Giannini: Private Wealth Will Grow for 10 Years but Favor Scaled GPs
Mario Giannini · Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309) · Apr 17, 2023 · at 47:58
Mario Giannini, CEO of Hamilton Lane, evaluates the rise of high-net-worth and mass affluent wealth channels entering private equity and the operational challenges of accessing that investor base.
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“That will continue to be a growing part of the market. It will have hiccups. We saw the ones at the end of last year on some of the name products, and so I think people need to be careful in terms of how they're selling into that market, the investor base that they're willing to accept in that market. If it's a lot of people that want to do a trading strategy, is that really where you want to be? And I think we will have some real ups and downs in terms of both investor and manager Experience that market, but it's a trend that will continue over the next 10 years, whether it's bigger than the institutional market or equal or somewhat smaller, I'm not sure, but it will be an increasingly important part, and to the winners and losers, it is not an equally accessible part. There are a lot of managers everywhere who will not get access into that market, so I think it will create some Distortions, if you will, in terms of who is accessing that market in scale and who simply has no ability to get at that market.”
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