Strategies Direct Equity Investments

Globally diversified platform targeting the SMID market with unique positioning

Our direct equity investment strategy leverages the benefits of the Hamilton Lane platform and market access, aiming to execute high-quality direct equity investments and construct portfolios positioned to deliver compelling returns for our investors. The strategy is primarily focused on making direct equity investments in companies with small- to mid-sized enterprise values. By diversifying our investments, we seek to minimize market risks associated with over-exposure to a single general partner, geography, industry or deal type or size. Our objective is to maximize the multiple of invested capital as well as the IRR for each of the direct equity investments.

  • Leverage Hamilton Lane's extensive platform to drive unique and differentiated deal flow and access for our investors
  • Provide access to direct equity/ co-investments at preferential fees and terms versus traditional buyout funds
  • Focus on small- and mid-sized investments, with nearly 80% of investments co-underwritten or with proprietary access since 2014*

*Represents Proprietary, Advantaged, and Co-Underwritten invested deals in Hamilton Lane Co-Investment Fund III (EO III), Hamilton Lane Co-Investment Fund IV (EO IV) and Hamilton Lane Equity Opportunities Fund V (EO V) by deal count as of 6/30/2024.

683

Opportunities Reviewed YTD 2024**

$15.3B

Direct Equity AUM***

29

Years of Direct Equity Experience

**As of 9/30/2024

***Discretionary Assets Under Management ("AUM") includes all investments managed by Hamilton Lane for which Hamilton Lane retains a level of discretion for the investment decisions as of 9/30/2024. AUM equals assets under management for active accounts. AUM is equal to market value plus unfunded. AUM calculation does not include authorized to invest amounts (ANI). ANI can only be attributed to commingled fund-of-funds and separate accounts and cannot be attributed to underlying investments. Direct Equity AUM includes direct equity investments and does not include direct credit investments.


Deal Spotlights

Cosette Pharmaceuticals

Who they are

A U.S.-based, fully integrated pharmaceuticals platform focused on women’s health, cardiology, and dermatology therapeutic areas.

Why it matters

Cosette’s diversified portfolio of branded products, along with innovative, patent-protected drugs, position the business to capitalize on future organic growth opportunities, supplemented by its M&A strategy and R&D focus.

Managing Director Jay Rosenberger dives deeper into the HL advantage in this deal spotlight video.

Apotex

Who they are

A leading provider of generic pharmaceuticals in North America, with the #1 market position in Canada and a top-15 market position in the U.S.

Why it matters

This was a unique opportunity to transform a middle-market, family-run North American generic pharmaceuticals asset of scale, which is set to benefit from SK Capital’s value creation playbook and sector expertise.

The HL advantage

Due to our size and scale, we received early access to the deal and were positioned as a key co-underwrite partner. Throughout a long and complex process, we worked efficiently, provided surety of capital and, ultimately, served as a strategic partner to SK Capital.

What's next

Apotex has materially outperformed expectations and recently completed a dividend recap, returning ~100% of invested capital back to HL, only one year into our hold.

TIDI Products

Who they are

A leading manufacturer of single-use and consumable products focused on patient safety and infection control in medical settings.

 

Why it matters

TIDI holds the #1 market position in the fall management alarms and sensors market, and maintains excellent brand relationships across the largest health systems in the U.S. The company’s Acute Care product portfolio has a $1.2B total addressable market, with key tailwinds including an aging and increasingly at-risk population, acute care labor shortages, increased focus on patient safety and avoidance of costly medical errors.

The HL advantage

Due to a strong relationship with the sponsor and our ability to move quickly through the diligence process, we secured the largest CI allocation in the deal.

Read our take on the current Direct Equity landscape
Our experienced, global direct equity team maintains a diverse range of sophisticated transactional skillsets, paired with differentiated sourcing capabilities to create unique opportunities in any climate. This has helped us deliver a best-in-class investor experience and consistently strong strategy performance. Our platform advantages allow us to access transactions that others cannot and utilizes a distinct private market information database to invest in the most attractive private companies around the world.
Drew Schardt
Co-Head of Direct Equity Investments

Leveraging our database of over 22,670 funds and 163,870 portfolio companies

Our data advantage is a key differentiator and allows the Direct Equity Investment Team to access an abundance of investment opportunities and information advantages throughout the investment lifecycle, from diligence to allocation to monitoring and reporting. We leverage our firm’s capabilities and in-depth knowledge of the private markets, as well as our significant technological reporting and analytical capabilities, to better understand the value drivers within a given investment and ultimately strive to generate compelling returns for our investors.

*As of 9/30/2024

Recent Content

News | 5 Min Read

Hamilton Lane Bolsters Direct Equity Team

Hamilton Lane announced the expansion of its Direct Equity Investment Team with the appointments of senior team members based in North America and Europe.

Read the Press Release
News | 4 Min Read

Hamilton Lane participates in minority investment in H&MV

H&MV Engineering, a specialist in high voltage electrical engineering and design, announces a minority investment from LGT Capital Partners and Hamilton Lane.

Read the Press Release
Insights | 6 Min Read

Why Middle-Market Co-Investment Opportunities Make Sense Now

What makes today's direct equity environment ripe with opportunity for middle-market co-investments? Learn why middle-market co-investing makes sense now.

Read the Research Article

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