Globally diversified platform targeting the SMID market with unique positioning
Our direct equity investment strategy leverages the benefits of the Hamilton Lane platform and market access, aiming to execute high-quality direct equity investments and construct portfolios positioned to deliver compelling returns for our investors. The strategy is primarily focused on making direct equity investments in companies with small- to mid-sized enterprise values. By diversifying our investments, we seek to minimize market risks associated with over-exposure to a single general partner, geography, industry or deal type or size. Our objective is to maximize the multiple of invested capital as well as the IRR for each of the direct equity investments.
- Leverage Hamilton Lane's extensive platform to drive unique and differentiated deal flow and access for our investors
- Provide access to direct equity/ co-investments at preferential fees and terms versus traditional buyout funds
- Focus on small- and mid-sized investments, with nearly 79% of investments co-underwritten or with proprietary access since 2014*
Deal Spotlights
Smile Doctors
Who they are
The largest orthodontics-focused dental support organization (DSO) in the U.S., providing business management and support services to orthodontic practices in the South, West and Midwest.
Why it matters
The GP sold a significant minority interest in Smile Doctors to another sponsor in 2021. Following the initial realization in 2021, we received a partial payout in September 2022, with the final payout received in September 2023. Furthermore, we re-entered the deal in 2023 at the same TEV at which the sponsor acquired Smile Doctors in 2021.
The bottom line
Our thesis built around M&A proved successful as Smile Doctors has completed more than 80 acquisitions since our initial investment in 2017.
The HL advantage
Our long-standing relationship with the GP helped us secure the largest co-investment allocation in the deal. The transaction demonstrates our strong position as a lead co-investor, as well as our differentiated ability to access quality managers and assets at attractive prices and with compelling return characteristics.
Momentive
Who they are
A provider of various Software-as-a-Service (“SaaS”) solutions that helps its customers gather market and brand insights.
Why it matters
Momentive created the self-serve category in 1999 with the launch of SurveyMonkey. The company is a scaled asset exhibiting strong brand recognition as the industry leader for surveys of simple to moderate complexity for over 20 years.
The bottom line
Momentive was an undermanaged public business with a lack of strategic focus, transitioning from its core business to compete up-market. The deal was a strong fit with the sponsor who has relevent experience in related sectors of market research and marketing technology as well as a proven ability to execute on operational improvements and cost savings initiatives.
The HL advantage
This highlights our market position as a solutions provider. We served as a strategic partner to the sponsor as a co-underwriter, coming into the deal pre-signing, and were wall-crossed before the take-private was announced publicly. Our capital was meaningful to the transaction close.
Monday.com
Who they are
A cloud-based platform that provides enterprise and workflow management software.
The bottom line
Monday.com went public in June 2021 and has benefited from industry trends in digital expansion resulting in strong financial growth; all of which has benefited our investors after we fully liquidated our public position across our flagship products in June 2023.
Managing Director Megan Milne dives deeper into the HL advantage in this deal spotlight video.
Our experienced, global direct equity team maintains a diverse range of sophisticated transactional skillsets, paired with differentiated sourcing capabilities to create unique opportunities in any climate. This has helped us deliver a best-in-class investor experience and consistently strong strategy performance. Our platform advantages allow us to access transactions that others cannot and utilizes a distinct private market information database to invest in the most attractive private companies around the world.
Head of Direct Equity Investments
Leveraging our database of over 21,000+ funds and 152,100+ private companies
Our data advantage is a key differentiator and allows the Direct Equity Investment Team to access an abundance of investment opportunities and information advantages throughout the investment lifecycle, from diligence to allocation to monitoring and reporting. We leverage our firm’s capabilities and in-depth knowledge of the private markets, as well as our significant technological reporting and analytical capabilities, to better understand the value drivers within a given investment and ultimately strive to generate compelling returns for our investors.
