Hamilton Lane closes largest co-investment fund to date

The fundraising lasted 18 months and 40% of the capital came from new investors.

Hamilton Lane has closed its fourth co-investment fund on $1.7 billion, Private Equity International has learned.

The fundraising took 18 months and the vehicle held a first close on $755 million in late 2018. Approximately 50 percent of the fund has been deployed to date, according to Jackie Rantanen, managing director and head of product management. Existing investors accounted for 60 percent of the capital in the vehicle with the remaining 40 percent coming from new investors.

Rantanen noted that there is plenty of LP interest in co-investing, but effective execution is challenging. “For many, an institutional approach like ours, partnering with someone that has the scale, unique access, the data and the expertise to underwrite and invest with conviction is of great appeal,” she said.

The co-investment fund’s investor base is predominantly European and North American; it also includes investors from Israel, Asia, Latin America and Australia, according to Rantanen. Investors range from public pension systems to family offices, sovereign wealth funds, Taft-Hartley pension plans, endowments, foundations, high-net-worth individuals and insurance companies.

Hamilton Lane’s strategy for Fund IV remains similar to previous co-investment funds: it will provide direct equity capital to buyout and growth transactions alongside leading general partners.

The investments from this fund are diversified across enterprise value, geography and industry, Rantanen said.

Hamilton Lane’s fourth co-investment fund is supported by a team of 22 co-investment professionals and is an extension of Hamilton Lane’s broader co-investment global equity platform. The platform, which includes commingled co-investment funds and discretionary separate accounts, represents more than $4.9 billion in assets under management and supervision as of 31 March, 2019.

Hamilton Lane declined to comment on returns or provide updated figures.