Navigating the evolving landscape of private market investing with John Toomey, HarborVest
The world of private markets is undergoing a significant transformation, and who better to delve into this complex landscape than John Toomey, CEO, HarborVest. Fresh from his keynote session at SuperReturn International, he joined us in our studio to share his perspectives on the changes reshaping the private markets and the future opportunities they present. Recap on our conversation and watch the full interview with John below.
The changing dynamics of private markets
John began by acknowledging the profound changes occurring within the private markets. For decades, the industry was structured around 10-year blind pool, closed-end funds. Today, however, the shift is palpable as investors increasingly move from fund-level decisions to focusing on the underlying company level. Whether through secondaries, co-investments, or continuation funds, the industry now requires a new level of sophistication in how investments are accessed and managed.
This shift necessitates enhanced data analytics and performance tracking, a crucial need as investment strategies evolve from fund-level decision-making down to the company level. John emphasized the importance of working harder for returns against the backdrop of this structural change and a host of new entrants into the industry.
Diversification: The key to managing complexities
A key topic of conversation was the diversity within private markets. Diversification, an essential strategy in public markets, is equally vital in private investments. To navigate the complexities, institutions need to leverage analytics, relationships, and technology. Doing so allows investors to distinguish between median returns and opportunities to invest in the top quartile.
In 2026, the importance of diversification remains undeniable. Recent trends reinforce this, proving that a portfolio overly concentrated in any single industry can struggle to manage risk over the long term. John reiterated that diversification must encompass industry, geography, investment stages, investor styles, and managers, a robust strategy that has long been used by leading institutional investors.
Data and technology: Driving the future
Data and technology play a central role in this evolving landscape. HarborVest, with its extensive experience and relationships, possesses a vast repository of private market data. This treasure trove enables them to make informed analytical decisions and maintain a global perspective on market strategies.
The advancement of AI has only heightened the need for authentic, quality data. As investors demand more detailed and timely insights in their reports, the ability to process and analyze vast amounts of data becomes an industry standard, a table stake for effective investment.
Measuring success in a complex landscape
John shared that the metrics for measuring success in private markets are evolving. Historically, the performance was gauged by the selection of funds raised within a vintage year. Now, investors are taking broader decisions involving secondaries, co-investments, and asset sales, demanding new benchmarks that go beyond the fund level to examine company-level performance and time-weighted returns.
For HarborVest, having a dedicated quantitative investment science team is vital. The team utilizes modern portfolio construction theories and extensive data sets to bring public market analytics to private investments. This strategic approach ensures that HarborVest continues to deliver valuable insights to its clients.
Embracing evolution and the future ahead
As we look to the future, John expressed excitement about the continual evolution of the private markets. This industry, constantly in flux, offers rejuvenating opportunities as seasoned professionals venture into new entrepreneurial endeavors. The ever-changing business structures present incredible prospects for firms like HarborVest, allowing them to capitalize on industry trends and continue providing innovative solutions and outcomes.
