Hamilton Lane Partners with Figure to Launch First Private Markets-Focused, Blockchain-Native Registered Investment Fund
Rhea-AI Summary
Hamilton Lane (NASDAQ: HLNE) has partnered with Figure Technologies to launch three new share classes for its Private Assets Fund (PAF). This initiative marks the first instance of a 1940 Act registered investment fund offering digitally-native share classes, utilizing Provenance Blockchain for enhanced transfer agent services and investor liquidity. The Fund aims to broaden access for qualified U.S. investors, providing a diversified portfolio of private equity and private credit assets through Figure's Digital Fund Services. This collaboration emphasizes Hamilton Lane's commitment to transforming the private markets through innovative technology.
Positive
- Launch of three new share classes for Private Assets Fund, expanding investment options.
- First-ever 1940 Act fund to offer blockchain-native share classes, signaling innovation in private markets.
- Partnership with Figure Technologies enhances transfer agent services and investor liquidity via Provenance Blockchain.
- Universal Passporting feature reduces time and costs for investors through reused KYC/AML credentials.
Negative
- The new share classes cannot be sold until the SEC registration statement is effective, indicating regulatory hurdles.
- Investors may face liquidity risks as shares are not currently listed on any securities exchange.
News Market Reaction – HLNE
On the day this news was published, HLNE declined 1.70%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- First time a private markets-focused 1940 Act Registered Investment Fund will have digitally-native share classes
- Partnership will provide access via the blockchain to Hamilton Lane's Private Assets Fund ("PAF") utilizing Figure Technologies' Digital Fund Services ("DFS")
- Hamilton Lane will leverage Provenance Blockchain for transfer agent services, fund subscription and investor liquidity for PAF
*The Prospectus for the new share classes is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This information is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
SAN FRANCISCO and CONSHOHOCKEN, Pa., Oct. 26, 2022 /PRNewswire/ -- Figure Technologies, Inc. ("Figure") and Hamilton Lane (NASDAQ: HLNE) are preparing to launch three new share classes of Hamilton Lane's private markets-focused fund registered under the Investment Company Act of 1940 ("1940 Act") that digitize the fund share ownership record on the Provenance Blockchain using Figure's Digital Fund Services ("DFS") platform.
Hamilton Lane, one of the largest private markets investment firms globally, first filed for the new share classes on October 26, 2022, for its Private Assets Fund ("PAF" or the "Fund"). Hamilton Lane's expected launch of the new share classes also marks the first time a firm has provided exposure to a private markets investment strategy under the 1940 Act through a blockchain-native share class, and is its latest significant step in transforming and reducing inefficiencies within the private markets industry.
As a 1940 Act registered fund, PAF is more widely available to qualified U.S. investors, including certain individual investors, their wealth advisors, as well as institutions. It provides access to a diversified portfolio of private equity and private credit assets through a single investment – either through the traditional primary issuance process or via Figure's DFS platform.
Hamilton Lane is initially using DFS to streamline the primary issuance process and plans to launch two additional closed-end private market funds on the DFS platform in the coming months. Investors in the Fund will also benefit from Universal Passporting, which allows investors to reuse their KYC/AML credentials as they move to new investments, reducing time, cost and friction. DFS utilizes the Provenance Blockchain to perform traditional transfer agent functions such as cap table management, capital calls, distributions and shareholder communication. The Provenance Blockchain was purpose-built in a regulatory-compliant manner with the scale, security and cost structure required for financial institutions.
"We are thrilled to be partnering with Figure to offer another digital-first means for investors to access the private markets. Hamilton Lane was one of the earliest major private markets firms to tokenize a fund, and we remain committed to identifying innovative technology solutions as a means of solving for some of the traditional pain points in the asset class," said Victor Jung, Head of Digital Assets at Hamilton Lane.
This is the latest development in support of the firm's commitment to utilizing technology to broaden investor access to the private markets. The announcement follows other recent steps Hamilton Lane has taken to broaden access to its Global Private Assets Fund and as well as other closed-end funds it manages.
"Hamilton Lane understands the access, convenience and cost savings resulting from the Provenance Blockchain, and we are proud to work with them to upend the financial services industry," said Mike Cagney, co-founder and CEO of Figure. "This collaboration is ideally timed to combine the expertise of the Hamilton Lane and Figure teams to uncap the potential of blockchain."
With this announcement, Hamilton Lane joins 15 other funds and Special Purpose Vehicles to offer blockchain-native vehicles on the DFS platform, though PAF is the first-ever 40 Act Fund focused specifically on the private markets. Figure will continue to work with industry participants and the managed fund community to best leverage blockchain technology across all fund types and life cycles.
Figure is transforming financial services through blockchain, bringing speed, efficiency and savings to consumers and institutions. Figure continues to unveil a series of fintech firsts across the capital markets, investment management and banking and payments sectors. Figure leverages Provenance Blockchain for loan origination, servicing, financing and now private fund services. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion-dollar business under his leadership as CEO. Learn more about https://www.figure.com/.
Hamilton Lane (NASDAQ: HLNE) is a leading private markets investment management firm providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs more than 540 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has more than
Provenance Blockchain is built specifically for the financial services ecosystem. Leading financial institutions and fintechs leverage Provenance Blockchain to enable the entire digital asset lifecycle to deliver material business and customer value. Provenance Blockchain is successfully transforming lending, securitization, payments and exchanges, and has supported over
Provenance Blockchain Foundation Media Contact:
Investors should consider the Private Assets Fund's investment objectives, risks, charges, and expenses carefully before investing. For a prospectus that contains this and other information about the Fund, call 1 (888) 882-8212. Investing in the Fund involves risk including loss of principal.
The Fund operates as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. Though the Fund intends to repurchase shares quarterly, you may not have access to the money you invest for an extended period of time. The Fund is not a liquid investment. You may not be able to sell your shares at the time or in the quantity of your choosing regardless of how the Fund performs. Investors should understand that the Fund's shares are not currently listed on or available for trading through a securities exchange, and a market for trading on an exchange may never be available to investors. There is currently no secondary market, and no such market is expected to develop. Because you may not be able to sell your shares at the time or in the quantity of your choosing, you may not be able to reduce your exposure to the Fund in a market downturn. An investment in the Fund may not be suitable for investors who may need the money they invested in a specified timeframe.
Hamilton Lane Advisors LLC is the Advisor to the Hamilton Lane PAF. PAF is distributed by UMB Distribution Services, LLC. UMB and Hamilton Lane are unaffiliated.
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SOURCE Hamilton Lane
FAQ
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