Slide 1: Student of Private Markets Q3 2026
Student of Private Markets Q3 2026 GPS0826-5851817-EXP0827-1/13
Slide 2: Important notes
Important notes • The Cliffwater Direct Lending Index (CDLI) is included on many pages within this document to demonstrate how private markets perform differently from public markets during the same time period. Note that the indices contain several differences in the way that they are calculated, i
Slide 3: Student of Private Markets
Student of Private Markets Q3 2026 Private credit, private real estate Private markets and private equity debt and private infrastructure Institutions Bull market rebound Private Bull market rebound Private markets Private credit in a increasing potentially amplify Infrastructure versus difficult bo
Slide 4: Average allocation to private markets has grown for institutional investors beyond 20%
INSTITUTIONS INCREASING ALLOCATION TO PRIVATE MARKETS Average allocation to private markets has grown for institutional investors beyond 20% Institutions have grown allocations toward private equity and infrastructure fastest over the past 5 years, with private equity nearing 10%. Institution alloca
Slide 5: Certain areas of private markets have outperformed public benchmarks
PRIVATE MARKETS POTENTIALLY AMPLIFY RETURNS Certain areas of private markets have outperformed public benchmarks Private equity Private credit Private infrastructure Private real estate Annualized return Annualized return Annualized return Annualized return (1/1/2008 - 12/31/2025) (1/1/2008 - 12/31/
Slide 6: Private market calendar year returns
PRIVATE MARKETS CALENDAR YEAR PERFORMANCE Private market calendar year returns While segments have struggled to keep up with market returns in recent years, private markets have historically delivered strong performance. U.S. private market calendar year returns % return (1/1/2011 - 12/31/2025) 2011
Slide 7: Private equity has trailed public equity by one of the largest gaps in history
WHEN PRIVATE EQUITY UNDERPERFORMS Private equity has trailed public equity by one of the largest gaps in history Historically private equity returns have bounced back following periods of underperformance Private equity has recently seen a record 3-year Private equity has historically rebounded foll
Slide 8: Private infrastructure has less fluctuation in returns vs. public infrastructure historically
PRIVATE INFRASTRUCTURE VERSUS PUBLIC INFRASTRUCTURE Private infrastructure has less fluctuation in returns vs. public infrastructure historically Private vs. public infrastructure historical index returns Calendar year returns since common inception, 1/1/2008 – 12/31/2025 Private infrastructure Publ
Slide 9: Private credit has performed well amid the most difficult bond market in history
PRIVATE CREDIT DURING A DIFFICULT BOND MARKET Private credit has performed well amid the most difficult bond market in history Private credit has delivered positive returns …and has historically outperformed over longer- despite a difficult bond market… term periods vs. public markets as well Avg. A
Slide 10: Private credit yields off their highs but still attractive
PRIVATE CREDIT YIELDS OFF THEIR HIGHS Private credit yields off their highs but still attractive (yield to maturity) Yield to maturity, private credit Average 12-month returns following various 1/1/2014 - 3/31/2026 yield levels 12/23 1/1/2019 – 3/31/2026 13% 12.0% 12% 9.7% 3/26 11% 9.8% 10% 7.5% 9%
Slide 11: Private real estate debt is performing well during a volatile period for bonds and real estate equity
REAL ESTATE DEBT VERSUS REAL ESTATE EQUITY Private real estate debt is performing well during a volatile period for bonds and real estate equity Real estate debt outperforming through volatile Real estate debt outperforming through real estate equity periods volatile bond and real estate equity peri
Slide 12: Student of Private Markets: Q3 2026 index returns
Student of Private Markets: Q3 2026 1 Year 5-Year Average 10-Year Average Returns as of 7/31/26 Return Annual Return Annual Return S&P 500 (TR) 19.56 12.86 15.08 Russell 2000 TR Index 34.18 7.11 10.64 Bloomberg U.S. Corporate High Yield TR Index 5.17 4.04 5.51 Morningstar LSTA U.S. Leveraged Loan TR
Slide 13: Disclosures (cont.)
Student of Private Markets: Q3 2026 Disclosures (cont.): Incorporating alternative investments such as private equity or private credit into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative