Private Markets Giant Hamilton Lane Says Credit Fears Are Overblown

Hamilton Lane Inc. has an unusual perch in private markets. It advises on $860 billion in assets—screening, recommending and monitoring investments for institutions such as pension systems—and also manages $145 billion in funds and separate accounts. To that end, over three decades, Hamilton Lane has compiled metrics on more than 68,000 private equity, credit and other funds from more than 61 vintages, or starting years. And it has data on the operations of more than 178,000 portfolio companies.

As a result, co-Chief Executive Officer Erik Hirsch has a broad and deep view into buyouts and private credit—at a moment when many are worried about the growth of finance outside of public markets. He sat down to talk in a conference room on the 14th floor of Hamilton Lane’s headquarters in ­Conshohocken, Pennsylvania, a suburb of Philadelphia. The room is named for acoustic stringed instrument maker Martin & Co., part of a musical theme—also embodied in guitars and posters hanging on the walls throughout the office—that was started by Hirsch, a former CEO and others at the firm who are rock fans and musicians. Hirsch’s conversation with Investing & FFM Editor Jon ­Asmundsson has been edited for clarity and length.