STOCK TITAN

Private Markets, Public Access: Hamilton Lane to Provide Institutional-Quality Investments to Retail Investors

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags

Hamilton Lane (HLNE) and Republic announced a partnership to provide retail investors access to private market investments through digital blockchain-based solutions. The initiative aims to democratize access to a $13 trillion global market with low investment minimums and enhanced liquidity compared to traditional private market funds.

Hamilton Lane, managing $947 billion in assets, reports that private markets funds have outperformed public market equivalents in 19 of the last 20 years. The first offering is expected in 1H 2025. The partnership targets the significant opportunity in private markets, noting over 140,000 private companies with annual revenues exceeding $100 million, compared to approximately 19,000 public companies in the same revenue bracket.

Hamilton Lane (HLNE) e Republic hanno annunciato una partnership per fornire agli investitori al dettaglio accesso a investimenti nel mercato privato tramite soluzioni digitali basate su blockchain. L'iniziativa ha l'obiettivo di rendere accessibile un mercato globale da 13 trilioni di dollari con minimi di investimento ridotti e una liquidità migliorata rispetto ai fondi tradizionali del mercato privato.

Hamilton Lane, con 947 miliardi di dollari in gestione, riporta che i fondi del mercato privato hanno sovraperformato gli equivalenti del mercato pubblico in 19 degli ultimi 20 anni. La prima offerta è prevista per il 1H 2025. La partnership mira a sfruttare l'importante opportunità nei mercati privati, notando oltre 140.000 aziende private con fatturato annuale superiore a 100 milioni di dollari, rispetto a circa 19.000 aziende pubbliche nella stessa fascia di fatturato.

Hamilton Lane (HLNE) y Republic anunciaron una asociación para proporcionar a los inversores minoristas acceso a inversiones en mercados privados a través de soluciones digitales basadas en blockchain. La iniciativa busca democratizar el acceso a un mercado global de 13 billones de dólares con mínimos de inversión bajos y mayor liquidez en comparación con los fondos tradicionales del mercado privado.

Hamilton Lane, gestionando 947 mil millones de dólares en activos, informa que los fondos de mercados privados han superado a los equivalentes de mercados públicos en 19 de los últimos 20 años. Se espera que la primera oferta esté disponible en 1H 2025. La asociación tiene como objetivo la significativa oportunidad en mercados privados, destacando más de 140,000 empresas privadas con ingresos anuales superiores a 100 millones de dólares, en comparación con aproximadamente 19,000 empresas públicas en el mismo rango de ingresos.

해밀턴 레인 (HLNE)과 리퍼블릭은 디지털 블록체인 기반 솔루션을 통해 소매 투자자들에게 사모 시장 투자에 대한 접근을 제공하기 위한 파트너십을 발표했습니다. 이 이니셔티브는 전통적인 사모 시장 펀드에 비해 낮은 투자 최소액과 향상된 유동성을 통해 13조 달러 규모의 글로벌 시장에 대한 접근을 민주화하는 것을 목표로 하고 있습니다.

해밀턴 레인은 9,470억 달러의 자산을 관리하고 있으며, 사모 시장 펀드가 지난 20년 중 19년에서 공모시장 펀드보다 성과가 우수했음을 보고하고 있습니다. 첫 번째 제공은 2025년 상반기로 예상됩니다. 이 파트너십은 연간 수익이 1억 달러를 초과하는 14만 개 이상의 사모 기업이 존재하는 사모 시장의 중요한 기회를 겨냥하고 있으며, 같은 수익 범위에서 약 1만 9천 개의 상장 기업과 비교됩니다.

Hamilton Lane (HLNE) et Republic ont annoncé un partenariat pour offrir aux investisseurs particuliers un accès aux investissements dans le marché privé par le biais de solutions numériques basées sur la blockchain. Cette initiative vise à démocratiser l'accès à un marché mondial de 13 billions de dollars avec des montants d'investissement minimaux et une liquidité améliorée par rapport aux fonds traditionnels de marché privé.

Hamilton Lane, gérant 947 milliards de dollars d'actifs, rapporte que les fonds de marchés privés ont surperformé leurs équivalents du marché public pendant 19 des 20 dernières années. La première offre est prévue pour le 1H 2025. Le partenariat cible l'importante opportunité sur les marchés privés, notant plus de 140 000 entreprises privées avec des revenus annuels dépassant 100 millions de dollars, contre environ 19 000 entreprises publiques dans la même tranche de revenus.

Hamilton Lane (HLNE) und Republic haben eine Partnerschaft angekündigt, um Einzelinvestoren den Zugang zu privaten Marktinvestitionen über digitale, blockchain-basierte Lösungen zu ermöglichen. Das Ziel der Initiative ist es, den Zugang zu einem 13 Billionen Dollar globalen Markt zu demokratisieren, mit niedrigeren Investitionsminima und verbesserter Liquidität im Vergleich zu traditionellen privaten Marktfonds.

Hamilton Lane, das 947 Milliarden Dollar an Vermögenswerten verwaltet, berichtet, dass private Marktfonds in 19 der letzten 20 Jahre besser abgeschnitten haben als öffentliche Marktäquivalente. Das erste Angebot wird im 1H 2025 erwartet. Die Partnerschaft zielt auf die signifikante Möglichkeit im privaten Markt ab und weist auf über 140.000 private Unternehmen mit einem Jahresumsatz von über 100 Millionen Dollar hin, im Vergleich zu etwa 19.000 öffentlichen Unternehmen in derselben Umsatzkategorie.

Positive
  • Partnership enables access to $13 trillion private markets for retail investors
  • Private markets funds outperformed public markets in 19 of last 20 years
  • Offering provides enhanced liquidity compared to traditional private market funds
  • Large addressable market with 140,000 private companies having >$100M revenue
Negative
  • First offering not launching until 1H 2025
  • Blockchain-based solutions may face regulatory scrutiny

Insights

This groundbreaking partnership represents a seismic shift in private market accessibility. With $947 billion in AUM, Hamilton Lane's collaboration with Republic strategically targets the untapped retail investor segment in a $13 trillion global private markets landscape. The initiative's timing aligns perfectly with growing retail investor demand for alternative investments and portfolio diversification options.

The outperformance metrics are compelling - private markets funds beating public market equivalents in 19 out of 20 years showcases the alpha generation potential previously reserved for institutional investors. The blockchain-based solution addresses two critical barriers to retail participation: high minimum investment requirements and illiquidity concerns. This democratization effort could significantly expand Hamilton Lane's addressable market while providing Republic with institutional-grade products for their platform.

In simple terms: Imagine having access to invest in successful private companies like SpaceX or Stripe before they go public, but with much smaller investment amounts and better chances to sell your investment if needed. That's what this partnership aims to achieve for regular investors.

The implementation of blockchain technology for tokenization in this context is particularly noteworthy. Digital tokenization can fundamentally transform private market investment dynamics by enabling fractional ownership, automated compliance and potentially creating secondary market liquidity through programmable smart contracts. The 1H 2025 launch timeline suggests the technical infrastructure is well-developed.

The stark contrast between 140,000 private companies versus 19,000 public companies with $100 million+ revenue demonstrates the vast opportunity set being unlocked. By leveraging blockchain technology, Hamilton Lane and Republic can create a scalable, efficient distribution mechanism for these previously inaccessible investments.

Think of it as turning a large, expensive piece of real estate into affordable, tradeable digital shares - but instead of property, it's access to private company investments. This technological approach could significantly reduce administrative costs while improving transparency and transaction efficiency.

Together with Republic, this initiative seeks to revolutionize access to private markets funds, opening a $13 trillion* global market to retail investors

CONSHOHOCKEN, Pa. and NEW YORK, Jan. 14, 2025 /PRNewswire/ -- Hamilton Lane (Nasdaq: HLNE), one of the largest private markets investment firms globally, together with Republic, a leading global investment platform for private market assets, today announced a new partnership that aims to bring institutional-quality private market investments to individual retail investors in the U.S.     

Through the partnership, the firms intend to launch digital blockchain-based solutions for retail investors, featuring low investment minimums and the potential for increased liquidity compared to traditional private market funds. The first offering is expected in 1H 2025.

Hamilton Lane, with more than $947 billion in assets under management and supervision**, has data showing that the majority of private markets funds have outperformed their public market equivalents in 19 of the last 20 years. This partnership is believed to represent a major step forward in expanding access to this historically high-performing investment category and empowering retail investors with new wealth generation opportunities.

The planned offering marks the latest in Hamilton Lane's efforts to broaden investor access within the private markets. The firm was an early mover and continues to be a leader in this area, as one of the first to offer evergreen structures and tokenized funds within the private markets to accredited and high-net-worth investors, and now as one of the first to offer the opportunity for pure retail investors to access institutional-grade private markets investments.

Victor Jung, Head of Digital Assets at Hamilton Lane, commented: "The historic performance and diversification benefits of the private markets are real. Globally, there are over 140,000 private companies with annual revenues over $100 million, versus approximately 19,000 public companies with the same annual revenues, and we believe that investors shouldn't be required to have a high income or millions in net worth to access these assets. Republic's leading digital solution and expertise in serving this market will enable us to offer retail investors the opportunity to tap into Hamilton Lane's longstanding private markets expertise, scale and platform."          

"At Republic, it's always been our mission to open new asset classes to all levels of investors. Working with an industry leader like Hamilton Lane makes direct access to institutional quality private markets funds across a variety of industries possible," said Kendrick Nguyen, CEO of Republic. "We are excited to apply Republic's market-leading digital infrastructure to this initiative."

*Source: McKinsey Global Private Markets Review 2024; March 2024
**As of 9/30/24         

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 730 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has more than $947 billion in assets under management and supervision, composed of more than $131 billion in discretionary assets and approximately $816 billion in non-discretionary assets, as of September 30, 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.

Forward-Looking Statements
Some of the statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as "will," "expect," "believe," "estimate," "continue," "anticipate," "intend," "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management's current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. All forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different, including risks relating to: our ability to manage growth, fund performance, competition in our industry, changes in our regulatory environment and tax status; market conditions generally; our ability to access suitable investment opportunities for our clients; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; defaults by clients and third-party investors on their obligations to fund commitments; our exposure and that of our clients and investors to the credit risks of financial institutions at which we and they hold accounts; our ability to comply with investment guidelines set by our clients; our ability to successfully integrate acquired businesses with ours; our ability to manage risks associated with introducing new types of investment structures, products or services or entering into strategic partnerships; our ability to manage redemption or repurchase rights in certain of our funds; our ability to manage, identify and anticipate risks we face; our ability to manage the effects of events outside of our control; and our ability to receive distributions from Hamilton Lane Advisors, L.L.C. to fund our payment of dividends, taxes and other expenses.

The foregoing list of factors is not exhaustive.  For more information regarding these risks and uncertainties as well as additional risks we face, you should refer to the "Risk Factors" detailed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and in our subsequent reports filed from time to time with the Securities and Exchange Commission. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.

About Republic
Headquartered in New York City, Republic is a global financial firm operating a network of retail-focused investment platforms and an enterprise digital advisory arm. With a deep track record of legal and technical innovation, Republic is known for providing access to new asset classes to investors of all types. Backed by Valor Equity Partners, Galaxy Interactive, Lloyds Capital, HOF Capital, AngelList and other leading institutions, Republic boasts a global portfolio of over 2,000 companies and a community of nearly three million members in over 150 countries. More than $3 billion has been deployed through investment platforms, funds, and firms within the Republic family of companies with operations established in the US, the UK, EU, the UAE, South Korea, and Singapore.

Cision View original content:https://www.prnewswire.com/news-releases/private-markets-public-access-hamilton-lane-to-provide-institutional-quality-investments-to-retail-investors-302349568.html

SOURCE Hamilton Lane

FAQ

When will Hamilton Lane (HLNE) launch its retail investor private market offering?

Hamilton Lane plans to launch its first retail investor private market offering in the first half of 2025.

What is the size of the private markets opportunity Hamilton Lane (HLNE) is targeting?

Hamilton Lane is targeting a $13 trillion global private markets opportunity.

How has private market performance compared to public markets according to Hamilton Lane (HLNE)?

According to Hamilton Lane, private markets funds have outperformed their public market equivalents in 19 of the last 20 years.

What advantages does Hamilton Lane's (HLNE) new retail offering provide over traditional private market funds?

The new offering will feature low investment minimums and the potential for increased liquidity compared to traditional private market funds.

How many private companies with revenue over $100M are available for investment through Hamilton Lane (HLNE)?

There are over 140,000 private companies with annual revenues over $100 million, compared to approximately 19,000 public companies.

Hamilton Lane Incorporated

NASDAQ:HLNE

HLNE Rankings

HLNE Latest News

HLNE Stock Data

5.75B
37.73M
9.67%
96.4%
2.29%
Asset Management
Investment Advice
Link
United States of America
CONSHOHOCKEN