Hamilton Lane has closed its largest ever private equity fund of funds on $516 million, according to a statement from the firm.
Hamilton Lane Private Equity Fund IX, a 2015-vintage, was originally targeting $400 million and did not have a hard-cap.
Investors in the fund include public pension funds, Taft-Hartley pension plans, endowments, foundations and other institutions, according to Jackie Rantanen, managing director and co-head of the product management group at the firm. Returning Hamilton Lane investors accounted for 49 percent of committed capital.
It is understood the firm will make a GP commitment of 1 percent to the vehicle.
“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 Private Equity International sister title 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’s board of retirement at a 7 October meeting.
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.
Around 70 percent of the capital will go toward primary fund commitments, and 10 percent will go toward co-investments.
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 Hamilton Lane held a final close on its Strategic Opportunities Fund 2016 on $210 million, exceeding its initial target of $150 million after just three months in market.
As of 31 March this year the alternative investment management firm has more than $250 billion in total assets under management, it said.