Hamilton Lane Closes its Largest Fund To-Date on $5.6 Billion for Secondary Fund VI, Exceeding Target

Rhea-AI Summary

Hamilton Lane has successfully closed its largest fund to date, raising $5.6 billion for Secondary Fund VI, surpassing its $5 billion target. This new fund exceeds the previous Secondary Fund V by over 40%, which closed at $3.9 billion in 2021. The firm's impressive fundraising efforts reflect strong support from a diverse group of investors, including corporate and public pension funds, sovereign wealth funds, and other financial institutions from over 30 countries. The firm's secondary platform now represents approximately $20.9 billion in assets under management as of March 31, 2024.

Positive

• Hamilton Lane raised $5.6 billion, surpassing the $5 billion target.
• The fund exceeded the previous Secondary Fund V by over 40%.
• Strong support from diverse investors in over 30 countries.
• Secondary platform now represents $20.9 billion in AUM as of March 31, 2024.
• Demonstrates a strong market-leading position within the asset class.

Negative

• Potential risks associated with managing a significantly larger fund.
• Increased competition in the secondary market could impact returns.
• Market conditions driving liquidity appetite may fluctuate.

Financial Analyst

The closing of Hamilton Lane's Secondary Fund VI at $5.6 billion is a notable achievement, exceeding the initial target by $600 million. This is more than a 40% increase compared to its predecessor, indicating strong confidence from investors. The diversified investor base, including pension funds and sovereign wealth funds, suggests that Fund VI's strategy aligns well with current market demands. For retail investors, this signals Hamilton Lane's robust position and growth potential in private equity. In the short term, expect potential positive impacts on Hamilton Lane's stock price as market confidence rises. However, long-term success will hinge on the fund's performance and Hamilton Lane's ability to navigate market risks and maintain its competitive edge.

Market Research Analyst

Hamilton Lane's ability to attract a global investor base with Secondary Fund VI underscores its strong market position. The substantial increase in commitments compared to Fund V highlights a growing appetite for secondary market investments. This trend reflects a broader market shift towards seeking liquidity and risk-adjusted returns in private markets. For retail investors, this development suggests that Hamilton Lane is well-positioned to capitalize on these market dynamics. However, it's essential to monitor how effectively the firm can deploy this capital and manage its expanded portfolio to generate the expected returns. The ongoing geopolitical and economic uncertainties could pose challenges, impacting investor sentiment and fund performance.

• Firm's largest ever fundraise closes on $5.6 billion in commitments from a diverse international investor base
• Fund closing surpasses predecessor by more than 40%

CONSHOHOCKEN, Pa., June 18, 2024 /PRNewswire/ -- Leading private markets investment management firm Hamilton Lane (Nasdaq: HLNE) today announced the final closing of Hamilton Lane Secondary Fund VI ("the Fund" or "Fund VI") with $5.6 billion in commitments, marking the largest fundraise in the firm's history.

Fund VI materially exceeded its original $5 billion target, seeing strong support from a diverse group of new and existing investors, including corporate and public pension funds, Taft-Hartley plans, sovereign wealth funds, endowments, foundations, private wealth platforms and other financial institutions from over 30 countries around the world.

Tom Kerr, Co-Head of Investments and Global Head of Secondary Investments, commented: "The success of this fundraise represents a significant milestone for Hamilton Lane and is a direct result of our market-leading position within the asset class. The circumstances driving appetite for liquidity in the market continue to grow, and we are excited to sit in a compelling position with what we believe is one of the most experienced and cohesive secondary platforms. Fund VI is a continuation of our longstanding secondary franchise, and we continue our mission of seeking to find differentiated secondary opportunities at attractive inflection points where we have familiarity and a competitive angle."

Ryan Cooney, Managing Director on the Secondary Investment Team, commented: "We are incredibly proud to announce the outstanding success of the fundraise for Secondary Fund VI, Hamilton Lane's largest fund to-date, and wish to express our gratitude for the trust and support from existing and new investors from around the globe. Our high-caliber investor base recognizes 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. Fund VI is off to a tremendous start and we are further encouraged by the robust pipeline of opportunities."

Hamilton Lane has been active in the secondary space for more than 24 years, aiming to provide investors with significant capital appreciation by delivering attractive risk-adjusted returns. The Fund's predecessor, Secondary Fund V, closed on $3.9 billion in commitments in 2021. Today, the firm's secondaries platform represents approximately $20.9 billion in assets under management* as of March 31, 2024.

*Total secondary AUM includes discretionary and non-discretionary active commitments.

About Hamilton Lane

Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 700 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has over $920 billion in assets under management and supervision, composed of more than $124 billion in discretionary assets and approximately $796 billion in non-discretionary assets, as of March 31, 2024. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit our website or follow Hamilton Lane on LinkedIn.

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SOURCE Hamilton Lane

FAQ

What is the latest fund closed by Hamilton Lane?

Hamilton Lane closed its largest fund to date, Secondary Fund VI, with $5.6 billion in commitments.

How much did Hamilton Lane raise for Secondary Fund VI?

Hamilton Lane raised $5.6 billion for Secondary Fund VI.

When did Hamilton Lane announce the closing of Secondary Fund VI?

Hamilton Lane announced the closing of Secondary Fund VI on June 18, 2024.

How does Secondary Fund VI compare to its predecessor?

Secondary Fund VI closed with $5.6 billion, over 40% more than the $3.9 billion raised by Secondary Fund V.

What is the asset under management for Hamilton Lane's secondary platform?

Hamilton Lane's secondary platform represents approximately $20.9 billion in assets under management as of March 31, 2024.