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Hamilton Lane Takes "Strategic Stake" In CAIS

Tom Burroughes, Group Editor, June 29, 2022

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The ascent of organizations such as CAIS reflects increased wealth management demand for alternative assets such as private credit, equity, venture capital, real estate and infrastructure.

CAIS, one of several alternative asset class platforms opening access to these areas, has secured a “strategic” stake from Hamilton Lane, the US-listed investment house.

Nasdaq-quoted Hamilton Lane is the latest in a series of CAIS investors that have taken part in the most recent financing, including Apollo, Motive Partners, Franklin Templeton, Reverence Capital Partners and Stone Point Ventures, resulting in the Company’s enterprise valuation exceeding $1.1 billion. The terms of the investment were not disclosed.
 
CAIS said it will use the new capital to help modernize how the independent advisor community can access and learn about alternative investments, while also connecting asset managers with the multi-trillion-dollar private wealth channel. CAIS will continue to develop technology, expand its global team, enhance the advisor experience through personalized learning, and automate back-end processes for financial advisors and fund managers alike, it said in a statement.

Hamilton Lane, which oversees more than $901 billion of assets, intends to put some of its evergreen and closed-end products onto the CAIS platform over time.

“We are seeing significant macroeconomic tailwinds that highlight the urgency for improved access to alternative investments, especially for the independent wealth and non-institutional channels,” Erik Hirsch, vice chairman and head of strategic initiatives at Hamilton Lane, said.

The ascent of organizations such as CAIS and iCapital Network reflect increased wealth management demand for alternative assets such as private credit, equity, venture capital, real estate and infrastructure. Typically less liquid than listed equities and bonds, they aim to deliver superior returns – a compelling proposition at a time of rising inflation and low yields on conventional assets.

According to data from the Chartered Alternative Investment Analyst Association, alternative assets are expected to make up to 24 per cent of the global investible market by 2025, up from 12 per cent in 2018. In the last year alone, transaction volume on the CAIS platform has increased by 69 per cent, with the number of platform users increasing by 29 per cent.

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