TLDR:
Private markets, specifically buyouts, infrastructure, and real estate, have outperformed their public market counterparts from 2021-2023 according to Juan Delgado of Hamilton Lane. However, growth equity and venture capital have underperformed. Private markets have shown less volatility and greater upside compared to public markets. Private equity continued to perform well in 2022 and 2023 due to portfolio construction and better revenue and EBITDA compared to public companies.
Private Markets Outperform Public Peers â Hamilton Lane
New co-CEO Juan Delgado of Hamilton Lane discussed private markets outlook and performance in 2024, highlighting the outperformance of private markets compared to public markets from 2021-2023. Key points from the article include:
- Private markets, specifically buyout, infrastructure, and real estate, outperformed public markets from 2021-2023.
- Growth equity and venture capital underperformed private markets and public indices.
- Private equity showed less volatility and greater upside in the last five years.
- Higher interest rates did not significantly impact private market performance.
- The sustainability of investments did not negatively affect returns.
Richard Hope, head of EMEA, emphasized the outperformance of private equity in 2022 and 2023 due to better revenue and EBITDA compared to public companies. He also discussed how portfolio construction and sector allocations contributed to private equity’s success. Nina Kraus highlighted that sustainable investments did not impact returns and that recent vintage years have been kinder to sustainable funds. John Stake mentioned that the use of net asset value (NAV) lending in private markets is still limited. In conclusion, Delgado stated that private market strategies have lower levels of risk compared to previous years.
