Erik Hirsch, CEO of Hamilton Lane, on the Explosive Growth of Private Markets

Hirsch says private credit fundamentals look healthy (2% defaults) despite retail panic, while manager dispersion, not asset class access, drives private-market returns.

• Correlation myth debunked: Hirsch says private equity is fully correlated to public equity markets; the appearance of low correlation is purely a quarter-lag reporting artifact, not a structural difference.
• Dispersion stays wide: Despite predictions returns would compress as capital scaled, top-to-bottom manager dispersion in PE, venture, and private credit is as wide today as 20 years ago—making manager selection critical.

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