Enjoy the view from the peak while it lasts; Hamilton Lane co-investment Fund IV raises $1.7B; A simple definition of AI
Morning, Hubsters. Who’s going to PartnerConnect Midwest? I am. In fact, I’m typing out this missive right now from the humid Chicago suburbs. Stop on by the Sofitel Hotel and say “Hey” if you have a chance.
The more you invest in private equity, the better. According to the Financial Times, the bigger the allocation to private investments, the greater the return. The FT, citing a report from Cambridge Associates, said investors with an average allocation of 15 percent or more to private investments over two decades produced a median annualized return of 8.1 percent versus a 6.5 percent for those with allocations of less than 5 percent. Cambridge studied data from 132 endowments and foundations between 1998 and 2018.
The end of Q2: Second quarter is about to end and Chris has a column this morning on “a view from the peak.” In Q2, just like in first quarter, we saw strong deal activity driven by aggressive general partners and hyper fundraising boosted by hungry limited partners. How aggressive have GPs become? Read Chris’s column here.
Chris’s column touches on an in-depth piece by Milana Vinn about how GPs are approaching the high-priced environment, and beating out competition for sought-after assets. Check out Milana Vinn’s story here.
Sales of sponsor-backed companies hit a six-year low in the second quarter, Joseph Weitemeyer is reporting.
Funds: Coinvestments are hot. Hamilton Lane has closed its latest co-investment fund on about $1.7 billion. Read our brief here.
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