PE Alliance had the pleasure of welcoming Richard Hope, Global Co-CIO and Head of EMEA at Hamilton Lane, to Stockholm for an insightful discussion on private markets.

Approximately 70 investors joined us for a deep dive into public vs. private market performance, distribution trends, and the implications of the current market environment for future allocations.

Key takeaways:

• After a few years of public market outperformance largely driven by the Magnificent 7, both public and private markets are expected to revert toward their respective long-term averages over the medium to long term. In that context, private markets are on track to regain their position as a strong-performing part of a diversified portfolio. Private markets are also increasingly a diversification “must” as a significant share of companies and value creation sits outside public markets.

• With the US accounting for a dominant share of the global private market, it remains difficult for LPs to ignore the geography when setting allocations, particularly across Venture and Growth strategies. Excluding the US risks missing opportunities supported by exponential technological growth on the other side of the pond.

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• For European investors, currency risk like a weaker USD is a valid challenge, but the strength of US productivity and economic growth remains a compelling counterweight.

• In an environment of fundraising pressure, lower deal activity, and increased competition for the most attractive companies, further manager concentration is expected. This raises the bar for GPs and continues to favor top-tier platforms.

• While still a smaller part of overall private markets, secondaries are scaling quickly and rapidly shifting its status in the market toward a central component of sophisticated private market portfolios.

• Lastly, cash is finally starting to flow again after a prolonged tougher period, supporting improved liquidity and a welcomed more constructive outlook for distributions.

A sincere thank you to everyone who joined us, and to Hamilton Lane for sharing valuable insights!

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