PE investment versus secondary market

Hi all question in mock
Jason Miller is the CIO of The Arthur Greenberg Foundation, which is dedicated to
providing support to the creative arts. Historically, the foundation has invested in liquid
alternative investments, such as REITs, commodities, ETFs and hedge funds. The
foundation investment committee feels that, given the experience of its asset managers,
liquidity is an important characteristic of existing and future potential investments in
alternatives. Members of the committee have stated that they currently do not want to
lock up capital for more than ten years.
The committee has asked Miller to review investment options for liquid alternative
assets. Miller reviews several options with Michael Stern, the alternatives portfolio
manager. Stern provides the following list as potential investment candidates.
• Private equity: Venture capital
• Private credit: Senior secured collateralized loans
• Private real assets: Infrastructure
• Hedge fund: Market-neutral
Miller mentions to Stern that there are also investment opportunities in the secondary
market that should be considered and may be appropriate for the foundation. Stern and
Miller plan to present investment opportunities to the committee at their next meeting.

question is Describe why a secondary market investment, other than having improved
liquidity, may be more appropriate than a private equity investment for the

My answer is secondary market offers more variety of investments. Provides more diversification benefit as opposed to concentrating funds in a pe investment which is very dependent on management expertise.

Would this be an acceptable answer?