Hamilton Lane targets $400m FOF, 15% for emerging markets
Hamilton Lane is targeting $400 million for its latest fund-of-funds vehicle, with 15% of the capital earmarked for emerging markets. According to a document sent to prospective investors, Fund VIII promises a fairly even distribution between US and European buyouts, venture capital, distressed opportunities, secondaries and emerging markets. No single area accounts for more than 20%.
Last month, Tara Blackburn, a managing director on Hamilton Lane's investment committee, told media that the firm was planning to allocate around 15% of its global portfolio to Asia, as investors look to capitalize on higher growth in the region.
The fund has a commitment period of four years, with LPs required to invest at least $2.5 million. Existing investors and substantial contributors are eligible for discounts on fees.
Hamilton Lane's seventh fund-of-funds - which is still under construction - attracted $262 million in commitments between 2009 and 2012, and has invested in 24 funds. Fund V (2003-2005) and Fund VI (2006-2008) closed at $135 million and $494 million, respectively.
There has been a visible shift towards small and mid-cap funds. Fund V invested 29% of its corpus in large vehicles with more than $3 billion under management, while Fund VI committed 10% to large managers and 15% to mega-funds of $7 billion or more. In the most recent vehicle, small and mid-cap funds account for 95% of investments.
Hamilton Lane's strategy has also become more geographically diversified. Early funds were dominated by North America and Western Europe, but Fund VII has invested 10% of its corpus in South America, 3% in Asia Pacific, 3% in India and 2% in Africa.
Asian GPs in Fund VI include CVC Capital Partners Asia Pacific III and Keytone Venture Capital Partners. Further exposure to the region comes through global funds.
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