Hamilton Lane has started fundraising for its fifth dedicated secondaries fund, targeting more than twice that sought for its predecessor.
The Bala Cynwyd-headquartered alternatives manager has raised $349 million for Hamilton Lane Secondary Fund V, according to a filing with the Securities and Exchange Commission. According to an investor source with knowledge of the fundraise, this is out of a total of $700 million.
The news comes four months after Secondaries Investor reported the firm was in market targeting $3 billion for the vehicle.
At least 20 investors have committed to the fund so far, the filing shows.
Fund IV raised $1.9 billion by final close in 2017 against a target of $1.25 billion, according to Secondaries Investor data. Fund IV delivered a 1.24x total value multiple and net internal rate of return of 34.04 percent as of 30 September, according to data compiled by Idaho Public Employee Retirement System.
Recent deals the firm has backed include the $1.35 billion spin-out of NewView Capital Management from venture capital giant New Enterprise Associates in a transaction led by Goldman Sachs Asset Management.
According to research by Hamilton Lane last year, around 18 percent of buyout funds of vintage 2005-08 are at or near their hurdle rate, equivalent to $45 billion in net asset value. Many of these funds will not make it through the GP catch-up period, making them good candidates for restructuring, the firm’s EMEA secondaries head Richard Hope told Secondaries Investor.
Secondaries funds in market are targeting at least $84.85 billion in total, Secondaries Investor reported. At least 43 vehicles with known targets are in market seeking secondaries capital across private equity, real estate and infrastructure, as well as for preferred equity.
Hamilton Lane declined to comment on fundraising.
Article amended to reflect the fund has raised $700 million in total