Hartley Rogers, Executive Co-Chairman at Hamilton Lane
Private markets are experiencing a significant shift, driven in part by artificial intelligence, the rise of evergreen funds and strong growth in secondaries, according to private markets investment firm Hamilton Lane’s 2026 Market Overview.
Recent gains in public markets have been strong but narrow, with a small group of AI-related companies, primarily LLM-focused names, delivering most of the returns. Hamilton Lane notes there hasn’t been this level of concentration since the 1970s and that investors may wish to consider looking elsewhere within their portfolios for diversification.
The AI narrative looks different in private markets. Many of the most important AI companies are staying private longer, with venture capital positioned to lead AI investment activity and providing access to a type of AI exposure that public markets simply cannot replicate right now.
Hartley Rogers, Executive Co-Chairman at Hamilton Lane, commented, “With public markets remaining highly concentrated in a small group of AI-linked companies, private markets – specifically venture capital – can provide broader exposure and diversification, which may be more important now than ever.”
Greater flexibility and liquidity redefine private market access
The way investors access private markets is changing. Evergreen funds are becoming more popular, offering lower minimums, more diversified portfolios and the option for periodic liquidity. Based on Hamilton Lane’s 2026 Market Overview data, private equity and secondary-focused evergreen funds have outperformed closed-end fund peers across one- and three-year periods1. This runs counter to the narrative that investors may sacrifice returns for a friendlier structure and the option for liquidity.
The secondary market is another growing area with strong underlying dynamics and tailwinds. Supply continues to outpace capital, creating attractive entry pricing and offering investors portfolio-level flexibility and faster deployment. Representing only approximately 2% of NAV, this market has room to grow.
Private credit also remains resilient, having outperformed its public benchmark every year for 24 years and by hundreds of basis points over the past decade as of 30 September 20252. Despite questions around a possible bubble, the forces that have been reshaping the private credit landscape globally have only grown during a bull market for credit, and it is showing limited signs of stress.
Australian investors remain committed to private markets
Hamilton Lane believes private markets remain well positioned to deliver long-term value for investors who stay selective and adapt to the changes underway3.
Australian institutional and private wealth investors maintain strong interest in private markets due to the diversification advantages. Superannuation funds consider private assets as well suited to long-term portfolios, while private wealth investors are prioritising flexible structures, lower minimums and clearer reporting.
Scott Thomas, Head of Private Wealth at Hamilton Lane, Australia says “We are at a critical moment for global investing, as geopolitical fragmentation, tariff tensions, shifting monetary conditions and rapid technological disruption – especially artificial intelligence – set the stage for increasing volatility. For investors in Australia, this means remaining focused on key elements of their private market exposure including valuation consistency, data quality and liquidity management.”
1As of 31 December 2025. Past performance is not a reliable indicator of future performance.
2Source: Hamilton Lane Data via Cobalt, Bloomberg (January 2026). An industry dataset of private credit funds; does not differentiate senior vs. junior debt. Private Credit IRR has historically outperformed S&P UBS Leveraged Loan Index Public Market Equivalent* in each of the last 24 years as of 9/30/25. Past performance does not guarantee future results.
3This statement reflects Hamilton Lane’s current views and is not a guarantee of future outcomes.
About 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 approximately 780 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $1.0 trillion in assets under management and supervision, composed of $146.1 billion in discretionary assets and $871.5 billion in non-discretionary assets, as of December 31, 2025. Hamilton Lane specialises in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit our website or follow us on LinkedIn.
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