Private Equity vs. Public Markets: Where Should You Invest?

Posted on: 30th May 2025 in Investments

When it comes to growing your wealth, choosing the right investment path can make all the difference—especially if you’re an expat managing finances across borders.

Two of the most talked-about investment options are private equity and public markets. But what are they exactly, and how do you decide which one suits your financial goals?

Let’s break it down and explore the pros, cons, and what to consider—so you can make a confident, well-informed choice.

What is Private Equity?

Private equity involves investing in companies that aren’t listed on the stock exchange.

These could be startups, family-run businesses, or large firms looking to restructure. Investors typically access private equity through funds managed by private equity firms, which pool money from institutions and high-net-worth individuals.

The key thing to know? Private equity is a long-term game. Your money could be tied up for five to ten years, but the potential returns can be significantly higher than those from traditional investments.

What are Public Markets?

Public markets refer to the stock exchanges you hear about every day—like the FTSE 100 or the New York Stock Exchange.

When you buy shares in a company or invest in an ETF or mutual fund, you’re operating in the public markets.

These markets are highly liquid, meaning you can usually buy or sell your investments at any time during market hours. They’re also open to everyone, whether you’re investing £100 or £100,000.

Key Differences at a Glance

Pros and Cons

Private Equity

Pros:

• Higher returns: Historically, private equity has delivered strong long-term returns.

• Diversification: It doesn’t always move with the stock market, offering balance to a portfolio.

• Involvement: Investors can sometimes have a say in company decisions.

Cons:

• Lack of liquidity: You may not see your money again for years.

• High entry point: Many funds have steep minimum investments.

• Less visibility: These companies aren’t required to publish as much data as public ones.

Public Markets

Pros:

• Easy access: Open to everyone, regardless of experience or budget.

• Liquidity: Need your money quickly? You can usually sell in a matter of minutes.

• Transparency: Public companies must report earnings and operations regularly.

Cons:

• Volatility: Prices can swing wildly due to news, politics, or market sentiment.

• Lower control: As a shareholder, your influence is limited to voting rights (if that).

• Potential for emotional investing: Watching prices fluctuate daily can lead to impulsive decisions.

Trends You Should Know About

Private markets are no longer just for the ultra-wealthy. In recent years, we’ve seen financial giants opening access to private equity in retirement portfolios and other structured products.

UK pension funds are also increasing their exposure to private markets in a bid to boost long-term returns.

On the public side, technology and ETFs have made investing easier than ever. With a smartphone and a trading app, anyone can start building a portfolio.

What Should Expats Consider?

As an expat, there are a few extra things to think about before diving in:

• Regulations: Investment rules vary from country to country. Always check the legal framework in both your home and host nations.

• Currency risk: Fluctuating exchange rates can eat into your returns—or boost them, depending on the direction.

• Tax: How is investment income treated in your current country of residence? Capital gains, dividends, and inheritance laws can all play a role.

• Access: Depending on where you live, some platforms or funds may be restricted.

Working with an adviser who understands the cross-border landscape can be incredibly valuable here.

Which Option Is Right for You?

There’s no one-size-fits-all answer.

If you’re early in your investment journey or prefer flexibility, public markets might be the way to go. If you have a higher risk tolerance, a longer time horizon, and access to capital, private equity could offer greater rewards.

In reality, a blend of both can work well. Public markets provide liquidity and transparency, while private equity adds growth potential and diversification.

Final Thoughts

Whether you’re sipping coffee in Dubai, settling in Singapore, or managing money back in the UK, your investment strategy should reflect your lifestyle, goals, and comfort with risk.

Private equity and public markets both have their place in a balanced portfolio. The key is understanding what each brings to the table—and how they fit into your personal financial roadmap.

Not sure where to start? Speak to one of our experienced advisers, who can guide you through your options and help tailor a strategy that works for you—wherever in the world you call home.