Private Markets Leader Hamilton Lane Partners With ADDX To Offer Tokenized Access To Its Global Private Assets Fund, In Major Foray Into Asia

Supply Chain Finance , Investment
30.03.2022 09:10 am

The Global Private Assets Fund, managed by the U.S.-based private markets firm, is accessible to accredited investors on private market exchange ADDX at a minimum investment size of just US$10,000, compared to US$125,000 for investors subscribing via non-tokenized channels

Leading private markets investment firm Hamilton Lane (NASDAQ: HLNE) has partnered with digital securities exchange ADDX to tokenize a class of shares issued by Hamilton Lane Global Private Assets Fund (“GPA” or “the Fund”), to enable access to the private markets for a broader set of investors in Asia.

The partnership marks the first time Hamilton Lane has tokenized a fund, making it one of the earliest major private markets firms to do so and reflecting the firm’s long-standing commitment to innovation and expansion of investor access to the asset class.

Hamilton Lane’s GPA Fund will be accessible to ADDX investors at a minimum ticket size of US$10,000, compared to the minimum of US$125,000 or more for investors who subscribe via 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 (except the U.S.). More than half of these investors are from Asia. The platform automates manual processes in the issuance, custody and distribution of private market products, through the use of blockchain and smart contract technology. The resulting efficiency from tokenization allows ADDX to fractionalize investments in a scalable and commercially viable manner.

Global Private Assets Fund

Launched in May 2019, the GPA Fund has returned 16.11% (net) annualized since inception and has assets of more than US$1.845 billion as of 31 January 2022.

Underlying assets in the open-ended fund are composed primarily of direct equity and secondary investments, along with direct credit. To date, the Fund has invested in assets across nine industries, with about half of its deals within the information technology and industrials sectors. The remaining exposure consists of investments across a variety of sectors, including healthcare, energy and communications.

Hamilton Lane

Because of its extensive relationships and deep expertise developed over 30 years in the private markets, Hamilton Lane has access to a robust and proprietary deal pipeline, which enables its investment team to cast a wide net but be highly selective. Further, the firm is one of the world’s largest investors and allocators of capital to the private markets, having deployed approximately US$37 billion in capital in 2021.

Hamilton Lane Vice Chairman and Head of International, Juan Delgado-Moreira, said: “Hamilton Lane is dedicated to providing access to the private markets for a broader set of investors, and to doing so without some of the headaches that have historically been challenging for smaller investors. We seek to partner with firms that deliver transformative technology designed to drive our industry forward, and are excited to offer our investors access to GPA through this new platform.”