What high net-worth investors should know about private market funds

Private market funds are like a special piggy bank that rich people put money into so experts can buy businesses and make them better.

Unlike the stock market, you cannot get your money back whenever you want.

That is actually okay, because waiting gives the experts time to improve the businesses before selling them.

Before your money goes in, there is a lot of checking, which can take many months.

After that, the experts work on making the businesses better for a few years.

Your money does not stay stuck for the whole time though—it goes in slowly and comes back slowly.

Usually, your money comes back to you in about three to five years.

Sometimes businesses sell fast, so you get money sooner, and sometimes selling takes longer.

Experts say it is smart to spread your money across different funds so you do not depend on just one.

This kind of investing is for people who can wait a long time without needing their money back soon.