Private Market Outperformance Continues
With global inflation at levels unseen in a generation, private market assets continued to outperform public markets in 2022, beating public strategies across the board – in some cases by thousands of basis points. Hamilton Lane’s ‘2023 Market Overview’ says despite concerns that private markets valuations are misleading, valuations are generally accurate across most industry sectors, with managers often exiting deals at a premium to reported value. The firm's prediction is that private credit, secondaries, and infrastructure will provide compelling opportunities in the year ahead. Still, fundraising figures for 2022, while still at historically high levels, will be down compared to 2021 numbers and it expects a more challenging fundraising market will persist in the year ahead. Mario Giannini, CEO of Hamilton Lane and author of the report, says, "The asset class is evolving in offerings and structure to meet the demands of a varied and growing set of investors. Those who employ discipline, stay consistent across sectors and through cycles, and view the private markets as a long-term asset class will be best positioned."