To handle these challenges, buyers face a typical menu of choices (Exhibit 1). To enhance the tradeoff between danger and return in portfolios, they’ll reallocate to asset courses offering higher risk-adjusted returns, decrease correlations, or a little bit of each. Lately, for instance, sure buyers have elevated their allocations to alternate options, together with illiquid personal belongings like personal fairness and actual property. Though this has been a profitable method, some of these automobiles should not obtainable to many particular person buyers.