Private markets continue to attract growing interest from institutional investors around the world, and for good reason. From infrastructure and private equity to venture capital and private credit, these investments can offer long-term value, portfolio diversification and meaningful economic impact. But opportunity alone is not enough. EPPF’s Deputy CIO and Head of Private Markets, Phaṱhutshedzo Mabogo, spoke with EBnet’s Leon Greyling on the Inside Private Markets podcast with EBnet about one of the most important aspects of investing in private markets: asking the right questions before committing capital.

Mabogo explained that successful investing in private markets is not driven by ambitious promises or impressive presentations, but by careful due diligence and a clear understanding of how value will actually be created.

“Due diligence is ultimately about verifying assumptions,” Mabogo explained. “Managers may present attractive return targets and exciting opportunities, but investors need to understand how those returns will be achieved, whether the process is repeatable, and whether the investment aligns with their long-term objectives.”

One of the key themes throughout the discussion was alignment, particularly between investors and asset managers. According to Mabogo, strong investment partnerships are built on transparency, consistency and disciplined decision-making. Investors should look closely at a manager’s track record, investment process and strategic consistency over time. While past performance does not guarantee future results, it can provide insight into whether a manager has demonstrated the ability to execute effectively across different market conditions.

Importantly, Mabogo cautioned against focusing only on headline returns.

“An attractive overall return may hide inconsistencies beneath the surface,” he said. “Investors need to understand how returns were generated, whether success came from a disciplined process, and whether those results can realistically be repeated.”

The conversation also explored the different levels of risk across private market strategies, from venture capital and growth investments to more mature buyout opportunities. Mabogo stressed that no strategy is automatically better than another. What matters most is whether the manager has the right expertise and experience for the specific segment in which they operate. For retirement funds, this means balancing opportunity with risk appetite and ensuring portfolios remain appropriately diversified.

The discussion also highlighted the important role private markets can play in supporting South Africa’s economic growth. Infrastructure, in particular, was identified as an area where strong investment outcomes and positive societal impact can work hand in hand. At EPPF, sustainability and impact considerations form part of a broader investment philosophy focused on long-term value creation. Mabogo emphasised that impact and returns should not be viewed as opposing goals.

“In our experience, impactful investments can also be strong-performing investments,” he said. “Well-structured infrastructure projects, healthcare facilities, student accommodation and other socially beneficial investments can deliver both meaningful returns and tangible societal value.”

This approach reflects EPPF’s commitment to responsible investing and its belief that sustainable economic growth, job creation and financial performance can reinforce one another when investments are approached thoughtfully and with the right governance structures in place.

As private markets continue to evolve, the ability to assess opportunities carefully and ask the right questions will remain essential. For investors, understanding capability, process, alignment, risk and impact is critical to building resilient portfolios that can create long-term value.

Watch the full Inside Private Markets interview with Phaṱhutshedzo Mabogo and Leon Greyling here: Episode 8 - Due Diligence: Evaluating Private Market Investment Opportunities