There are several factors which will lead to better selection of the underlying fund manager.

First, the type of asset they're investing in.

Not all assets within private markets have the same expected rate of return, meaning that the expected rate of return from an asset class or a subclass will have a strong influence over the ultimate performance of the fund.

Past performance in terms of returns generated for investors, selecting top performing funds and managers is likely to improve the probability of achieving higher returns in the future.

The focus of the fund, such as sector, theme, or geography. Understanding the risk return profile of investment areas is key when targeting return expectations.

For example, telecoms investing in Africa will have a different risk return profile than industrials in Europe.

The size of funds, history and investment execution track record, which refers to the ability of the fund manager to have found investment opportunities for investors in the past. The teams and resources within the investment funds.

Teams of highly skilled managers that have worked together in the past with ample resources to run investment processes are rare and highly sought after.

And finally, the knowledge and relationships that investment managers have.

This improves the ability of the investment manager to source the best deals as well as the best advisory firms to assist the deal processes.

Selecting the right investment managers who will in turn focus on relevant drivers of value creation within their investment funds is invaluable for generating superior portfolio returns.