Hamilton Lane hits $900m hard-cap for secondaries

The firm surpassed its $650m target for its third secondaries fund, which launched in 2012.

Hamilton Lane has closed its Secondary Fund III on its $900 million hard-cap, according to a statement from the firm. The fund was oversubscribed and had an original target of $650 million.

As of mid-June, Hamilton Lane had collected $728.4 million for the fund, according to documents filed with the US Securities and Exchange Commission.

Fund III, which launched in mid-2012, has already invested about $200 million in 10 deals, the firm said.

Korea Teachers Pension Fund and the Public Employee Retirement System of Idaho are among limited partners who have committed to Hamilton Lane’s third secondaries vehicle.

Hamilton Lane has had a presence in the secondary market since 2000. Its first secondaries vehicle, a 2005 vintage, beat its target by $10 million, closing on about $360 million, according to Private Equity International’s Research and Analytics division. The fund’s net investment return rate was 6.5 percent as of 30 September 2012, according to Idaho pension documents.

“Prior to launching our first dedicated commingled product in 2005, we completed secondary transactions on behalf of our individual client accounts and as a means of supplementing our other diversified products and separate accounts,” said managing director Tom Kerr.

Hamilton Lane Secondary Fund II launched in 2009 and closed on about $591 million, above its $400 million target. The vehicle had a net IRR of 22.4 percent as of 30 September 2012, according to pension documents.

Hamilton Lane’s secondary activities are run by Kerr and chief investment officer Erik Hirsch. Hamilton Lane is also fundraising for its eighth private equity vehicle, which launched last year and is targeting $400 million.

Founded in 1991, Hamilton Lane had about $161.8 billion of assets under management and supervision, as of 30 June, according to the firm.