Hamilton Lane launches new fund to expand access to private markets for individual US investors
Private markets investment management firm Hamilton Lane has launched the Hamilton Lane Private Assets Fund (PAF), a closed-end investment vehicle registered under the Securities Act of 1933 and the Investment Company Act of 1940 (’40 Act).
This registration makes the Fund more widely available to qualified US clients, including certain high-net-worth (HNW) investors and their wealth advisors, who now have access to a diversified, institutional-quality portfolio of private equity and private credit assets through a single investment.
The Fund is a multi-strategy vehicle that seeks to generate capital appreciation over the medium and long term. As an evergreen product, PAF allows for monthly subscriptions and intends to offer a quarterly tender to provide limited liquidity. The Fund will aim to invest in a mix of secondaries, direct investments and co-investments in credit and equity across geographies, industries, vintages and general partners. Compared to traditional private market offerings, the Fund features a lower minimum investment of USD50,000 and simple 1099 tax reporting, targets fee-efficient investments, and provides the potential for attractive risk-adjusted returns and limited administrative burden.
Drew Schardt, PAF Investment Committee Member, says: “This is a significant milestone in support of our goal to broaden accessibility to the attractive return potential as well as the wealth creation potential the private markets can offer. We are thrilled to announce the launch of the Private Assets Fund, which is a client-friendly option for family offices and HNW investors seeking diversified exposure to this asset class. In addition to greater flexibility compared to traditional private market vehicles, our unique fund structure allows for limited liquidity1 in a historically illiquid asset class and direct access to private companies through a single investment into a fully-built portfolio.”
Hamilton Lane seeded the Fund with USD30 million from the firm’s balance sheet, alongside an additional USD100 million in capital from an anchor investor. PAF is Hamilton Lane’s latest evergreen product offering and our first available to certain qualified US investors.
The firm’s Global Private Assets Fund (GPA) launched in May 2019, and is open to HNW and wholesale investors in Australia and New Zealand, Canada, and parts of Europe, Asia, Latin America and the Middle East. In total, GPA manages approximately USD506 million in assets as of December 22, 2020.
Mario Giannini, CEO of Hamilton Lane, says: “At Hamilton Lane, we have focused exclusively on private markets investing over the last three decades, building flexible solutions for many of the largest and most sophisticated institutional investors in the world. Now, a newer class of investors has differentiated access to the firm’s unique deal flow, global private market platform and long-standing industry relationships to help them meet their specific financial goals.”