RT Journal Article SR Electronic T1 How Risky Are Illiquid Investments? JF The Journal of Portfolio Management FD Institutional Investor Journals SP 83 OP 93 DO 10.3905/jpm.2005.470581 VO 31 IS 2 A1 Vineet Budhraja A1 Rui J.P.. de Figueiredo, Jr YR 2005 UL https://pm-research.com/content/31/2/83.abstract AB Highly illiquid and non–traded investments?such as private real estate, leveraged buyouts, and venture capital?have historically been very hard to compare to traditional investments. This is particularly problematical when one considers how to include these assets in a traditional portfolio of assets. For the purposes of asset allocation, it is critical that illiquid asset classes are made comparable to liquid asset classes. An estimation procedure here may help to assess the true risks and diversification benefits presented by illiquid asset classes more accurately. Even though the approach involves some assumptions, it should provide a better picture of the variations in illiquid returns.