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
Wealth Enhancement Group
Who they areProvider of retirement planning, investment advisory services, tax strategy and estate planning to working professionals, retirees, single adults and affluent clients in the U.S.
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.
Why it matters
The bottom lineThe 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 advantageWe have a 15+ year relationship with the equity sponsors, both of which have strong track records of consistent returns.
Cardiovascular Associates of America
Who they are
A cardiology services provider with nearly 200 physicians in 70+ locations across eight states.
Why it matters
Cardiovascular Associates of America is engaging in the transition of cardiac care from inpatient hospital settings to outpatient clinics in a market facing growing demand alongside a shortage of cardiologists.
The bottom lineThe investment was attractively priced and senior in the capital structure above a strong equity cushion. Cardiovascular Associates of America is differentiated by its history of strong re-occuring demand, geographic diversity and strong payer mix.
The HL advantageWe had previously invested alongside the equity sponsor, who has a strong track record and proven execution playbook in the healthcare services space. Given our broad relationship with the sponsor, we secured preferred allocation in the credit facility.
Who they areMadison Logic provides digital marketing services to B2B customers through data-driven branded content distribution and targeted advertising.
Why it mattersMadison Logic is one of the largest players in a niche segment of the market with a history of revenue growth via its existing customer base.
The bottom lineThe investment is in a conservative structure and is attractively priced for a unitranche security. Madison Logic will continue to see tailwinds from increased digital marketing spend and has downside protection from its ROI revenue-based model. Proprietary data sets allow the company to target actionable business leads for customers, gain market share from competitors, and represent a competitive advantage that secures the company’s position as a top provider.
The HL advantageHamilton Lane invested in Madison Logic in previous transactions and has followed the company for more than six years. Given our familiarity to the asset and sponsor relationships, we were able to gain access to the transaction and support the business in its next stage of growth.
Hamilton Lane’s 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 $18.5T in fund assets and 147,500+ portfolio companies over 53 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.