Wide Manager Dispersion Creates Stranded Funds

The private markets industry is suffering from an overabundance of managers – a main cause of the challenged fundraising environment, according to Hamilton Lane's executive co-chairman.

"Let's say it clearly: we have way too many managers," Erik Hirsch told PEI Private Equity senior editor Adam Le in the latest episode of Spotlight. "LPs don't need that many. It's diluted the talent pool to some extent. That's more of the reality rather than some temporary fundraising challenge," he said.

In this episode, Hirsch also discusses the zombie fund phenomenon and how it's likely to play out; how the secondaries market can continue to stay "healthy"; and why his firm isn't steering away from software exposure amid the AI boom.