Side Letter: Ham Lane’s token tie-up; TPG’s climate close; Vitruvian’s moonshot

Hamilton Lane is the latest private markets giant to acknowledge the exciting potential of private equity tokenisation. Plus: TPG is nearing its climate fund hard-cap and Vitruvian has acquired a stake in fundraising platform Moonfare. Here's today's brief, for our valued subscribers only.

Just happened

Don’t sleep on tokenisation
It’s been a big morning for tokenisation, a nascent concept with significant potential to aid private equity’s efforts to capture new pools of investor capital. This morning, Hamilton Lane became one of only a handful of private markets participants to embrace the concept so far. It has partnered with Singaporean platform ADDX to tokenise an undisclosed sum for its $1.85 billion Global Private Assets Fund, per a statement. The process will mean accredited investors can access the PE, credit and secondaries vehicle with a minimum ticket of just $10,000, compared with the $125,000 usually required.

If you’re unfamiliar with the concept of tokenisation, Private Equity International wrote this handy introduction back in October (essentially, it is the process of dividing PE holdings into smaller, tradable digital securities).

Hamilton Lane follows in the footsteps of early mover Partners Group, which also partnered with ADDX in September to tokenise its (then) €5.5 billion Global Value SICAV Fund.

Hamilton Lane’s tie-up with ADDX coincides with new research from tokenisation platform Token City. The survey of European fund managers representing $547 billion of AUM found that 73 percent expect PE assets to be first to see significant levels of tokenisation. Most (93 percent) said alternatives are more likely to be targeted because of their comparative lack of liquidity, transparency and accessibility.

Wealthy individuals, particularly those in Asia, are among the fastest growing and most highly prized groups of PE investors. With two of private markets’ biggest names already on board, tokenisation may well prove decisive in accessing this capital at scale. Watch this space.

Don’t miss!
There’s still time to put forward your colleagues and peers for PEI’s Women of Influence in Private Markets list 2022. We’re on the lookout for individuals who have had a notable impact in the alternative assets industry and beyond and who have displayed evidence of leadership, innovation or game-changing actions over the past 12 months. Future Fund’s PE head Alicia Gregory; Ardian founder Dominique Senequier; and Pantheon partner and co-founder of Level 20, Helen Steers, were among those featured in 2021’s list. Know someone who deserves to be recognised this year? Then nominate them here by Friday 1 April.

TPG finds a welcoming environment
TPG is expecting to hold a final close on its latest climate offering, TPG Rise Climate Fund, at its $7.2 billion hard-cap next quarter, the firm revealed in last week’s earnings. Focused exclusively on opportunities in climate change and carbon reduction, the fund will back companies operating in clean energy, decarbonised transport and agriculture, among other sectors, affiliate title Buyouts reports (registration required).

TPG is something of a pioneer in this space among its peers, having launched the Rise Fund franchise alongside U2 frontman Bono and former eBay president Jeff Skoll back in 2016. Rise Fund I secured $2.1 billion. Today, the firm seemingly has plans to advance its impact brand even further, as the recent rollout of Rise Fund III – the third in TPG’s series of broader impact vehicles, which has a target of $3 billion – was announced on the same call.

Essentials

Vitruvian shoots for the Moon
Vitruvian Partners is the latest backer of fundraising platform Moonfare, per a statement. The London-based firm invested $35 million from its €4 billion fourth buyout fund, which will help finance expansion into new markets and product offerings. It comes months after Moonfare raised $125 million in a Series C round led by Insight Partners. The speed at which Moonfare has grown its AUM – now at €1.6 billion, a 150 percent increase year-on-year – underscores individual investors’ burgeoning appetite for the asset class. An investment from Vitruvian – one of the most secretive PE firms in Europe – is also a strong vote of confidence, with the firm having backed some of Europe’s biggest tech successes, including Just Eat and Skyscanner.

Vive le French PE
France’s PE market broke records in 2021 for both capital raising and dealmaking, according to industry body France Invest (report in French). French PE firms gathered €24.5 billion from institutional and retail investors, a 33 percent increase on 2020 and a 17 percent rise from 2019. Of that figure, €4.8 billion came from individual investors and family offices. Firms invested €27.1 billion across more than 2,300 companies, a 53 percent increase in deal volume from 2020 and 41 percent in 2019. More than 1,400 companies were partially or fully sold last year at total value of €1.4 billion, broadly in line with the previous five-year average.


Today’s letter was prepared by Alex Lynn with Carmela Mendoza and Helen de Beer.