Hamilton Lane enters hedge fund fray

The Pennsylvania gatekeeper has bought a controlling stake in The Richcourt Group, a fund of hedge funds manager.

Hamilton Lane, the Bala Cynwyd private equity advisor, has acquired a controlling stake in The Richcourt Group, a fund of hedge funds manager with more than $1.5 billion (€1.15 billion) in hedge fund assets under management.

Richcourt is based in New York. The firm was formed in 1992 as a subsidiary of The CITCO Group, a hedge fund administrator. CITCO will retain a stake in Richcourt and be represented on its investment committee.

Mario Giannini, the chief executive officer of Hamilton Lane, said his firm had been looking to enter the hedge fund space for some time. The transaction was led by Hamilton Lane vice chairman Hartley Rogers. Giannini said Richcourt’s investors have “virtually no overlap” with Hamilton Lane’s clients, and are primarily based in Europe.

Giannini noted that many of his firm’s private equity clients are interested in hedge funds, and that many of the general partnerships to which Hamilton Lane has committed capital are beginning to launch hedge fund programmes, including Texas Pacific Group.

Hamilton Lane’s John Mensack will be named CEO of Richcourt, which has affiliates in Paris, Monaco and Zurich.

Hamilton Lane, with more than $5 billion in discretionary assets under management, recently announced that a group of new investors would acquire approximately 40 per cent of the firm’s shares.

One of the investors is Cascade Investment, the family office managing the personal wealth of Bill Gates, co-founder and chairman of software giant Microsoft.

Several individuals also participate in the transaction including Rogers, a former co-head of Credit Suisse First Boston’s US private equity department.