Hamilton Lane Launches Private Secondary Fund in the U.S., Further Expanding Global Evergreen Platform

Rhea-AI Summary

Hamilton Lane (Nasdaq: HLNE) has launched the Hamilton Lane Private Secondary Fund (HLPSF), a new evergreen investment vehicle registered under the Investment Company Act of 1940. The fund targets U.S. accredited investors and qualified high-net-worth individuals, offering access to the firm's secondary investment platform.

Key features include:

• Quarterly liquidity potential
• Low investment minimums of $25K
• Immediate access to mature private equity investments
• Focus on partially to fully funded secondary investments

The fund aims to provide favorable risk-adjusted returns through a diversified portfolio across sponsors, strategies, industries, vintages, and geographies. It is part of Hamilton Lane's broader secondaries platform, which manages $24.1 billion in assets as of December 31, 2024, and extends the firm's $9+ billion Evergreen Platform.

Positive

• Low entry barrier with $25K minimum investment
• Quarterly liquidity potential for investors
• Access to mature private equity investments
• Part of established $24.1B secondaries platform
• Diversified portfolio across multiple sectors and strategies

Negative

• to accredited investors only
• No guaranteed protection against losses

Insights

Financial Analyst

Hamilton Lane's launch of the Private Secondary Fund represents a strategic expansion of their evergreen platform, opening their secondary investment capabilities to a broader investor base. The new fund targets both high-net-worth individuals and institutions with a notably low $25,000 minimum investment threshold and potential quarterly liquidity—features specifically designed to democratize access to private equity secondaries.

This launch leverages Hamilton Lane's established 24-year track record in the secondary market and expands their already substantial secondaries platform, which manages $24.1 billion in assets. The timing appears opportunistic, with management noting 2024 has reached record secondary market volume levels, suggesting strong market demand for these offerings.

For investors, this launch represents Hamilton Lane's effort to capitalize on private wealth channels while diversifying their product offerings. By focusing on high-quality middle market buyouts with near-term distribution potential, the fund aims to deliver both entry discounts and long-term appreciation while potentially mitigating the typical private equity J-curve effect.

This product expansion aligns with industry trends toward making alternative investments more accessible to a wider investor audience, potentially opening new growth vectors beyond Hamilton Lane's traditional institutional client base.

Asset Management Strategist

Hamilton Lane's Private Secondary Fund launch represents a calculated move in the evolving landscape of private markets democratization. By packaging their secondary investment strategy in a 40 Act-registered structure with quarterly liquidity options, they're directly addressing the primary barriers that have historically prevented mass affluent investors from accessing private equity—long lock-ups and high minimums.

The fund's focus on partially to fully funded secondary investments is particularly notable from a strategic perspective. This approach allows investors to potentially bypass the capital call uncertainty and negative returns typically experienced in a fund's early years (the J-curve), making the vehicle more palatable to wealth management platforms and their clients who prioritize predictability.

From a competitive standpoint, this launch positions Hamilton Lane in the growing field of alternative managers creating products for the $80+ trillion global private wealth segment. The secondary strategy offers a differentiated approach compared to many peers who have primarily focused on bringing primary investments downstream through similar structures.

The firm's existing $9+ billion evergreen platform provides proof of concept for this expansion, demonstrating their ability to execute on semi-liquid strategies. This product launch effectively allows Hamilton Lane to monetize their extensive GP relationships and secondary market expertise across a broader client base, potentially enhancing long-term revenue growth beyond their traditional institutional footprint.

Fund leverages firm's 24+ years of experience in the secondary market and extensive scale to capitalize on what the firm believes to be attractive long-term growth trends

CONSHOHOCKEN, Pa., March 3, 2025 /PRNewswire/ -- Leading private markets investment management firm Hamilton Lane (Nasdaq: HLNE) today announced the launch of the Hamilton Lane Private Secondary Fund ("HLPSF" or "the Fund"), a continuously offered evergreen investment vehicle registered under the Investment Company Act of 1940 ("40 Act"), available to U.S. accredited investor clients, including sufficiently qualified high-net-worth investors and their wealth advisors.  

HLPSF offers private wealth and institutional investors across the U.S. access to the firm's market-leading secondary investment platform. It seeks to provide favorable risk-adjusted returns with strong downside protection* through a portfolio of what the firm believes to be high-quality companies and assets diversified across sponsors, strategies, industries, vintages and geographies. Key features of the Fund include:

• The potential for quarterly liquidity and investment minimums as low as $25K,
• Immediate access to a portfolio of mature private equity investments which are believed to be poised for value creation, and
• A focus on [partially to fully funded] secondary investments with strong visibility and liquidity profiles to produce attractive returns with reduced risk.

The Fund's strategy focuses on high quality middle market buyout funds and assets, with significant near-term distribution potential. It is also able to employ a flexible approach across secondary transaction types by leveraging Hamilton Lane's extensive experience and substantial capital deployment. The Fund is uniquely positioned to prioritize both entry discounts and long-term appreciation.  

Steve Brennan, Head of Private Wealth Solutions at Hamilton Lane, commented, "We are thrilled to announce the continued expansion of our evergreen platform with the launch of HLPSF, as we seek to broaden access for a wider set of investors to the value creation opportunities afforded by the private markets. This evergreen fund structure offers both private wealth and institutional investors access to a portfolio of secondary investments diversified across vintages, industries, geographies and GPs, which we believe will drive long-term value creation."

Ryan Cooney, Managing Director on the Secondary Investment Team, added: "The secondary market today presents an opportunity set that is broader and more attractive than ever, with 2024 hitting a record level of volume. This part of the market offers a number of unique benefits to investors, especially those newer to the private markets, including knowledge of underlying assets, an increased pace of capital deployment and J-curve mitigation. We look forward to enabling access for more investors to capitalize on what we believe are the attractive long-term growth trends of the secondary market through a dedicated investment vehicle that offers the potential for liquidity."

The Hamilton Lane Private Secondary Fund is an extension of Hamilton Lane's broader secondaries platform, which the firm has been building for more than 24 years. The platform includes closed-end funds and SMAs totaling $24.1 billion in assets under management and supervision as of December 31, 2024.

For more information on Hamilton Lane's broader $9+ billion** Evergreen Platform, click here.

*In this context, downside protection refers strictly to a strategic investment goal and is not meant to imply any guarantee against loss, including the loss of the entire principal amount invested.

**NAV as of December 31, 2024 for the combined Hamilton Lane evergreen platform.

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 740 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $956 billion in assets under management and supervision, composed of nearly $135 billion in discretionary assets and more than $821 billion in non-discretionary assets, as of December 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 http://www.hamiltonlane.com or follow Hamilton Lane on LinkedIn.

Important Risk Information About PSF

Investors should consider the Private Secondary Fund's investment objectives, risks, charges, and expenses carefully before investing. For a prospectus that contains this and other information about the Fund, call 1 (888) 882-8212. Investing in the Fund involves risk including loss of principal.

• The Fund operates as a continuously offered non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. • Though the Fund intends to repurchase shares quarterly, you may not have access to the money you invest for an extended period of time. • The Fund is not a liquid investment. • You may not be able to sell your shares at the time or in the quantity of your choosing regardless of how the Fund performs. • The Fund has limited operating history and the shares have no history of public trading and it is not anticipated that a secondary market for Shares will develop. We do not expect a secondary market in the shares to develop. • Because you may not be able to sell your shares at the time or in the quantity of your choosing, you may not be able to reduce your exposure to the Fund in a market downturn. • Shares are appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment and for whom an investment in the Fund does not constitute a complete investment program. • The amount of distributions that the Fund may pay, if any, is uncertain. Past performance is not an indicator of future results.

Hamilton Lane Private Secondary Fund is distributed by PINE Distributors LLC. Hamilton Lane Advisors LLC is the Advisor to the Hamilton Lane Private Secondary Fund. PINE Distributors LLC and Hamilton Lane are unaffiliated.

 

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SOURCE Hamilton Lane

FAQ

What is the minimum investment required for Hamilton Lane's Private Secondary Fund (HLNE)?

The minimum investment requirement for HLPSF is $25,000.

How often can investors access liquidity in Hamilton Lane's HLPSF fund?

The fund offers potential quarterly liquidity opportunities for investors.

What is the total AUM of Hamilton Lane's secondaries platform as of December 2024?

Hamilton Lane's secondaries platform manages $24.1 billion in assets under management and supervision as of December 31, 2024.

Who can invest in Hamilton Lane's Private Secondary Fund (HLPSF)?

The fund is available to U.S. accredited investors, including qualified high-net-worth investors and their wealth advisors.

What type of investments does Hamilton Lane's HLPSF focus on?

HLPSF focuses on high-quality middle market buyout funds and assets with significant near-term distribution potential.