Market Overview

2021 Market Overview

The Hamilton Lane Market Overview reviews the trends, challenges and opportunities found in today’s global financial markets. This year’s theme – a spin on Aesop’s fable of The City Mouse and the Country Mouse – explores the bifurcation of the market and investment environment resulting from the COVID-19 pandemic and other notable events of the past year.

We invite you to join us as we share the story of what transpired in the private markets and the broader global economy in 2020, and what is likely to happen in 2021. We spin a good yarn and, like our friend Aesop, leave you with a lot to consider.



The Big Ideas:

Growth Vs. Value

In the private markets, buyout has been historically viewed as “value” and venture as “growth.” Tilting your portfolio one way or the other was generally more of a function of your access to top-tier venture than of your view of growth versus value. That dynamic has changed.

The "Real" Risk

Let’s cut to the chase: The real risk in the private markets is related to liquidity and upside capture. It is not related to risk of loss, particularly in buyout, infrastructure and credit. Understanding and assessing the risks you are taking is crucial to investing well in the private markets.

Western Europe is the New Venture

Investors tend to think about Western Europe as similar to the U.S., just a little smaller. But that characterization overlooks some important attributes that distinguish the markets – and liken it to venture. This might require a re-think of how you invest in Europe.

2020 was a story of two different realities, and surely many public market investors know that story all too well. Consider how a portfolio overweighted to video communications and online shopping compared to one overweighted to the travel industry? Depending on which side of that equation you were on, the past year (solely looked at from an investment returns perspective) was either positive – or dramatically less so.

Recent Content

News | 2 Min Read

Hamilton Lane Launches First Asia-Focused Private Markets Evergreen Offering

Hamilton Lane announces the launch of its Asia Private Assets Fund, a pioneering semi-liquid vehicle that aims to provide investors with diversified access to Asia’s private markets landscape.

Read the Press Release
Insights

Weekly Research Briefing: Fireworks

Joining this year's July 4th nighttime festivities will be the U.S. financial markets which after difficult March and Aprils, rebounded to the sounds of a John Philip Sousa march. Count me as surprised to see US stocks at all-time highs, credit spreads near 20-year lows and US Treasury yields near 20-year lows.

View the
Video | 22 Min Watch

Hamilton Lane Q2 Private Wealth Webinar: Beyond Tariffs

Hamilton Lane experts analyse private wealth investing amidst evolving macro conditions, exploring current market dynamics and investment implications.

Watch the Video