The Truth Revealed: The perception that private equity is inherently riskier than public equities doesn’t always match up with reality

What you should know

  • If you invested $1.00 in the stock market in 2018, it would be worth $1.23 in January 2023, while $1.00 invested in private equity over the same time frame would be worth $2.24.1
  • When considering private market opportunities, investors can tailor their strategies to include small cap growth, large cap value and everything in between.
  • In 2022, the U.S. Securities and Exchange Commission recommended expanding high-net-worth (HNW) investor access to private investments, citing how private markets often outperform public markets while adding considerable diversification to investors’ portfolios.2


Once considered speculative, private markets continue to evolve, especially as the structural hurdles for ultra-high-net-worth (UHNW) investors have come down. Still, no matter the level of expertise or the market environment, investors and advisors who understand this segment of the market are well positioned to make informed and comprehensive decisions about their portfolios.

This Truth Revealed series explores private market investing with three objectives in mind:

  • To dispel some of the incorrect notions about private markets 
  • To help investors and advisors better understand private markets’ potential to outperform public markets 
  • To assist investors and advisors as they consider how private markets investing may align with their investment objectives

1 Hamilton Lane Data via Cobalt, Bloomberg (August 2022)
2 SEC Proposes to Enhance Private Fund Investor Protection, U.S. Securities and Exchange Commission, 2022

Hamilton Lane
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 nearly 600 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $857 billion in assets under management and supervision, composed of over $112 billion in discretionary assets and over $744 billion in non-discretionary assets. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies.
* as of March 31, 2023

Ryan Jaggers
Managing Director, Business Development

Hamilton Lane
Seven Tower Bridge
110 Washington Street
Suite 1300
Conshohocken, PA 19428
+1 610 934 2222

View the contributor page

Related Articles

Register for Insurance AUM Journal

Register today to confirm your status as an institutional investor and gain access to the latest thought leadership in the industry.

  • Thought leadership delivered to your inbox
  • Confirm your status as an Institutional Investor
  • Complete CFA Continuous Professional Development requirements

By clicking submit you confirm that you qualify as an institutional investor and you consent to allow Insurance AUM to store and process the personal information submitted above.

Lost password