‘The private markets hold tremendous growth potential’

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In an increasingly volatile economic landscape marked by geopolitical tension and market unpredictability, Hamilton Lane’s Co-CEO Juan Delgado arrived in Israel to advance the firm’s activity in the country. Hamilton Lane is one of the world’s largest and most established investment firms, standing out as a global leader in private market investments.

Hamilton Lane specializes in investment management in private markets. The company manages and advises on assets and investments valued at over $940 billion.

Juan Delgado, CO-CEO of Hamilton Lane, arrives in Israel for his fourth visit since the war (Credit: Courtesy of Hamilton Lane)

It is one of the largest allocators globally for private funds and companies, with investment volume in 2023 alone exceeding $32 billion. The firm successfully launched its IPO on NASDAQ in 2017.

The world of private markets is often perceived as opaque and inaccessible to everyday investors. In contrast to public markets, private markets involve investments in areas such as private equity, credit, and infrastructure that are not publicly traded. This structure presents a significant challenge and opportunity. “Private markets are over 10 times bigger than public markets in terms of investment opportunities,” notes Juan Delgado, CO-CEO of Hamilton Lane.

“The biggest difference between private and public markets isn’t necessarily risk—it’s liquidity,” says Delgado. In public markets, investors can buy or sell shares almost instantly. Private markets, however, require a longer-term commitment. Delgado highlights that liquidity in private markets is evolving, especially with structures like “evergreen funds,” which allow monthly liquidity and thus bring private market investments closer to the liquidity levels of public markets. “Our firm is about building opportunities in private markets, which we believe hold tremendous growth potential.”

The traditional perception of private markets in Israel has been shaped by the high-risk, early-stage nature of venture capital. However, Delgado clarifies that the spectrum of private market opportunities has broadened significantly. “Today, you have the whole range in private markets, from early-stage startups to very large, profitable companies. The expansion over the last 20 years allows for higher or lower risk investments, depending on investor goals.”

Delgado emphasizes that the importance of this move for investors is the potential ability to receive a high 15% return on investment. “The private markets have proven their ability to deliver these strong returns for decades. That’s the revolution— to let individuals earn what institutions have been making for years”.

Hamilton Lane is one of the leading players globally in Co-Investments and Secondaries. In recent years, the firm has become a destination for private investors seeking access to this world. With over 1,850 clients, including some of the largest institutional investors in the U.S., Europe, and Asia, the company also manages a portion of the private investment channels for the New York State pension funds, as well as pension funds from other U.S. states.

“Private markets have evolved over the last 2 decades to include startups, growth businesses, mid-size companies, and even very large companies. This range is key for building diverse portfolios.” Says Delgado, “The spectrum in private equity is huge, from the highest-risk venture capital to low-risk, steady income assets. There’s truly something for every kind of investor now.

“Liquidity is the number one question in private markets, and it’s critical. That’s why we’ve introduced Evergreen funds—to give our clients liquidity they couldn’t have before. Many people think public markets are much more liquid, but even there, selling a mutual fund can take days or even weeks. Private markets are evolving in terms of liquidity, and that’s what Evergreen provides”.

The democratization processes of the markets have made investing in private companies more common and frequent through the arrival of digital banking and fintech platforms that use tokenization. Delgado is excited as he talks about the future this has opened. “We are democratizing private markets access. What was once only for institutions is now available to individuals. In the future? We’re talking about investments as low as $100.

“Historically, individuals were earning low single digits in their accounts while the private markets could deliver double-digit returns. That’s going to change.” The ability for individuals to diversify into private markets—into infrastructure, credit, and equity—is the future of investment. We’re not there yet, but that’s the goal.”

The relationship between Israel and Hamilton Lane has quietly emerged as a model of resilient and forward-thinking private investment. When the institutional market in Israel opened to global investments in 2005, Hamilton Lane established its Israeli office under the management of Limor Beker, making the world of private investments accessible to Israeli entities. “Israel is the best tech market in the world—an incredible country for innovation and growth. We’ve been in Israel for 20 years, and it’s a core part of our business,” said Delgado.

This is Delgado’s fourth visit to Israel since October 7. His strong confidence in the Israeli market, as well as in the talent and creativity it has to offer, leads him to view the Israeli market as fertile ground for investment, despite the economic challenges posed by the war, including the credit rating downgrade of Israel by Moody’s. This is part of a strategic decision by Hamilton Lane, whereby a senior executive from the company will visit Israel every month since the outbreak of the war.

“I don’t feel like I come to Israel. I feel like I am temporarily gone from Israel. It’s an integral part of who we are. Israel is part of our DNA; it’s more than just another market for us. We don’t invest in Israel because it’s convenient; we invest here because we believe in the potential and resilience of this market. Our investments here are about creating a lasting impact, not just for our portfolio, but for the Israeli ecosystem itself.

 “In times of uncertainty, our presence here becomes even more meaningful—it’s a message to our partners that we’re here to stay. Israel’s high-tech market was and continues to be the biggest tech market in Europe, and that’s a huge draw for us. Israel’s challenges don’t deter us. They inspire us to be a part of its story.”

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