We’re pleased to report notable progress over the last several months across several of our commingled product solutions. We recently launched Strategic Opportunities VII, the latest in our annual series of credit-focused funds. In addition, we launched our second Impact Fund and are thrilled to have welcomed a number of new investors into our inaugural Infrastructure Opportunities Fund.
Impact Fund II
Hamilton Lane has been actively executing on impact investment programs since 2001, now managing more than $2.5B in capital.* We recently launched our second commingled impact vehicle, Hamilton Lane Impact Fund II, which leverages our established impact platform to provide investors with a globally-diversified private markets solution targeting financial returns and a meaningful, measurable impact. Impact Fund II aims to invest in companies with a focus on innovation, transformative technologies and efficiency through a direct investment portfolio.
- A continuation of the successful strategy deployed in Impact Fund I, the Fund invests directly in businesses with a focus on the core categories of Environmental and/or Social Impact.
- Leverages Hamilton Lane’s deep access and analytics to produce both financial and impact-oriented outcomes.
- Ensures impact metric tracking capabilities, with an emphasis on clear paths for growth.
- Builds on momentum from Fund I, which to-date has made 16 investments totaling ~95% committed and reserved, and has a strong early track record.**
- First close targeted for end of June; strong indications of interest to-date from a variety of global LPs.
*As of 12/31/20
**As of 4/21/21
Infrastructure Opportunities Fund
The Infrastructure Opportunities Fund is our first dedicated infrastructure vehicle, designed to pursue direct investment and secondary transactions within the infrastructure space. The Fund is a continuation of our 16-year history of direct and secondary infrastructure investment activities.
- Continued increase in capital commitments since the first close in September 2020. As of June 2021, expect to have raised 60% of $500M target, including amounts committed both in and alongside the Fund.
- Seeing continued attractive opportunities in the current environment, with investments that are consistent with the focus of the Fund.
- Targeting high-quality infrastructure assets underpinned by contracted cash flows, with returns driven by a combination of current yield and asset appreciation, and value-creation opportunities through operational improvements and/or platform expansions.
- Approved six investments to-date, diversified by sub-sector, geography and risk profile. We are pleased with the performance as of year end, and continue to strive to mitigate the J-curve for investors’ broader portfolios.
- Expect to hold next close end of September and anticipate a final close in late 2021 or early 2022.
Strategic Opportunities Fund VII
Strategic Opportunities Fund VII, the latest in our long-running annual direct credit series, is now open to select investors* and will be available through early 2022.
- Fund VII will continue with the same successful strategy, structure and terms as prior funds in the series.
- Prior funds are exhibiting robust IRR and distribution outperformance against benchmarks.
- $403M of distributions in 2020, representing 30% of average 2020 platform NAV.
- Credit deal flow has been robust, with $2.1B in opportunities screened in Q1 2021, representing a 90% increase from the prior year.
- Recent vintages update:
- SO V (2020 vintage) is fully committed across 26 investments, representing $752M.
- SO VI (2021 vintage)
- Final closing held in Q1 2021 on a total of $898M in commitments.
- Healthy deployment momentum: $362M committed across 12 investments.**
*The Fund is not currently open to European investors.
**As of 4/30/21