[{"data":1,"prerenderedAt":965},["ShallowReactive",2],{"resource-decline-of-the-60-40-portfolio":3,"resource-next-decline-of-the-60-40-portfolio":307},{"id":4,"title":5,"author":6,"body":7,"category":295,"date":296,"description":297,"extension":298,"image":299,"imageAlt":300,"meta":301,"navigation":302,"path":303,"seo":304,"stem":305,"__hash__":306},"resources\u002Fresources\u002Fdecline-of-the-60-40-portfolio.md","The 60\u002F40 Portfolio Decline & Top Alternatives","Citizen Mint Team",{"type":8,"value":9,"toc":283},"minimark",[10,15,19,22,25,32,35,74,77,81,84,90,95,102,134,137,143,147,158,199,202,206,212,250,254,265,268,272,278],[11,12,14],"h2",{"id":13},"the-decline-of-the-6040-portfolio-top-alternative-investments","The Decline of the 60\u002F40 Portfolio & Top Alternative Investments",[16,17,18],"p",{},"The 60\u002F40 portfolio, or 60% stocks and 40% bonds, has been a keystone of financial planning for the last five decades given its ability to weather numerous market cycles. Unfortunately, the portfolios underlying characteristics have changed over time that has resulted in it being less effective during market disruptions.",[16,20,21],{},"STOCKS & BONDS • 60\u002F40 PORTFOLIO • IMPACT INVESTING • ALTERNATIVES",[16,23,24],{},"The 60\u002F40 has been successful in the past as a result of being able to benefit from appreciation of stocks over decades and protection from the bond portfolio which has performed well in downturns such as the dot-com bust and the global financial crisis in 2008-2009. However, 2022 was a very different story with stocks and bonds having their highest correlation over the past decade. This led the 60\u002F40 portfolio having one of its worst years since 1937.",[16,26,27],{},[28,29],"img",{"alt":30,"src":31},"","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-11-Graph-Stocks-and-Bonds.png",[16,33,34],{},"Factors that have led to the 60\u002F40 being less effective include:",[36,37,38,42,51],"ol",{},[39,40,41],"li",{},"Stock Market Volatility & Concentration: Stocks have become more volatile over the last two decades as investors and large institutional investors reallocate capital rapidly during times of market disruptions causing greater downside moves compared to history. Further, concentration in major indexes has increased dramatically and much of the return of stocks can be contributed to a few big names in the market (i.e. Apple, Microsoft, Amazon, etc.).",[39,43,44,45,50],{},"Changing Correlations: Traditionally, stocks and bonds have had a negative correlation, meaning that when one asset class performed poorly, the other tended to perform well, providing ",[46,47,49],"a",{"href":48},"\u002Fresources\u002Fhow-to-diversify-your-portfolio","diversification"," benefits. However, the negative correlation between stocks and bonds has weakened or become more positive in recent years leading to limited protection during market volatility.",[39,52,53,54,58,59,63,64,68,69,73],{},"Evolving Investment Landscape: The investment landscape has evolved, with new asset classes gaining prominence. ",[46,55,57],{"href":56},"\u002Fresources\u002Fprivate-market-investments-guide","Alternative investments"," such as ",[46,60,62],{"href":61},"\u002Fresources\u002Fguide-to-investing-in-real-estate","real estate",", ",[46,65,67],{"href":66},"\u002Fresources\u002Fguide-to-investing-in-real-assets","private infrastructure",", private equity, and ",[46,70,72],{"href":71},"\u002Fresources\u002Fbest-alternative-investments-for-inflation","private credit"," have attracted attention from investors seeking to diversify their portfolios beyond stocks and bonds. These alternatives may offer better risk-return characteristics compared to the traditional 60\u002F40 allocation.",[16,75,76],{},"With the advent of new strategies and services, such as Citizen Mint, access to alternatives has increased significantly over the last few years. As a result, advisors should be looking for ways to diversify clients portfolios beyond traditional assets classes leading to better portfolio diversification and portfolio outcomes.",[11,78,80],{"id":79},"whats-the-opportunity-in-alternative-investments","What’s the opportunity in alternative investments?",[16,82,83],{},"We have witnessed many investors question how diversified their portfolios are in traditional asset classes like stocks and bonds given highly correlated returns more recently. This has led them to seek diversifying alternatives in the private markets space where they can seek to reduce portfolio volatility while also enhancing returns. Compelling opportunities we are seeing within the private market space include:",[16,85,86],{},[28,87],{"alt":88,"src":89},"real estate alternative investments","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-10-pexels-kelly-2833686-scaled.jpg",[91,92,94],"h3",{"id":93},"private-real-estate","Private Real Estate",[16,96,97,101],{},[46,98,100],{"href":99},"\u002Fresources\u002Fhow-can-you-start-investing-in-real-estate","Private real estate"," is a great diversifier for portfolios that can provide many benefits over multiple market cycles. Benefits of the category include:",[103,104,105,118,126],"ul",{},[39,106,107,117],{},[108,109,110],"em",{},[111,112,113,116],"strong",{},[46,114,115],{"href":71},"Inflation"," Hedge:"," During times of rising prices, rents and property values tend to increase.",[39,119,120,125],{},[108,121,122],{},[111,123,124],{},"Defensive:"," Certain real estate assets can be highly defensive during times of economic stress. These usually include mobile home parks, affordable\u002Fworkforce multi-family housing and self-storage.",[39,127,128,133],{},[108,129,130],{},[111,131,132],{},"Attractive Distributions:"," Income distributions to investors from certain real estate such as residential, commercial and industrial can be attractive and usually ranges between 4-7% a year.",[16,135,136],{},"While many are concerned aboutcommercial officeand industrial assets at the current point in time, multifamily continues to be an under-invested opportunity in the US as housing affordability continues to be incredibly challenging.Review current  investable opportunities in this space by clickingHERE.",[16,138,139],{},[28,140],{"alt":141,"src":142},"alternative investments","\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-solar-panel-array-power-sun-electricity-159397-1.jpeg",[91,144,146],{"id":145},"infrastructure-assets","Infrastructure Assets",[16,148,149,152,153,157],{},[46,150,151],{"href":66},"Infrastructure assets"," provide essential or necessary services, have long useful lives and generate cash flow and earnings that vary minimally through market cycles. An example could include ",[46,154,156],{"href":155},"\u002Fresources\u002Fwhy-is-infrastructure-compelling-and-defensive","renewable energy assets"," such as solar or wind power that sign 20-to-30 year contracts for energy production with a customer such as a local utility or a large corporation. Benefits of these assets include:",[103,159,160,168,176,184],{},[39,161,162,167],{},[108,163,164],{},[111,165,166],{},"Portfolio Diversification & Downside Protection:"," In general, infrastructure assets have a low correlation to stocks and bonds. Further, this asset class can reduce volatility in investor portfolios during economic turmoil given a stable earnings stream throughout economic cycles.",[39,169,170,175],{},[108,171,172],{},[111,173,174],{},"Income Potential:"," Given the highly predictable cash flows of infrastructure assets, these investments usually provide strong income potential.",[39,177,178,183],{},[108,179,180],{},[111,181,182],{},"Long-Term Growth Potential:"," Renewable infrastructure investments, such as solar and wind energy projects, often offer long-term growth potential. As the world transitions towards a cleaner and more sustainable energy system, the demand for renewable energy is expected to rise. This can create opportunities for investors to benefit from capital appreciation and potential income generation over time.",[39,185,186,191,192,198],{},[108,187,188],{},[111,189,190],{},"Regulatory Support:"," Governments around the world are increasingly implementing policies and regulations that support the growth of renewable energy. This can include incentives such as tax credits, grants, and favorable regulatory frameworks that encourage renewable infrastructure development. In the US, the ",[46,193,197],{"href":194,"rel":195},"https:\u002F\u002Fwww.irs.gov\u002Finflation-reduction-act-of-2022",[196],"nofollow","Inflation Reduction Act"," created $370 billion in incentives to develop renewable infrastructure projects which should ultimately lead to trillions of dollars in capital expenditures and the potential for higher returns to investors.",[16,200,201],{},"Review current  investable opportunities in this space by clickingHERE.",[91,203,205],{"id":204},"private-market-debt","Private Market Debt",[16,207,208,211],{},[46,209,210],{"href":71},"Private market debt"," has grown significantly since the global financial crisis as banks have dramatically reduced lending to meet regulatory and capital requirement needs. This has led to private debt funds becoming the main source of financing for private equity firms that are seeking to buy and sell companies. Private debt can also be used for real estate projects and other ventures. Benefits include:",[103,213,214,223,231,242],{},[39,215,216,222],{},[111,217,218,221],{},[108,219,220],{},"Reduced Volatility of Returns:"," Private debt"," investments are typically less sensitive to interest rate fluctuations compared to publicly traded fixed income securities. This is because private credit transactions often involve fixed interest rates or floating rates with contractual adjustments, which can help mitigate interest rate risk. As a result, private debt can be an attractive option for investors seeking income generation with lower interest rate sensitivity.",[39,224,225,230],{},[108,226,227],{},[111,228,229],{},"Higher Returns:"," Private debt usually offers much higher returns than publicly traded debt.",[39,232,233,238,239],{},[108,234,235],{},[111,236,237],{},"Diversification",": Private credit can provide diversification benefits to a portfolio. It is a distinct asset class that can have low correlation with traditional stocks and bonds. By adding private credit to a portfolio, investors can potentially reduce overall portfolio volatility and enhance risk-adjusted returns.",[240,241],"br",{},[39,243,244,249],{},[108,245,246],{},[111,247,248],{},"Income Generation",": Private credit investments can provide a steady income stream in the form of interest payments. The contractual cash flows from private credit investments can offer reliable income, which can be particularly appealing to income-focused investors or those seeking consistent cash flows to meet their financial goals.",[91,251,253],{"id":252},"the-future-of-investing","The Future of Investing",[16,255,256,257,259,260,264],{},"While we don’t know what the future holds, we do know that ",[46,258,49],{"href":48}," and ",[46,261,263],{"href":262},"\u002Fresources\u002Fmagic-of-compounding-returns","compounding"," over long periods of time works well for investors. Diversification in this case is not just traditional stocks and bonds where correlations between the asset classes have increased, but multiple asset classes in both the public and private markets. Further, having some illiquid assets can both reduce investor volatility and the impulse to sell during market disruptions. It further has the potential to enhance returns and meet investors goals both financially and personally. Learn more about private market investment opportunities by clicking the button below.",[16,266,267],{},"Learn more about ways to diversify your portfolio by reading our white paper on opportunities to invest in Private Markets.",[11,269,271],{"id":270},"want-to-learn-more","Want to learn more?",[16,273,274,275],{},"Be sure to download our guide on ",[111,276,277],{},"Private Market Investments",[16,279,280],{},[28,281],{"alt":30,"src":282},"\u002Fimages\u002Fresources\u002Fmedia\u002F2022-09-Private-Markets.png",{"title":30,"searchDepth":284,"depth":284,"links":285},2,[286,287,294],{"id":13,"depth":284,"text":14},{"id":79,"depth":284,"text":80,"children":288},[289,291,292,293],{"id":93,"depth":290,"text":94},3,{"id":145,"depth":290,"text":146},{"id":204,"depth":290,"text":205},{"id":252,"depth":290,"text":253},{"id":270,"depth":284,"text":271},"blog","2022-11-30","Learn why the 60\u002F40 investment portfolio is in a decline and discover top alternative investment opportunities to add to portfolios.","md","\u002Fimages\u002Fresources\u002Fdecline-of-the-60-40-portfolio.jpg",null,{},true,"\u002Fresources\u002Fdecline-of-the-60-40-portfolio",{"title":5,"description":297},"resources\u002Fdecline-of-the-60-40-portfolio","T0JjkDepIkM_5NJIPr-tXmxIJqMU0a0vluKYM4HYfUQ",[308,705,772],{"id":309,"title":310,"author":311,"body":312,"category":295,"date":697,"description":698,"extension":298,"image":699,"imageAlt":300,"meta":700,"navigation":302,"path":701,"seo":702,"stem":703,"__hash__":704},"resources\u002Fresources\u002Fprivate-market-performance-metrics.md","Reading Private Market Performance: A Guide to IRR, TWR, MOIC, and the Metrics That Matter","Josh Giordano",{"type":8,"value":313,"toc":687},[314,317,320,323,327,330,335,340,343,347,353,359,362,366,369,375,381,387,393,398,403,406,410,413,418,423,426,430,437,441,444,449,454,457,463,469,475,489,495,501,505,670,674,682],[16,315,316],{},"METRICS • CONTEXT • JUDGMENT",[16,318,319],{},"When an advisor evaluates a public mutual fund, the scorecard is familiar. Trailing returns, a benchmark, a Sharpe ratio, and an expense figure cover most of the conversation. Private markets do not work that way. A buyout fund and a private credit fund can both report strong performance while measuring it on entirely different scales, and a single fund can look excellent or unremarkable depending on which number you put first.",[16,321,322],{},"For RIAs and family offices building allocations to private equity, private credit, real estate, and infrastructure, fluency in these metrics is part of the diligence itself. The numbers are not interchangeable, because each one answers a specific question and carries its own blind spot. What follows is a practical walk through the metrics that show up most often in fund materials, what they actually capture, and how they line up against the major asset classes.",[11,324,326],{"id":325},"why-timing-changes-everything","Why Timing Changes Everything",[16,328,329],{},"The central complication in private markets is that investors do not put all of their money to work on day one. Capital is committed, then called over several years as the manager finds deals, and distributions come back unevenly as those deals are realized. A public market return assumes a clean start and end, while a private market return has to account for money moving in and out at irregular intervals, which is exactly where the two main return measures part ways. That same timing problem produces a pattern every private markets investor learns to recognize, the J-curve.",[16,331,332],{},[28,333],{"alt":30,"src":334},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-01_jcurve.png",[16,336,337],{},[108,338,339],{},"Early fees and conservative markdowns push reported returns negative before realizations drive them up. A fund judged in year three tells you almost nothing about where it lands.",[16,341,342],{},"In the first few years, a fund draws capital, charges fees, and carries young investments at or below cost, so the reported return sits in negative territory. As the portfolio matures and exits begin, the line turns and climbs, which is why an early-stage IRR is closer to a snapshot taken mid-story than a verdict on the fund.",[11,344,346],{"id":345},"irr-and-twr-two-honest-answers-to-two-different-questions","IRR and TWR: Two Honest Answers to Two Different Questions",[16,348,349,352],{},[111,350,351],{},"Internal rate of return (IRR)"," is the headline figure for most closed-end private funds. It is the annualized rate that accounts for the size and timing of every cash flow, the capital called, the distributions returned, and the value of whatever the fund still holds. Because it weights cash flows by when they happen, IRR rewards getting money back quickly and penalizes capital that sits idle, which cuts both ways. A manager who returns capital early posts a higher IRR and that is useful information, but a manager who delays capital calls by borrowing through a subscription credit line can lift the same number without improving anything underneath, which is why IRR should be read alongside the multiples rather than on its own.",[16,354,355,358],{},[111,356,357],{},"Time-weighted return (TWR)"," answers a different question. It strips out the effect of when cash moved and isolates how the underlying assets performed period by period. TWR is the right tool when the manager does not control the timing of contributions and withdrawals, which is the case for public portfolios, separately managed accounts, and the growing set of open-end and evergreen private vehicles where investors enter and exit on their own schedule. It is the standard most advisors already use for the liquid side of a client’s portfolio.",[16,360,361],{},"IRR is money-weighted, reflecting the investor’s actual dollar-timed experience in a fund where the manager controls the cash. TWR is time-weighted, reflecting the manager’s performance independent of that timing. Comparing one fund’s IRR against another fund’s TWR is comparing two different rulers, and in a side-by-side that gap can quietly flatter the wrong fund.",[11,363,365],{"id":364},"the-multiples-moic-tvpi-dpi-and-rvpi","The Multiples: MOIC, TVPI, DPI, and RVPI",[16,367,368],{},"If IRR captures the speed of return, multiples capture the magnitude. They answer the simplest question a client ever asks: how many times did we get our money back?",[16,370,371,374],{},[111,372,373],{},"MOIC (multiple on invested capital)"," divides total value, both realized and still held, by the capital invested. It is usually quoted gross of fees and ignores time entirely. A 2.0x is a 2.0x whether it took two years or nine, which is why MOIC and IRR have to be read together.",[16,376,377,380],{},[111,378,379],{},"TVPI (total value to paid-in)"," is the net-of-fees cousin most LPs track. It divides everything the fund has returned plus everything it still holds by the capital the investor has actually paid in. TVPI breaks cleanly into two parts.",[16,382,383,386],{},[111,384,385],{},"DPI (distributions to paid-in)"," is the realized portion, the cash that has actually left the fund and landed in the investor’s account, which cannot be marked up or revised later. As a fund ages, DPI becomes the number that matters most, because it is the only one that reflects money in hand rather than an estimate.",[16,388,389,392],{},[111,390,391],{},"RVPI (residual value to paid-in)"," is the unrealized portion, the value still sitting in the portfolio at the manager’s current marks. Early in a fund’s life almost all of the multiple is RVPI, and the quality of a track record is largely a question of how reliably that paper value has converted into cash over time.",[16,394,395],{},[28,396],{"alt":30,"src":397},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-02_tvpi.png",[16,399,400],{},[108,401,402],{},"A young fund’s multiple is almost entirely paper. A credible manager turns that residual value into distributions, which is why mature-fund diligence leans on DPI.",[16,404,405],{},"Two funds can both show a 1.8x TVPI, but the one carrying most of that as DPI has proven it can exit, while the one carrying most of it as RVPI is still asking you to trust the marks.",[11,407,409],{"id":408},"when-irr-and-moic-disagree","When IRR and MOIC Disagree",[16,411,412],{},"Because IRR is time-sensitive and MOIC is not, the same investment can look very different through the two lenses. A quick flip that doubles capital in a year produces a spectacular IRR and a modest multiple, while a patient hold that triples capital over eight years produces a strong multiple and a far more ordinary IRR.",[16,414,415],{},[28,416],{"alt":30,"src":417},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-03_irr_moic.png",[16,419,420],{},[108,421,422],{},"A 2.0x earned in three years outpaces a 3.0x earned in eight on an annualized basis. Neither number is wrong, and neither is complete on its own.",[16,424,425],{},"The two belong together for that reason. A manager who leads with IRR may be highlighting fast, smaller wins, while one who leads with MOIC may be holding longer for larger absolute gains at a lower annualized rate. Both can be sound approaches, and the number a manager reaches for first usually tells you something about how the firm actually invests.",[11,427,429],{"id":428},"measuring-against-the-alternative-pme","Measuring Against the Alternative: PME",[16,431,432,433,436],{},"Allocators lean on one more measure that rarely shows up in fund marketing: the ",[111,434,435],{},"public market equivalent (PME)",". It takes a fund’s actual cash flows and asks what the same money would have earned if it had been invested in a public index instead, over the same timeline. That converts an absolute return into an opportunity-cost comparison and answers the question a committee eventually asks, which is whether the private allocation actually beat what they could have bought in the public market with no lockup. For asset classes that compete directly with public equity, PME is often the most honest scorecard available.",[11,438,440],{"id":439},"which-metric-fits-which-asset-class","Which Metric Fits Which Asset Class",[16,442,443],{},"No single metric is right across the board, because the strategies behind these funds generate returns in different ways. Buyout returns come from buying companies, improving them, and selling them; private credit returns come from contractual income; core real estate and infrastructure blend steady yield with slower appreciation. The metric that captures performance has to match the shape of the return.",[16,445,446],{},[28,447],{"alt":30,"src":448},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-04_matrix.png",[16,450,451],{},[108,452,453],{},"The right lens depends on how a strategy produces its return: income strategies are judged on yield, while equity-style strategies turn on multiples and annualized rates.",[16,455,456],{},"A few patterns stand out:",[16,458,459,462],{},[111,460,461],{},"Buyout and private equity"," are the natural home of the IRR, MOIC, and DPI trio. The strategy is built on entry, value creation, and exit, so the annualized rate, the multiple, and the realized cash all carry weight, with PME as the right check against the public equity these funds compete with.",[16,464,465,468],{},[111,466,467],{},"Venture capital"," leans hardest on multiples and DPI, because returns follow a power law where a small number of investments drive the result, and the holding periods are long enough that early IRRs are noisy to the point of being unreliable. A venture track record is best read through what it has actually returned, not what it is annualizing on paper in year four.",[16,470,471,474],{},[111,472,473],{},"Private credit"," is an income story, so cash yield and a stable IRR do most of the work, and multiples are less informative here because debt has a capped upside by design. For the evergreen credit structures now common in the advisor channel, time-weighted return becomes the cleaner way to evaluate the manager, since investors move in and out continuously.",[16,476,477,480,481,483,485,488],{},[111,478,479],{},"Core, open-end real estate"," is measured primarily on a time-weighted basis, the convention that underpins the major open-end property indices, paired with current income yield. The manager does not control investor cash flows, so TWR is the fair comparison. ",[240,482],{},[240,484],{},[111,486,487],{},"Value-add and opportunistic real estate",", by contrast, behaves more like private equity and is judged on IRR and the equity multiple, with cash-on-cash yield as a supporting figure.",[16,490,491,494],{},[111,492,493],{},"Infrastructure"," sits between the two, since core infrastructure generates long-duration, contracted income, so cash yield carries real weight alongside IRR and the multiple over a longer horizon than most buyout funds.",[16,496,497,500],{},[111,498,499],{},"Evergreen and semi-liquid structures",", the format reshaping how RIAs and family offices access these markets, deserve a closer look. Because investors subscribe and redeem on a rolling basis and the manager does not dictate the timing, the closed-end logic of IRR and DPI fits awkwardly, and time-weighted return becomes the appropriate lens, which is part of why these vehicles report performance in a way that looks more familiar to advisors used to evaluating public funds.",[11,502,504],{"id":503},"a-working-reference","A Working Reference",[506,507,508,540],"table",{},[509,510,511],"thead",{},[512,513,514,520,525,530,535],"tr",{},[515,516,517],"th",{},[111,518,519],{},"Metric",[515,521,522],{},[111,523,524],{},"What it measures",[515,526,527],{},[111,528,529],{},"Time-sensitive",[515,531,532],{},[111,533,534],{},"Net of fees",[515,536,537],{},[111,538,539],{},"Reads best for",[541,542,543,561,578,594,609,624,639,655],"tbody",{},[512,544,545,549,552,555,558],{},[546,547,548],"td",{},"IRR",[546,550,551],{},"Annualized money-weighted return across all cash flows",[546,553,554],{},"Yes",[546,556,557],{},"Gross or net",[546,559,560],{},"Closed-end PE, real estate, infrastructure",[512,562,563,566,569,572,575],{},[546,564,565],{},"TWR",[546,567,568],{},"Return isolated from cash flow timing",[546,570,571],{},"No",[546,573,574],{},"Net",[546,576,577],{},"Open-end, evergreen, marketable strategies",[512,579,580,583,586,588,591],{},[546,581,582],{},"MOIC",[546,584,585],{},"Total value over capital invested",[546,587,571],{},[546,589,590],{},"Usually gross",[546,592,593],{},"Magnitude check on any equity strategy",[512,595,596,599,602,604,606],{},[546,597,598],{},"TVPI",[546,600,601],{},"Total value over capital paid in",[546,603,571],{},[546,605,574],{},[546,607,608],{},"Overall fund-level multiple",[512,610,611,614,617,619,621],{},[546,612,613],{},"DPI",[546,615,616],{},"Cash actually distributed over paid in",[546,618,571],{},[546,620,574],{},[546,622,623],{},"Mature funds, realized track record",[512,625,626,629,632,634,636],{},[546,627,628],{},"RVPI",[546,630,631],{},"Unrealized value over paid in",[546,633,571],{},[546,635,574],{},[546,637,638],{},"Gauging how much return is still on paper",[512,640,641,644,647,650,652],{},[546,642,643],{},"Cash Yield",[546,645,646],{},"Recurring income over invested capital",[546,648,649],{},"Partial",[546,651,574],{},[546,653,654],{},"Private credit, core real estate, infrastructure",[512,656,657,660,663,665,667],{},[546,658,659],{},"PME",[546,661,662],{},"Fund result versus a public index",[546,664,554],{},[546,666,574],{},[546,668,669],{},"Testing private allocations against public markets",[11,671,673],{"id":672},"the-point-of-all-of-it","The Point of All of It",[16,675,676,677,679,681],{},"The reason to learn this vocabulary is not to win an argument about which metric is best, it is to know the right follow-up question. A striking IRR is an invitation to ask for the multiple and the realized DPI behind it. When most of a track record still sits in RVPI, the question is how the manager’s earlier funds actually converted paper marks into cash. And when two managers in the same strategy report on different measures, the job is simply to put them on the same one before judging either.",[240,678],{},[240,680],{},"\nPrivate markets reward investors who can read past the headline number. For advisors building durable allocations for their clients, that fluency is what separates evaluating a manager from being marketed to.",[16,683,684],{},[108,685,686],{},"This material is for educational and informational purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any security. Illustrative figures and charts are hypothetical, are provided to explain the metrics discussed, and do not represent the performance of any specific fund or investment. Past performance is not indicative of future results. Private market investments involve substantial risk, including the potential loss of capital and limited liquidity.",{"title":30,"searchDepth":284,"depth":284,"links":688},[689,690,691,692,693,694,695,696],{"id":325,"depth":284,"text":326},{"id":345,"depth":284,"text":346},{"id":364,"depth":284,"text":365},{"id":408,"depth":284,"text":409},{"id":428,"depth":284,"text":429},{"id":439,"depth":284,"text":440},{"id":503,"depth":284,"text":504},{"id":672,"depth":284,"text":673},"2026-06-29","A guide to private market performance metrics for advisors: what IRR, TWR, MOIC, TVPI, and DPI measure, and which metric fits which asset class.","\u002Fimages\u002Fresources\u002Fprivate-market-performance-metrics.png",{},"\u002Fresources\u002Fprivate-market-performance-metrics",{"title":310,"description":698},"resources\u002Fprivate-market-performance-metrics","zmsaESjLwvkmdyysdJcj5l7qid6K82AfuWr4reSa5W8",{"id":706,"title":707,"author":311,"body":708,"category":295,"date":764,"description":765,"extension":298,"image":766,"imageAlt":300,"meta":767,"navigation":302,"path":768,"seo":769,"stem":770,"__hash__":771},"resources\u002Fresources\u002Fcitizen-mint-kitces-advisortech-map.md","Citizen Mint Joins the Kitces AdvisorTech Map",{"type":8,"value":709,"toc":759},[710,715,718,721,726,730,733,737,740,744,747,750],[16,711,712],{},[111,713,714],{},"RECOGNITION • ADVISORTECH • ADVISORS",[16,716,717],{},"If you have spent any time in wealth management, you know the Kitces AdvisorTech Map. Published monthly by Michael Kitces and the Kitces.com team, it has become the industry’s definitive reference for the technology advisors use to run their practices and serve their clients. It is also, famously, a lot of logos on one page.",[16,719,720],{},"This month, one of those logos is ours. We are proud to share that Citizen Mint has been added to the Kitces AdvisorTech Map in the Alternatives Marketplace category, and we want to take a moment to explain why this matters to us and, more importantly, why it should matter to the advisors we serve.",[16,722,723],{},[28,724],{"alt":30,"src":725},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-1780944720025.jpeg",[11,727,729],{"id":728},"why-the-map-matters","Why the Map Matters",[16,731,732],{},"The AdvisorTech Map exists because advisors face an overwhelming number of technology decisions, and the Kitces team has spent years bringing rigor and curation to that landscape. Inclusion is not a participation trophy. It reflects a vetting process designed to surface solutions that genuinely address the needs of RIAs and independent advisors. For a company built specifically for advisors, there are few better signals that you are solving a real problem for the people you set out to serve.",[11,734,736],{"id":735},"what-it-says-about-private-markets","What It Says About Private Markets",[16,738,739],{},"We think our inclusion reflects something bigger than Citizen Mint. Private markets have moved from the edges of the advisor conversation to the center of it, and advisors increasingly expect the same quality of technology for alternatives that they have long had for public markets. Access alone was never the hard part. The hard part has been giving advisors the infrastructure to evaluate, allocate, and manage private market exposure with the same confidence and efficiency they bring to the rest of the portfolio. That is the problem we built Citizen Mint to solve, and being recognized alongside the tools advisors rely on every day tells us the industry sees it the same way.",[11,741,743],{"id":742},"thank-you","Thank You",[16,745,746],{},"Our thanks to Michael Kitces and the entire Kitces.com team for the work they put into mapping this ecosystem month after month. The wealth management industry is better for it.",[16,748,749],{},"To the advisors who have partnered with us along the way: this recognition belongs to you as much as it does to us. Your feedback shapes what we build, and we are just getting started.",[16,751,752,753,758],{},"You can view the latest version of the AdvisorTech Map at ",[46,754,757],{"href":755,"rel":756},"https:\u002F\u002Fwww.kitces.com\u002F",[196],"Kitces.com",".",{"title":30,"searchDepth":284,"depth":284,"links":760},[761,762,763],{"id":728,"depth":284,"text":729},{"id":735,"depth":284,"text":736},{"id":742,"depth":284,"text":743},"2026-06-10","Citizen Mint joins the Kitces AdvisorTech Map, reflecting the growing role of private markets technology in how RIAs and wealth advisors serve clients.","\u002Fimages\u002Fresources\u002Fcitizen-mint-kitces-advisortech-map.png",{},"\u002Fresources\u002Fcitizen-mint-kitces-advisortech-map",{"title":707,"description":765},"resources\u002Fcitizen-mint-kitces-advisortech-map","UuT3OUbGZuDgaDKyIahzcEfdv-hp-Q4CqPX1TNs3GxU",{"id":773,"title":774,"author":311,"body":775,"category":295,"date":957,"description":958,"extension":298,"image":959,"imageAlt":300,"meta":960,"navigation":302,"path":961,"seo":962,"stem":963,"__hash__":964},"resources\u002Fresources\u002Fpowering-ai-through-private-markets.md","Powering the AI Revolution: Private Market Paths Beyond the Public Equity Trade",{"type":8,"value":776,"toc":950},[777,780,783,786,789,796,800,803,806,809,812,820,825,829,832,835,838,846,851,855,858,861,867,873,879,885,891,897,902,906,924,929,933,936,939,947],[16,778,779],{},"POWER • INFRASTRUCTURE • ACCESS",[16,781,782],{},"Artificial intelligence has become one of the defining investment themes of the past several years. The public market gains have been real, but they have also been concentrated. J.P. Morgan Asset Management noted that the “AI-spawned Magnificent 7” drove 63% of S&P 500 returns in 2023, 55% in 2024, and 43% in 2025, numbers that underscore how much AI exposure many clients already carry through traditional market-cap-weighted portfolios.",[16,784,785],{},"For advisors, that raises a practical question: what does it mean to add more AI exposure on top of what clients likely already own?",[16,787,788],{},"The more useful framing may not be whether AI matters as a theme. Most thoughtful investors have settled that question. The harder conversation is about the broader investment ecosystem behind the AI buildout, one that extends well beyond chips, models, and the handful of technology companies dominating public indexes. Power infrastructure, data center real estate, energy storage, grid interconnection, private credit, and private companies that have not yet come to market all represent a different kind of participation in the same economy.",[16,790,791,795],{},[46,792,794],{"href":793},"\u002Fresources\u002Fhow-much-should-clients-allocate-to-private-markets","That is where"," private markets may offer something that public equities generally do not: differentiated exposure, with return profiles tied to income, collateral, real assets, or selective equity upside rather than continued multiple expansion in a concentrated group of mega-cap names.",[11,797,799],{"id":798},"ai-has-become-a-physical-infrastructure-story","AI Has Become a Physical Infrastructure Story",[16,801,802],{},"The most important constraint limiting AI deployment may not be compute but electricity.",[16,804,805],{},"The International Energy Agency projects that global data center electricity consumption will roughly double from 485 terawatt-hours in 2025 to approximately 950 TWh by 2030, representing close to 3% of total global electricity demand by that date. Within that, AI-focused data centers are growing considerably faster. The IEA estimates that electricity demand from AI-specific facilities will triple over the same period, as energy-intensive inference and training workloads scale. Data center electricity demand rose 17% in 2025 alone, more than five times the 3% growth in overall global electricity demand that year.",[16,807,808],{},"In the United States, the scale of the shift is even more pronounced. According to the IEA’s analysis, U.S. data centers are on track to consume more electricity for processing data in 2030 than all energy-intensive manufacturing combined, including aluminum, steel, cement, and chemicals. Data centers are projected to drive nearly half of all U.S. electricity demand growth between now and 2030.",[16,810,811],{},"McKinsey estimates that more than $500 billion of data center infrastructure investment may be required through the end of the decade, excluding upstream transmission and distribution needs. Lead times for new power access in high-demand markets such as Northern Virginia can exceed three years, while some electrical equipment orders have stretched to two years or more.",[16,813,814,815,819],{},"This creates a tangible investment dynamic. When electricity access becomes a binding constraint on AI deployment, the ",[46,816,818],{"href":817},"\u002Fresources\u002Fthe-case-for-renewable-infrastructure","infrastructure"," that delivers it (power generation, transmission, storage, and interconnection) shifts from commodity infrastructure to something closer to strategic input.",[16,821,822],{},[28,823],{"alt":30,"src":824},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-112626-1.png",[11,826,828],{"id":827},"the-bottleneck-behind-the-bottleneck-interconnection","The Bottleneck Behind the Bottleneck: Interconnection",[16,830,831],{},"Even when a developer has the capital, land, and signed demand to build a data center or power project, they still need to connect to the grid. That process has become a significant obstacle.",[16,833,834],{},"Lawrence Berkeley National Laboratory’s most recent data show that more than 2,060 gigawatts of total generation and storage capacity were actively seeking grid connection as of the end of 2025, representing roughly twice the installed generating capacity of the current U.S. power plant fleet. The typical project reaching commercial operation in 2024 spent an average of 55 months in the queue, up from less than two years for projects that reached operation in the early 2000s. And historically, only about 13% of the capacity that entered interconnection queues between 2000 and 2019 ever reached commercial operation.",[16,836,837],{},"For investors, those numbers are worth sitting with. They do not mean that the buildout stalls. They mean that projects with established interconnection positions, executed agreements, and experienced development teams occupy a materially different risk position than projects still waiting for clarity.",[16,839,840,841,845],{},"Private capital has historically found meaningful roles in exactly these kinds of financing gaps: ",[46,842,844],{"href":843},"\u002Fresources\u002Fguide-to-interconnection-capital","interconnection deposits",", equipment procurement, pre-construction bridge financing, and capital for grid upgrades tied to confirmed commercial demand. The bottleneck is real, but it also creates opportunity for structured, collateral-backed lending that is not correlated to technology sector multiples.",[16,847,848],{},[28,849],{"alt":30,"src":850},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-114556.png",[11,852,854],{"id":853},"where-private-markets-can-fit-in-the-ai-economy","Where Private Markets Can Fit in the AI Economy",[16,856,857],{},"Public AI exposure is typically expressed through the same cluster of mega-cap technology companies. Private market exposure can be structured quite differently, closer to the implementation layer, and with returns that may be driven by contractual cash flow, asset-backed income, or selective equity upside rather than market sentiment.",[16,859,860],{},"The key distinction is capital structure. Downside protection in private market investing does not come from the AI theme itself. It comes from where an investor sits in the capital stack, what collateral exists, how contracts are structured, and whether underwriting is grounded in asset-backed income, project economics, or venture-style equity appreciation. Each approach carries meaningfully different risk and return characteristics.",[16,862,863,866],{},[111,864,865],{},"Power infrastructure lending:"," Energy projects tied to data center demand often require financing at various stages of development, including interconnection deposits, equipment procurement, construction costs, and refinancing of completed assets. Secured lending in this space may offer income with collateral or contractual protections, though key risks include project delays, permitting challenges, and counterparty quality.",[16,868,869,872],{},[111,870,871],{},"Renewable power and battery storage:"," The U.S. Energy Information Administration expects a record 86 gigawatts of utility-scale generating capacity to be added to the grid in 2026, with solar accounting for 51% of planned additions and battery storage for 28%. Developers plan to add 24 gigawatts of utility-scale battery storage in 2026, more than 60% above the 15 gigawatts added in 2025. Real asset exposure to this buildout may offer cash flow durability, though merchant power risk, equipment costs, and interconnection delays are important underwriting considerations.",[16,874,875,878],{},[111,876,877],{},"Data center infrastructure:"," CBRE’s North America Data Center Trends H2 2025 report found that primary market vacancy fell to a record low 1.4% at year-end 2025, even as primary market supply increased 36% year over year to meet accelerated hyperscale demand. Primary markets posted record net absorption of approximately 2,498 megawatts in 2025. Exposure here can include real estate, power distribution, cooling infrastructure, and site development, areas that connect to AI demand through physical capacity rather than software economics. Concentration risk among hyperscale tenants and ongoing power access challenges are among the factors to underwrite carefully.",[16,880,881,884],{},[111,882,883],{},"Interconnection and grid access:"," For projects that have secured or are pursuing their place in the grid queue, shorter-duration infrastructure-linked financing may offer an alternative profile tied to specific project milestones, with refundability provisions and documentation quality as key variables.",[16,886,887,890],{},[111,888,889],{},"Venture and growth equity:"," Many of the companies building the AI stack are still private, including firms focused on enterprise workflow automation, cybersecurity, vertical AI applications, data infrastructure, developer tools, energy technology, and compute optimization. Access to these companies may offer upside that is not available in public markets. Liquidity constraints, valuation risk, and the competitive dynamics of a well-funded sector are important considerations in any evaluation.",[16,892,893,896],{},[111,894,895],{},"Venture debt and specialty lending:"," Financing AI and technology companies through structured debt rather than pure equity may offer income combined with warrants or other upside participation. Revenue quality, cash burn trajectory, and refinancing risk warrant careful attention in this segment.",[16,898,899],{},[28,900],{"alt":30,"src":901},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-120310.png",[11,903,905],{"id":904},"on-venture-exposure-the-case-for-selectivity","On Venture Exposure: The Case for Selectivity",[16,907,908,909,911,913,914,916,918,919,921,923],{},"There is a compelling case for including some private venture or growth exposure in the broader AI theme. But the sector’s size and momentum do not automatically make individual investments attractive.",[240,910],{},[240,912],{},"\nAccording to the NVCA 2026 Yearbook, using PitchBook data, U.S. venture firms closed 15,352 deals worth $320 billion in 2025, a 51% increase in deal value from 2024 and the second-highest annual total on record. AI accounted for 65.4% of all deal value, up from roughly 50.9% in 2024. The top five AI companies collectively raised nearly $60 billion, and nontraditional investors (hedge funds, sovereign wealth funds, corporates, and endowments) participated in about 30% of deals while accounting for 83% of total investment value.",[240,915],{},[240,917],{},"\nThat concentration raises reasonable questions. Capital has flowed heavily toward a small number of large platforms, while the broader ecosystem of earlier-stage companies competes for a smaller share of the attention. Advisors evaluating private AI exposure should separate genuine innovation from momentum-driven capital formation. The underwriting question is whether a given company has durable customer relationships, a credible path to unit economics, defensible data or distribution advantages, and a valuation that leaves room for future return independent of sector sentiment.",[240,920],{},[240,922],{},"\nThe NVCA data also highlight a structural gap worth noting: 859 unicorn companies are currently valued at $4.34 trillion in aggregate, but only 30 to 40 actually achieved exits in 2025. Liquidity remains constrained, which matters for advisors managing clients against any timeline.",[16,925,926],{},[28,927],{"alt":30,"src":928},"\u002Fimages\u002Fresources\u002Fmedia\u002F2026-06-Screenshot-2026-06-05-121516.png",[11,930,932],{"id":931},"the-advisor-takeaway","The Advisor Takeaway",[16,934,935],{},"For many clients, AI exposure already exists, carried silently through market-cap-weighted equity allocations that have tilted heavily toward the same group of large technology companies. The planning question is whether that exposure is appropriately sized, whether it is too dependent on continued valuation expansion in public markets, and whether it leaves meaningful opportunity unaddressed.",[16,937,938],{},"Private markets offer a different way to participate in the same economic shift. The layers include secured lending tied to energy infrastructure, real assets serving data center demand, battery storage that supports grid reliability, interconnection-related financing, and selective exposure to private companies building the next wave of AI applications. Each layer carries a different combination of return potential, income, collateral, duration, liquidity, and risk.",[16,940,941,942,946],{},"None of this replaces careful due diligence or advisor judgment about suitability. Private market investments are complex, illiquid by nature, and appropriate only for investors who meet relevant eligibility requirements and can tolerate the associated risks. But for advisors thinking about the AI economy as a multi-layered investment theme rather than a single trade, the ",[46,943,945],{"href":944},"\u002Finvest","opportunity set"," is considerably broader than most public market portfolios reflect.",[16,948,949],{},"At Citizen Mint, this is the conversation we are built to support, helping advisors identify the infrastructure, financing, and private company opportunities that may represent the next phase of the AI buildout, with the rigor that institutional allocations deserve.",{"title":30,"searchDepth":284,"depth":284,"links":951},[952,953,954,955,956],{"id":798,"depth":284,"text":799},{"id":827,"depth":284,"text":828},{"id":853,"depth":284,"text":854},{"id":904,"depth":284,"text":905},{"id":931,"depth":284,"text":932},"2026-06-05","Explore how advisors can access the AI revolution beyond public equities through private market infrastructure, power, storage, interconnection, and venture exposure.","\u002Fimages\u002Fresources\u002Fpowering-ai-through-private-markets.png",{},"\u002Fresources\u002Fpowering-ai-through-private-markets",{"title":774,"description":958},"resources\u002Fpowering-ai-through-private-markets","ZCenF4On7Aa9po8E2rZFduXiwLt94mUf8vAt3xMxlYU",1790730096383]