We seek to make impact investments with a dual objective of generating attractive risk-adjusted returns while creating a measurable social and environmental impact. Since 2001, we have been developing and investing in mission-driven customized portfolio solutions for our clients, investing across the growing market opportunity and leveraging Hamilton Lane’s global platform, network and deal flow. Importantly, we also identify and report on impact metrics of underlying investments.
- Strategic investment partner for private markets fund managers globally with broad coverage of private impact markets
- Striving to generate measurable social and environmental impact in addition to financial returns
- Same rigorous underwriting, shared intel, data and resources across Hamilton Lane’s investment and research activities, including an impact lens
- Investing with a focus on the core impact sectors of: Healthcare, Energy & Environment, Community Development and Financial Empowerment
Case Studies
Cold-Chain Logistics Provider
The Challenge
Traditional cold-chain shipping methods, which constitute the vast majority of all pharmaceutical deliveries today, use Styrofoam or expanded polystyrene and other disposable materials that contribute significant waste to landfills. Additionally, ~25% of products experience some level of impairment during the traditional cold-chain shipping process. Temperature-sensitive pharmaceuticals are often used for life threatening illnesses and are thus critical for patients.The HL Approach
Hamilton Lane partnered with a sponsor in its area of expertise, specifically with a strong track record in the healthcare space through companies that have high shipping volumes. Our investment was at a unique inflection point in the company’s growth.The Impact
The company’s offerings allow customers to safely deliver temperature-sensitive products in a sustainable and environmentally friendly reusable shipper, while also saving on the total cost of packaging, logistics and damaged product.
Impact metrics Hamilton Lane tracks:
- Tons of landfill waste reduced
- Number of shipments
Donation Management SaaS Provider
The Challenge
Third-party studies show that corporations are increasingly seeking ESG- focused programs and solutions. However, a large portion of companies either have no program at all or an informal program that is highly resource- and time-intensive.
Separately, all donations to charities and non-profits entail some additional administrative costs, which often depend on the method of payment that is used to make the donation. These costs can vary widely and limit the funds that are ultimately used toward furthering the cause.
The HL Approach
Hamilton Lane sourced a proprietary deal from a best-in-class sponsor to invest in a late-stage growth round. No other outside investors had access to this round, as Hamilton Lane gained access through our deep, long-standing GP relationship.The Impact
This company utilizes its proprietary software to provide a full-service and efficient suite of workplace-giving and employee engagement solutions, including online giving, corporate matching, volunteer management and community investment programs.
Impact metrics Hamilton Lane tracks:
- Number of clients either distributing funds along with their employees through the platform or using its granting solutions
- Dollars of donations managed/transferred and processed on the platform
- Number of causes supported
Addiction Treatment Center
The Challenge
Substance abuse is an issue that has been growing at an alarming rate. According to the CDC, in 2018 more than 67,000 Americans died from an opioid overdose.1 Prescription drug abuse has been fueling a rise in heroin addiction, with heroin use increasing substantially over the last decade. Additionally, data from The National Institute on Alcohol Abuse and Alcoholism estimates that 15 million people in the U.S. have an alcohol use disorder.2
The HL Approach
Hamilton Lane partnered with a leading, lower middle-market sponsor who was well-positioned to add value through previous behavioral health and multi-site provider experience. At investment, we planned for and ultimately funded several follow-on investments to support growth.The Impact
This leading provider of comprehensive substance abuse treatment treats more than 9,000 adult patients per day. The company delivers quality outcomes, marked by a low and decreasing readmission rate, and is recognized as a preferred provider by many insurance companies.
Impact metrics Hamilton Lane tracks:
- Patient success rate measured by the declining percentage in readmission rates
- Number of care facilities
- Expansion to new states
Hamilton Lane’s platform, scale and data expertise give us a powerful advantage in identifying and executing on what we believe to be attractive investment opportunities aimed at benefitting society.
Managing Director & Responsible Investment Committee Member
Technology facilitates impact metric tracking
Hamilton Lane’s technology solutions support our objective of generating compelling returns and social and environmental impact for our investors. Using these technology solutions, we can monitor and report the relevant impact metrics respective to each investment. These metrics include, but are not limited to:
- Reduction in CO2 emissions
- Energy savings
- Water cleaned
- Landfill waste reduction