Tokenizing $2.1B Fund: Hamilton Lane Makes Private Equity Accessible to All
• Hamilton Lane, a global investment management group with $800 billion in assets, is tokenizing its flagship $2.1 billion fund on the Polygon blockchain.
• The tokenization of the fund will reduce the minimum investment from $5 million to $20K, thus making it available to retail investors.
• Hamilton Lane’s Equity Opportunities Fund V will be accessible through a new Securitize feeder fund.
Hamilton Lane, one of the world’s leading global investment firms with over $800 billion in assets under management, has announced its intention to tokenize its $2.1 billion flagship investment fund on the Polygon blockchain network. This move has the potential to revolutionize the access of retail investors to historically high-performing private equity asset classes, as the minimum investment required in the fund is reduced from $5 million to a mere $20K.
The tokenization of the fund will be done through Securitize’s platform, which will create a feeder fund that will make the Hamilton Lane Equity Opportunities Fund V accessible to individual investors. Securitize is a pioneering Fintech platform that has been making headway in democratizing access to alternative investments, such as private equity.
This is a major milestone achieved by the Polygon network, as it is the first time that a major investment firm is tokenizing its fund on the network. Polygon is a high-speed, low-cost, carbon-neutral blockchain network that is becoming increasingly popular for its ease of use and scalability. The tokenization of the fund on the network will allow for faster and more secure transfers, as well as the potential for increased liquidity and transparency.
The move is likely to be a boon for small investors as it opens up access to high-performing asset classes that were previously out of their reach. Moreover, the tokenization of the fund on the Polygon blockchain will also help to reduce transaction costs associated with investing in private equity, thereby making it a more viable option for retail investors.
Overall, the tokenization of Hamilton Lane’s Equity Opportunities Fund V on the Polygon network is a major step forward in the democratization of alternative investments and is likely to be a game-changer for retail investors. It will open up access to previously out of reach private equity asset classes, while also reducing costs and increasing transparency and liquidity.