Global private markets investment firm Hamilton Lane (Nasdaq: HLNE) has closed its largest private capital fund to date raising $US5.6 billion ($8.4 billion) for its flagship Secondary Fund VI.
Commitments to the fund substantially exceeded the 2021 target of $US5 billion.
Hamilton Lane said the fund had attracted strong support from new and existing investors including corporate and public pension funds, sovereign wealth funds, endowments, foundations, private wealth platforms and other financial institutions from more than 30 countries.
According to Secondariesinvestor.com, institutions that have committed to the fund include Boston Retirement System, Employees’ Retirement Fund of the City of Dallas, Fubon Life Insurance, KGI Life and Public Employee Retirement Systems of Idaho.
Hamilton Lane’s predecessor Secondary Fund V had raised an over-target $US3.9 billion when it was closed in early 2021. As at the end of June 2023, Fund V had a total value to paid in capital (TVPI) of 1.5x and an internal rate of return (IRR) of 24.52%, according to data from the Public Employee Retirement System of Idaho.
Hamilton Lane co-head of investments, and global head of secondary investments, Tom Kerr said: “Fund VI is a continuation of our longstanding secondary franchise and we continue our mission of seeking to find differentiated secondary opportunities at attractive inflexion points where we have familiarity and a competitive angle.”
Managing director on the secondary investment team, Ryan Cooney, added: “Our high calibre investor base recognises us for our differentiated deal flow, large network of touch points and an analytical investment approach that is backed by one of the industry’s largest databases.”
Hamilton Lane has been active in the secondaries space for more than 24 years.
The firm’s secondaries platform (including discretionary and non-discretionary active commitments) represented around $20.9 billion in assets under management as of 31 March 2024.
Based in Philadelphia, Hamilton Lane has its Australia office in Sydney.
Image: Hamilton Lane co-head of investments Tom Kerr.