Episode summary
The Long View: Hilary Wiek - Perspective on Private Markets
The Long View
· · 50 min · Hosts: Ben Johnson, Christine Benz, Amy Arnott · Guests: Hilary Wiek
Summary
Hilary Wiek said private markets are entering 2026 with cautious optimism, helped by improving deal activity, falling interest rates, and a sense that some of the post-2021 slowdown may be easing. She argued that the biggest drag on fundraising has been weak distributions: portfolio companies have been held longer, LPs are overallocated, and venture has been especially slow to recycle capital. She also said institutional capital has weakened as pensions shrink and defined contribution assets grow.
Wiek spent much of the conversation translating private-markets jargon for public-markets investors. She explained LPs and GPs, drawdown funds versus evergreen structures, and why private fund returns are usually measured with IRR rather than time-weighted returns. She emphasized that fees, valuation practices, and hidden volatility matter more than many investors realize, especially in semi-liquid or evergreen products where actual money changes hands at the stated marks.
She also argued that the right access point depends on the underlying asset class. Secondaries have been a strong pocket for years, while interval funds and other evergreen vehicles fit income-producing assets better than venture or buyout. On 401(k) adoption, she expects slow growth through managed solutions rather than direct private-market sleeves, with investors likely getting diversified exposure rather than the highest-octane private equity funds.
Key takeaways
- Wiek said weak distributions are the main reason private markets fundraising has slowed, especially in venture capital.
- She argued that IRR and time-weighted returns are not directly comparable, so public-market-style return comparisons can mislead investors.
- Wiek said the standard 2 and 20 fee model can be worthwhile only if manager selection is strong, because outcomes vary widely.
- She said interval funds and other evergreen structures work best with income-generating strategies, not illiquid venture-style assets.
- Wiek expects private-market exposure in 401(k)s to come slowly through target-date or managed solutions, not direct allocations.
Notable quotes
“IRRs tend to be higher than time weighted returns and they should not be compared to each other”
“The standard for many many years has been what is called 2 and 20”
“volatility looks lower in private markets”
“you should be thinking about suitability in terms of your investment time frames with these”
How the episode opens
Please stay tuned for important disclosure information at the conclusion of this episode. — Hi and welcome to the long view. I'm Ben Johnson, head of client solutions with Morning Star. — And I'm Christine Benz, director of personal finance and retirement planning for Morning Star.
Today's guest on the long view is Hillary Wick. Hillary is a principal analyst at Pitchbook where she leads Pitchbook's coverage of fund strategies and performance publishing primary research on the alternative space. Hillary also leads Pitchbook's coverage of the ESG and impact investing space.
Hillary has over 20 years of experience in asset owner manager and advisory roles. Prior to joining Pitchbook, she was the director of investments at the St. Paul in Minnesota Foundations where she handled portfolio management impact and ESG investment investment due diligence and monitoring and investment operations.
Before that she worked in senior positions at Seagull Rogers Casey, the South Carolina retirement systems investment commission, Buckingham Financial Group, Dayton Power and Light, and Keycorp. Wick received a master's degree in finance and economics from Case Western Reserve University and a bachelor's degree in business leadership and finance from the University of Puet Sound. She is based in Pitchbook Seattle office.
Pitchbook is a Morning Star company. Well, Hillary, welcome to the Long View.
Thanks so much. Yeah, I appreciate being invited. We're hoping you might be able to share with us to begin a little bit about your journey into private markets research and your current role at PitchBook. — Yeah, absolutely. Um, it's a little long and circuitous. Um, I joined the investment world in 1992, so I've been through and seen a lot, but from a lot of different vantage points. Um, I first figured out private equity existed, I would say in 99 when I joined a public utility of all places that had a billion-dollar private equity portfolio.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private market funds
- private market slowdown
- private market fees
- evergreen/interval funds
- esg investing
Companies and tickers mentioned
- PitchBook
Watch the episode
Watch “The Long View: Hilary Wiek - Perspective on Private Markets” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Long View, this episode and its artwork belong to Morningstar, Christine Benz - Director of Personal Finance and Retirement Planning, Ben Johnson - Head of Client Solutions, Amy Arnott - Portfolio Strategist. Octagon is not affiliated with the show; this page is an independent summary.
