A shorter duration complement to an overall private markets portfolio
The secondary market has been an attractive place for investors to deploy capital as demonstrated by the growth in both transactions and fundraising. As this market has become increasingly mature and sophisticated, transaction structures have grown more complex. We believe today’s market conditions, characterized by the global growth of private markets and more active management of private market allocations, lend themselves to the strengths of Hamilton Lane’s differentiated approach. With 20+ years of experience in this market, we remain focused on finding value in more complex and innovative secondary opportunities.
Our goal is to provide investors with significant capital appreciation by delivering attractive risk-adjusted returns. Through our unique approach and competitive positioning, we have implemented this strategy by focusing on:
- Quality, mature assets
- Partnering with quality general partners
- Flexibility and expertise across the spectrum of secondary investments
- J-curve mitigation and cash yield
Who they areSecondary purchase of a highly-diversified portfolio of LP interests in four buyout funds managed by high-quality GPs.
Initiated through targeted proactive outreach, Hamilton Lane curated an LP-interest portfolio from a broader set of funds. Proprietary data and insights led to conviction in upside drivers and embedded value across the acquired interests.
Why it mattersWe were able to leverage our information advantage to identify an attractive inflection point to enter a fund. Our strong relationship with the GP enabled us to proactively identify an LP with appetite for a liquidity solution. Hamilton Lane was then able to execute on a broader transaction with the seller in an efficient and discrete manner that was a win-win solution for all parties involved.
The bottom lineGPs view Hamilton Lane as a strategic partner with expansive investment capabilities, allowing us to utilize our expertise to create proprietary or restricted transactions. In this scenario, we crafted a diversified portfolio while maintaining discipline on due diligence and pricing.
Who they are
A commitment to a diversified portfolio of 13 funds across six high-quality managers.
The HL advantage
Because of our existing relationship with the seller as well as our market position, Hamilton Lane was given proprietary and direct access to the deal. We leveraged our information advantages to guide the Seller to include a few recent buyout funds in the transaction and obtain reasonable pricing.
Why it mattersDue to our strong familiarity with the assets and our ability to move quickly on a portfolio with material transfer restrictions, Hamilton Lane was uniquely positioned to create a solution for the seller in an efficient manner.
The bottom lineThis deal exemplifies the advantages of our vast platform. We have access to differentiated deal flow through our relationships and a data advantage that allows us insight into assets to streamline our diligence process and invest with conviction.
Who they are
An investment in an existing, diverse pool of seasoned growth and ultra-high growth companies that was purchased from an established venture manager.
The HL advantage
Hamilton Lane’s unique diligence perspectives were informed by our historical coverage and detail of the asset’s historical performance.
Big pictureThis was a proprietary purchase situation with the General Partner in which Hamilton Lane was the preferred partner and sole lead investor given our relationship and historical discussions with the manager.
The bottom lineSince closing, the portfolio has already experienced several notable events, including a listing of CareRay, a leading medical equipment company, on the Shanghai public Stock Exchange.
The secondary market has seen exponential growth over the last several years. With our experience, scale and network, we believe we’re well positioned to deliver attractive risk-adjusted returns to our clients.
Head of Secondary Investments
Utilizing our market-leading data to gain a greater level of insight
Hamilton Lane’s proprietary technology combined with our database of over 15,000 funds and 70,000+ private companies* provides a unique advantage to better understand the drivers of value within a deal. Our data advantage and extensive global primary platform represent a crucial competitive advantage and drive our ability to be a conviction buyer. We use our market-leading data to gain a greater level of insight, which is essential when the objective is to limit the downside and generate strong risk-adjusted returns.