How a Surgeon Used Private Markets to Strengthen Her Portfolio and Boost Returns
When it comes to building long-term wealth, many professionals rely heavily on public stocks and bonds. But as markets become more volatile and correlated, investors are increasingly looking for new ways to achieve true portfolio diversification and consistent performance.
That’s exactly what happened with Dr. Sarah Mitchell, a 48-year-old orthopedic surgeon from Chicago. Like many high-income professionals, she had done well investing in traditional markets — but she wanted to take her portfolio to the next level. Her journey into private markets investing shows how alternative assets can help professionals enhance returns and reduce risk.
The Challenge: Overexposure to Public Markets
For years, Dr. Mitchell’s portfolio looked like that of many busy professionals:
65% in public equities
25% in bonds
10% in public real estate (REITs)
Her $3.2 million portfolio averaged about a 6% annual return, but it was heavily dependent on public market performance. When stocks dipped, so did her wealth. She wanted to reduce that dependency and find alternative investments that could provide stability and long-term growth.
The Shift: Exploring Private Markets Investing
After consulting with her financial advisor, Dr. Mitchell learned about private markets investing — including private equity, private credit, and private real estate. These asset classes have historically delivered strong long-term results and tend to move independently from public markets.
Her goals were clear:
Enhance returns by accessing less efficient, higher-growth opportunities
Improve portfolio diversification with assets that behave differently from stocks and bonds
Access institutional-quality investments typically reserved for large investors
After reviewing her liquidity needs, she decided to allocate 35% of her portfolio to private market investments.
The New Portfolio Mix: A More Diversified Approach
Asset Class Before After
Public Equities 65% 45%
Fixed Income 25% 20%
Private Equity 0% 15%
Private Credit 0% 10%
Private Real Estate 10% 10%
This new structure gave her exposure to multiple sources of return — from private equity opportunities in middle-market buyouts to private credit investments that provided steady income and downside protection.
The Results: Improved Returns and Lower Volatility
Five years after implementing her new strategy, Dr. Mitchell saw measurable results:
Annualized return: increased from 6.2% to 8.4%
Volatility: dropped from 11% to 8.5%
Correlation to public markets: declined from 1.0 to 0.7
Her private equity investments delivered strong growth, while private credit provided consistent cash flow. Even during periods of market volatility, her portfolio remained stable — proof that private markets investing can enhance both performance and peace of mind.
Key Lessons for Professionals Considering Alternative Investments
True diversification goes beyond stocks and bonds. Private markets offer exposure to different economic drivers, helping smooth returns over time.
Manager selection is crucial. Choosing experienced fund managers across multiple vintages and strategies reduces risk and improves outcomes.
Plan for liquidity. Private investments are long-term commitments, so it’s important to maintain adequate cash reserves.
Patience pays off. The illiquidity premium in private markets rewards investors willing to think long-term.
The Takeaway: Building a Smarter, More Resilient Portfolio
Dr. Sarah Mitchell’s experience highlights how alternative investments for professionals can transform a traditional portfolio into a more balanced and resilient one. By integrating private markets investing into her strategy, she achieved stronger returns, lower volatility, and greater confidence in her financial future.
If you’re a high-income professional looking to enhance your portfolio diversification and access new sources of growth, it may be time to explore what private markets can do for you.
