The Real Assets Investment Team focuses on global real asset investment opportunities that have the potential to generate consistent distribution yields and compelling risk-adjusted total returns. We remain highly selective, while seeking to deploy capital in situations in which we believe we have a competitive advantage in gaining access to and evaluating high-quality assets alongside leading general partners and operators. We believe this approach, coupled with thoughtful and deliberate portfolio construction, provides our clients with diversified and well-managed exposure to global real assets.
- Highly selective, investing in only 2.07% of $31.2B+ worth of transactions reviewed from 2019-2022
- Actively investing in real assets since 1999, the team today manages more than $12.3 billion of AUM and $152.8 billion of AUS
- Unique access within the sector due to investment relationships with 500+ individual managers, leading to visibility on differentiated, often off-market opportunities across sub-sectors1
Who they areA fully permitted and contracted underground renewable power transmission line spanning 339 miles from Canada to New York City.
TDI can provide New York City with 24/7 renewable power for ~20% of total daily power consumption* and is expected to reduce CO2 emissions by 3.9 million tons annually, which is equivalent to removing ~44% of the city’s vehicles. Further, the project is estimated to generate $1.4 billion in new tax revenue for local communities over the first 25 years and create 1,400 jobs during construction.**
Why it matters
The HL advantageHamilton Lane’s longstanding and established relationship with the sponsor allowed us to track the project’s development over the last decade, through permitting, governmental relations and construction de-risking initiatives.
The bottom lineHamilton Lane leveraged our strong relationship with the sponsor to access an oversubscribed opportunity with a favorable risk/return profile.
Why it mattersOne of the largest privately-owned engineering and contracting firms in the U.S., providing healthcare, education, commercial and government customers with turnkey energy-as-a-service solutions.
The HL AdvantageAs an integrated provider of development, financing, design, construction and operational solutions, Bernhard helps its customers more efficiently manage their assets, thereby reducing energy use, risk and costs. These efficiencies help to reduce carbon footprints and minimize energy waste.
The HL AdvantageHamilton Lane has had a relationship with the Sponsor dating back to their early funds. We have also had a relationship with the selling GP dating back to the firm’s inception nearly 10 years ago, and had the unique opportunity to track the progress of Bernhard during their ownership. This provided a unique perspective into the company’s performance and prospects for future value creation.
Who they areRenewable power generation platform with 1.6GW of capacity through a portfolio of wind, solar, geothermal and storage assets based primarily in California.
Why It Matters
The company plays a central role in the energy transition and operates in a market that has provided a favorable backdrop for further expansion of renewable capacity.
Big PictureRenewable assets can be expensive to purchase, but the investment provided a unique combination of an attractive portfolio of operational assets and a pipeline of largely pre-contracted development assets, allowing investors to create a larger portfolio of renewables at a more reasonable cost basis than solely purchasing existing assets in the market.
The HL AdvantageOur relationship with the sponsor and its renewables team provided us with access to this unique opportunity
*Based on NYC Energy Consumption of 49.2 TWh from the New York System Operator; CHPE anticipates production of 10.4 TWh.
**Data shown for future time periods are estimates subject to substantial variation and are based on assumptions and assessments made by Blackstone that it considers reasonable as of the date hereof. Such estimates are speculative, and inherently uncertain in nature, and it can be expected that some or all of the assumptions underlying such estimates will not materialize and/or that actual events will vary materially from the assumptions.
We leverage our global platform, information advantages and deep sector expertise in real estate, infrastructure and natural resources to identify what we believe to be the best risk-adjusted investment opportunities for our clients and managed accounts.
Global Head of Real Assets
Greater insight driven by a robust technology platform
Hamilton Lane’s continued investment in private markets technology solutions provides unparalleled access to information including a database with more than 18,000 funds, 12,000 unique managers, and 128,000+ companies, properties and assets. Further, each year the firm participates in over 1,300 meetings with general partners on average, and reviews 1,100+ PPMs. Together, these insights help enable Hamilton Lane to be a more informed investor and a valuable strategic partner to managers, thereby providing access to unique opportunities.