Hamilton Lane(HLNE) Prnewswire·2025-03-12 11:00Core Insights - Hamilton Lane's 2025 Market Overview presents a detailed analysis of the global private markets, highlighting historical performance, risks, and diversification benefits, while emphasizing the growth potential of evergreen funds [1][2][5] Investment Areas - Key sectors identified for investment include credit, infrastructure, and secondaries, which are positioned for success. Venture and growth sectors are also recommended, particularly due to the anticipated impact of AI applications [6] - The U.S. market is projected to be more attractive than other regions over the next 4-5 years [6] Evergreen Funds - Evergreen funds are expected to grow faster than public markets over the next five years, with institutional investors increasing their participation. Fee structures for these funds are anticipated to decline over time [6] - The growth of evergreen funds may lead to larger private market firms expanding, while smaller firms may struggle to gain market share [6] Short-term vs Long-term Performance - Short-term performance shows strong results in infrastructure and real estate, while private equity has underperformed. However, this dip is viewed as an anomaly, with expectations that private equity will outperform public markets in the long term [6][8] - Private credit has consistently outperformed public markets for 23 years, and infrastructure has maintained a similar trend for 12 years [6] Fundraising and Market Dynamics - The upcoming year is expected to present challenges in fundraising, with a need for a rebound in exit activity to stimulate fundraising efforts. Competition is increasing, particularly in the retail space [6] - Co-investment and secondary market activities are on the rise, driven by fewer players and a desire for liquidity solutions [7]