Private Markets 'Often as Risky as Public' Ones

The video explores the attractiveness of private markets for investors, highlighting the liquidity premium and perceived lower risk compared to public markets. However, a deeper analysis reveals that private markets can be as risky as public ones when true economic risks are considered. Investment decisions should be based on the investor's starting point, preferences, and time horizon, leading to the conclusion that the choice between private and public markets depends on individual circumstances.

What does the term 'liquidity premium' refer to in the context of investments?

Why might the statement 'it depends' be significant for investors?