Hamilton Lane Global Private Assets Fund

Next application deadline 13 July 2022

The Hamilton Lane Global Private Assets Fund (I-GBP share class) is an opportunity to access private equity and private credit within a simpler, more flexible and more liquid structure than normally associated with private market funds. 

Hamilton Lane is one of the world’s largest private market investors, with assets of $852 billion under management and advice. This fund is managed by Hamilton Lane’s evergreen investment committee of eight senior investment professionals, supported by a further 178 investment professionals in 19 offices across the globe.

The fund gives investors exposure to a portfolio of buyouts, venture and growth capital, and private credit. It has a bias towards the US, with exposure to Europe, Asia and the rest of the world.

Since its launch in May 2019, the fund has attracted over $2.2 billion in assets and generated a total return of 42.9% (March 2022, in GBP).

Over the 15 years to June 2021, Hamilton Lane has achieved average returns of 15.1% p.a. for its discretionary private equity mandates and 10.3% p.a. for private credit. Past performance is not a guide to the future. 

Unlike most private equity funds, the Hamilton Lane Global Private Assets Fund has a semi-liquid structure. Investors have the opportunity to subscribe once a month and gain exposure to the whole existing portfolio from the start. Redemption requests are facilitated once per month – although a long-term investment horizon is still encouraged.

  • Minimum investment: £25,000 – you can apply online
  • The next subscription deadline is 13 July 2022 (5pm, cleared funds)

Important: The information on this website is for experienced investors. It is not advice nor a personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.

Read important documents and then apply

The manager

The fund manager is Hamilton Lane Advisors, LLC, part of Hamilton Lane Inc., a global private market investment management business founded in 1991. 30 years on, Hamilton Lane has established itself as one of the world’s leading private market investors with over 520 employees and $851.8 billion under advice and management. Hamilton Lane Inc. is listed on NASDAQ, with a market capitalisation of $3.7 billion (January 2022). 

The Hamilton Lane Global Private Assets Fund is overseen by Hamilton Lane’s global investment committee, which consists of eight senior investment professionals, and a six strong portfolio management team, supported by a further 178 investment professionals working across 19 offices across the globe. Hamilton Lane also owns Cobalt LP, a leading provider of private market data covering over 40,000 private market funds and 98,000 private companies.

The combination of Hamilton Lane’s global scale and local presence could be a key advantage in our view when sourcing potential investments and deploying capital. The investment team reviews thousands of investment opportunities a year and deployed $37 billion of capital across its discretionary managed and advisory mandates in 2021. 

Portfolio allocation and risk management are overseen by a portfolio committee of eight investment professionals, including Hamilton Lane’s CEO Mario Giannini, Richard Hope, the firm’s Head of EMEA, Brian Gildea, Head of Investments, and Tom Kerr, Head of Secondary Investments.

Watch our video interview with Richard Hope of Hamilton Lane:

 

Investment strategy

The Hamilton Lane Global Private Assets Fund aims to provide investors with a diversified global portfolio of private equity, private credit, and secondary fund investments. 

It seeks to gain exposure to three core strategies: buyouts; growth and venture capital; and private credit, with a bias towards North America. 

The fund seeks to make four types of investment:

1. Direct private equity (target 40% of portfolio)

Direct co-investments where the fund invests directly in a company alongside another private equity or VC investor. The manager will target an IRR of 20-25% p.a. (gross of fees, not guaranteed). Direct equity transactions are expected to be a key driver of returns within the portfolio and have the advantage of not incurring additional annual management fees. 

2. Direct private credit (target 15% of portfolio)

Direct investments in the senior, subordinated, or mezzanine debt of a private company, often alongside a larger investment from a private credit investor. Direct credit investments will target an IRR of 9-12% p.a. (gross of fees, not guaranteed). These transactions have the advantage of not incurring additional annual management fees and could provide downside protection and liquidity to the fund.

3. Secondaries (target 35% of portfolio)

Transactions where the fund acquires a stake in an existing private equity fund or portfolio from an existing investor. Secondary transactions are generally entered into at a discount to net asset value, while allowing the fund to deploy capital faster than through primary investments. The manager expects secondary transactions to account for most of the fund’s venture exposure. 

4. Opportunistic (target 10% of portfolio) 

Opportunistic investments provide the manager with the freedom and flexibility to invest in special situations as they arise.

Fund structure

The fund’s structure (it is a Luxembourg collective fund or “SICAV”) can provide more liquidity and flexibility than a traditional closed-end private equity fund and less volatility than a private equity investment trust. 

Hamilton Lane Global Private Assets Fund (‘HL GPAF’) vs. most traditional closed-end private equity funds (‘PE funds’)

  • More flexible subscriptions: Monthly opportunities for subscription (HL GPA), compared to capital being drawn down over an investment period of typically 3-4 years (traditional PE funds).
  • Faster capital deployment: Immediate exposure to an existing well diversified private equity and credit portfolio after each monthly subscription deadline (HL GPA) compared with capital being deployed as opportunities arise (traditional PE funds).
  • Greater liquidity: Monthly opportunities for redemptions (HL GPA) compared with typically no access to capital until the fund’s termination, c.10 years (traditional PE funds). That said, this should still be considered a long-term investment. 

Please note: The fund caps net redemptions at 5% of the net assets of the fund per quarter, to allow the fund to manage its liquidity. 

HL GPAF vs. private equity investment trusts

  • Less volatility: Investors enter and exit the fund based on its net asset value (HL GPAF) and do not suffer the volatility associated with the discount/premiums applied to the share price of private equity investment trusts, which can be severe during periods of market stress. Equally, investors do not pay the high premiums associated with some venture capital-focused investment trusts. 

Portfolio

The fund currently has $2.2 billion of assets under management, including 10% of its net assets in cash (March 2022). The fund has made commitments to new and follow-on investments and expects to fully deploy this capital in the next three to six months. 

The fund has a large and well diversified portfolio with exposure to more than 160 investments across direct equity, direct credit and secondary fund investments. Of the invested assets, 71% is in buyouts, 13% in growth and venture capital and 16% in private credit. There is a bias towards North America (67%) with smaller positions in Europe (22%) and Asia Pacific (8%). Sector exposure is focused on industrials (27%), information technology (23%), and healthcare (18%). 

The top 10 holdings account for 18.5% of the investment portfolio. 

See investment portfolio diversification by investment type (%)

See investment portfolio diversification by geography (%)

See investment portfolio breakdown by strategy (%)

See investment portfolio breakdown by industry (%)

Examples of portfolio holdings

Medallia – Hamilton LaneMedallia – recent investment, direct co-investment, buyout

Medallia Inc. has developed a leading SaaS platform, Medallia Experience Cloud that helps companies better understand and manage customer, employee and citizen experiences. 

The platform captures signals in daily interactions across a range of channels: calls, online, video, social media and the Internet of Things. It applies artificial intelligence to reveal personalised and predictive insights. Businesses can use Medallia’s Experience Cloud platform to reduce customer and employee churn, improve net promoter scores and identify cross-sell and up-sell opportunities. 

In its full-year results to FY 2021, the business generated total revenue of $477.2 million, of which $382.6 million via subscriptions. Total revenue was up 19% year on year, with subscriptions up 23%. Past performance is not a guide to the future. 

In October 2021 the fund invested in a $6.4 billion all-cash transaction, alongside leading software investor Thoma Bravo, to take Medallia private. The investment is the ninth-largest holding within the portfolio, accounting for 1.6% of net assets (March 2022). 

The Jordan Company – Hamilton LaneProject Eagle – largest investment, secondary continuation fund 

Project Eagle is a secondary investment into the Resolute II Continuation Fund, managed by The Jordan Company (‘TJC’), a private equity firm focused on leveraged buyout and management buyout investments in smaller middle-market companies across a range of industries. The Fund consists of over $1.3 billion in capital commitments, intended to purchase portfolio companies from the 2007 Resolute Fund II, giving TJC additional time and capital to further develop its key assets, whilst providing investors in the Resolute Fund II with liquidity. 

The Fund's portfolio companies are representative of TJC’s longstanding focus on middle-market businesses with strong cash flow conversion and operational improvement potential in fragmented markets across the firm's core industries: Consumer & Healthcare; Industrials; Technology, Telecom & Utility; and Transportation & Logistics.

The Hamilton Lane Global Private Assets Fund invested in the fund in August 2021. It is Hamilton Lane Global Private Asset Fund’s largest investment, accounting for 2.7% of net assets (March 2022). 

Nuvei – Hamilton LaneNuvei – direct private credit investment 

Nuvei was, prior to its flotation, Canada's largest private and non-bank payment processor. The Montreal-based company enables a wide range of payment acceptance solutions under one platform. It processes over $16 billion a year for 50,000+ transacting merchants, including 2,000+ eCommerce merchants, in the U.S., Canada, Europe and Australia with Nuvei. 

In August 2019, Hamilton Lane provided a second lien term loan to Nuvei to fund the acquisition of Safecharge – a European payments technology provider focused on global e-commerce. The loan term was eight years at a coupon of Libor + 8.5 percentage points. Hamilton Lane was attracted by Nuvei’s stable and recurring revenue model, high customer retention, and consistent free cash flow generation.

In 2020, Nuvei floated on the Toronto Stock Exchange and the loan was fully realised, delivering a 1.1x realised return, equivalent to a 16.2% annual return (IRR). Past performance is not a guide to the future.

Monday.com – Hamilton LaneMonday.com – recent partial exit

Monday.com is a cloud-based project management platform designed to help manage teams and increase collaboration. The platform can provide a CRM, manage ad campaigns, track bugs, manage customer projects and more through hundreds of integrations within its app marketplace.

Hamilton Lane’s initial contact with the company came from assessing it as part of a secondary transaction in which Monday.com was one of the investments. Hamilton Lane subsequently invested in June 2019, as part of a $100 million funding round alongside Sapphire Ventures. The funding round valued Monday.com at $2 billion.

Following the onset of the global pandemic, demand surged for online collaboration platforms. Monday.com revenues leapt from $78 million in 2019 to $161 million in 2020. Strong growth led the company to raise capital via an initial public offering in June 2021, which valued the business at $6.8 billion. Today, the business continues to grow strongly, revenue of approximately $280 million is expected for 2021, and the business has a market capitalisation of $13.6 billion (December 2021). 

Monday.com was one of the fund’s first investments. It invested $3.0 million in June 2019. To date, the investment has returned $11.0 million and has a remaining holding value of $7.3 million, a 6.1x return (March 2022). Past performance is not a guide to the future.

Tarsus Group – example of previous failure

As is to be expected, not all investments work out. Tarsus Group is one such example. 

The Hamilton Lane Global Private Assets Fund invested into Tarsus Group in August 2019 alongside Charterhouse as lead General Partner. Tarsus is a leading business-to-business exhibitions company that operates in-person exhibitions and conferences worldwide, with significant exposure to the American and Chinese conference market. 

In early 2020, the Covid-19 pandemic caused all in-person events to come to a halt. Tarsus was hit especially hard. As lead General Partner, Charterhouse was able to pivot its M&A strategy to focus on geographies that were recovering and reopening quicker. 

As at March 2022, the Hamilton Lane Global Private Assets Fund’s investment in the business was held at 0.3x investment cost.

Performance

The fund launched in May 2019 – its track record is shown below. The fund is currently ahead of its stated target return objective of 10-12% per annum. Past performance is not a guide to the future. 

The fund’s buyout and growth capital investments have been key drivers of return since inception. No single investment within the portfolio has been responsible for a large proportion of the fund’s growth. Instead, returns have been generated from across the portfolio. 

Hamilton Lane Global Private Assets Fund – Performance since inception

Source: Hamilton Lane, Morningstar. Performance is shown on a NAV-to-NAV basis, in sterling, net of fees, for the period 31/05/2019 to 31/03/2022. The Hamilton Lane Global Private Assets I-USD share class has been used to calculate performance prior to the launch of the I-GBP share class in January 2020. The USD share class returns have been converted to GBP: note the return for UK investors will be affected by currency fluctuations. Past performance is not a guide to the future.

The longer-term track record of Hamilton Lane across both private equity and private credit over the previous 10 years is shown below. The chart shows the performance to June 2021 of all discretionary investments made by Hamilton Lane in the period from 31 December 2009 to 31 December 2020. 

Hamilton Lane Gross IRR by vintage year to 30 June 2021

Source: Hamilton Lane. The chart shows the performance of all discretionary managed investments made by Hamilton Lane between 2010 – 2020, as at of June 2021, net of underlying fund fees, expenses, and performance fees and gross of Hamilton Lane’s fund fees, expenses, and performance fees, as calculated in $. The return for UK investors will be affected by currency fluctuations. Past performance is not a guide to the future.

On a cumulative basis, over the 15 years to June 2021, Hamilton Lane has achieved average returns of 15.1% p.a. for its discretionary private equity mandates and 10.3% p.a. for private credit. Past performance is not a guide to the future.

Tax treatment

There are no tax reliefs associated with this investment. 

Hamilton Lane intends to generate the bulk of any returns from the fund via capital growth. For UK taxpayers, any realised gains from the fund should be subject to Capital Gains Tax. Any income generated by the fund (whether distributed or not) will, however, be subject to income tax. Hamilton Lane will publish the amount of income earned within the fund within ten months of its annual reporting period. This should then be reported on your self-assessment return.

Remember, tax rules can change and tax benefits depend on your circumstances.

Risks – important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice. 

Private equity investments are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. 

Investments in private equity are sensitive to changes in the global economic outlook. An economic slowdown or drop in investor confidence is likely to have an impact on the value of private market investments. 

Private equity investments are long-term and should not be considered as readily realisable. The fund invests in companies or instruments which are denominated in currencies other than the fund’s respective currency – such investments are exposed to currency fluctuations.

Unlisted investments can be difficult to price and value. Certain investments are valued based on estimated prices and therefore subject to potentially greater pricing uncertainties than listed securities.

Redemptions are available on a monthly basis, however, net redemptions may be limited to 5% of NAV, to manage liquidity in the fund. The manager reserves the right to charge a 5% redemption fee in periods of market stress. A short-term redemption fee of 3% is applicable to new shareholders who sell within 12 months of investing. 

Before investing, you must be an elective professional client of Wealth Club. You must be able to understand the fund’s strategy, characteristics, and liquidity profile. You must also be comfortable with the potential for periods of illiquidity.

Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

Charges 

A summary of the main charges is shown below – Wealth Club investors will invest using a nominee structure. This service is provided by Wealth Club’s subsidiary companies Wealth Club Asset Management Limited (authorised and regulated by the FCA) and Wealth Club Nominees Limited and is governed by the Terms and Conditions of the Wealth Club Services. Please refer to the schedule of Wealth Club charges for more detail on fees paid by investors to Wealth Club, and the Private Placement Memorandum and Key Information Document for more details on the product charges.

Initial charge 0.5%
Annual investment charge 1.5%
Wealth Club annual custody fee (payable by Direct Debit) 0.5%
Dealing fee
Performance fee 12.5%
Redemption fee See details
Please note: the initial charge will be deducted from your subscription; the annual custody fee will be collected by Direct Debit twice a year in arrears, so as part of your online investment application you will be asked to set up the Direct Debit instructions.
All fees and charges are stated exclusive of VAT, which may be applicable in some cases.

More detail on the charges

Deadlines and dealing process 

The fund accepts investor subscriptions and redemptions once per month.

Subscriptions

The next subscription deadline is 13 July 2022 (5pm, cleared funds).

Settlement will take place 18 business days after the dealing date (the dealing date is at the end of each month).

Redemptions 

Investors can request redemptions once per month. The deadline for redemptions is on the same day as subscriptions. Settlement occurs 18 business days after month end. 

Investors will be able to submit redemption instructions by using the Wealth Club secure message portal. 

Please note, for any redemption by a new shareholder who has been invested for less than 12 months, there is a short-term redemption fee of 3%, payable to the fund. 

5% of NAV net redemption cap 

Net redemptions (redemption requests received within a given quarter minus subscriptions received over that same quarter) will be limited to 5% of the fund’s Net Asset Value as at the relevant calculation day at the end of the preceding quarter. 

If redemptions are above 5%, these will be processed on a pro-rata basis. Investors will be informed of any redemption amount not processed on the relevant settlement date. Any redemption amount not processed on any dealing day will be deferred until the next dealing day unless cancelled by the investor.

Our view

The Hamilton Lane Global Private Assets Fund is designed to provide investors with exposure to a portfolio of private equity and credit investments spread across several investment strategies: buyout, growth and venture capital, and private credit. The fund is globally diversified with a bias towards North America and buyouts. 

The fund structure is a compelling feature, in our view. It provides several benefits to long-term investors over traditional closed-end private equity funds and private equity investment trusts.

The fund is managed by Hamilton Lane, one of the world’s leading private market investors with $851.8 billion under management and advice. The global scale, influence and resources of Hamilton Lane are a key feature of the fund’s investment strategy, and a core attraction of the offer, in our view. Hamilton Lane’s scale may provide investors with preferential access to compelling private market opportunities, which private investors would be hard-pressed to emulate. 

Please note, the fund offers a monthly subscription and redemption facility, with redemptions capped at a maximum 5% of the net assets of the fund per quarter. Investors should be prepared to hold the fund for the long term. 

Private equity and credit are areas that may be underrepresented within a typical investor's portfolio. In our view this could be a compelling opportunity to gain access to both asset classes via one of the world’s leading private market investors – you should form your own view. 

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 

The details

Type
Private equity and credit fund
Manager
Hamilton Lane
Fund assets
$2.2 billion
Strategy
Global buyouts, venture and growth capital, and private credit
Subscriptions
Available monthly
Redemptions
Available monthly (by request)
Next subscription deadline
13 July 2022
Last updated: 16 May 2022