According to Cahal Doris, CIO of Private ILS at Twelve Securis, combining liquid cat bonds with selectively sourced private ILS is key to unlocking broader diversification and improving long-term, risk-adjusted returns. In comparison to catastrophe bonds, the executive emphasised that private ILS investments can also offer potential for higher expected returns. Crucially, Doris explained to Artemis that liquidity remains an important consideration when it comes to venturing into the private ILS market. However, unlike many private market strategies, the underlying contracts are generally short duration, with most transactions renewed annually or more frequently. By combining liquid cat bonds with selectively sourced private ILS investments, investors can access broader diversification, exploit relative value opportunities and potentially improve long-term risk-adjusted returns.