Wellington Management
May 20, 2025
Tracing our history to 1928, Wellington Management is one of the largest independent investment management firms in the world. We serve as a trusted adviser for institutions in more than 60 countries.

Sizing private-market allocations

Interest in private-market allocations appears to continue its steady ascent in 2025. Historical returns and diversification potential are attracting a wide variety of asset owners, who are accessing everything from early-stage venture capital to investment-grade private placements through an expanding set of vehicles. 

But critically, asset owners are often less familiar with how to properly size these private-market allocations to meet their portfolios’ distinct objectives. In this paper, we provide an actionable framework to help asset owners evaluate three core components of this decision: the capacity to take on illiquidity, the need for excess return and the ability to consistently allocate to “good” investments.

Here, we highlight  the main reasons we think asset owners allocate to private assets introduce our approach to sizing private investments  and  outline three key components .

Why allocate to private assets?

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