E140: Hamilton Lane Co-CEO on the $950 Billion AUA Business

In this episode of How I Invest, I sit down with Erik Hirsch, Co-CEO of Hamilton Lane, a global leader in private market investing. Erik discusses the evolving landscape of private markets and the integration of digital tools like tokenization in investments. He dives into how private markets are becoming more accessible to retail investors and the future of asset management, with a focus on education and technology. From the role of RIAs and wirehouses to the impact of digital wallets and tokens, Erik provides deep insights into what’s next for investors at every level. If you're curious about the future of investment opportunities and how they will change by 2030, this episode is a must-listen. Highlights: Private Market Access: How tokenization is revolutionizing private market access for retail investors, making it easier and more efficient to buy into private funds. The 2030 Vision: The future of investing where both retail and institutional investors can seamlessly manage public and private assets in one place. Roadblocks and Education: How myths about private markets and a lack of education are slowing adoption, and why proper education is key to unlocking the future of investment. The Role of RIAs: Why wealth advisors play a critical role in helping clients navigate these changes and how their education will be key to accelerating private market growth. Adapting to Consumer Expectations: The difference in expectations between institutional and retail investors and how firms need to adjust to meet these demands, especially in terms of technology and accessibility. Culture at Hamilton Lane: Erik shares how building and maintaining a strong company culture has been a key driver of Hamilton Lane’s success. The Path to a Trillion Dollars AUM: What Hamilton Lane's growth trajectory looks like, and the future goals as they continue expanding globally. -- Guest Bio: Erik Hirsch is the Co-CEO of Hamilton Lane, a leading private markets investment management firm. With over 30 years of experience, Erik has helped lead Hamilton Lane's growth into one of the largest players in the private market space. Based in Philadelphia, Erik's leadership has focused on innovation, diversification, and bringing private market opportunities to a broader range of investors. His commitment to education and customer-first culture has been instrumental in Hamilton Lane’s success. Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at dweisburd@gmail.com . We’d like to thank @JuniperSquare and @ReedSmith for sponsoring this episode! #VentureCapital #VC #Startups #OpenLP #AssetManagement -- Sponsor: Juniper Square is dedicated to transforming the private markets investing experience. The company provides a full range of modern, connected fund technologies and services for over 2,100 private markets GPs across fundraising, reporting, fund administration, treasury, compliance, and business intelligence. Today, over $1 trillion of assets and 600,000+ LP accounts are managed through Juniper Square software and fund administration services. Learn more at www.junipersquare.com . -- Sponsor: Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, Reed Smith delivers smarter, more creative legal services that drive better outcomes for their clients. Their deep industry knowledge, long-standing relationships and collaborative structure make them the go-to partner for complex disputes, transactions, and regulatory matters. Learn more at www.reedsmith.com . -- Stay Connected: X / Twitter: David Weisburd: @dweisburd LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Erik Hirsch: https://www.linkedin.com/in/erik-hirsch-hamilton-lane/ Links: Hamilton Lane: https://www.hamiltonlane.com/en-us Questions or topics you want us to discuss on How I Invest? Email us at dweisburd@gmail.com . (0:00) Episode preview (1:13) The fallacy of the 60/40 portfolio and institutional strategies (3:54) Diversification strategies in private vs public assets (7:42) Hamilton Lane's focus on the retail market (8:07) Sponsor: Juniper Square (10:32) Hamilton Lane's retail market targeting strategies (13:43) Liquidity concerns for retail investors (15:47) Tokenizing Hamilton Lane funds for accessibility (18:52) Retail and institutional investment convergence vision (20:01) Challenges in retail access to private markets (23:06) Incentivizing RIAs to support private market investments (23:29) Sponsor: Reed Smith (24:48) Erik Hirsch's journey to co-CEO of Hamilton Lane (25:54) Pros and cons of Hamilton Lane's Philadelphia location (27:28) Career insights and underappreciated starting points (28:31) Growth dynamics within Hamilton Lane (29:26) Hamilton Lane's growth and trillion-dollar goal (30:29) Closing remarks