Keep pulling the thread on Erik Hirsch.
Hamilton Lane has made over 15 strategic investments in technology startups focused on the private markets using its own balance sheet capital.
Private credit has largely replaced banks as the primary provider of lending capital to businesses.
Contrary to earlier predictions, the dispersion of performance among private market managers has remained very wide as the industry has matured.
While institutional investors typically have allocations to private markets exceeding 10%, the average retail investor's exposure is approximately 0%.
Erik Hirsch predicts that within 10 years, the asset base of private markets will grow, but the number of participating fund managers will decrease due to consolidation and rising technology costs.
Erik Hirsch predicts that as tokenization matures, the discount for selling private assets before maturity will greatly reduce due to increased liquidity and information access on token exchanges.
Private credit, which was not a significant asset class in the 1990s, is now a major driver of growth in the private markets.
Aggregated private market investments have shown meaningful outperformance compared to public markets over 5, 10, 15, and 20-year time periods.
Mass affluent individuals with three to five million dollars of investable assets are now able to access the private markets due to regulatory changes and new product offerings.
Erik Hirsch believes that the ESG scoring methodologies used for public equity markets are somewhat nonsensical.
Novada was created by a consortium of investors including Hamilton Lane, the Ford Foundation, S&P, and Microsoft.
Novada is the world's largest collector of ESG data for private companies.