Hamilton Lane has closed its largest private equity fund of funds on $516 million, according to a statement from the firm.
Hamilton Lane Private Equity Fund IX, a 2015-vintage vehicle, was originally targeting $400 million.
Investors in the fund include public pension funds, labour union pension plans, endowments, foundations and other institutions, according to Jackie Rantanen, managing director and co-head of the product management group at the firm.
“Leveraging our global platform and resources, we endeavour to provide our investors access to high-quality fund managers in an increasingly competitive and crowded market,” Rantanen said.
“We strongly believe our thoughtful portfolio construction approach offers investors a unique solution to achieve both short and long-term performance through a strategic blend of exposure across strategies, vintage years and geographies.”
The fund will primarily target small and mid-cap funds and will invest across primaries, secondaries and co-investments.
In November, Secondaries Investor reported that Fund IX will dedicate between 15 and 20 percent of its capital to secondaries, according to a document presented to the Fresno County Employee’s Retirement Association at a 7 October meeting. A spokeswoman for the firm confirmed around 70 percent of the fund will be allocated to primary deals and around 10 percent to co-investments.
The fund did not have a hard-cap and 49 percent of committed capital for the fund came from existing investors. Hamilton Lane will commit 1 percent of total commitments to the fund.
The firm will seek no carried interest on primary investments and will charge 10 percent on secondaries and co-investments, with an 8 percent hurdle rate, the document noted. The effective average management fee is 70 basis points, with discounts of up to 20 percent available for investments above $100 million, as reported by Secondaries Investor.
Fresno’s board approved a $70 million commitment to Fund IX, according to minutes from the meeting.
Fund IX’s predecessor closed on $427 million in 2014. Investors in that vehicle include Cambridge Retirement System and Louisiana School Employees’ Retirement System, according to PEI Research & Analytics.
Last month Philadelphia-based Hamilton Lane held the final close on its Strategic Opportunities Fund 2016, a credit-focused vehicle, after just three months in market. The fund beat its $150 million target to close on $210 million.
As of 31 March, the alternative investment management firm has more than $250 billion in total assets under management, it said.