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
Taxwell (formerly Drake Software)
Who they are
A leading provider of tax preparation software to both professional tax preparers and individual digital Do-It-Yourself (DIY) filers. The company provides the tools and resources that users need to build their businesses and properly file federal, state and local taxes across the country.
Why it matters
The transaction funded Taxwell’s purchase of TaxAct, a top provider of digital Do-It-Yourself tax preparation services. Complementary expertise of the two companies (professional vs. individual “DIY”) creates an industry frontrunner with a full-spectrum product offering.
The bottom line
The investment is well priced given the structural seniority in the capital structure. The combined entity created a top-tier product offering with high recurring revenue in a growing end market.
The HL advantage
We have significant experience conducting diligence in the industry, allowing us to work quickly and efficiently. We received preferred access to this transaction given our 22+ year relationship with the equity sponsor and 6+ year relationship with the credit sponsor.
Unifeye Vision Partners
Who they are
A medical vision platform that provides Anterior Segment Ophthalmology, Oculoplastics, Optometry and Retinal Specialty Treatment across 50+ clinics and 15 surgical centers in the U.S.
Why it matters
UVP provides industry-leading procedures and examinations across multiple specialties (from treatment of eye disorders to cosmetic surgery) in a vertically integrated model that allows patients to stay in the UVP network through the lifecycle of their treatment plan.
The bottom line
The investment is attractively priced, and the company has grown consistently from both case volume increases and the execution of a successful acquisition strategy. UVP has a well-developed referral base of eye doctors, primary care physicians and consumers. Additionally, UVP has a diversified payor base and a strong bench of physician talent, ensuring future positive performance.
The HL advantage
We received preferred access to this transaction, with the equity sponsor contacting us prior to reaching out to other parties due to our 8+ year relationship. Additionally, we have a proven 12-year working relationship with the credit sponsor, having invested in 7+ credit transactions alongside them to date.
Wealth Enhancement Group
Who they are
Provider of retirement planning, investment advisory services, tax strategy and estate planning to working professionals, retirees, single adults and affluent clients in the U.S.
Why it matters
Wealth Enhancement Group (WEG) provides a wide range of highly personalized services in a market rapidly transitioning from traditional low-touch wirehouses and broker dealers to more high-touch offerings.
The bottom line
The investment is attractively priced, and WEG has a long history of executing on both organic and inorganic growth initiatives. The firm has a strong referral base through relationships with the country’s largest custodians, providing services they do not offer themselves. From an inorganic perspective, WEG has integrated 35+ acquisitions since 2020 with a promising pipeline ahead. The company’s key differentiator is their centralized marketing platform that accentuates advisor capabilities, helping them to better serve their clients.The HL advantage
We have a 15+ year relationship with the equity sponsors, both of which have strong track records of consistent returns.
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 over $18.9T in fund assets and 152,100+ portfolio companies over 52 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.