required to make additional payments for certain products. In certain circumstances, figures may refer to reporting periods of less than five years, which could reduce their validity. Predictions for the future are always non-binding assumptions. Figures presented in foreign currencies are also subject to exchange rate fluctuations, which can affect their performance. The information in this publication is in no way to be understood as an assurance of future performance. Maerki Baumann & Co. Ltd. does not provide legal or tax advice. In addition, Maerki Baumann & Co. Ltd. accepts no liability whatsoever for the content of this document; in particular, it does not accept any liability for losses of any kind, whether direct, indirect or incidental, which may be incurred as a result of using the information contained in this document and/or arising from the risks inherent in the financial markets. Maerki Baumann & Co. Ltd. holds a Swiss banking license issued by the Financial Market Supervisory Authority (FINMA).  
  
Please note that due to German regulatory requirements we are unable to provide the services (crypto focus module) named in this brochure to our clients domiciled in Germany. 
 

Editorial deadline: July 2026

Maerki Baumann & Co. AG
Dreikönigstrasse 6, CH-8002 Zurich
T +41 44 286 25 25, info@maerki-baumann.ch
www.maerki-baumann.ch