Asset Allocation Strategies for Growth Portfolios

This guide presents strategies for building growth portfolios with a focus on private markets. It emphasizes that when a client's investment objective is growth, asset allocation should target long-term capital appreciation while managing risk effectively. Key drivers of growth in private markets include active value creation through private equity, which works directly with portfolio companies, and the stability provided by private credit, which finances companies in expansion phases. The document discusses real estate and infrastructure as tangible growth opportunities, diversifying growth portfolios and historically offering inflation mitigation and capital appreciation. Advisors are encouraged to define the role of private markets in achieving client growth objectives and to balance the mix of private equity, private credit, and real assets. Considerations for client conversations and a worksheet for advisors are also included, guiding them to prepare effectively for discussions about growth strategies within private markets.