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Many investors organize their portfolios around a familiar set of choices: which stocks and funds to own, and how much to hold in bonds. It's a framework that overlooks a large part of the economy encompassing businesses that never trade on an exchange.

Approximately 87% of companies in North America are private¹. Many have been operating profitably for decades, serving steady demand in industries that quietly keep the economy running.

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The Limits of a Public-Only Portfolio

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The traditional 60/40 portfolio which comprises 60% equities and 40% fixed income, was built on a relationship between stocks and bonds that held for decades. When one fell, the other typically held firm².

In 2022, that relationship came under significant pressure. As interest rates climbed, equities and fixed income declined at the same time. Diversification was concentrated within public markets.

Private markets behave differently. A well-run business generating consistent cash flow is not typically repriced because a central bank raised rates or a technology stock missed earnings. That independence from public market sentiment offers a different source of return and a form of diversification that cannot be achieved through public securities alone.

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What Are Alternative Investments?

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This is where alternative investments come in.

Private alternative investments have traditionally been the domain of large institutions and wealthy families. High minimums and long holding periods have often made them difficult for many investors to access. Today, lower entry points and more flexible structures are expanding access to this segment of the market for a broader range of investors. As a result, more individuals are turning to alternatives for diversification.

Learn more about private market investing with Lynx Equity Limited ("Lynx"), including terms, structures, eligibility, and distributions in our Alternative Investments article. For additional details, read our Investor FAQs.

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18 Years in Private Markets

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Lynx was founded on the belief that the most compelling opportunities aren't found on an exchange. Thousands of established private businesses change hands each year with little attention. What began as a single acquisition has grown into a long-term buy-and-hold strategy built around acquiring and managing those businesses over time.

Today, Lynx has a portfolio of 54 companies across five countries, with consolidated revenue tracking toward $1 billion in 2026 and a compound annual growth rate of 27% since inception.

Lynx's growth mirrors a broader shift in how investors are thinking about their portfolios. According to Preqin, which tracks global private markets data, global alternative assets under management grew from $7.2 trillion in 2014 to $18.2 trillion in 2024 and are projected to reach $29.2 trillion by 2029 ³. While private markets have long been a cornerstone of institutional portfolios, individual investor demand for access to these opportunities is increasing.

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Looking Beyond the Exchange

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Public markets play an important role in any investment portfolio, but they represent only a fraction of the businesses that power the economy. And today, more opportunities exist for portfolios to include alternative investments.

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Disclosures

_{Past returns do not guarantee future results.}

_{Nothing in this article constitutes an offer to purchase securities or an offer to invest in Lynx Equity Limited.}

_{Alternative investments involve risk and may not be suitable for all investors.}

_{Investments are offered only to eligible investors and may be subject to suitability, accreditation, or other regulatory requirements.}

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Sources

_{(1) Sløk, T. (2024, April 20). Many more private firms in the US. Apollo Academy. Retrieved from https://www.apolloacademy.com/many-more-private-firms-in-the-us/.CAIS. (2025, July 18). An introduction to alternative investments. CAIS. Retrieved from https://www.caisgroup.com/articles/an-introduction-to-alternative-investments}

_{(2) Mueller-Glissmann, C. (2022). How to overhaul the tried-and-tested investment portfolio when inflation soars. Goldman Sachs. Retrieved from https://www.goldmansachs.com/insights/articles/how-to-overhaul-tried-and-tested-investment-portfolio-when-inflation-soars.}

_{(2) (3) Preqin. (2024, September 18). Global alternatives markets on course to exceed $30tn by 2030. Retrieved from https://www.preqin.com/about/press-release/global-alternatives-markets-on-course-to-exceed-usd30tn-by-2030-preqin-forecasts.}

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