Hamilton Lane Taps Securitize to Tokenize Funds for Individual Investors

Private investment management firm Hamilton Lane partners with digital assets securities manager Securitize to tokenize three of its funds to expand investors’ access.

Ultimately, via the partnership, Hamilton Lane is offering qualified investors in the United States easy access to the available three distinct Hamilton Lane funds through tokenized feeder funds.

As part of the provision of the funds, these qualified investors will gain access to direct equities, private credit, and secondary transactions.

All these will be tokenized by the digital transfer agency of Securitize which is overseen by Securitize Capital, its digital assets management arm. From analysis, it is expected that the funds are listed on the Securitize Market by Q4.

Hamilton Lane Head of Digital Assets Victor Jung commented on the partnership with Securitize.

“This collaboration with Securitize is our latest step toward enabling access to the strong returns and performance opportunities generated within the private markets space for a newer set of investors while increasing usability and transparency through the use of blockchain technology.”

Securitize Offers Tokenization Option

Historically, the private investment manager’s products were made available and accessible to institutional clients alone. Hamilton Lane, which held $832 billion in assets under management (AUM) as of June 30th, is considering tokenization of its fund so as to reach a broader market that includes qualified individual investors. 

Carlos Domingo, CEO of Securitize stated “Hamilton Lane offers some of the best-performing private markets products available, but historically they have been limited to institutional investors. Tokenization now makes it possible for individual investors to participate in private equity value creation for the first time in a digitally native way.”

“We are at the beginning of a process through which individual investors can access the same kinds of opportunities as university endowments or sovereign wealth funds, and that is very exciting,” he continued.

Similarly, American global investment company Kohlberg Kravis Roberts & Co. (KKR & Co. Inc.) recently tapped Securitize to tokenize one of its private equity funds, Health Care Strategic Growth Fund II (HCSG II) on the Avalanche blockchain. Hamilton Lane, it is yet to determine the blockchain on which its funds will be on.

Notably, the Hamilton Lane fund is not yet available to broader retail investors. According to a spokesperson, the firm is considering expanding to that extent in the future.