RT Journal Article SR Electronic T1 The Pragmatics of Private Markets Investing JF The Journal of Portfolio Management FD Institutional Investor Journals SP 79 OP 89 DO 10.3905/jpm.2020.1.135 VO 46 IS 5 A1 Karl Polen YR 2020 UL https://pm-research.com/content/46/5/79.abstract AB The author, the chief investment officer at Arizona State Retirement System, shares perspectives and lessons learned from 4 decades of experience in private markets investing.TOPIC: Manager selectionKey Findings• Private markets investing is business investing, and you need to focus on the quality of the business approach in creating a strategic advantage in the markets served.• Private markets investing is a hiring decision, and you need to assess the quality of the organization under consideration for a strategy. Management should be expected to demonstrate an ability not just to remain healthy but to grow and improve through the tenure of your relationship with them.• Managing cost of fees is important, but not sufficient to ensure success. Alignment of interest across a range of outcomes, not just the upside, should be given paramount importance in partnership structuring.