News & Analysis

Hamilton Lane launches sixth secondaries fund

The asset manager returns to the market less than a year after closing its $3.9bn fifth programme in February.

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Hamilton Lane has launched its sixth secondaries fund, less than a year after closing the fifth.

The $88 billion asset manager, ranked 13th on the most recent SI 50, disclosed the launch during its earnings call on Tuesday. The sixth programme is anticipating a first close in the first quarter of next year. Then it will have 24 months to finish its raise.

It is not clear what size the sixth programme will target. The fifth fund, which closed on $3.9 billion in February, “was the largest single specialised fund we’ve ever raised… growing from a previous fund size of $1.9 billion”, said Erik Hirsch, chairman and head of strategic initiatives. The fifth programme was in market for 25 months from its launch in January 2019.

Secondaries transactions continue “to morph and evolve”, Hirsch said.

In May, the firm co-led a $270 million continuation vehicle with Coller Capital on a portfolio of healthcare assets owned by Beijing-based Legend Capital.

The Hamilton Lane secondaries platform achieved returns of 56.2 percent over the last year and 19.4 percent over the last three for the Public Employee Retirement System of Idaho, according to an investment report dated 29 October. The system committed $50 million to the fourth and fifth programmes, up from $20 million to each of the first three.

LPs committed to the fifth secondaries vehicle include insurance companies Cathay Life Insurance and Fubon Life Insurance and public pensions PERS Idaho and Oakland County Pension Trust Funds.

The largest secondaries players have been returning to market in recent months after a period characterised by closes of smaller, more niche funds. Landmark Partners’ Landmark Equity Partners XVII held a $799 million first close this week on its way to a $6 billion target.

Strategic Partners Fund IX came to market in April targeting $13.5 billion. It expects to raise $20 billion.

Lexington Partners is in market with its 10th flagship secondaries fund, targeting $15 billion. The firm agreed to be acquired this week by financial services holding company Franklin Templeton in a $1.75 billion deal.

– Rod James contributed to this report