Globally diversified platform targeting the SMID market with unique positioning
Our direct equity investment strategy leverages the benefits of the Hamilton Lane platform and market access, aiming to execute high-quality direct equity investments and construct portfolios positioned to deliver compelling returns for our investors. The strategy is primarily focused on making direct equity investments in companies with small- to mid-sized enterprise values. By diversifying our investments, we seek to minimize market risks associated with over-exposure to a single general partner, geography, industry or deal type or size. Our objective is to maximize the multiple of invested capital as well as the IRR for each of the direct equity investments.
- Leverage Hamilton Lane's extensive platform to drive unique and differentiated deal flow and access for our investors
- Provide access to direct equity/ co-investments at preferential fees and terms versus traditional buyout funds
- Focus on small- and mid-sized investments, with nearly 80% of investments co-underwritten or with proprietary access since 2014*
*Represents Proprietary, Advantaged, and Co-Underwritten invested deals in Hamilton Lane Co-Investment Fund III (EO III), Hamilton Lane Co-Investment Fund IV (EO IV) and Hamilton Lane Equity Opportunities Fund V (EO V) by deal count as of 6/30/2024.
Deal Spotlights
CLEAResult
Who they are
A provider of energy efficiency, demand-side management and sustainability programs to utility and commercial customers as well as state energy offices.
Why it matters
Increasing electricity demand driven by tailwinds including data center build out and electric vehicle adoption is expected to materially widen the gap between electricity supply and demand. CLEAResult provides a critical value proposition to its customers and energy consumers by administering and implementing energy efficiency programs to reduce consumption and drive cost savings.The HL advantage
We invested alongside Kohlberg & Co., a sponsor that has developed an entire investment strategy around the U.S. energy transition and infrastructure services. Our co-investment team has completed several successful infrastructure services deals alongside the sponsor, giving us conviction in Kohlberg's repeatable value creation playbook. Given our long-standing, multi-decade relationship with Kohlberg across all investment verticals, we were their first call for co-investment capital. Not only did we come in early to co-underwrite the deal, but we also received the largest co-investment allocation.
Cosette Pharmaceuticals
Who they are
A U.S.-based, fully integrated pharmaceuticals platform focused on women’s health, cardiology, and dermatology therapeutic areas.
Why it matters
Cosette’s diversified portfolio of branded products, along with innovative, patent-protected drugs, position the business to capitalize on future organic growth opportunities, supplemented by its M&A strategy and R&D focus.
Managing Director Jay Rosenberger dives deeper into the HL advantage in this deal spotlight video.
Apotex
Who they are
A leading provider of generic pharmaceuticals in North America, with the #1 market position in Canada and a top-15 market position in the U.S.
Why it matters
This was a unique opportunity to transform a middle-market, family-run North American generic pharmaceuticals asset of scale, which is set to benefit from SK Capital’s value creation playbook and sector expertise.
The HL advantage
Due to our size and scale, we received early access to the deal and were positioned as a key co-underwrite partner. Throughout a long and complex process, we worked efficiently, provided surety of capital and, ultimately, served as a strategic partner to SK Capital.
What's next
Apotex has materially outperformed expectations and recently completed a dividend recap, returning ~100% of invested capital back to HL, only one year into our hold.
Our experienced, global direct equity team maintains a diverse range of sophisticated transactional skillsets, paired with differentiated sourcing capabilities to create unique opportunities in any climate. This has helped us deliver a best-in-class investor experience and consistently strong strategy performance. Our platform advantages allow us to access transactions that others cannot and utilizes a distinct private market information database to invest in the most attractive private companies around the world.
Co-Head of Direct Equity Investments
Leveraging our database of over 23,300 funds and 16,890 portfolio companies
Our data advantage is a key differentiator and allows the Direct Equity Investment Team to access an abundance of investment opportunities and information advantages throughout the investment lifecycle, from diligence to allocation to monitoring and reporting. We leverage our firm’s capabilities and in-depth knowledge of the private markets, as well as our significant technological reporting and analytical capabilities, to better understand the value drivers within a given investment and ultimately strive to generate compelling returns for our investors.