Hamilton Lane has closed a $1.7 billion co-investment fund, the fourth of its kind for the alternative asset manager.
The fund will invest equity in buyouts and growth capital deals, putting money to work alongside private equity firms, according to a Hamilton Lane statement expected to be released Monday. More than half of the fund’s limited partners, including pensions, sovereign wealth funds, endowments, foundations, and high-net-worth individuals, are repeat investors from its previous co-investment pool.
An investment policy document from the City of Alexandria, Virginia’s supplemental retirement plan shows the pension committed $3.65 million to Hamilton Lane Co-Investment Fund IV. The document shows the fund plans to co-invest in 30 to 35 small- and mid-size companies.
Hamilton Lane has already committed half of the new fund’s capital, according to Jackie Rantanen, managing director and head of product management at the asset manager. The pool has a five-year investment horizon that began in 2018, she said in an email.
The Public Employee Retirement System of Idaho also made a commitment to Hamilton Lane’s co-investment fund. According to its 2017 private equity performance summary, the retirement system committed $40 million to the new pool.
PERSI has committed capital to all four of Hamilton Lane’s co-investment funds, according to the document.
In 2005, the retirement system committed to the first one, which has posted a loss of 0.15 percent. Hamilton Lane’s second co-investment fund, which the pension committed to in 2008, has posted a 16.07 percent internal rate of return. Co-investment fund III, which the system committed to in 2014, has an IRR of 20.94 percent, according to the document
Spokespeople for PERSI and the City of Alexandria’s supplemental retirement plan did not respond to emails seeking comment.
[II Deep Dive: Hamilton Lane Raises $900 Million Credit Fund]
Hamilton Lane’s equity co-investment platform had $4.9 billion in assets under management and supervision at the end of March, deploying more than $1.3 billion last year.
“As interest in co-investing continues to grow, we believe the combination of Hamilton Lane’s scale, data and technology advantages and global platform offers a differentiated and positive experience for our investors,” Rantanen said in the statement.