Leading private markets investment firm Hamilton Lane (NASDAQ: HLNE) has partnered with digital stock exchange ADDX to tokenize a class of shares issued by Hamilton Lane Global Private Assets Fund (“GPA” or “the Funds”), to enable access to private market markets for a wider set of investors in Asia.
The partnership marks the first time Hamilton Lane has tokenized a fund, making it one of the first major private markets companies to do so and reflecting the company’s long-standing commitment to innovation and expanding investor access to the asset class.
Hamilton Lane’s GPA Fund will be available to ADDX investors at a minimum amount of $10,000, compared to a minimum of $125,000 or more for investors subscribing through traditional, non-tokenized distribution channels.
ADDX is Asia’s largest private market exchange. Its individual accredited investors come from 39 countries spanning Asia-Pacific, Europe and the Americas (excluding the United States). More than half of these investors come from Asia. The platform automates the manual processes of issuance, custody and distribution of private market products, through the use of blockchain and smart contract technology. The efficiencies resulting from tokenization allow ADDX to split investments in a scalable and commercially viable way.
Global Private Asset Fund
Launched in May 2019, the GPA fund has generated an annualized return of 16.11% (net) since inception and has assets of over US$1.845 billion as of January 31, 2022.
The open-ended fund’s underlying assets consist primarily of direct equity and secondary investments, as well as direct credit. To date, the Fund has invested in assets from nine sectors, with around half of its transactions in the information technology and industrials sectors. The remaining exposure consists of investments in various sectors, including healthcare, energy and communications.
Due to its extensive relationships and deep expertise developed over the past 30 years in private markets, Hamilton Lane has access to a robust and proprietary deal pipeline, allowing its investment team to cast a wide net but to be very selective. Additionally, the firm is one of the world’s largest private markets investors and capital allocators, having deployed approximately US$37 billion in capital in 2021.
Hamilton Lane Vice President and Head of International Juan Delgado-Moreira said: “Hamilton Lane is dedicated to providing access to private markets to a wider range of investors, and to do so without some of the headaches that have always been difficult for small investors. We seek to partner with companies that deliver transformative technology designed to advance our industry, and we are excited to offer our investors access to GPA through this new platform.