Market Insights
August 19, 2021
Market Trends: A Surge in Distribution Activity
Data-driven insights1 from Bryan Jenkins, Hamilton Lane’s Head of Private Market Analytics Consider where the private markets were one year ago in August 2020. Q1 2020 valuations had just been published, indicating private equity funds2 had declined 8% in a single quarter. Investment activity and, more importantly, exit activity had[...]
September 3, 2020
Q2 2020 Market Insights
Cobalt Market Insights is just a sample of the intelligence that can be gained from the Market Analysis part of the Cobalt LP platform. Investors are using our comprehensive, accurate, and timely market data to drive portfolio construction and investment selection decisions.
August 21, 2020
Analyze the Industry Impact of COVID-19
Given the current economic uncertainty due to COVID-19, many investors are concerned about the impact it will have on their private markets portfolios. This potential volatility can be measured in various ways; however, most investors are focused on an industry impact of COVID-19, to evaluate that volatility. Industry Impact of[...]
July 27, 2020
Chart of the Month: IRR by Time Horizon and Strategy
Understanding historic IRR by time horizon within the private markets through Q1 2020 In the most recent quarter, all strategies have had a negative IRR due to the impact of COVID-19 on portfolios. Over longer time horizons, private equity has strongly outperformed all other strategies. Even when all strategies suffered[...]
June 15, 2020
Q1 2020 Market Insights
Cobalt Market Insights is just a sample of the intelligence that can be gained from the Market Analysis part of the Cobalt LP platform. Investors are using our comprehensive, accurate, and timely market data to drive portfolio construction and investment selection decisions.
April 24, 2020
Chart of the Month: Historic Recessions in the Private Markets
When we think about the potential impact of a recession on the private markets, we thought it best to look at cash flow behavior during historic recessions. Continue reading to understand the net cash flows, contribution rates and distribution rates during prior recessionary periods. Net cash flows are generally negative[...]
April 14, 2020
Downside Protection in the Private Markets
As investors, we’re presented with lots of compelling reasons to commit to a fund. One line LPs consistently hear is that they should invest with a particular general partner because it protects the downside better than anyone else does. But, something we’ve been pondering, does this downside protection matter? Do[...]
April 2, 2020
GP to GP Deals in the Private Markets
Historically, GPs would exit a deal through an IPO. However, in today’s environment, most deals are too small for IPO. Therefore, GPs are exiting a deal by selling to another GP – also called a GP to GP deal. The number of these deals has risen substantially since 2010. Furthermore,[...]
March 27, 2020
Chart of the Month: IRR by Vintage Year and Strategy
Understanding Historic IRR by Vintage Year within the Private Markets When we look at historic IRR by vintage year, private equity funds have the highest returns in each of the past ten vintage years. Historically, private equity has higher returns relative to credit and real assets because it is a[...]
March 16, 2020
Private Markets Performance
Investors in the private markets are typically focused on private markets performance in two ways: How have the private markets performed? How does that performance compare to the public markets? Using Cobalt LP’s benchmark and industry-level data, we’re able to take a look at both of these areas. Private Markets[...]
