Strategic Integration of Private Assets into Multi-Asset Allocations

This Amundi Investment Institute working paper provides a framework for sizing private-asset allocations and designing commitment plans that preserve liquidity and target exposures.

• Private assets can improve diversification and risk-adjusted returns, but appraisal-based data can understate volatility and correlations—requiring “unsmoothing” and stronger tail-risk modelling.

• Capital-market assumptions (June 2025) estimate 10-year expected returns of 10.6% for private equity and 7.1% for private debt, with materially higher “unsmoothed” risk.

• Simulations suggest committing ~20–25% of target NAV annually best maintains private equity exposure near target while keeping liquidity shortfalls manageable.

How could this pacing framework reshape your private-market buildout and liquidity toolkit?