Capital Overhang in the Private Markets
July 23, 2019
July 23, 2019
Capital Overhang
- Equity-focused strategies hold $1.2T of dry powder with the rest of private markets holding $828B of dry powder
- Private markets dry powder is less than 2% of estimated total global AUM
- Time to deploy continues to hover around the long-term average across strategies
- Historically, the best time to invest is when capital overhang is greatest and investment pacing is slowest (2002 and 2009)
Contributions
- Annual contributions reached a record in 2018; will investment activity hit another record in 2019?
- Market perception is that few deals are being done because of pricing, but data shows pacing is close to long-term average levels
To learn more about how you can access this information and leverage it for your private markets portfolio, reach out to the Cobalt LP team.
Access more market level insights as seen through the first half of 2019 through Hamilton Lane’s Mid-Year Market Overview.
