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February 3, 2020

As we reflect back on 2019, one thing that stands out is the strong fundraising seen in the private markets. When we think of fundraising, we measure it in two ways:

  1. Looking at total opportunities received by a large institution
  2. Understanding the total exposure of the private markets, by strategy

Opportunities Received by Hamilton Lane

If we look exclusively at the opportunities received by Hamilton Lane, 2019 was another record year of opportunities screened¹.

Why Hamilton Lane? It’s not just because we’re an exclusive provider of their benchmark and industry-level data; but also because they’re one of the largest global allocators to the private markets.

As the range of opportunities across the private markets grows, we are also starting to see an increase in transaction opportunities. In fact, these opportunities are growing at a faster rate than fund opportunities. Furthermore, Hamilton Lane believes that transaction opportunities may continue to grow at a faster pace than fund opportunities.

Private Markets Total Exposure by Strategy

If we broaden our scope to include the total private markets, rather than just what Hamilton Lane sees, we get some interesting takeaways as seen below:

The first, and to us, most startling takeaway is how the private markets industry has grown. In 20 years, the private markets grew from half a trillion dollars to $5.7T². The second takeaway is the growth seen across all of the sub-categories of the private markets. This growth has led to a decrease in buyouts’ share of the private markets. Buyout is now less than half of the private markets.

Buyout is now less than half of the private markets.

With both of those takeaways, it’s also helpful to put this all in perspective. Even though the private markets have grown substantially, they are still a fraction of the overall equity market cap. The total private equity markets + the total credit private markets + the total real assets private markets only equal one-eighth of the size of the total equity market.

Fundraising Final Thoughts

As the private markets continue to grow, as measured through increased fundraising, that can translate to more and diversified opportunities for limited partners to screen. Though this is exciting, it can also make it challenging for limited partners to efficiently and effectively diligence a fund. That is why limited partners are turning to technology platforms like Cobalt LP. To learn more about how limited partners, like yourself, are leveraging Cobalt LP, reach out to us today.

1 Opportunities screened is defined as fund PPMs and transaction opportunities across co-investment and secondary deals
2 Source: Hamilton Lane Data via Cobalt LP as of 6/30/19 (October 2019)
In Market Insights, Private Equity Metrics
by Cobalt LP
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In 2016, Hamilton Lane, a global private markets asset management firm with more than 28 years of experience, together with Bison, a cutting-edge software solutions firm, brought Cobalt to the market. This unique partnership created a leading private markets platform with a robust product suite of solutions for both GPs and LPs.

In 2020, Hamilton Lane wholly acquired the Cobalt LP business from Bison, fully bringing the limited partner product in house. Hamilton Lane continues to enhance capabilities and drive the Cobalt LP vision forward by delivering data, analysis, reporting, and diligence solutions to limited partners.

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