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 dried up. And, while some green shoots of optimism were beginning to appear, it was not yet clear if that was just wishful thinking or the start of a sustained recovery.
Our August 2020 selves would likely be shocked by what has occurred in the subsequent year. Over the trailing year ending March 31st, 20213, private equity strategies have returned 49% collectively with some posting returns of 70% (!) or more, as illustrated in the chart below. Real asset and credit strategies also posted impressive, though less eye-popping, returns.