A shorter duration complement to an overall private markets portfolio
The secondary market has been an attractive place for investors to deploy capital as demonstrated by the growth in both transactions and fundraising. As this market has become increasingly mature and sophisticated, transaction structures have grown more complex. We believe today’s market conditions, characterized by the global growth of private markets and more active management of private market allocations, lend themselves to the strengths of our differentiated approach. With 23 years of experience in this market, we remain focused on finding value in more complex and innovative secondary opportunities.
Our goal is to provide investors with significant capital appreciation by delivering attractive risk-adjusted returns. Through our unique approach and competitive positioning, we have implemented this strategy by focusing on:
- Quality, mature assets
- Partnering with quality general partners
- Flexibility and expertise across the spectrum of secondary investments
- J-curve mitigation and cash yield
Deal Spotlights
Project Somerset
Description
An acquisition of a portfolio featuring four fund interests across two reputable general partners.
Why it matters
The selling LP, facing liquidity challenges, approached us due to our 10+ year relationship. We were then provided with a unique opportunity to access a direct, proprietary transaction. The deal showcases our ability to successfully navigate liquidity challenges and seize a favorable position in the market.
The HL advantage
The deal stems from our long-standing relationship with the seller and prior investment in a significant asset within the portfolio. This familiarity allowed us to confidently navigate the complexities of the deal, leverage existing underwriting for conviction in entry valuation and future performance expectations, and ultimately secure an attractive price in a proprietary transaction.
Project Eagle
Description
A continuation fund involving the seven remaining assets in a GP’s 2007 vintage fund
The bottom line
The transaction demonstrates Hamilton Lane’s strong position in this growing market segment, as well as our differentiated ability to access quality managers and assets at attractive prices with compelling return characteristics.
Managing Director Ryan Cooney dives deeper into the HL advantage in this deal spotlight video.
Project Room 24
Description
Acquisition of a single fund LP interest that Hamilton Lane sourced on a bilateral basis.
Why it matters
The portfolio is well diversified across various sectors and consists of strong performing assets that have the potential to drive meaningful upside with significant near-term liquidity.
The bottom line
We negotiated an attractive discounted entry into a high-quality fund at an inflection point.
The HL advantage
We had an information advantage given our seat on the Fund’s advisory board and having invested directly into the two largest assets via our broader platform. Through the culmination of our strong existing relationship and information advantage, we benefited from differentiated access and insight into the portfolio. This is a great example of a proprietary deal that originated through our thematic sourcing approach.
The secondary market has seen exponential growth over the last several years. With our experience, scale and network, we believe we’re well positioned to deliver attractive risk-adjusted returns to our clients.
Head of Secondary Investments, Co-Head of Investments
Utilizing our market-leading data to gain a greater level of insight
Hamilton Lane’s proprietary technology combined with our database of over 21,000+ funds and 152,100+ private companies* provides a unique advantage to better understand the drivers of value within a deal. Our data advantage and extensive global primary platform represent a crucial competitive advantage and drive our ability to be a conviction buyer. We use our market-leading data to gain a greater level of insight, which is essential when the objective is to limit the downside and generate strong risk-adjusted returns.
