Outperforming Public Markets with Private Markets

For years, the public markets - stocks, bonds, and ETFs traded on exchanges - have been the foundation of many investment portfolios. They’re familiar, relatively liquid, and easy to access. But they aren’t the only path to building meaningful, long-term wealth.

Today, a growing number of high-net-worth investors are looking elsewhere. They’re turning to private markets; less visible, less liquid, and often, far more rewarding. In fact, private markets have quietly outperformed public ones across several decades. And the reasons are worth understanding.

At Vault, we believe private markets are no longer a “nice-to-have.” They’re a core piece of any serious wealth strategy.

Let’s unpack why.

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What Are Private Markets?

Private markets refer to investments that aren’t traded on public exchanges. Think of private equity funds, venture capital, private real estate, private credit, and secondaries. When you invest in these, you're backing businesses, assets, or strategies that most people don’t have access to.
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Unlike public investments, private market deals often require longer commitments - typically five years or more - and larger minimums. But in return, they offer something powerful: the ability to invest alongside institutions and ultra-wealthy individuals in opportunities built for long-term growth.

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Why Private Markets Often Outperform

Here are four reasons private markets can deliver higher returns than their public counterparts:
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1. You’re Investing Earlier

In public markets, most investors get in after a company is already large, established, and fairly valued. In private markets, you get to invest earlier; when a business is still growing fast or when real estate assets can still be transformed. That early entry often means more upside.

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2. You’re Paid to Wait

Private investments aren’t liquid. You can’t sell them instantly like a stock. But this “illiquidity” isn’t just a drawback - it’s actually a feature. Because your money is locked in, you're often compensated with what’s called an illiquidity premium: higher potential returns in exchange for committing capital longer.

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3. Returns Are Driven by Real Value Creation

Public markets move up and down based on headlines, short-term earnings, or even investor emotions. Private market returns, by contrast, are often driven by actual operational improvements, long-term strategy, and disciplined execution. Investors benefit when businesses grow revenue, improve margins, or expand into new markets - not just because the market is “up.”

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4. Less Volatility, More Control

Private markets aren’t subject to daily trading, so they’re naturally less volatile. Your portfolio won’t swing wildly every time there’s a piece of bad news or a rate hike. And because private market managers are actively involved, they have more control over outcomes compared to passive public market investing.

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The Numbers Back It Up

According to research by Cambridge Associates and others, private equity has historically outperformed public equities by 3–5% annually over the long term. Venture capital, though more volatile, has delivered even higher returns during strong cycles. And in real estate, private investments have consistently provided better risk-adjusted returns compared to publicly traded REITs (Real Estate Investment Trusts).
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Even more compelling? Many institutional investors - sovereign wealth funds, endowments, pension plans - now allocate 30–60% of their portfolios to private markets. Why? Because they’re focused on long-term, stable growth. And they’ve seen that public markets alone often aren’t enough.

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But It’s Not for Everyone

We believe in the power of private markets - but only when they’re the right fit.

These investments aren’t suitable for investors who need short-term liquidity or who aren’t comfortable locking up capital. They also come with different risks: manager selection, due diligence, and limited transparency compared to public assets.

That’s why at Vault, we curate every private market opportunity through a rigorous lens - so our clients get access to institutional-grade deals, with clear terms and aligned incentives. And we always ensure it fits within a broader wealth strategy, never as a standalone bet.

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Private Markets in MENA: A New Era

The opportunity is even more exciting in our region.

In MENA, we’re witnessing a major shift: large intergenerational wealth transfers, a booming entrepreneur class, and a growing appetite for alternatives. At the same time, access to quality private market deals has historically been limited - reserved for family offices or elite circles.

Vault is changing that.

We bring our clients exclusive access to private equity, venture, real estate, and private credit opportunities - many of them local or regionally relevant, all of them vetted by experts. Through our platform, MENA’s modern affluent can invest like institutions do - backing real businesses and building real wealth.

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How Vault Makes It Simple

Private markets may seem complex, but they don’t have to be.

We make it straightforward. We explain the strategy, the risks, and the upside - clearly. No jargon. No sales push. Just sound advice backed by experience.

You can view opportunities through your Vault app, speak to your advisor, and build a portfolio that blends public and private investments in the right proportions. We help you decide how much to allocate, what to expect, and how it supports your long-term goals.

Because outperforming the markets isn’t just about returns. It’s about doing it with clarity, confidence, and control.

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Final Thought

Public markets will always have a place. But if you’re looking to grow your wealth with greater intention - and access opportunities the average investor can’t - then private markets are worth exploring.

At Vault, we believe the future of wealth is private.

And we’re here to help you unlock it.

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