Fund Size
Deals
General Partners
Underlying Companies
Q1 2025 Update
In this update on the Private Assets Fund (PAF) portfolio, we give an overview of the investment landscape, examples of some key investments within the portfolio and performance highlights.
Investment Professional Use Only
Fund Highlights
- PAF continued its strong growth trend in Q1 2025, reaching over $3.7 billion in AUM.
- Since inception, PAF has delivered strong returns with limited volatility compared to public markets.
- Robust AUM growth has continued to facilitate active deployment.
- Strong financial performance of underlying companies continues to contribute positively to the performance of both secondary and direct co-investments.
- PAF’s portfolio has continued delivering attractive long-term performance, despite uncertain market environments.
Fund Highlights
Performance
Private Assets Fund Performance
- During the first quarter, secondary investments accounted for approximately half of the gains in the fund, benefiting from favorable pricing on several newly closed deals as well as gains from the existing secondary portfolio.
- The direct equity portfolio also saw positive performance, continuing a trend of strong operational growth driving returns. To this point, PAF’s direct positions have seen an average EBITDA growth of 14% over the last twelve months, while multiples have remained flat.
1Inception date of the Hamilton Lane Evergreen Private Fund. Share classes were first offered in January 2021.
2Fund Size includes current NAV plus net subscriptions received for April 1, 2025 dealing date.
Past performance is not indicative of future results.
As of March 31, 2025
*Performance of the Class I shares. The Share Class performance for periods prior to January 4, 2021 reflects the performance of the Evergreen Private Fund L.P. with an inception date of September 1, 2020.Please refer to endnotes in appendixThe data quoted represents past performance, and past performance is not a guarantee of future results. To obtain performance information current to the most recent month-end, please call 888-882-8212. Performance includes the reinvestment of income dividends and capital gain distributions, if any. Performance figures do not reflect the 2% early withdrawal fee that may apply to some unit holders. Review the prospectus carefully for a complete list of fees.
Performance Drivers & Detractors
DRIVER
Anduril
Anduril is approximately 1.15% of the portfolio as of March 31, 2025.
One of the strongest drivers of performance this quarter was Anduril, a direct co-investment in a software & autonomous hardware manufacturer for the aerospace & defense end markets focused on providing next-gen solutions. Anduril has made notable progress with the development of its Lattice AI software platform, which translates data streams into real-time, 3D commands and control centers. Anduril came off cost in February, just 6 months after our initial investment, with a write-up driven by its ongoing fundraising round that is supported by strong financial performance.
Asset(s) | Software & autonomous hardware manufacturer for the aerospace & defense end markets |
Strategy | Venture Capital |
Transaction Type | Direct Co-Investment |
Geography | North America |
Investment Thesis | Continued and growing demand for innovative military products, Anduril is establishing itself as the top next-gen defense contractor with a software-first, hardware-focused strategy |
DETRACTOR
Project Nirvana
Project Nirvana is approximately 0.51% of the portfolio as of March 31, 2025.
While PAF saw overall positive performance in the fourth quarter, a diversified portfolio will always have some detractors. Project Nirvana has been a strong investment into high growth tech companies, with returns driven by both attractive pricing at purchase as well as operating growth that drove post-purchase appreciation. This quarter saw headwinds at one of its portfolio companies, a sales enablement platform, that gave back some of its earlier gains.
Asset(s) | Six high-growth technology companies |
Strategy | Growth Equity |
Transaction Type | Diversified Secondary |
Geography | North America |
Investment Thesis | Curated portfolio of high-growth technology companies through an off-market secondary transaction |
New Investment
HigherGround
HighGround is approximately 0.62% of the portfolio as of March 31, 2025.
Turning to new investment activity, we continue to view the opportunity set in the market as attractive and made 9 new investments in the fund in the first quarter. One of these investments was HighGround, a leading platform offering emergency response mitigation and restoration services to homeowners.
HighGround currently provides its services through 13 operating brands across 21 branch locations, and we see continued growth potential for the company in a highly fragmented market.
Asset(s) | Leading platform offering emergency response mitigation and restoration services to homeowners |
Strategy | Buyout |
Transaction Type | Direct Co-Investment |
Geography | North America |
Investment Thesis | Attractive opportunity for exposure to a diversified portfolio of resilient application software providers |
Key Market Themes
- As we continue to navigate uncertain market environments, we believe the portfolio is well positioned to continue delivering attractive long-term performance.
- Our research shows that historically, during times of crisis, private equity funds have had shallower drawdowns and quicker recoveries, and that private equity outperformance of public markets tends to be at its greatest level during periods of mediocre or negative public market returns.
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- Additionally, during prior periods of volatility, our ability to tactically tilt the portfolio based on market conditions has played a meaningful role in the Fund’s ability to generate strong risk-adjusted returns.
- Additionally, during prior periods of volatility, our ability to tactically tilt the portfolio based on market conditions has played a meaningful role in the Fund’s ability to generate strong risk-adjusted returns.
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Private Assets Fund
Dedicated exclusively to private markets investing for 30 years, Hamilton Lane's extensive platform drives unique and differentiated investment deal flow and access to reputable general partners. The scale of Hamilton Lane's platform, combined with our investment and portfolio management expertise, enables us to construct diversified portfolios for our investors.
Private Assets Fund is a closed-end fund and is considered illiquid and not suitable for investors with short term liquidity needs. An investment in the Fund involves risk, including the possible loss of the entire principal amount invested.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Hamilton Lane Private Assets Fund before investing. You should consider the Private Assets Fund’s investment objectives, risks, charges, and expenses carefully before investing. For a prospectus that contains this and other information about the Fund, call 1 (888) 882-8212. Please read the prospectus carefully before investing.
Hamilton Lane Advisors LLC is the Advisor to the Hamilton Lane Private Assets Fund. Distribution Services, LLC and Hamilton Lane are unaffiliated.
Hamilton Lane Private Assets Fund is distributed by Distribution Services, LLC, 190 Middle Street Suite 301, Portland ME 04101
Institutional audience only not for retail investors.