Navigating Private Equity’s New Reality Through the Middle Market

Global political and economic uncertainty has created a challenging climate for investment decisions, further exacerbating market volatility.  Discover why middle-market opportunities can provide greater optionality to create value as well as an enhanced ability to find liquidity in the face of many of these headwinds.

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While it's a big, scary world out there, now is not the time for investors to run away from risk; it's the time to find the right businesses to lean into like those in the middle market.
Drew Schardt
Co-Head of Direct Equity Investments

The strategic sweet spot  

We believe that the long-term tailwinds already putting wind in the sails of many middle-market companies will be further fueled by the One Big Beautiful Bill Act (OBBBA), especially for companies focused on servicing North American businesses.  

Love letters to Europe and APAC

The new tariff regime is increasingly making the case for European direct equity. Local customers, local revenue and local currency generate resiliency in the face of greater global trade uncertainty.

Everybody needs healthcare (services) 

While U.S. healthcare policy may seem volatile today, there are corners of the market which we believe will continue to be needed and continue to generate revenue. Partnering with asset managers who have access and the ability to be selective can help Limited Partners construct portfolios with exposure to the right healthcare services for them. 

Our Approach to Direct Equity Investing

Historically we’ve seen attractive deal opportunities and the greatest private markets outperformance of the public markets during uncertain market environments. Our direct equity investment strategy leverages the benefits of Hamilton Lane’s global platform and unique market access, aiming to deliver compelling returns for our investors throughout any market environment.

654

Opportunities Reviewed YTD 2025*

$18.6B

Direct Equity AUM**

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Nobody likes uncertainty, but it's not all doom and gloom. Learn more about navigating private equity’s new reality through the middle market.


About Hamilton Lane

Our purpose is simple: To provide enhanced financial well-being for those who depend on us. We do that by seeking to deliver tailored, solutions-oriented private markets exposure and industry-leading client service. We’re an organization built on over three decades of client-centricity, candor and authenticity and powered by intellectual rigor and data-driven insight. 

Our commitment to serving those who depend on us has remained steadfast, while our focus on growth and transformation has only strengthened. Today, we serve institutional and private wealth investors around the world, helping them tap into the opportunities afforded by this maturing asset class.

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*As of 10/1/2025

**Discretionary Assets Under Management ("AUM") includes all investments managed by Hamilton Lane for which Hamilton Lane retains a level of discretion for the investment decisions as of 6/30/2025. AUM equals assets under management for active accounts. AUM is equal to market value plus unfunded. AUM calculation does not include authorized to invest amounts (ANI). ANI can only be attributed to commingled fund-of-funds and separate accounts and cannot be attributed to underlying investments. Direct Equity AUM includes direct equity investments and does not include direct credit investments.