Hamilton Lane has partnered with digital securities exchange ADDX to tokenise a class of shares issued by Hamilton Lane Global Private Assets Fund (GPA) to enable access to the private markets for a broader set of investors in Asia.
The partnership marks the first time Hamilton Lane has tokenised a fund, making it one of the earliest major private market 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 $10,000, compared to the minimum of $125,000 or more for investors who subscribe via traditional, non-tokenised distribution channels.
ADDX is one of Asia’s largest private market exchanges. 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 tokenisation allows ADDX to fractionalise investments in a scalable and commercially viable manner.
Global Private Assets Fund
Launched in May 2019, the GPA Fund has returned 16.11% (net) annualised since inception and has assets of more than $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 industrial sectors. The remaining exposure consists of investments across a variety of sectors, including healthcare, energy and communications.
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 $37 billion in capital in 2021.
Juan Delgado-Moreira, vice chairman and head of international at Hamilton Lane 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”.
Oi-Yee Choo, CEO of ADDX said, “Many investors don’t realise that the private markets are much larger than the public markets. Globally, more than 90% of companies with an annual turnover of $100 million or more are private. For any investor, leaving private equity out of your portfolio essentially means turning one’s back on the vast majority of investment opportunities in the market. At a time of unprecedented volatility and declining returns in the public markets, diversification into the private markets is more important than ever”.
Choo added, “We know the value private equity can bring to investors’ portfolios. The only missing link thus far has been the lack of access to such assets for most individual investors. With tokenisation and fractionalisation, ADDX is committed to plugging that gap. In doing so, we are pleased to partner with Hamilton Lane, a well-respected, world-class name in alternative investments”.
ADDX became licensed by the Monetary Authority of Singapore (MAS) as a private market exchange in February 2020. Since then, ADDX has listed 26 deals on its platform involving blue-chip names such as Investcorp, UOB, CGS-CIMB, as well as Temasek-owned entities Mapletree, Azalea and SeaTown. Asset classes available on ADDX include private equity, venture capital, private debt, real estate, hedge funds, funds with cryptocurrency exposure, and structured products. The platform’s draw for issuers, is that it provides access to previously untapped capital pools and reduces both the cost and minimum threshold of fundraising projects.
Re-disseminated by The Asian Banker