Globally diversified platform targeting the SMID market with unique positioning
Our direct equity investment strategy leverages the benefits of the Hamilton Lane platform and market access, aiming to execute high-quality direct equity investments and construct portfolios positioned to deliver compelling returns for our investors. The strategy is primarily focused on making direct equity investments in companies with small- to mid-sized enterprise values. By diversifying our investments, we seek to minimize market risks associated with over-exposure to a single general partner, geography, industry or deal type or size. Our objective is to maximize the multiple of invested capital as well as the IRR for each of the direct equity investments.
- Leverage Hamilton Lane's extensive platform to drive unique and differentiated deal flow and access for our investors
- Provide access to direct equity/ co-investments at preferential fees and terms versus traditional buyout funds
- Focus on small- and mid-sized investments, with nearly 79% of investments co-underwritten or with proprietary access since 2014*
*As of December 31, 2023. Represents invested deals in Hamilton Lane Co-Investment Fund III (EO III), Hamilton Lane Co-Investment Fund IV (EO IV) and Hamilton Lane Equity Opportunities Fund V (EO V).
Deal Spotlights
Apotex
Who they are
A leading provider of generic pharmaceuticals in North America, with the #1 market position in Canada and a top-15 market position in the U.S.
Why it matters
This was a unique opportunity to transform a middle-market, family-run North American generic pharmaceuticals asset of scale, which is set to benefit from SK Capital’s value creation playbook and sector expertise.
The HL advantage
Due to our size and scale, we received early access to the deal and were positioned as a key co-underwrite partner. Throughout a long and complex process, we worked efficiently, provided surety of capital and, ultimately, served as a strategic partner to SK Capital.
What's next
Apotex has materially outperformed expectations and recently completed a dividend recap, returning ~100% of invested capital back to HL, only one year into our hold.
TIDI Products
Who they are
A leading manufacturer of single-use and consumable products focused on patient safety and infection control in medical settings.
Why it matters
TIDI holds the #1 market position in the fall management alarms and sensors market, and maintains excellent brand relationships across the largest health systems in the U.S. The company’s Acute Care product portfolio has a $1.2B total addressable market, with key tailwinds including an aging and increasingly at-risk population, acute care labor shortages, increased focus on patient safety and avoidance of costly medical errors.
The HL advantage
Due to a strong relationship with the sponsor and our ability to move quickly through the diligence process, we secured the largest CI allocation in the deal.
Smile Doctors
Who they are
The largest orthodontics-focused dental support organization (DSO) in the U.S., providing business management and support services to orthodontic practices in the South, West and Midwest.
Why it matters
The GP sold a significant minority interest in Smile Doctors to another sponsor in 2021. Following the initial realization in 2021, we received a partial payout in September 2022, with the final payout received in September 2023. Furthermore, we re-entered the deal in 2023 at the same TEV at which the sponsor acquired Smile Doctors in 2021.
The bottom line
Our thesis built around M&A proved successful as Smile Doctors has completed more than 80 acquisitions since our initial investment in 2017.
The HL advantage
Our long-standing relationship with the GP helped us secure the largest co-investment allocation in the deal. The transaction demonstrates our strong position as a lead co-investor, as well as our differentiated ability to access quality managers and assets at attractive prices and with compelling return characteristics.
Our experienced, global direct equity team maintains a diverse range of sophisticated transactional skillsets, paired with differentiated sourcing capabilities to create unique opportunities in any climate. This has helped us deliver a best-in-class investor experience and consistently strong strategy performance. Our platform advantages allow us to access transactions that others cannot and utilizes a distinct private market information database to invest in the most attractive private companies around the world.
Co-Head of Direct Equity Investments
Leveraging our database of over 21,200 funds and 157,600+ portfolio companies
Our data advantage is a key differentiator and allows the Direct Equity Investment Team to access an abundance of investment opportunities and information advantages throughout the investment lifecycle, from diligence to allocation to monitoring and reporting. We leverage our firm’s capabilities and in-depth knowledge of the private markets, as well as our significant technological reporting and analytical capabilities, to better understand the value drivers within a given investment and ultimately strive to generate compelling returns for our investors.