Key Takeaways
- • Hamilton Lane identifies Asia's private secondaries market as a high-growth opportunity despite representing less than 1% of the region's total private markets, with co-CEO Juan Delgado citing "constrained supply, attractive pricing and improving liquidity" as key tailwinds.
- • Valuations in Asia's secondary market are materially more reasonable than in the US and Europe, with the region delivering some of the highest returns globally across secondary strategies—an advantage Hamilton Lane leverages through its $1 trillion in assets under management.
- • Asia's private markets remain significantly underpenetrated, representing only 10% of global private markets versus Europe's 20%, but the region offers exceptional diversity spanning venture capital in India to mature buyout strategies in developed markets like Japan.
- • Hamilton Lane's platform strategy—participating across primary deals, continuation vehicles, and broad secondary transactions—provides proprietary data access and relationship advantages enabling it to secure high-quality deals at attractive valuations amid constrained supply.
- • Growing Asian capital formation, increasing sophistication of regional private markets participants, and an expanding pool of mature assets position the secondaries segment for substantial expansion in the coming years.
Summary
Hamilton Lane sees significant tailwinds in Asia's private secondary market, driven by constrained supply, attractive pricing, and improving liquidity. In a recent interview in Seoul, Juan Delgado, co-chief executive of the US-headquartered investment firm, expressed strong conviction on the opportunity: "We are very bullish on the (secondary) market. Asia can offer growth at a good entry price relative to Europe and the US." The firm identifies favorable valuation spreads as a key differentiator, with Delgado noting that "valuations are more reasonable than the US across both domestic and export-oriented strategies."
Currently, secondaries represent less than 1% of Asia's private market, presenting a substantial white space for growth. However, several structural factors support expansion. Hamilton Lane points to rising Asian capital formation, increasing sophistication among regional private markets participants, and a growing pool of mature assets approaching liquidity events. The region's diversity—spanning venture capital in India to established buyout strategies in developed markets like Japan—and expanding intra-Asia trade flows are attracting global capital deployment.
Asia's private markets remain significantly underpenetrated relative to developed markets, representing 10% of global private markets compared to Europe's 20%. Despite this lower penetration, Asia's secondary market has delivered some of the highest returns among all secondary strategies globally, according to Hamilton Lane executives. Hartley Rogers, executive co-chairman, emphasized the market's heterogeneity as both a complexity and opportunity for sophisticated investors.
With $1 trillion in assets under management and supervision, Hamilton Lane operates across the full spectrum of secondary transactions, including primary deals and continuation vehicles. This platform approach provides competitive advantages in deal sourcing and valuation. The firm's broad participation across the secondary market gives it proprietary data access and deep relationship networks, enabling it to identify and secure high-quality transactions at attractive prices despite constrained supply conditions in the broader market.
Currently, secondaries represent less than 1% of Asia's private market, presenting a substantial white space for growth. However, several structural factors support expansion. Hamilton Lane points to rising Asian capital formation, increasing sophistication among regional private markets participants, and a growing pool of mature assets approaching liquidity events. The region's diversity—spanning venture capital in India to established buyout strategies in developed markets like Japan—and expanding intra-Asia trade flows are attracting global capital deployment.
Asia's private markets remain significantly underpenetrated relative to developed markets, representing 10% of global private markets compared to Europe's 20%. Despite this lower penetration, Asia's secondary market has delivered some of the highest returns among all secondary strategies globally, according to Hamilton Lane executives. Hartley Rogers, executive co-chairman, emphasized the market's heterogeneity as both a complexity and opportunity for sophisticated investors.
With $1 trillion in assets under management and supervision, Hamilton Lane operates across the full spectrum of secondary transactions, including primary deals and continuation vehicles. This platform approach provides competitive advantages in deal sourcing and valuation. The firm's broad participation across the secondary market gives it proprietary data access and deep relationship networks, enabling it to identify and secure high-quality transactions at attractive prices despite constrained supply conditions in the broader market.
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