Question
Should a 30-year-old pay for daily liquidity when retirement assets won’t be touched until 2055?
Key Data
- Illiquidity premium – Global private debt pays 150–400 bp over comparable public bonds.
- Portfolio impact – Adding alternatives lifts expected returns +50–100 bp with moderate illiquidity tolerance, and doubles that for dynamic profiles.
- Demographics – Pension funds and endowments raised private-market exposure from 5 % to 9 % of AUM in the last decade (McKinsey 2025).
Opportunity (Cordada view)
Rejecting the “liquidity illusion” unlocks structural alpha in LatAm private credit: collateralised assets, hard covenants, and first-loss co-investment deliver stable, uncorrelated returns—ideal for 20- to 30-year mandates.