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Evergreen Assets Under Management1
Years of Secondary Capital Track Record2
Secondary Assets Under Management3
Secondary Transactions Completed
Where Scale Meets Expertise
Leveraging our substantial primary capital deployment, we believe we are uniquely positioned to capitalize on the attractive long-term growth potential trends of the secondary market through a dedicated continuous evergreen investment vehicle. Supported by a team of 278 investment professionals,2 we aim to deliver topical market insights, robust execution capabilities and the flexibility to invest across all segments
Harnessing the power of secondaries for private wealth investors
- Liquidity: Focuses on funded assets with strong potential for near-term distributions
- Growth Potential: Targets high quality middle market buyout funds at inflection points
- Flexibility: Leverages Hamilton Lane’s strong competitive position with LPs and GPs to maintain a flexible approach across transaction types
- Optimized Returns: Seeks entry discounts combined with long-term value appreciation
Why invest in secondary investments?
Secondaries have historically generated attractive returns and low volatility versus other private markets strategies
- J-Curve mitigation. Investments are purchased farther along in their life cycle, with the potential to reduce the negative impact of management fees and accelerate the pace and timing of distributions.
- Instant diversification. Secondaries may provide investors with the ability to quickly diversify a portfolio by vintage years, investment strategies, industry sectors and fund managers.
- Knowledge of underlying assets. Secondary portfolio companies can be carefully analyzed, reducing the “blind pool” risk associated with primary investments.
- Increased pace of capital deployment. Investments are typically at or near the end of their investment periods when purchased.
- Embedded Value. Secondaries are usually sold at a discount to their primary market counterparts, potentially enhancing overall risk-adjusted returns.
Why now?
The secondary market presents an opportunity set that is broader than ever before in terms of deal flow, creativity and transaction activity
- Record secondary volumes. Secondary volume has grown 18% annually from 2013 through 20244, with 2024 hitting a record level of volume and more secondary opportunities.
- Supply-demand imbalance. There currently isn’t enough secondary capital to support all the deal volume, thus creating an attractive buyer dynamic5.
- Potential appreciation. Secondary funds formerly had a reputation for offering quick returns from discounts. However, most returns from secondaries are now coming from go-forward appreciation
- Historical performance. Secondaries have generated strong returns and liquidity for investors to date.
Target Portfolio Construction
For illustrative purposes only. Allocations subject to change without notice.
- Our investment approach targets a broad spectrum of secondary opportunities, from GP-led, structured transactions to the purchase of individual fund interests
- Flexible approach across transaction types given our strong competitive position in both the LP and GP markets
- Primarily focused on developed markets, with more weight towards North America
- Focus on hard to access, high quality mid market buyout funds where our relationship advantage is prioritized
3Total Secondary AUM = discretionary and non-discretionary active commitments. As of December 31, 2024
4Source: Evercore FY 2024 Secondary Market Review (January 2025)
5Source: Hamilton Lane Diligence (January 2025)