Jackie Rantanen, Managing Director of Evergreen Portfolio Solutions for Hamilton Lane, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the value of evergreen funds and why advisors are increasing allocations to private markets.
Historically, investors have looked to drawdown funds as an access point to private markets. However, drawdown funds can come with additional challenges, such as high minimums, long lock-ups, and an onerous subscription process. Instead, Rantanen points to evergreen funds, explaining that they can help address these challenges while expanding access to private markets for individual and smaller investors.
On a broader scale, Rantanen finds that many advisors are increasingly interested in private markets for performance and diversification benefits. She highlights a recent Hamilton Lane survey that found 86% of advisors surveyed plan to increase allocations to private markets, while nearly half of advisors expressed a particular interest in venture capital and infrastructure. As companies stay private for longer, Rantanen explains that private markets can also provide access to key innovative companies that are not available through public markets.
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