Chief Operating Officer & Chief Risk Officer, Hamilton Lane
Search every verified Andrea Kramer interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In 2014, Andrea Kramer, then Managing Director and Head of the Global Fund Investment Team at Hamilton Lane, identified energy as "probably the hottest area" in private equity, citing the need for infrastructure investment in natural gas and shale. She also noted a shift toward shorter-duration, yield-generating investments and described technology as a heavily pursued sector due to its replicable business models and recurring transaction fees. By 2016, Kramer stated that a "low and slow growth" environment could create volatility that benefits private equity purchase pricing. She expressed caution about the U.S. market while signaling a preference for small-end buyouts in Europe, which she described as a "green light" area. Kramer predicted that an expected interest rate hike would reduce credit availability and lower purchase prices, though she noted that distressed and credit strategies in Europe could present buying opportunities. She added that limited partner return expectations remained at the traditional "two-and-twenty" model, with net IRRs in the mid-teens.
“One of the key things that we're thinking about is an environment where there is low and slow growth which we expect will present a little bit of volatility in the markets, which isn't necessarily a bad thing for purchase pricing and provides opportunities for private equity going forward.”
“We've been a bit more cautious in the US so the small end can be an interesting opportunity; we see new and interesting opportunities in Europe that is an area where we focus. If you think about kind of our red light yellow light green light, it's more green light for the small end of Europe on the buyout in the curren...”
“The credit opportunities have been so robust over the last year and frankly over the last seven years have provided a really good backdrop for private equity investors to get their deals done and to get it done pretty cheaply and with very low covenants.”
“Our expectation is that credit availability may taper off as the interest rate hike is looming and expected to actually occur. With that in mind, we should expect that purchase prices will come down overall and credit may be harder to come by.”
“Given the current rate environment and what the ECB continues to do in Europe, distressed and credit strategies could present some interesting opportunities to buy.”
“Expectations on returns from an LP perspective have not changed; they continue to be that two-and-twenty expectation overall. The performance continues to provide mid-teen term returns on the IRR side and a net basis.”
“Low slow growth environment is probably an okay situation for private equity. If the economy itself were just to completely stutter and stop then it would be challenging for private equity or frankly any asset class to generate returns.”
“What we have seen is a pretty significant shift towards shorter duration, shorter hold periods, and investments that are throwing off some cash and some yield.”
“Energy is probably the hottest area if you look at the amount of dollars that are going into private equity; a significant portion of that is going into the energy space.”
“The dollars needed for the energy sector are huge because the infrastructure that still needs to be built for all the natural gas and shale plays requires enormous investment.”
“We expect an enormous amount of dollars to be spent in the infrastructure space and in the services space related to energy.”
“Technology is also an area that's heavily pursued, part of it is even directly tied to energy, but healthcare technology touches almost every sector within the U.S. and outside of the U.S.”
“Private equity investors really like technology, particularly after the technology is created because it has a replicable model and typically generates transaction fees like an annuity stream forever.”
Andrea Kramer, Managing Director and Head of the Global Fund Investment Team at Hamilton Lane, says a slow growth ...
ENERGY SECTOR ATTRACTING A LOT OF ATTENTION IN PRIVATE EQUITY- HAMILTON LANE'S KRAMER ANCHOR ...
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