CONSHOHOCKEN, Pa., March 12, 2025 /PRNewswire/ --
Hamilton Lane (Nasdaq: HLNE), a leading global private markets investment management firm, published its 2025 Market Overview today. This year's report offers a nuanced picture of the global private markets landscape, backed by historical data around outperformance, downside risk and diversification benefits, as well as a burgeoning evergreen landscape, demonstrating its compelling case for a growing number of investors.
The firm's annual Market Overview is a comprehensive, data-driven review and analysis of private markets investment activity over the prior year, as well as predictions for the year ahead. The detailed report leverages Hamilton Lane's industry-leading database that encompasses data on more than 58,000 funds across 57 vintage years*. Among the report's findings:
WHERE TO INVEST
AREAS TO WATCH
STRONG LONG-TERM FUNDAMENTALS CONTINUE
Mario Giannini, Executive Co-Chairman and author of the Market Overview, commented: "We believe that investors deserve high-quality data, actual transparency and continued education around this long-term asset class. And as we look at the year ahead, investors need to come to terms with the reality that there appears to be a recalibration in certain pockets of the global private markets, despite the fact that overall, the private markets are neutral right now. Longer term, we continue to have high conviction in the value of this asset class, and we urge investors to read, study and think carefully about portfolio construction and the diversification benefits that private markets have consistently demonstrated."
To access the full 2025 Hamilton Lane Market Overview, click here.
*as of 12/31/24
Definitions
All Private Markets: Hamilton Lane's definition of "All Private Markets" includes all private commingled funds, excluding fund-of-funds, and secondary fund-of-funds.
BofAML High Yield Index: The BofAML High Yield index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.
Corporate Finance/Buyout: Any PM fund that generally takes control position by buying a company.
Credit: This strategy focuses on providing debt capital.
DJ Brookfield Global Infrastructure Index: The DJ Brookfield Global Infrastructure Index is designed to measure the performance of companies globally that are operators of pure-play infrastructure assets.
Growth Equity: Any PM fund that focuses on providing growth capital through an equity investment.
Infrastructure: An investment strategy that invests in physical systems involved in the distribution of people, goods, and resources.
Internal Rate of Return (IRR): IRR is the annual rate of growth that an investment is expected to generate. Mathematically, the interest rate that sets the net present value of all cash flows to zero.
MSCI World Index: The MSCI World Index tracks large and mid-cap equity performance in developed market countries.
PME (Public Market Equivalent): Calculated by taking the fund cash flows and investing them in a relevant index. The fund cash flows are pooled such that capital calls are simulated as index share purchases and distributions as index share sales. Contributions are scaled by a factor such that the ending portfolio balance is equal to the private equity net asset value (equal ending exposures for both portfolios). This seeks to prevent shorting of the public market equivalent portfolio. Distributions are not scaled by this factor. The IRR is calculated based on these adjusted cash flows.
Real Estate: Any closed-end fund that primarily invests in non-core real estate, excluding separate accounts and joint ventures.
S&P 500 Index: The S&P 500 Index tracks 500 largest companies based on market capitalization of companies listed on NYSE or NASDAQ.
Venture Capital: Venture Capital includes any PM fund focused on any stages of venture capital investing, including seed, early-stage, mid-stage, and late-stage investments.
About Hamilton Lane
Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 740 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $956 billion in assets under management and supervision, composed of nearly $135 billion in discretionary assets and more than $821 billion in non-discretionary assets, as of December 31, 2024. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit http://www.hamiltonlane.com or follow Hamilton Lane on LinkedIn.
SOURCE Hamilton Lane
