Welcome back to The Private Equity Podcast by Raw Selection! Alex is joined by Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane. Drew brings over 17 years of experience at the firm, sharing valuable insights into the current state of private equity, how the market is evolving, and what’s in store for the rest of 2024. He dives into the importance of using data and technology to make informed investment decisions, and how Hamilton Lane is preparing for upcoming opportunities in sectors like healthcare, industrials, and private credit.

Breakdown:

[00:00] Introduction to Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane.

[00:45] Overview of Drew’s role at Hamilton Lane and his background in private equity.

[02:09] Key mistake private equity firms make: not acting quickly enough on management changes.

[03:06] Importance of transparency and using real-time data for better investment decisions.

[04:32] Role of technology and data platforms in improving decision-making in private equity.

[05:59] Private equity's recovery after global downturns.

[06:42] Lower leverage levels compared to the global financial crisis.

[07:37] How private equity evolved with stronger financial resilience and broader acceptance.

[09:00] Soft landing vs. recession risks in the economic outlook.

[09:58] Emerging deal flow and closing the buyer-seller price gap.

[10:56] Impact of global monetary policy on deal-making.

[12:09] Stabilized purchase price multiples aiding deal flow.

[12:53] Increased exit activity and liquidity in private equity markets.

[13:51] Robust deal flow and exits expected in the second half of 2024.

[15:50] How interest rate policies influence pricing and deal-making.

[16:17] Stabilized purchase price multiples across industries.

[17:11] Historical trends showing Q4 as the busiest for deal activity.

[17:40] Managing investment risk through asset selection.

[18:39] Drew’s approach to portfolio diversification and risk management.

[19:43] Key sectors of interest for Hamilton Lane, including healthcare and industrials.

[20:39] Importance of having multiple levers in value creation strategies.

[21:50] Emerging opportunities in private credit, infrastructure, and secondaries.

[24:33] Focus on defensive sectors like healthcare and industrials.

[26:10] How Hamilton Lane is preparing to capitalize on market opportunities.

[31:27] Focus sectors for Hamilton Lane: clinical research, supply chains, and logistics.

[33:05] Supply chain automation as an investment area.

[34:17] Sector-specific investment strategies for Hamilton Lane.

[35:40] How technology is increasing transparency and attracting new investors.

[37:09] Drew’s reading recommendations: "Radical Candor" by Kim Scott and works by Malcolm Gladwell.

[40:00] Closing remarks from Alex.

You can connect with Drew Schardt on LinkedIn by visiting his profile here.

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Thank you for tuning in!

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