Hamilton Lane 'Tokenizes' $5.6B Fund

Private markets investment firm Hamilton Lane is making its Hamilton Lane Secondary Fund VI available to qualified investors through Securitize, a platform that tokenizes real-world assets.

The fund, which raised $5.6 billion in June, is now accessible to individual investors via a feeder fund available exclusively on the Polygon blockchain; the arrangement offers a streamlined digital investment process and lower minimum investment requirement, the companies said.

The tokenized feeder fund broadens access by reducing minimum investments to $20,000 from the typical $5 million. It’s the latest in a series of tokenized funds from Hamilton Lane and Securitize.

Tokenization involves converting ownership of an asset into a digital token stored on a blockchain; the token represents the asset, like the Secondary Fund VI, and is used to track and transfer asset ownership.

Tom Kerr, Hamilton Lane co-head of investments and global head of secondary investments, noted that the move extends the firm’s institutional secondary offering to individual investors.

“The circumstances driving appetite for liquidity via the secondary market continue to grow, and we sit in a compelling position with what we believe is one of the most experienced and cohesive secondary platforms,” Kerr said.