Investment underscores the firm’s commitment to broadening access to the private markets through innovative technology solutions
Hamilton Lane announced its participation in the latest funding round for Singapore-based digital private market exchange ADDX, highlighting the firm’s commitment to providing private market investments to the non-institutional channel through innovative technology solutions.
The investment follows a partnership between the firms announced earlier this year to offer tokenized access to Hamilton Lane’s Global Private Assets Fund (“GPA” or “the Fund”) on the ADDX platform, reducing the minimum commitment amount and therefore expanding access to the private markets for a broader set of investors in Asia. The partnership marked the first time Hamilton Lane tokenized a fund, making it one of the earliest major private markets firms to do so and reflecting the firm’s long-standing commitment to identifying and investing in innovative technology solutions as a means of solving for some of the traditional pain points in the asset class.
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“We believe that embracing new technologies such as tokenization is the logical next step toward the democratization of the private markets globally,” commented Frederick Shaw, Managing Director. “Hamilton Lane has always been a solutions provider – that extends beyond products and includes identifying and partnering with innovative solutions meant to reduce the friction around investing in our asset class.”
The GPA Fund is 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-tokenized distribution channels. Launched in May 2019, the underlying assets in the open-ended fund are composed primarily of direct equity and secondary investments, along with direct credit.
ADDX’s latest funding round raised $58 million of Pre-Series B capital that saw several financial institutions come on board as new shareholders in addition to Hamilton Lane, including SET Venture Holding, a subsidiary of the Stock Exchange of Thailand (SET), UOB, and Krungsri Finnovate, the corporate venture capital arm of Krungsri (Bank of Ayudhya PCL).
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Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane, commented: “The ADDX platform is delivering transformative technology to a broad array of individual investors seeking access to the private markets. They are well positioned in the digital securities space and Hamilton Lane is excited to have participated in this latest fundraise. This investment underscores our belief in the attractive opportunity in providing private market investments to the non-institutional channel, expands our presence in Asia and allows us to join some of the leading institutions in that region in support of ADDX.”
For more than a decade, Hamilton Lane has been making strategic investments into innovative financial technology firms aimed at improving access and transparency within the private markets. Many of the companies in which the firm has invested today are viewed as standard bearers for the industry. In addition to ADDX, recent investments have included ESG technology platform Novata and wealth management fintech platform TIFIN.
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