The Real Assets Investment Team focuses on global real asset investment opportunities that have the potential to generate consistent distribution yields and compelling risk-adjusted total returns. We remain highly selective, while seeking to deploy capital in situations in which we believe we have a competitive advantage in gaining access to and evaluating high-quality assets alongside leading general partners and operators. We believe this approach, coupled with thoughtful and deliberate portfolio construction, provides our clients with diversified and well-managed exposure to global real assets.
- Highly selective, investing in only 1.3% of $57B+ worth of transactions reviewed from 2018-2020
- Actively investing in real assets since 1999, the team today manages more than $9.7 billion of AUM and $135.6 billion of AUS
- Unique access within the sector due to investment relationships with 450+ individual managers, leading to visibility on differentiated, often off-market opportunities across sub-sectors1
Who they areRenewable power generation platform with 1.6GW of capacity through a portfolio of wind, solar, geothermal and storage assets based primarily in California.
Why It Matters
The company plays a central role in the energy transition and operates in a market that has provided a favorable backdrop for further expansion of renewable capacity.
Big PictureRenewable assets can be expensive to purchase, but the investment provided a unique combination of an attractive portfolio of operational assets and a pipeline of largely pre-contracted development assets, allowing investors to create a larger portfolio of renewables at a more reasonable cost basis than solely purchasing existing assets in the market.
The HL AdvantageOur relationship with the sponsor and its renewables team provided us with access to this unique opportunity
Who they are
A short-rail platform with significant coverage in densely populated, major metropolitan areas including New York, Philadelphia, Washington D.C., Central Florida and North Carolina.
The HL advantage
Hamilton Lane was able to access this oversubscribed opportunity through its relationship with the deal sponsor who has been growing its infrastructure platform.
Why it matters90% of freight revenue has been generated from local consumption from the Company’s end markets, and this together with a broad base of end users provides diversification in the revenue stream.
The bottom lineThe Sponsor acquired the company in 2019 and has since completed two bolt-on acquisitions and developed a pipeline of acquisition opportunities for future growth.
Who they areExperienced, lower middle-market, U.S.- based tower builder with large existing asset base of macro cellular towers and an in-place, near-term development pipeline of contracted build-to-suit towers.
Hamilton Lane developed a relationship with the sponsor over a three-year period, during which we underwrote both the manager’s primary fund and co-investment opportunities, ultimately leading to the ability to invest in Harmoni.
The HL advantage
Big pictureThe towers sector has been trading at high multiples, but the investment in Harmoni provides exposure to the space at a more reasonable valuation due to a combination of in-place revenues from the existing portfolio, and the ability to create new assets at a discount. At the same time, development risks are mitigated through the build-to-suit arrangements with carriers and long-term contracts.
Why it mattersThis investment further demonstrates Hamilton Lane’s approach to focusing on investments with attractive existing assets whose revenue is underpinned by contracted cash-flows and additional upside opportunity provided by value-creation initiatives.
We leverage our global platform, information advantages and deep sector expertise in real estate, infrastructure and natural resources to identify what we believe to be the best risk-adjusted investment opportunities for our clients and managed accounts.
Global Head of Real Assets
Greater insight driven by a robust technology platform
Hamilton Lane’s continued investment in private markets technology solutions provides unparalleled access to information including a database with more than 15,000 funds, 11,000 unique managers, and 70,000+ companies, properties and assets. Further, each year the firm participates in over 1,300 meetings with general partners on average, and reviews 1,100+ PPMs. Together, these insights help enable Hamilton Lane to be a more informed investor and a valuable strategic partner to managers, thereby providing access to unique opportunities.