Private Markets Investment Firm Hamilton Lane To Tokenize 3 Funds

  • Hamilton Lane funds are said to be available on a “reputable” blockchain to be determined, the spokesman says
  • Securitize unveiled a tokenized version of a KKR healthcare fund on the Avalanche blockchain last month

Private markets investment firm Hamilton Lane is making three of its funds available through tokenized feeder funds as it expands access to the vehicles beyond purely institutional.

The firm, which has $832 billion in assets under management or oversight as of June 30, has partnered with digital asset securities firm Securitize to tokenize funds offering exposure to equities, personal loans and secondary transactions.

Securitize CEO Carlos Domingo said in a statement that Hamilton Lane’s products, which were historically only available to institutions, will now be available to qualified US investors.

“For the first time, tokenization enables individual investors to participate in private equity value creation in a digitally native way,” said Domingo.

“We’re at the beginning of a process that will give individual investors access to the same opportunities as university endowments or sovereign wealth funds, and that’s very exciting,” he said.

The Hamilton Lane funds are to be tokenized by Securitize’s Digital Transfer Agency and managed by the Digital Asset Management division. The crypto firm intends to make them available for investment this quarter through its brokerage platform, Securitize Markets.

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The news comes a few weeks after Securitize announced the launch of a fund tokenizing a stake in KKR’s Health Care Strategic Growth Fund II on the Avalanche public blockchain. KKR, which provides alternative wealth management, capital markets and insurance solutions, had $491 million as of June 30.

Securitize also made a tokenized art fund from Artory and the Winston Art Group available on its platform last month. The $25 million closed-end fund is actively managed and resides on the Polygon blockchain.

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The Hamilton Lane funds will be on a “similarly reputable” public blockchain, a spokesperson told Blockworks, although the companies have not yet determined which.

“This collaboration with Securitize is our latest move to enable a newer group of investors to access the powerful returns and performance opportunities generated in the private markets space, while increasing ease of use and transparency through the use of blockchain technology ‘ Victor Jung, Hamilton Lane’s Head of Digital Assets, said in a statement.

Although the funds are not available to the broader retail investor segment, DQYDJ reported that 10.6% of American households were accredited in 2020. These households controlled around $73 trillion in wealth.

“We’re looking at how this market might evolve and become more inclusive of retail investors in the future, but we’re not there yet,” a Hamilton Lane spokesman told Blockworks.

Arca Labs partnered with Securitize last year to launch a tokenized United States Treasury Fund. The companies announced at the time that shares would be issued via ArCoin security tokens for digital assets and that records of token ownership would be kept off-chain.

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A few months earlier, Securitize had raised $48 million in a funding round co-led by Morgan Stanley and Blockchain Capital.

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  • Ben Strack

    Ben Strack is a Denver-based reporter covering macro and crypto native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) with traditional finance. Before joining Blockworks, he covered the wealth management industry for Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a degree in journalism. Contact Ben via email at [email protected]

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