Hamilton Lane Launches Global Private Secondary Fund Amid Strong Demand and Innovative Strategies
- Hamilton Lane launched the Global Private Secondary Fund, raising over $365 million amid strong investor demand.
- The fund targets a diversified portfolio of mature private equity investments, focusing on high-quality middle market buyout funds.
- Hamilton Lane emphasizes its unique deal flow and commitment to expanding access to secondary investments for diverse clients.
Hamilton Lane Launches Global Private Secondary Fund Amid Strong Investor Demand
Hamilton Lane Incorporated, a leading private markets asset management firm based in Conshohocken, Pennsylvania, recently announces the launch of the Hamilton Lane Global Private Secondary Fund (HLGPS). This fund represents the tenth addition to Hamilton Lane's extensive evergreen platform, which boasts over $12 billion in assets under management (AUM). With significant investor interest driving its inception, HLGPS has already raised over $365 million, nearly doubling its initial target, indicating a robust appetite for secondary market investments among accredited high-net-worth and institutional investors across various regions, including Europe, the Middle East, Asia, Latin America, and Canada.
The HLGPS is strategically designed to construct a diversified portfolio of mature private equity investments within the secondary market, focusing primarily on high-quality middle market buyout funds. This approach aims to provide long-term capital appreciation while addressing the specific needs of investors seeking to navigate the complexities of private markets. By leveraging Hamilton Lane's extensive experience—over 24 years in secondary investments—the fund employs a flexible investment strategy that allows for quarterly limited liquidity. This innovative structure not only enhances diversification but also mitigates the J-curve effect, thereby improving capital deployment efficiency.
James Martin, Head of Global Client Solutions at Hamilton Lane, underscores the growing significance of the secondary market in private equity, noting that the fund's oversubscription reflects a broader trend of increasing demand for evergreen funds worldwide. Co-Head of Secondary Investments, Keith Brittain, emphasizes that Hamilton Lane's differentiated deal flow, sourced from a wide network of general partners, limited partners, and brokers, positions the firm to create consistent long-term value for its investors. HLGPS represents a pivotal step in Hamilton Lane's commitment to expanding access to secondary investments, thereby enhancing the investment landscape for a diverse range of clients.
In addition to the launch of HLGPS, Hamilton Lane also announces an underwritten public offering of 528,705 shares of Class A common stock. This offering, which includes shares from both Hamilton Lane and a selling stockholder, is subject to market conditions and aims to generate approximately $77.5 million in gross proceeds. These proceeds are earmarked for facilitating cash exchanges of membership units in Hamilton Lane Advisors, L.L.C. held by select members. The firm continues to maintain its strong position in the private markets investment sector, showcasing its ability to adapt and innovate in response to evolving investor needs.
As Hamilton Lane continues to expand its offerings and enhance its investment capabilities, the firm reaffirms its commitment to providing innovative solutions that cater to the diverse requirements of institutional and private wealth investors across the globe.