Opalesque Industry Update – Figure Technologies, Inc. and Hamilton Lane are preparing to launch three new equity classes of Hamilton Lane’s private market-focused funds registered under the Investment Companies Act of 1940. increase. Fund service platform.
Hamilton Lane, one of the world’s largest private market investment firms, was the first to file a new equity class of private asset funds on October 26, 2022. Hamilton Lane’s anticipated launch of new share classes will also mark the first time companies have provided exposure to private market investment strategies under the 1940 Act through blockchain-native share classes, transforming inefficiencies within the industry and the latest important steps to reduce private market industry.
As a fund registered under the 1940 Act, PAF is more widely available to qualified US investors, including certain individual investors, their wealth advisors and institutional investors. It provides access to a diversified portfolio of private equity and private credit assets through a single investment, either through a traditional primary issuance process or through Figure’s DFS platform.
Hamilton Lane is initially using DFS to streamline its primary issuance process and plans to launch two more closed-end private market funds on the DFS platform in the coming months. An investor in the fund will benefit from Universal Passporting, which will allow him to reuse his KYC/AML credentials as he transitions to new investments, reducing time, cost and friction. DFS utilizes Provenance Blockchain to perform traditional remittance agent functions such as cap table management, capital calls, distributions and shareholder communications. Provenance Blockchain was purpose-built in a regulatory compliant manner with the scale, security and cost structure required by financial institutions.
“We are pleased to partner with Figure to provide another digital-first vehicle for investors to access the private market. Hamilton Lane was one of the earliest major private market companies to tokenize the fund. , and we continue to work to identify innovative technology solutions that address some of the traditional pain points of the asset class,” said Hamilton Lane’s Head of Digital Assets. , says Victor Jung.
This is the latest development in support of the company’s commitment to leveraging technology to expand investor access to private markets. This announcement follows recent steps taken by Hamilton Lane to expand access to its global private asset funds and other closed-end funds.
“Hamilton Lane understands the access, convenience and cost savings that Provenance Blockchain will bring, 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 the ideal time to combine the expertise of the Hamilton Lane and figure skating teams to unlock 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, while PAF is the first-ever 40 Act Fund dedicated to the private market. Figure will continue to work with industry participants and the managed fund community to make the most of blockchain technology across all fund types and lifecycles.