On August 15, Hamilton Lane announced a collaboration with Securitize to make its $5.6 billion Secondary Fund VI accessible to qualified investors through a blockchain-based platform.
Hamilton Lane’s Secondary Fund VI, which closed in June 2024, exceeded its initial $5 billion target by raising $5.6 billion in commitments.
Securitize and Hamilton Aim to Lower the Private Market Barriers for Individual Investors
Traditionally, such funds have been limited to institutional investors with high entry thresholds. However, through this partnership, individual investors can now access the fund with a minimum investment of $20,000.
“By digitizing the investment process, we are removing barriers and making it easier for more investors to participate in high-quality private market opportunities,” Carlos Domingo, co-founder and CEO of Securitize, remarked.
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This fund is the latest in a series of tokenized investment products from Hamilton Lane and Securitize. Earlier collaborations in 2023 provided individual investors with access to Hamilton Lane’s Equity Opportunities Fund V and the Senior Credit Opportunities Fund (SCOPE).
Tom Kerr, Co-Head of Investments and Global Head of Secondary Investments at Hamilton Lane, expressed his excitement for this new initiative. He also acknowledged the growing demand for liquidity in the secondary market.
“Fund VI is a continuation of our longstanding secondary franchise, and we continue to focus on finding differentiated secondary opportunities at attractive inflection points where we have familiarity and a competitive angle,” Kerr added.
Hamilton Lane has been active in the secondary market for over 24 years. As of June 30, 2024, the firm has managed approximately $21.0 billion in assets.
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Tokenized Assets Market Predictions by 2030. Source: McKinsey
This initiative comes as the tokenization of financial assets is gaining momentum. According to a report by McKinsey, the market for tokenized financial assets could reach $2 trillion by 2030. Meanwhile, a separate report from ADDX and BCG estimates that the global market for illiquid asset tokenization could reach $16 trillion by the same year.