Seeking to access top-tier venture and growth equity companies through funds, secondaries and direct investmentsHamilton Lane’s venture and growth equity strategy focuses on concentrating capital into what we believe to be best-in-class, high-growth companies. We do this through fund investments with venture and growth managers, direct investments and solution-oriented secondaries. We leverage our long-standing relationships to gain access to what we have determined to be the most attractive opportunities at ideal stages and through efficient structures. This strategy is designed to produce an asymmetric return profile that limits losses, while capturing the attractive upside that venture and growth equity investments can provide.
- Less correlation to other strategies due to greater sensitivity to innovation cycle as opposed to financial markets
- Seeks an attractive risk/return profile driven by limited use of leverage and potential for outsized returns
- Provides a counterbalance to the disruption of incumbents from high growth, tech-enabled businesses
- Potential for high multiple contribution from long-term, compounding growth
The ChallengeEstablished venture manager, but with limited capacity for new LPs
The ApproachHamilton Lane approached the manager through proactive outreach and began the relationship with a small commitment to the fund. Over time, and through several fund cycles, Hamilton Lane deepened its relationship with the manager, serving as a value-add LP by providing market insights, advice on best-practices and strategic support through flexible capital solutions.
The OutcomeThe relationship has led to attractive co-investment and secondary opportunities.
The ChallengeAssessing the quality of a newly-formed general partner and the attractiveness of the first fund
The ApproachThrough our existing investments in the team’s prior organizations, we validated the team’s experience and track record. We also leveraged our network of venture relationships to perform extensive reference calls and understand the team’s reputation and value-add.
The OutcomeWe invested in a first-time fund managed by an experienced group of venture investors with an outstanding reputation in their target market. We further sought to de-risk the investment by helping the manager establish practices designed to minimize the types of fund management and back-office mistakes common with first-time managers.
Venture Secondary Transaction
The ChallengeThe transaction included investments across multiple funds and involved multiple stakeholders. The existing manger was seeking to alleviate the resource burden of the portfolio on its team, so a new general partner was needed to manage the portfolio. To minimize friction with the underlying management teams and transfer process, the seller requested to transact with a familiar counterparty.
The ApproachA newly-formed fund managed by a senior investment professional that spun-out from the seller was organized to facilitate the portfolio purchase. Hamilton Lane was viewed as a strategic partner by the newly formed general partner due to the firm’s reputation and significance as an investor in the private markets. Hamilton Lane co-led the negotiation and structuring of the secondary transaction.
The OutcomeHamilton Lane invested in a unique opportunity of what we believed to be high-quality growth assets at an attractive entry price with a double-digit closing discount because of the size and complexity of the transaction.
As a committed venture and growth equity investor, we have developed deep relationships that help drive what we believe to be enhanced access to highly compelling venture and growth equity opportunities.
Managing Director, Fund Investments
Technology platform and access to data provide competitive advantage
Hamilton Lane’s continued investment in private markets technology solutions provides unparalleled access to information, including a database with over 18,000 funds, 12,000 unique managers, and 128,000+ companies. 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.