Source: Hamilton Lane Data, Bloomberg (January 2023)
Growth of PE Net Asset Value and Market Cap2
2000–1H 2023
Large institutions were early entrants into the private markets and remain the leading investors.
Many have dedicated a substantial investment, with private market allocations for pensions, endowments and foundations generally ranging from 10% to 20% of their portfolio allocation.1 The chart below shows how the asset class has grown over the past two decades as more investors have come to realize its benefits.
Looking ahead, allocations could continue to grow.
Even though most institutions have carved out a meaningful allocation to private investments, high-net-worth and mass affluent investors have only recently had the opportunity to participate in the private markets. Large investment minimums and private markets’ illiquidity were two of the largest barriers for individual investments or investors. But as the asset class has grown — and public markets have shrunk — private market managers around the world, have explored opportunities for private markets to become more accessible to individual investors.
As a result of those efforts, more large private market managers with institutional investor bases have developed fund structures that remove some of the traditional barriers to high-net-worth investor participation.
Disclosures
1Source: McKinsey Global Private Markets Review 2021
2Source: Hamilton Lane Data, Bloomberg (January 2023). Net asset value equals assets under management less dry powder. Market cap is based on the total market cap of companies globally.
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Disclosures
1Source: McKinsey Global Private Markets Review 2021
2Source: Hamilton Lane Data, Bloomberg (January 2023). Net asset value equals assets under management less dry powder. Market cap is based on the total market cap of companies globally.
Looking ahead, allocations could continue to grow.
Even though most institutions have carved out a meaningful allocation to private investments, high-net-worth and mass affluent investors have only recently had the opportunity to participate in the private markets. Large investment minimums and private markets’ illiquidity were two of the largest barriers for individual investments or investors. But as the asset class has grown — and public markets have shrunk — private market managers around the world, have explored opportunities for private markets to become more accessible to individual investors.
As a result of those efforts, more large private market managers with institutional investor bases have developed fund structures that remove some of the traditional barriers to high-net-worth investor participation.
Growth of PE Net Asset Value and Market Cap4
2000–1H 2023
Many have dedicated a substantial investment, with private market allocations for pensions, endowments and foundations generally ranging from 10% to 20% of their portfolio allocation.1 The chart below shows how the asset class has grown over the past two decades as more investors have come to realize its benefits.
Large institutions were early entrants into the private markets and remain the leading investors.
4
How do investors access the asset class? >>