Financial services firm Morningstar has launched a new benchmark — which it says is the first of its kind — that tracks 100 of the top public and private market companies in one index. Titled the Morningstar PitchBook US Modern Market 100 Index, it follows the performance of 90 publicly traded and 10 venture-backed companies, including SpaceX and OpenAI. Must Read Morningstar says this 90/10 mix “mirrors the actual structure of the modern equity landscape [1].” The index relies on secondary market tra ...

You can find original article here Wealthmanagement. Subscribe to our free daily Wealthmanagement newsletters. A new report from McKinsey & Company shows that asset managers’ global AUM reached a record $147 trillion in June and looks on track to break records for the full year. However, with fundraising for private market investments falling to its lowest level in eight years, asset managers increasingly rely on semiliquid vehicles to drive growth in that segment. And according to a report from consulti ...

Core Viewpoint - Hamilton Lane has launched the Asia Private Assets Fund (HLAPA), a semi-liquid investment vehicle aimed at providing diversified access to Asia's private markets for private wealth and institutional investors [1][2]. Fund Overview - HLAPA focuses on private equity through direct investments and secondaries, leveraging Hamilton Lane's 15 years of experience in Asia and its extensive regional network [2][3]. - The Fund aims to capitalize on Asia's macroeconomic growth, which drives 60% of global GDP growth, and deliver quality risk-adjusted returns [3][6]. Fund Features - The Fund offers flexible portfolio construction to adapt to market dynamics, optimizing risk-adjusted returns across growth investments and mature buyout deals [7]. - Investors will have access to top-tier fund managers across Asia, including strong relationships with premier general partners in Australia, Japan, Korea, India, Southeast Asia, and China [7]. - HLAPA features an open-ended structure that allows for immediate capital deployment without capital calls, lower minimum investments compared to traditional funds, monthly subscriptions, and potential limited quarterly liquidity [7]. Company Background - Hamilton Lane is a leading private markets investment firm with approximately $958 billion in assets under management as of March 31, 2025, and has been dedicated to private markets investing for over 30 years [5][6]. - The Asia Private Assets Fund is part of Hamilton Lane's broader $11 billion Evergreen Platform, which includes nine funds across multiple strategies [4][6].

Core Insights - The MSCI "2025 General Partner Survey" indicates that as capital becomes increasingly constrained, private equity, private credit, and infrastructure fund managers find it more challenging to meet the rising expectations of institutional investors [1] Fundraising Challenges - 60% of small General Partners (GPs) and 46% of large GPs identify fundraising difficulties as one of their top two challenges [1] - 30% of surveyed GPs attribute fundraising difficulties to a harsh market environment [1] Investment Opportunities - Over half of GPs believe that finding attractive investment opportunities has become increasingly difficult [1] - 47% of respondents cite declining deal quality as the primary reason for not securing suitable transactions [1] - 60% of respondents indicate that the diversification of regions and industries complicates due diligence processes [1] Data and Performance Management - One-third of GPs report a lack of access to reliable private asset data [1] - 26% of surveyed GPs express the need for better standardization, data integration, and customization in performance management [1] - Many GPs still rely on fragmented and manual data infrastructures, limiting business scalability [1] Investor Expectations and Reporting - 68% of large GPs and 52% of small GPs list managing investor expectations and reporting requirements as one of their top five challenges [1] - Key pressure points include: - Customized reporting: 41% of large GPs and 33% of small GPs highlight challenges arising from differing requirements across clients and jurisdictions [1] - Benchmarking difficulties: 40% of large GPs find it hard to select appropriate benchmarks, while 57% of small GPs face issues with the accuracy and credibility of reporting data [1] - Timely information transparency: 18% of large GPs and 17% of small GPs report difficulties in achieving timely updates and disclosures [1]

Financial Data and Key Metrics Changes - The company raised and deployed over $1,400,000,000 in gross new fee-paying AUM, marking a record fundraising quarter [6] - Revenue for the first quarter was $67,700,000, a 2% increase year-over-year [20] - Fee-paying assets under management increased to $26,300,000,000, reflecting a 10% year-over-year growth [20] - GAAP net income decreased to $4,700,000 from $5,200,000 in the prior year quarter [23] - Adjusted net income (ANI) was $23,500,000, representing an 8% decrease year-over-year [23] - FRE margin was 45% in the first quarter, holding flat year-over-year [24] Business Line Data and Key Metrics Changes - Private equity strategies raised and deployed $1,200,000,000 [21] - Venture capital solutions raised and deployed $82,000,000 [21] - Private credit strategies added $162,000,000 to fee-paying assets under management [21] - Total catch-up fees in the quarter were $2,800,000, with direct and secondary catch-up fees totaling $2,200,000 [22] Market Data and Key Metrics Changes - The company closed RCP Direct five with nearly $1,000,000,000 in commitments, a record for RCP [6] - The acquisition of Qualitas Funds added 1,300 LPs to the platform, significantly expanding the global LP base [8] - The company expects to have more than 15 funds in the market throughout the year [7] Company Strategy and Development Direction - The strategic plan focuses on optimizing organizational structure, driving organic growth, and enhancing transparency [10] - The company aims to deepen and expand its LP base through new investment vehicles and distribution channels [12] - The acquisition of Qualitas Funds is seen as a strategic fit to expand geographic footprint and asset class exposure [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current operating environment despite potential market volatility [10] - The company anticipates at least $4,000,000,000 of organic gross fundraising in 2025 and double-digit revenue growth [9] - Management highlighted the resilience of strategies in the middle and lower middle market, which are less affected by market fluctuations [15] Other Important Information - The company announced a 7% increase in quarterly dividend to $3.75 per share [24] - Approximately $15,000,000 of stock was repurchased in the first quarter, with $28,500,000 remaining in the share repurchase program [18][25] - The company expects a low single-digit cash tax rate in 2025 due to tax assets [28] Q&A Session Summary Question: Clarification on catch-up fees related to RCP Direct fund - The April 10 date mentioned was the announcement date, not the close date [30][31] Question: Early results of cross-marketing with 5,000 LPs - The focus is on optimizing data and capitalizing on synergies with the Qualitas Funds team [32][34] Question: Guidance on step downs and expirations - The company is not changing its guidance on step downs and expirations at this time [39] Question: Impact of Qualitas on tax and M&A - The acquisition structure will not change tax amortization, and there is an increase in potential M&A opportunities [46][49] Question: Sentiment from endowments and foundations - There has been little to no impact from recent volatility, and the company is positioned to provide liquidity solutions [57] Question: Contribution from SMAs in fundraising - There was a strong contribution from the SMA pipeline, and the company is focused on providing customized solutions [70][72]

Financial Data and Key Metrics Changes - The company reported record fee-related earnings (FRE) of $311 million, up 17% year over year [5][20] - FRE margin reached 48%, the highest level in several years [5][20] - Distributable earnings (DE) were $455 million, marking a record start to the year [18] - Assets under management (AUM) increased to $453 billion, up 6% year over year, driven by $50 billion of inflows over the past year [19][20] Business Line Data and Key Metrics Changes - Carlyle AlpInvest generated record FRE in the first quarter, nearly double from the same period last year, with AUM growing 12% to a record $89 billion [11] - Global Credit saw quarterly fee-related earnings surpassing $100 million for the first time, an increase of nearly 50% from last year [12] - Global Private Equity results were in line with expectations, with significant capital returned to investors, totaling nearly $8 billion over the past year [23] Market Data and Key Metrics Changes - The company noted strong momentum in private credit solutions, particularly in European lending, where deployment increased by 150% year over year [12] - The number of public companies in the U.S. has decreased nearly by half over the past two decades, while the number of private companies has increased more than fivefold, indicating a shift towards private market access [10] Company Strategy and Development Direction - The company is well-positioned to capitalize on new investment opportunities with $84 billion of dry powder available [8] - Carlyle is focusing on diversifying its business lines and leveraging its global brand to drive growth, particularly in wealth management and private equity [14][55] - The strategic initiative to grow capital markets is accelerating, with a record $150 million in fees generated over the past six months [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, noting that while there are uncertainties, the long-term trends driving demand for private capital remain strong [9][19] - The impact of recent trade policies on investor sentiment and risk appetite was discussed, with management indicating that the majority of their portfolio is U.S.-based and less affected by tariffs [6][7] Other Important Information - The company has seen a doubling of evergreen inflows over the past year, indicating strong performance in its global wealth strategy [14] - Carlyle's diversified platform allows it to mobilize resources effectively during periods of market volatility [16] Q&A Session Summary Question: Impact of trade policy and tariffs on investment activity - Management noted that while there is a cautious approach among investors, there remains a willingness to deploy capital as long as policy implementation progresses positively [30][32] Question: Future of private equity franchise and fundraising - Management indicated no major adjustments to the timing of Fund IX, with a focus on performance and deployment in Fund VIII [36][91] Question: Insurance wins and fundraising guidance - The $40 billion flow guidance includes the recent insurance transactions, with strong performance in wealth products noted [45][96] Question: Endowment sector stress and its implications - Management does not foresee a significant decline in allocations to private capital from endowments, viewing potential opportunities for capital deployment [61][62] Question: Strategic alternatives in the insurance space - Management expressed a preference for organic growth but remains open to accretive acquisitions if they make sense [68][72] Question: Opportunities in Japan - The company highlighted a strong position in Japan, with expectations for continued growth in the market due to evolving corporate stewardship and asset management capabilities [76][78]