Investment Manager Hamilton Lane Opens Tokenized Fund on Polygon Blockchain

The Securitize-backed feeder fund makes the flagship direct equity fund available to more investors.

AccessTimeIconJan 31, 2023 at 1:30 p.m. UTC
Updated May 9, 2023 at 4:06 a.m. UTC

Hamilton Lane (HLNE) – an investment-management firm with $824 billion in assets under management and supervision – has opened the first of three "tokenized" funds that it had said it would create in an effort to give more investors access to private markets.

In October, the firm announced plans to tokenize three of its funds under a partnership with digital-assets securities company Securitize.

  • Kamala Harris Meme Coin Soars as Biden Drops Out; India’s Tax Policy Unlikely to Change
    01:54
    Kamala Harris Meme Coin Soars as Biden Drops Out; India’s Tax Policy Unlikely to Change
  • HNT Token Scores 40% Gains on Growing Adoption of Helium Mobile
    00:50
    HNT Token Scores 40% Gains on Growing Adoption of Helium Mobile
  • Tokens on WazirX Trade at Discount; Italy's Top Banks Complete Digital Bond Issuance on Polygon
    01:45
    Tokens on WazirX Trade at Discount; Italy's Top Banks Complete Digital Bond Issuance on Polygon
  • Profit-Making Crypto Address Makes New Investment of $16M in BTC
    00:59
    Profit-Making Crypto Address Makes New Investment of $16M in BTC
  • In a statement shared with CoinDesk, Pennsylvania-based Hamilton Lane said that its flagship Equity Opportunities Fund V recently closed with $2.1 billion in investor commitments and that the firm is making a portion of that accessible to individual investors through a tokenized feeder fund on Securitize that’s backed by the Polygon blockchain. The fund offers “diversified exposure to unique and differentiated deals through an efficient fee structure,” Hamilton Lane said in the statement. A feeder fund collects money from a pool an investors.

    With the tokenized version of the feeder fund, the minimum investment amount drops to $20,000 from at least $5 million for the traditional version.

    “The new Hamilton Lane tokenized fund is a major step in the continued democratization of the private markets by significantly expanding access to the historically high-performing private-equity asset class, particularly through reduced investment minimums,” Securitize co-founder and CEO Carlos Domingo said in the statement.

    “Private equity has outperformed the S&P 500 by 70% over the past 20 years, but that performance has mostly been enjoyed by major institutions, sovereign wealth funds and university endowments. Individual investors can begin accessing these opportunities, too," he added.

    Hamilton Lane plans to launch the previously announced two additional feeder funds, which offer exposure to private credit and secondary transactions, in the coming months.

    UPDATE (Jan. 31, 16:12 UTC): Rewrites headline to add Polygon blockchain; adds Securitize to subhead.






    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.