Hamilton Lane has raised about $1.1 billion thus far for its latest secondaries offering, the firm revealed during its first quarter update for fiscal year 2023 on Tuesday.
It gathered $450 million for Hamilton Lane Secondary VI at June quarter-end, adding to the nearly $600 million it raised on first close in April this year, Brian Gildea, head of investment solutions, said on a call accompanying the quarterly update.
The firm will continue to be on the fundraising trail for Secondary VI until April 2024, he noted.
Hamilton Lane held a final close on $3.9 billion for Secondary V in February. The target of Fund VI is not clear.
Responding to an analyst’s question on the secondaries market, Erik Hirsch, vice-chairman and head of strategic initiatives at Hamilton Lane, said there hasn’t been any abnormal or elevated levels of LP selling.
“The [secondaries] barometer is probably indicating… stay the course, business as usual.”
He added: “Where we are seeing a slight uptick or maybe a change in the competitive mix is around the GP-led, single-asset transactions. I think you’ve got some with buyers’ remorse with some folks in the market who have just become very active in the space and maybe got themselves a little bit concentrated.”
Hirsch noted that traditionally the secondaries space had the “power of diversification” to keep investors away from concentration risk.
“I think what you’ve seen is some of the secondary buyers maybe forgot about that benefit and you started to see some portfolio concentration occur in ways you simply had not seen in the past that was driven by single assets.”