A shorter duration complement to an overall private markets portfolio
The secondary market has been an attractive place for investors to deploy capital as demonstrated by the growth in both transactions and fundraising. As this market has become increasingly mature and sophisticated, transaction structures have grown more complex. We believe today’s market conditions, characterized by the global growth of private markets and more active management of private market allocations, lend themselves to the strengths of our differentiated approach. With 23 years of experience in this market, we remain focused on finding value in more complex and innovative secondary opportunities.
Our goal is to provide investors with significant capital appreciation by delivering attractive risk-adjusted returns. Through our unique approach and competitive positioning, we have implemented this strategy by focusing on:
- Quality, mature assets
- Partnering with quality general partners
- Flexibility and expertise across the spectrum of secondary investments
- J-curve mitigation and cash yield
Deal Spotlights
Project Room 24
Description
Acquisition of a single fund LP interest that Hamilton Lane sourced on a bilateral basis.
Why it matters
The portfolio is well diversified across various sectors and consists of strong performing assets that have the potential to drive meaningful upside with significant near-term liquidity.The bottom line
We negotiated an attractive discounted entry into a high-quality fund at an inflection point.The HL advantage
We had an information advantage given our seat on the Fund’s advisory board and having invested directly into the two largest assets via our broader platform. Through the culmination of our strong existing relationship and information advantage, we benefited from differentiated access and insight into the portfolio. This is a great example of a proprietary deal that originated through our thematic sourcing approach.Project Parma
Who they are
Acquisition of a single fund interest invested in a diverse portfolio of 30 assets, managed by a leading private equity firm in Europe.The HL advantage
HL was able to preempt a competitive process on a single fund interest and carved it out of the broader portfolio by offering the seller speed and certainty. The fund had been recently underwritten by HL and demonstrated strong growth throughout 2022.The bottom line
Despite the volatile market environment, we had conviction in this investment given our relationship with the GP and insight into the portfolio.Project Weightstone
Who they are
Acquisition of a highly diversified portfolio of 10 LP fund interests managed by various high-quality GPs.The HL Advantage
Because of our established relationships with the underlying GPs, Hamilton Lane was one of only a few potential buyers able to acquire the entire portfolio and provide the seller with an efficient closing process.Why it matters
We leveraged our GP relationships and portfolio information advantages (having coverage on 99% of NAV) to complete detailed diligence in an expedited time frame. We were able to offer the seller multiple bid structures, eventually underwriting the portfolio under our preferred structure, which included a 12-month deferral on 100% of the purchase price.
The secondary market has seen exponential growth over the last several years. With our experience, scale and network, we believe we’re well positioned to deliver attractive risk-adjusted returns to our clients.
HEAD OF SECONDARY INVESTMENTS, CO-HEAD OF INVESTMENTS
Utilizing our market-leading data to gain a greater level of insight
Hamilton Lane’s proprietary technology combined with our database of over 20,100+ funds and 140,400+ private companies* provides a unique advantage to better understand the drivers of value within a deal. Our data advantage and extensive global primary platform represent a crucial competitive advantage and drive our ability to be a conviction buyer. We use our market-leading data to gain a greater level of insight, which is essential when the objective is to limit the downside and generate strong risk-adjusted returns.