Stephanie Davis, Managing Director and Co-Head of U.S. Private Wealth Solutions for Hamilton Lane, joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Alternative Investment Summit to discuss the advantages of accessing private markets in an evergreen fund structure.
Hamilton Lane has been managing private markets funds for over 30 years, now with $850 billion in AUM. The firm has been allocating over $40 billion per year to alternative investments and real assets, including private credit, private equity, infrastructure, secondaries, and co-investments. Traditionally, Hamilton Lane has served institutional investors with drawdown-style private funds.
Hamilton Lane has released innovative products with structures that provide an easier experience for financial advisors and their clients when compared to traditional drawdown funds. Hamilton Lane’s Private Assets Fund is an evergreen PE fund available on the CAIS platform. Advantages of this fund structure for high-net-worth individuals include minimum investments as low as $50,000, monthly subscriptions without waiting for capital calls, an option for quarterly liquidity, and easier tax reporting on form 1099. The fund invests broadly across global private markets, but is not a fund of funds, as it invests directly in secondaries and co-investment opportunities also held in portfolios managed by private equity and venture capital general partners. To facilitate potential quarterly liquidity, the fund also invests directly in private credit loans. While liquidity options may be available, illiquid assets are meant to be held for a long time period.
Hamilton Lane seeks to educate advisors, providing information in a variety of formats, including videos, podcasts, white papers. In alternative investments, portfolio construction is complex and important, as advisors need to understand each investment as well as its role in the portfolio. Rather than considering a portfolio of equities, fixed income, and alternative investments, advisors may wish to simply consider allocating to equities and fixed income. Private equity, then, would be part of the overall equity allocation.
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