Dry Powder: The Private Equity Podcast Full Speed Ahead w/ Hamilton Lane’s Erik Hirsch
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Apr 8, 2025 
In a compelling discussion, Erik Hirsch, Co-CEO of Hamilton Lane, shares insights on building an analytics engine that caters to both institutional and individual investors. He explores how technology is reshaping private equity, focusing on shifts in fee structures and educational gaps retail investors face. Hirsch highlights the importance of data, especially through Hamilton Lane's Cobalt technology, in enhancing investment decisions. He also addresses branding challenges and the necessity of empowering individual investors in this evolving landscape.
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Hidden Price Decrease in Private Markets
- Private market pricing has seen a decrease, masked by the consistent 2-and-20 model.
- Co-investment, representing 20-40% of invested dollars, has driven this price decrease.
Expected Fee Compression in Private Markets
- While retail investors currently pay more than institutional investors in private markets, this is likely temporary.
- Fee compression, similar to what happened in public equity markets, is expected as retail investor participation increases.
Challenges and Advantages in Private Markets
- Traditional public equity providers entering the private market face challenges in mindset and relationships.
- Large alternative firms, with existing experience and networks, are currently better positioned.