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Hamilton Lane holds second close on way to $3bn

The investment firm is targeting more than twice than what it sought for its predecessor with its fifth dedicated secondaries fund.

Hamilton Lane has passed the one-third mark on fundraising for its fifth dedicated secondaries fund.

The Bala Cynwyd, Pennsylvania investment manager held a $1.1 billion second close on the Hamilton Lane Secondary Fund V in September, chief client officer Jeff Meeker said on the firm’s second-quarter earnings call on 5 November. He added that the fund, which held a $700 million first close in April, has at least 18 months from that date to wrap up fundraising.

Secondaries Investor reported in December that Hamilton Lane was coming to market targeting $3 billion for the vehicle.

The predecessor Fund IV raised $1.9 billion by its final close in 2017, exceeding its $1.25 billion target, according to Secondaries Investor data. The fund had delivered a net internal rate of return of 21.49 percent and a total value multiple of 1.22x as of 30 June, according to data from the Public Employee Retirement System of Idaho. PERSI committed $50 million to Fund V and $50 million to Fund IV.

Recent deals Hamilton Lane has backed include the restructuring of PEI Media owner Bridgepoint’s €4.8 billion crisis-era fund, led by HarbourVest Partners; and 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 with 2005-08 vintages are at or near their hurdle rates, equivalent to $45 billion in net asset value. The firm’s EMEA secondaries head Richard Hope told Secondaries Investor that many of these funds would not make it through the GP catch-up period, and that this made them good candidates for restructuring.