The Long View – Hilary Wiek: Perspective on Private Markets
Podcast: The Long View (Morningstar)
Air Date: February 24, 2026
Hosts: Christine Benz, Amy C. Arnott, Ben Johnson
Guest: Hilary Wiek, Principal Analyst, PitchBook
Episode Overview
This episode features Hilary Wiek, a leading analyst at PitchBook, exploring the state and future of private markets, especially in the context of “evergreen” funds and the movement to broaden access to private investments. The conversation spans the evolution of fund structures, current trends, challenges for both institutional and retail investors, nuanced distinctions between private and public asset performance, fees, liquidity, and the increased interest in ESG and impact investing.
Hilary Wiek’s Journey and Role at PitchBook
[02:00-04:22]
- Hilary shares her untraditional route into private markets, starting in 1992.
- She discovered private equity while working at a public utility in 1999.
- Experience includes launching new private equity programs for retirement systems and investment consulting (manager research).
- At PitchBook, Hilary focuses on top-down market analysis, broader fund trends, and cash flows between LPs (limited partners) and GPs (general partners), as well as research on Evergreen funds and the democratization of private markets.
Notable Quote:
“The latest research has really been on Evergreen and bringing private markets into the hands of folks who have historically been excluded because of income or wealth hurdles.” — Hilary Wiek [03:57]
Private Markets 101: Key Terms Explained
[04:22-05:18]
- LP (Limited Partner): Allocators or investors who commit capital.
- GP (General Partner): Manages and invests the capital.
- Historically, access was via “drawdown funds”: GPs only call for capital when opportunities arise, and LPs only get distributions after assets are sold.
Notable Quote:
“The LPs are the allocators, they're the people with money to invest. The GPs are the ones who are responsible for investing that during the life of the fund.” — Hilary Wiek [04:53]
The State of Private Markets in 2026
[05:34-06:38]
- Deal activity picked up slightly after a dry spell post-2021, with Europe outpacing the U.S.
- Market optimism is tempered by political uncertainty (especially in the U.S.) and interest rate fluctuations.
- Lower interest rates are expected to encourage more deal activity and portfolio company exits.
Notable Quote:
“It’s really hard to plan for the future if you’re not sure what the tariff regime is going to be or what geopolitical considerations need to be brought into account.” — Hilary Wiek [05:55]
Challenges in Fundraising and Capital Deployment
[07:03-09:26]
- “Lack of distribution”: LPs aren’t getting money back from mature funds, limiting ability to commit to new funds.
- Venture capital most affected due to lingering, illiquid assets waiting for IPO or buyer.
- Institutional capital from pensions is declining, leading to increased focus on defined contribution (DC) plans and fueling the rise of Evergreen funds.
Notable Quote:
“Because of that, the asset managers are creating these evergreen funds. They're trying to create products that will be attractive to where the money is flowing, which is defined contribution, which is individual accounts that people have.” — Hilary Wiek [08:35]
Valuations and Risk Appetite
[09:26-11:34]
- After the post-pandemic decline, private market valuations lagged as sellers were slow to adjust.
- Lack of real-time pricing makes private market corrections more drawn-out vs. public markets.
- Falling rates are expected to boost risk-taking and dealmaking.
Regional/Asset Class Hotspots & Secondaries Trend
[11:44-14:45]
- Outperformance is hard to assess due to reporting lags; returns are only certain on exit.
- “Secondaries” (funds buying interests from other LPs in aging funds) are a key area of growth, with record fundraising and deal flow.
- “Continuation funds” are increasingly used to support attractive assets that require longer holding periods or additional capital.
Notable Quote:
“Secondaries have been a great place for over five years now. Record fundraising, record deal flow, good returns.” — Hilary Wiek [12:00]
“Continuation funds are a fairly new trend... They are very common now where a general partner who's looking at their aging portfolio may have an asset in their portfolio that they really like... so they move the asset into this new fund.” — Hilary Wiek [12:18]
Interpreting Private Market Fund Performance
[14:45-18:42]
- Unlike public funds (which use time-weighted returns), private funds use IRR (internal rate of return), reflecting that managers don’t hold all investor capital at all times.
- Direct comparisons to mutual funds or indices are misleading; “PME” (public market equivalent) provides better comparison.
- “Everyone's a top quartile fund,” claims, Hilary notes, are a mathematical misnomer.
Notable Quote:
“IRRs tend to be higher than time weighted returns and they should not be compared to each other because the time weighted return has to account for the cash drag or maybe investing in assets that weren't exactly what you were looking for.” — Hilary Wiek [16:33]
Fees: Alignment and Caution
[18:42-21:08]
- Industry standard: “2 and 20” (2% management + 20% performance fee).
- High fees accepted due to perceived manager alignment, but there’s significant dispersion—manager selection is crucial.
- High fees can erode any return premium, especially for subpar managers.
Notable Quote:
“There is opportunity to do very well. But then there are plenty that do subpar and don't outperform what someone might have been able to do in the public markets, regardless of fees.” — Hilary Wiek [20:36]
Valuation & Volatility: Private vs. Public Assets
[21:39-25:28]
- Private assets show artificially low volatility because they’re valued quarterly or less frequently—interim marks may hide risk.
- In Evergreen funds, where investors can enter and exit, accuracy of valuation is crucial for fair dealing.
- For long-term investors in drawdown structures, quarterly marks matter little compared to the end result.
Notable Quotes:
“Volatility looks lower in private markets... if you just looked at the March number and the June number, it looks like you would never know something happened.” — Hilary Wiek [22:48]
“If you are looking at private markets as a long term investment, quarterly marks shouldn't matter a whole lot to you.” — Hilary Wiek [24:22]
The Evergreen Evolution: Expanding Access
[25:28-29:36]
- “Evergreen funds” (a.k.a. interval, semi-liquid, perpetual funds) offer lower minimums, periodic liquidity (often quarterly), and a steady fee stream for managers.
- They’re specifically designed to attract DC and retail money as pensions shrink.
- Fund structures:
- Interval funds: allow up to 5% quarterly redemptions.
- Tender offer funds: less predictable, liquidity as available.
- BDC/non-traded REITs: additional wrappers, usually in credit or real estate.
Guidance for Advisors: Integrating Private Markets
[29:14-33:27]
- Most individuals should access private markets via diversified evergreen funds, given complexity and scale required for direct drawdown funds.
- Patience and long-term perspective are essential; these products are not intended for quick liquidity.
- Most retail-oriented products currently focus on income (credit, real estate, infrastructure), not private equity per se, to better support periodic liquidity.
Notable Quote:
“For investor suitability, patience should be a characteristic of that investor. If they are getting into these products because there is some liquidity... that’s probably not a great fit.” — Hilary Wiek [30:31]
Is It Too Complicated for Some Investors?
[33:27-35:14]
- It’s legitimate for investors or advisors to avoid the space if they find it too complex or expensive.
- “Just because you can doesn’t mean you should.” Higher fees for smaller allocations, many layers of charges.
Liquidity Mismatches & Product Design
[35:14-37:50]
- Liquidity provisions must align with the underlying assets: income-generating funds (private credit, real assets) are best suited to interval structures.
- Some managers have had to restructure or convert funds after liquidity missteps.
- Investors should quiz managers about worst-case scenario planning.
ESG and Impact Investing in Private Markets
[37:50-40:42]
- ESG is applicable in private and public markets, but “impact” is often more achievable in private markets due to greater control.
- PitchBook tracks over 5,000 private market funds with an “impact” lens.
- Harder to define ESG-specific private funds because responsible practices can apply even to “dirty” companies.
Looking Ahead: Private Market Themes for 2026
[40:42-42:04]
- The mood is hopeful, but private markets aren’t yet back to record activity.
- Investor psychology is key; many are “waiting for signs that it's off to the races again.”
Private Markets in Retirement Plans—What’s Next?
[42:04-45:15]
- Awaiting regulatory clarity after an executive order (August 2025) to ease 401(k) access.
- Adoption will likely be slow and cautious, with inclusion as a portion of managed solutions (e.g., target date funds).
- Liquidity and DC contribution/withdrawal patterns challenge most private market structures—solutions may emphasize blending with liquid assets.
Retail Investors and the "Also Rans": Will Small Investors Get Second Best?
[45:15-47:07]
- Large managers (KKR, Blackstone, BlackRock, CVC) are offering private market products for DC plans.
- However, new retail funds may lack exposure to the very strategies that built those managers’ reputations—users should expect more average ("index-like") outcomes.
- High performance in flagship funds may not be replicated in widely distributed DC products.
Notable Quote:
“That starts becoming more of a beta play, an access play that you're getting exposure to private markets. But it's more like buying an index than it is buying the active management and value creation story that made these storied brands...” — Hilary Wiek [46:30]
Resources and Further Reading
[47:24-47:49]
- Much of Hilary’s and PitchBook’s research is available (free registration required) at pitchbook.com.
- “Evergreen Evolution” paper and others referenced throughout.
Key Takeaways
- Private markets are adapting to the shrinking institutional base with innovative new structures, but entry for individuals remains complex and costly.
- Evergreen and interval funds are the main vehicle for smaller investors, but liquidity, fees, and manager quality are crucial factors.
- Returns in private and public markets are not directly comparable due to different calculation methods—use PME for meaningful comparison.
- Liquidity mismatches can cause problems if fund structures aren’t well matched to the assets inside.
- ESG/Impact investing is growing in private markets, with unique challenges and opportunities.
- Cautious optimism for deal activity and access democratization, but investors need to be selective, patient, and informed.
- Regulatory developments may open 401(k) plans further, but early offerings may be more “beta” than “alpha.”
- “Just because you can doesn’t mean you should”—private markets are not for everyone.
Highlighted Quotes
- “Just because you can doesn't mean you should.” — Hilary Wiek [33:54]
- “Secondaries have been a great place for over five years now. Record fundraising, record deal flow, good returns.” — Hilary Wiek [12:00]
- “If you are looking at private markets as a long term investment, quarterly marks shouldn't matter a whole lot to you.” — Hilary Wiek [24:22]
- “IRRs tend to be higher than time weighted returns and they should not be compared to each other…” — Hilary Wiek [16:33]
- “If tons and tons and tons of money flows into the 401k products... that starts becoming more of a beta play… more like buying an index than it is buying the active management and value creation story that made these storied brands in the first place.” — Hilary Wiek [46:14]
Timestamps For Key Segments
- [02:00] Hilary’s career journey
- [04:22] Private Markets 101 (LPs, GPs, drawdown funds)
- [05:34] State of global private markets
- [07:03] Fundraising slowdown drivers
- [09:26] Role of valuations and psychology
- [11:44] Regional/asset class outperformance, secondaries, continuation funds
- [14:45] Performance measurement: IRR vs. time-weighted
- [18:42] Fees and alignment
- [21:39] Volatility and valuation
- [25:28] Evergreen structures: Why and how
- [29:14] Advisor guidance: Integrating private markets
- [33:27] "Is it too hard?" – Complexity for investors
- [35:14] Liquidity mismatches
- [37:50] ESG and impact investing
- [40:42] 2026 theme outlook
- [42:04] Private markets and retirement plans
- [45:15] Retail access—“Mac and cheese” vs. “filet and lobster”
- [47:24] PitchBook research resources
For more information and Hilary’s research, visit pitchbook.com.