Ever wonder why some investors willingly tie up their money for years—and still call it a win? In this episode, Erica and Erin unpack the concept of the illiquidity premium, a core principle behind many alternative investments like private equity, venture capital, and real estate funds.

They explain why locking up your money can sometimes be the smartest move you make—and when it can backfire.

Perfect for beginner and intermediate investors who want to understand how to evaluate long-term, less liquid opportunities, this episode breaks down what “illiquidity” really means, how to manage it strategically, and how professionals use it to their advantage.

Listen to Learn:

• What the illiquidity premium actually is and why it exists

• How investors are compensated for locking up capital

• Why university endowments and institutions rely heavily on illiquid assets

• The pros and risks of illiquid investing, from higher returns to limited flexibility

• How to align illiquid investments with your time horizon and personal goals

Tune in to the podcast to learn how to determine whether the illiquidity premium deserves a place in your portfolio and how to approach these investments with confidence and clarity

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Parent company socials:

Facebook, Instagram, YouTube: @invessio 

LinkedIn: linkedin.com/company/invessio/