The direct credit investment strategy is focused on the opportunity set within more senior components of a company’s capital structure, and with characteristics including contractual yield, shorter duration and capital preservation. Our goal is to provide investors with attractive, risk-adjusted returns by employing our differentiated approach to this strategy.
- Investing alongside experienced, best-in-class general partners operating in their areas of expertise
- Focusing on transactions with Hamilton Lane information and/or access advantages
- Prioritizing transaction structures designed to offer enhanced downside protection
- Emphasizing asset quality by targeting defensible, market-leading assets
Travel Nurse Across America (TNAA)
Who they areA specialized staffing firm that places nurses and health professionals in health facilities across the U.S.
Our strong sourcing advantages allowed us to be well positioned to participate in this hard-to-access transaction in which Hamilton Lane was one of two lender parties. Our relationship with the Equity Sponsor provided a meaningful information advantage in the due diligence process.
Why it mattersWe believe TNAA is positioned for growth due to the company’s strong technology infrastructure and diversified business model. We expect industry tailwinds to continue, driven by increased demand for travel nursing and higher bill rates.
The bottom lineAs the company has continued to grow, so too has our investment. Thematically, this deal emphasizes our ability to start small and then lean into “names we know,” allowing us to oversee the company for some time before increasing our exposure.
Who they are
Provider of regulatory and maintenance-driven services, including design, engineering and program/project management, serving a primarily utility-oriented customer base.
Hamilton Lane has a long-standing relationship with the equity sponsor, with whom we have completed numerous primary investments and co-investments. Our strong relationship allowed us the opportunity to invest directly in the transaction.
Why it mattersThe company has developed a long-standing presence in the utility industry as a provider of outsourced maintenance and design services. They have long-term customer relationships, averaging 13 years for the top 10 largest.
The company has a highly cash-generative business model with a variable cost structure, and has generated consistent organic growth while expanding its customer base and offerings through acquisitions.
The bottom lineAs the company has continued to grow, so too has our investment. We have made four investments in the company across our platform, continuously leveraging our information advantages and prior strong knowledge of the company.
Who they areA leading outsourced provider of anti-money laundering, Know Your Customer, and Bank Secrecy Act solutions to a diverse set of banks and non-bank financial institutions.
Hamilton Lane had strong relationships and direct access to the new equity and credit sponsors as well as the previous equity sponsor. Our strong sponsor relationships meant we were offered the opportunity to co-invest in the equity.
The HL Advantage
Big pictureThe company is a leading business within a large and resilient market benefitting from secular tailwinds. They have a differentiated business model with a high value proposition for customers and an impressive recurring revenue model.
The bottom lineIn March 2021, we helped fund a strategic acquisition by participating in a pro-rata share upsize to the term loan. This investment highlights our ability to gain differentiated access to attractive private credit opportunities and build exposure over time to support the growth of market-leading platforms.
The Hamilton Lane credit platform provides our investors with differentiated access to the private credit market opportunity through our broad and well-established network of investment partners. A flexible investment approach targeting more senior portions of the capital structure allows us the opportunity to generate attractive, risk-adjusted returns, but with an aim toward downside protection, shorter duration and current yield.
HEAD OF GLOBAL INVESTMENT STRATEGY, CO-HEAD OF INVESTMENTS
Enhancing Deal Selection and Portfolio Construction with Proprietary Data
Our vast proprietary database comprises over $16.7T in fund assets and 128,000+ portfolio companies over 51 vintage years. Our significant investments in leading private markets technology platforms and our extensive network of relationships with general partners allows us to be highly selective investors. We gain access to unique opportunities in part by leveraging our technology capabilities to make better-informed investment decisions.