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
$40.5B

Deal Flow Since 2015

$4.5B

Committed Capital Across 180+ Transactions

22+

Years Investing in Direct Credit


*As of 09/30/22


Deal Spotlights



Travel Nurse Across America (TNAA)

Who they are

A specialized staffing firm that places nurses and health professionals in health facilities across the U.S.


Unique Access

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 matters

We 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 line

As 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.

EN Engineering

Who they are

Provider of regulatory and maintenance-driven services, including design, engineering and program/project management, serving a primarily utility-oriented customer base.


Unique Access

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 matters

The 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 line

As 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.

AML RightSource

Who they are

A 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.


The HL Advantage

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.

Big picture

The 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 line

In 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.



Read our take on the current Direct Credit landscape



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.
Drew Schardt
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.

*As of 09/30/22

Discover Hamilton Lane Technology

Recent Content

insight

Nobody Ever Got Fired for Buying Senior Credit

Senior private credit in an evergreen structure affords investors differentiated access to downside protection delivering safety and yield.

Read the Research Article
insight

Hamilton Lane Closes Largest Ever Strategic Opportunities Fund on More Than $950 Million

Announcing the final closing of Strategic Opportunities Fund VII, the largest ever within the series, representing approximately $953M in commitments.

Read the Press Release
insight

Does High Inflation Have You Confused About Where To Invest?

Inflation is sending investors across the public and private markets mixed signals, leaving them searching for direction on what asset classes or strategies might prove to be a safe harbor. One such strategy is private credit.

Read the Research Article

FPO We use cookies to improve user experience, and analyze web traffic. For those reasons, we may share your site usage with our analytics partners.

Learn More