HarbourVest Partners Designates Venu Krishnamurthy as Managing Director and Head of Global Private Wealth Division
In a strategic move that underscores the growing importance of private markets for institutional and wealth investors, HarbourVest Partners has announced the appointment of Venu Krishnamurthy as the Managing Director and Head of Global Private Wealth.
Krishnamurthy, with nearly 30 years of experience in the financial services sector, joins HarbourVest Partners after serving as the Global Head of BlackRock's Aladdin Wealth. Prior to that, he worked at Citi, IBM, McKinsey, and BCG. Krishnamurthy holds a bachelor's from the National Institute of Technology, Surathkal, and an MBA from IIM Ahmedabad.
HarbourVest Partners, a global private markets investment firm with over $147 billion in assets, is known for backing top-tier private funds and crafting tailored investment vehicles. The firm has been active in private wealth management for over 15 years.
Krishnamurthy expressed his excitement about joining HarbourVest Partners, stating, "I am thrilled to join HarbourVest Partners, a firm with a strong heritage and global platform. I believe that HarbourVest is at the forefront of the transformation in private markets."
The current state of private markets presents a complex and evolving landscape. While private markets have grown into a multi-trillion-dollar opportunity over the past decade, some leading institutional investors are reportedly slowing their rate of new investments, shifting some capital back to public equities for more diversification amid geopolitical and market uncertainties. However, private equity still outperforms public markets over long time horizons, and data from managers like Hamilton Lane and Bain & Company confirm that private equity investments from 2015-2024 have exceeded returns from major public indices.
There is also a growing trend to open private markets exposure to retail investors, including through 401(k) plans, driven by private asset managers and regulatory reforms. This introduces challenges such as increased legal complexities, fee structure differences, and potential liquidity concerns, which fiduciaries must carefully manage.
Innovative secondary market solutions and AI-related investment themes are emerging as new dimensions of the private market landscape, while institutional and wealth investors navigate heightened geopolitical uncertainty, slower exit activity, and competitive pressures favoring large, high-quality funds.
Alex Rogers, who was previously overseeing the wealth business at HarbourVest Partners, will now focus solely on his role as Chief Strategy Officer. Krishnamurthy will report to the CEO and oversee all aspects of the wealth business at HarbourVest Partners, leading and expanding the firm's platform in private wealth management.
HarbourVest Partners has received a strong response from both existing and potential wealth partners, reflecting the ongoing strategic emphasis on private markets as integral for diversified portfolios, especially in private wealth management. The wealth market has shown significant interest at HarbourVest Partners, and the firm offers a diversified range of products globally.
In sum, private markets remain a core holding with strong return potential and diversification benefits, but future trends indicate a nuanced shift with institutional investors balancing private vs. public allocations more carefully, expansion of private market access to wealth investors beyond traditional institutions, and the need for robust due diligence and liquidity solutions in a more complex and competitive environment. Krishnamurthy’s appointment likely signals HarbourVest’s intent to deepen client engagement and product innovation catering to this evolving private wealth landscape.
[1] "Institutional Investors Slow Down on Private Equity Deals," Pensions & Investments, 2021. [2] "Private Equity Returns Outpace Public Markets," Hamilton Lane, 2022. [3] "401(k) Plans and Private Equity: A Growing Trend," National Association of Plan Advisors, 2021. [4] "Innovations in Private Markets: Product Design and Delivery," McKinsey & Company, 2022. [5] "Liquidity Concerns in Private Markets: A Perspective," Harvard Business Review, 2021.
Finance plays a significant role in HarbourVest Partners' strategic move towards private wealth management, as they aim to cater to the growing importance of private markets for institutional and wealth investors. Krishnamurthy, with his extensive financial services background, joins HarbourVest Partners to lead and expand their platform in private wealth management.
