Hamilton Lane streamlines investments for retail clients through a Republic partnership, tokenizing their funds
Hamilton Lane, a global private markets investment manager with $947 billion in assets under management, has announced a partnership with Allfunds and Apex to expand access to its tokenized funds in Europe.
The partnership aims to address "barriers to entry" and provide a "cheaper, better, and faster" solution for accredited investors, allowing them access to a fund at a far smaller dominations than conventionally.
Allfunds, a leading global wealth tech platform, will act as a distributor, enabling Hamilton Lane to distribute tokenized fund interests to a wide network of European wealth managers and investors. Apex, a blockchain-savvy fund administrator, will serve as the transfer agent, providing the necessary infrastructure for managing these tokenized products efficiently and compliantly across the region.
Hamilton Lane has been a pioneer in the tokenized fund space, adopting innovative blockchain technology early and aggressively. Their collaboration with Allfunds and Apex is part of a broader push to scale private market access via digital platforms.
Victor Jung, Head of Digital Assets at Hamilton Lane, stated that the benefits of private markets, such as historic performance and diversification, are real. "Investors should not be required to have a high income or millions in net worth to access private market assets," he added.
The partnership is another blockchain collaboration for Hamilton Lane, following their initial foray into the tokenized fund space in 2022, in collaboration with tokenization firm Securitize. Last August, Securitize launched a tokenized version of the Hamilton Lane Secondary Fund VI with a minimum investment of $10,000 for qualifying investors, compared to the usual $5 million.
The tokenization partnership with Republic, planned for the first half of 2025, will allow retail access and fractionalization, further expanding the reach of Hamilton Lane's tokenized funds.
Private markets have outperformed public markets in 19 out of the past 20 years, according to Hamilton Lane's data. With over 140,000 private companies globally having annual revenues over $100 million, compared to approximately 19,000 public companies with the same annual revenues, the potential for growth is significant.
However, higher returns in private markets come with higher risks. Hamilton Lane believes that this partnership will provide a more accessible and efficient way for investors to navigate these markets, improving liquidity and operational effectiveness in the region.
The Hamilton Lane-Allfunds partnership is set to revolutionize private market investments in Europe, making them more accessible to a wider range of investors and further integrating blockchain technology into the financial industry.
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