The latest news about investment products, new structures and service offerings that might be of interest to the wealth management industry.

Hamilton Lane
US-listed private markets investment firm Hamilton Lane has partnered with digital securities exchange ADDX to tokenize a class of shares issued by one of its funds, widening access for Asian investors.

The agreement centers on the Hamilton Lane Global Private Assets Fund. This is the first time that Hamilton Lane has tokenized a fund. ADDX investors can access the fund for at least $10,000, compared with the minimum of $125,000 or more for investors who subscribe via traditional, non-tokenized distribution channels.

Tokenization is often spoken about in the alternative assets space as a way of widening access to investors who aren’t ultra-wealthy or large institutions. Tokenization is an important trend and comes in two main forms – tokenization of established assets such as private equity or venture capital, and for “non-bankable assets” such as fine art. The wealth sector is increasingly looking at tokens and other digital assets. 

ADDX, the Asia private market exchange, has individual accredited investors from 39 countries around the world, excluding the US. The platform automates manual processes in the issuance, custody and distribution of private market products, using blockchain and smart contract technology.

Launched in May 2019, the GPA Fund has returned 16.11 per cent (net) annualized since inception and has assets of more than $1.845 billion as of January 31, 2022. 

Underlying assets in the open-ended fund are composed primarily of direct equity and secondary investments, along with direct credit.