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
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.
Vistage Worldwide, Inc.
Who they areThe 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 mattersVistage 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 lineVistage 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 advantageHamilton 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.
Enhancing Deal Selection and Portfolio Construction with Proprietary Data
Our vast proprietary database comprises over $17.20T in fund assets and 140,000+ 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.