Hamilton Lane - Tue, 04/04/2023 - 16:28

What Does Secondary Market Growth Mean for You?

Few corners of private markets can match the recent growth of secondaries. Once the province of distressed sellers and “zombie funds," secondaries now involve the bluest of blue-chip LPs and GPs (see here and here). This evolution has helped annual volume rocket from $20 billion in 2008 to well more than $100 billion in 2021 and 2022.

And we continue to see the momentum build. In 2022, 50% of LP portfolio transactions involved first-time sellers.¹ And as we have noted elsewhere, GPs are increasingly looking to get in on the GP-led secondary action.

So the momentum and traction is there. Against this backdrop, some investors are asking what the secondaries phenomenon means for them. While for others, the question is, “Can I responsibly ignore it?” Let’s revisit why this market has grown, but also explore what it means for investors. As always, we’ll do it with a dash of data.

1 Jefferies Global Secondary Market Review (January 2023)

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Hamilton Lane

Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 730 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has more than $947 billion in assets under management and supervision, composed of more than $131 billion in discretionary assets and approximately $816 billion in non-discretionary assets, as of September 30, 2024. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit www.hamiltonlane.com.

John Brecker
Managing Director, Client Solutions
484 531 6659
jbrecker@hamiltonlane.com

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