Hamilton Lane holds final close on $900m fund

The strategic opportunities vehicle is targeting investments striving for consistent cash yield.

Hamilton Lane has held a final close on its $900 million Strategic Opportunities Fund VI. The fund, launched in February 2020, brings the total raised in the strategy to more than $3.2 billion since 2015.

In a press release, the Pennsylvania-based private markets firm provided few details on the capital raising, other than to say that the fund will pursue a proven strategy of making credit-oriented investments striving for consistent cash yield, shorter duration and attractive risk-adjusted returns.

The predecessor fund, Hamilton Lane Strategic Opportunities Fund V, closed on $760 million, and was generally shooting for net returns in the high single digits or low double digits, Drew Schardt, head of credit, told Private Debt Investor when it closed in August 2019. At the time, the first four vintages had achieved net IRR’s of 11.6 percent, 12.2 percent, 9.2 percent and 9.6 percent, respectively, according to the annual report for the fiscal year ending March 2019.

Unlike other Hamilton Lane funds that last 10-14 years, the Strategic Opportunities series funds have one-to-two-year investment periods and a five-year life, as per the annual report.

The private credit landscape is marked by “growing LP interest driven generally by the opportunity for risk mitigation, yield and return characteristics” in the context of a broader private-markets portfolio, Schardt said in the statement. He said the latest close was a continuation of the firm’s proven strategy and platform.

Returning and new institutional investors from Asia, the Middle East, Europe and North and South America participated in the latest fundraising. While Fund VI is the latest fund of its kind, Hamilton Lane said it is an extension of the firm’s broader credit platform, which represents more than $40 billion in assets under management and supervision as of September 30, 2020.