You know about asset diversification, but what about Vintage Diversification? This means investing in AIFs across different years. A 2021 vintage fund invested at market peaks; a 2023 vintage fund invested at lower valuations.
By spreading your commitments over several years, you smooth out the risk of entering the market at a high point. It ensures your private market portfolio isn’t overly exposed to the economic conditions of any single calendar year. Consistent commitment is key.
