Expanded period of expansion in the private sector economies

Hamilton Lane, a leading private markets asset manager, is witnessing an influx of retail capital, marking a significant shift in the industry. Co-chief executive Erik Hirsch, who joined the firm in 1999, believes this trend is just the beginning.

Based in the US, Hirsch operates alongside Juan Delgado-Moreira, who is stationed in Asia. Together, they oversee a global operation with 22 offices and an equally balanced client base between North America and overseas.

The firm, established in an uncertain era for private markets, primarily focused on private equity in 1999. However, it has since expanded its horizons to include private credit, which today is a significant driver of growth, according to Hirsch.

In line with this growth, Hamilton Lane launched the Asia Private Assets Fund, a semi-liquid vehicle designed to provide diversified access to Asia's private markets landscape. The firm has also made strides in digital transformation, having tokenized more funds than any other company in the world. This move has made transactions cheaper, faster, and more accessible for retail investors.

Hirsch anticipates the number of offices to grow in more locations, including potentially in India. This expansion is strategically focused on serving the retail market segment, a major priority for the firm.

When Hirsch joined Hamilton Lane, institutions were just beginning to move into the private markets. Today, nearly 60% of financial professionals globally plan to allocate 10% or more to private market investments by 2025, according to Hamilton Lane's second annual Private Wealth Survey.

This growth is expected to continue, with Hirsch predicting a rise in assets and investors in the private markets industry. However, he also anticipates a decrease in the number of asset managers due to the difficulty of servicing retail investors effectively.

In December last year, Hamilton Lane partnered with Allfunds Blockchain to expand access to private markets for investors across Europe. The firm has also strengthened its presence in Germany with the hiring of Sebastian Schu as a managing director and a move to a larger office in Frankfurt to accommodate growth. The local team now stands at eight people compared to one full-time employee in 2021.

Before joining Hamilton Lane, Hirsch was a corporate investment banker at Brown Brothers Harriman. He has been in his current role as co-CEO since January 2024. In a recent interview with Barry Ritholtz for the Masters in Business podcast, Hirsch discussed his vision for the future of private markets and Hamilton Lane's role in this evolving landscape.

As private markets continue to expand due to retail access, Hirsch believes the illiquidity premium could reduce, changing how people think about benchmarking and portfolio construction. If tokens become easily tradeable, this could be a reality, making private markets more accessible than ever before.

Expanded period of expansion in the private sector economies