Secondaries have historically generated attractive returns and low volatility relative to other private markets strategies. In addition to providing investors with downside protection, secondaries have historically outperformed other primary private equity investments, making them a great complement to an investor’s overall portfolio.
Dispersion of Returns by Strategy
Vintage Years: 1979-2018, Ordered by Spread of Returns
Today’s Secondary Market Opportunity
Volatility has historically created a stronger opportunity set and it is this uncertainty that has us excited about the wave of opportunities to buy at attractive valuations on the secondary market.
|Current Landscape||Current Market Opportunity|
1Source: Hamilton Lane Investment Database and Jefferies Secondary Update (July 2022)
Explore more of the trends and opportunities in the secondary market
Page 1: Strategy Definitions
Venture Capital: Venture Capital incudes any PM fund focused on any stages of venture capital investing, including seed, early-stage, mid-stage, and late-stage investments.
Growth Equity: Any PM fund that focuses on providing growth capital through an equity investment.
SMID Buyout: Any buyout fund smaller than a certain fund size, dependent on vintage year.
Mega/Large Buyout: Any buyout fund larger than a certain fund size that depends on the vintage year.
Real Estate: Any closed-end fund that primarily invests in non-core real estate, excluding separate accounts and joint ventures.
Secondary FoF: A fund that purchases existing stakes in private equity funds on the secondary market.
Infrastructure: An investment strategy that invests in physical systems involved in the distribution of people, goods, and resources.
Credit: This strategy focuses on providing debt capital.
Private Markets: Hamilton Lane’s definition of “All Private Markets” includes all private commingled funds excluding fund-of-funds, and secondary fund-of-funds.
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