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
Vistage Worldwide, Inc.
Who they are
The world’s largest CEO coaching organization for small and mid-sized businesses, offering a bundled subscription that provides access to peer group advisory meetings, one-on-one coaching, expert speakers/events and a global network of more than 27,000 members.Why it matters
Vistage has a durable business model, a strong financial profile, and a large total addressable market with significant white space to expand. The company's mission is to help CEOs make better decisions and become more effective leaders.The bottom line
Vistage has a 60+ year history and has proved to be extremely durable during challenging market environments, particularly during the GFC and pandemic, as CEOs turned to peer groups to help navigate uncertainty. Vistage’s asset-light and highly variable cost structure has the potential for sustainable, long-term revenue and EBITDA growth across economic cycles.The HL advantage
Hamilton Lane's relationship with the equity sponsor provided a meaningful information advantage in the due diligence process, as we have invested alongside them in several transactions. Additionally, this deal exemplifies the theme of “lending to names we know,” as we already had a strong familiarity with the asset, previously evaluating the business in 2019.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.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.
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