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
Cadence Education
Who they are
Cadence Education provides early childhood education services, with a primary focus on children under the age of five. The company owns and operates 300+ schools and academies in 30 states across the U.S.
Why it matters
Cadence provides a service desired by parents across the country, as studies show high-quality early childhood education services positively impact child development. The company provides a premium curriculum offering and is the school of choice for many families across the U.S.
The bottom line
The investment is attractively priced in line with its seniority in the capital structure. Cadence has strong prospects for growth, with 40+ schools in its acquisition pipeline and a track record of 190+ successfully integrated locations. Pointing to stability, Cadence has a strong referral base stemming from customer satisfaction and a diversified campus base, with no one state accounting for more than 8% of locations.The HL advantage
We received preferred access to this transaction given our 23+ year relationship with the equity sponsor. Additionally, we have a proven 15+ year relationship across multiple transactions with the credit sponsor.
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.
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 163,870 portfolio companies over 57 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 9/30/2024