Access to the private credit market, emphasizing current yield with an aim toward downside protection
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
Deal Spotlights
Project Lunar
Who they are
The investment is in a $3.2 billion private credit continuation vehicle established to acquire a portfolio of loans and other securities across 41 sponsor-backed, middle-market businesses.
Why it matters
The transaction represents the largest single‑fund portfolio in private credit secondaries to date.¹ Project Lunar aligns closely with our Credit platform’s focus on senior secured private credit and opportunistic secondaries, delivering immediate diversification across issuers and sponsors through a single investment.
1Jefferies proprietary analysis of global credit secondary transaction data to date. Past performance is not an indicator of future results.
The HL advantage
Our long‑standing relationships with both Crescent (the credit sponsor) and Jefferies (the financial advisor), provided our Credit Investment team early access to the process and helped secure a scaled allocation on attractive terms in an oversubscribed GP‑led continuation vehicle. Additionally, our access to in-depth fund reporting provided detailed information on the underlying businesses, supporting an extensive diligence process.
The bottom line
The portfolio is positioned to generate stable, attractive returns driven by an emphasis on senior secured lending, broad diversification and disciplined portfolio construction.
Past Performance is not an indicator of future results.
Franklin Energy
Who they are
A leading U.S. demand-side management (DSM) program manager, providing DSM program execution and distributing energy-efficient products to a nationwide client base.
Why it matters
The company is the second largest DSM program manager in the space, developing and delivering energy efficiency and sustainability programs for utilities and governments, supported by nationwide capabilities, strong customer retention and a contract-driven revenue model.
The HL advantage
Our longstanding GP relationships, including a 23+ year relationship with the equity sponsor and an 8+ year relationship with the credit sponsor, positioned us to be involved in the transaction with early access.
Ultimus Fund Solutions
Who they are
A leading independent provider of full-service fund administration, fund accounting and investor solutions for public and private fund managers in the U.S.
Why it matters
The company is the only independent player with a scaled U.S. presence in both registered and private fund administration.
The HL advantage
We have maintained a long-standing positive view on Ultimus, having first invested in 2019 and again in 2024. As an incumbent lender, we have benefited from our information advantage and our proven relationship with the equity sponsors spanning 19+ years.
The bottom line
The company is well-positioned as a leading fund administrator in the U.S. Its blue-chip customer base has allowed the company to generate a strong revenue and EBITDA profile. Industry tailwinds further position Ultimus for continued growth.
Our direct credit platform leverages a world-class team of experienced professionals to deliver unique access to industry-leading companies backed by leading general partners. Investors benefit from access to diverse credit strategies ranging from senior to opportunistic lending in investor-friendly structures designed to deliver performance and flexibility in areas like duration and liquidity.
Head of Direct Credit Investments
Enhancing Deal Selection and Portfolio Construction with Proprietary Data
Our vast proprietary database comprises 163,870 portfolio companies over 57 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.
As of 12/31/2024