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 81% 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 9/30/2024.
Deal Spotlights
Bishop Street Underwriters
Who they are
A newly formed HoldCo consisting of recently acquired Managing General Agent (“MGA”) assets to create an insurance platform focused on providing terms and conditions in niche areas of expertise.
Why it matters
Bishop Street represents an opportunity to build a diversified MGA platform supported by an experienced GP. The company is positioned for substantial growth and expansion through strategic partnerships, proprietary deal sourcing and sector tailwinds in the specialty insurance market.
The HL advantage
This was a unique opportunity in which Redbird Capital showed us the initial opportunity in January 2024, which we declined due to the execution risk of identifying and acquiring the first assets on the platform. In September 2024, Redbird came back having completed several acquisitions and significantly derisking the deal. Redbird was also employing a similar playbook used for its investment in a previous buy and build strategy in the MGA space. We had exposure to this deal in a prior portfolio and it was successfully realized. We received our full allocation ask due to our long-standing relationship with Redbird and are the largest co-investor. This deal is also showing positive performance momentum with an early write-up expected.
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.
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.