Hamilton Lane closes latest short-term vehicle on $435m

The fund is more than double the size of its predecessor. 

Hamilton Lane has closed its an annual private credit fund above its target of $250 million, the Bala Cynwyd-based firm said in an announcement Wednesday.

The advisory and investment firm said it brought in $435 million for its Hamilton Lane Strategic Opportunities Fund 2017 from an array of limited partners, including pension funds, insurance companies, endowments and foundations and high-net-worth individuals from across the globe. Commitments included $2.5 million from the Municipal Authority of Westmoreland County Employees Pension Plan.

Fund 2017’s predecessor, Hamilton Lane Strategic Opportunities Fund 2016, raised $210 million, surpassing its $150 million goal when it held a final close in June of last year. The vehicles are structured for short-term investments, as the investment period for the fund is one year, according to Wednesday’s statement.

“The opportunity in the private credit market is meaningful and we expect it to continue to evolve and grow,” Drew Schardt, the firm’s managing director and global head of the private credit team, said in a statement.

The one-year investment period “was designed to offer investors flexibility to manage their [portfolio] allocations to private markets,” said Emily Nomeir, a principal and co-head of the product management group, in a follow-up interview with Private Debt Investor.

Schardt, a managing director and global head of the private credit team, also said in an interview that the short-term investment window also fits with the shorter duration of credit instruments when compared to private equity.

Nomeir said the firm began investing the fund at the beginning of the second quarter, and so far the vehicle is over 25 percent committed. Schardt added the firm is “generally sector agnostic” and will use the new fund to invest in an array of different industries, opportunistically looking at the transactions on a deal-by-deal and relative value basis. 

Hamilton Lane is fresh off another fund close, as well. Last week the firm held a final close on $1.9 billion for its Hamilton Lane Secondary Fund IV, surpassing its 1.25 billion target and notching more than double the $909 million pulled in by the 2012-vintage Fund III.

Editor's note: The story has been updated to include comments from Nomeir and Schardt.