Do private markets offer better returns than public markets? Good question

The New York Stock Exchange on June 13, 2025. Michael Nagle/Bloomberg/Getty Images

An executive order signed last month by President Donald Trump aims to make it easier for workplace retirement plans like 401(k)s to offer investments in alternative assets, like private equity and private credit.

Supporters of the idea believe it would “democratize” access to investments that largely have been available only to institutions and very wealthy individuals. They say it would provide retail investors better exposure to the whole economy since so many companies choose to remain private.

It’s also touted as a chance for ordinary investors to potentially get better long-term returns on their money. But is that true?

The question of how private markets have performed relative to public marke