If you've ever looked at a private market investment and thought, "This looks great—but what happens when I need my money back?"—you've already identified the single most important risk most investors underestimate.
Liquidity risk isn't a footnote in private investing. It's the defining characteristic. And as more individual accredited investors enter private markets—drawn by companies like SpaceX, Anthropic, and Stripe—understanding how liquidity works (and doesn't work) has never been more important.
Here's the good news: liquidity risk is manageable. But only if you understand it before you invest.