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HAMILTON LANE'S 2023 MARKET OVERVIEW: DESPITE VOLATILITY, PRIVATE MARKETS REPORT ANOTHER YEAR OF OUTPERFORMING PUBLIC MARKETS, WITH CLEAR AREAS OF INVESTMENT OPPORTUNITY: PRIVATE CREDIT, SECONDARIES, INFRASTRUCTURE
With global inflation at levels unseen in a generation, private market assets continued to outperform public markets in 2022, beating public strategies across
About this update from Hamilton Lane Incorporated
[{"type":"text","content":"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.Despite concerns that private markets valuations are misleading, Hamilton Lane data shows valuations are generally accurate across most industry sectors, with managers often exiting deals at a premium to reported value.Fundraising figures for 2022, while still at historically high levels, will be down compared to 2021 numbers – and Hamilton Lane expects a more challenging fundraising market will persist in the year ahead.CONSHOHOCKEN, Penn., March 9, 2023 /PRNewswire/ -- Hamilton Lane (NASDAQ: HLNE), a leading private markets investment management firm, published its 2023 Market Overview today. The report is a comprehensive, data-driven review and analysis of private markets investment activity in 2022 with predictions for 2023, underscored by Hamilton Lane's industry-leading database encompassing nearly $17 trillion in assets and 51 vintage years. \nKey areas from the 2023 report focused on:\nPrivate markets' continued outperformance over public markets, not just in 2022 but across long-term timeframes and through market cycles;Hamilton Lane data reveals that, despite the popular narrative, private market valuations are generally accurate – the notable exceptions being certain growth and venture investments;The firm's prediction that private credit, secondaries and infrastructure will provide compelling opportunities in the year ahead;The trend of private wealth investors accessing the private markets in greater numbers, despite that capital being highly concentrated among a few managers today; andHamilton Lane's outlook on fundraising, which predicts a challenging road ahead and advises investors to employ discipline and proceed with caution.Private Markets Outperform Across Market Cycles and StrategiesRising interest rates and inflation led to a downturn in the markets in 2022, with the first half of 2023 expected to remain challenging. The report includes data on how the asset class fared versus public markets in other recent downturns, demonstrating significant outperformance during periods of stress. [see \"Performance in Market Cycles\" chart] \n\nDespite the downward pressure applied by rising interest rates an...