Hamilton Lane to close secondaries flagship in ‘next few weeks’

Hamilton Lane is due to hold the final close on its latest secondaries flagship fund in the coming weeks.

Hamilton Lane Secondary Fund VI, which has a target of $5 billion, currently has a size of “over $5 billion”, co-CEO Erik Hirsch said on the firm’s Q4 and fiscal year 2024 earnings call on Thursday.

The fund has been in the market since 2021 and has held seven interim closes, according to Secondaries Investor data. Hamilton Lane held closes on Fund VI in February and March, totalling more than $800 million of commitments, Hirsch said. It then held an additional close in April that totalled $618 million, he added.

Hirsch noted that the firm has “received a small extension” on the fundraise, adding that this falls in line with its prior fundraises.

On the firm’s Q3 2024 earnings call in February, Hirsch similarly said the fund was due to close imminently. “We are on target to meaningfully surpass the prior fund size with this current fund… We expect to hold the final close for this fund over the coming weeks,” he said, as Secondaries Investor reported at the time.

At the time, Fund VI had amassed $3.5 billion from investors.

On Thursday’s earnings call, Hirsch noted that Fund VI is “the largest institutional fundraise in our history” and is 30 percent larger than its predecessor, which closed on $3.9 billion in 2021. As of June 2023, Secondary Fund V is 68 percent called and has achieved an IRR of 24.52 percent and TVPI of 1.5x, according to documents from the Public Employee Retirement System of Idaho.

Since February 2023, Fund VI has received commitments from KGI Life, Fubon Life Insurance and the Employees’ Retirement Fund of the City of Dallas.

“The secondary platform is a key component of our specialised fund growth,” Hirsch noted.