Access to the private credit market, emphasizing current yield with an aim toward downside protection

The direct credit investment strategy is focused on the opportunity set within more senior components of a company’s capital structure, and with characteristics including contractual yield, shorter duration and capital preservation. Our goal is to provide investors with attractive, risk-adjusted returns by employing our differentiated approach to this strategy.

  • Investing alongside experienced, best-in-class general partners operating in their areas of expertise
  • Focusing on transactions with Hamilton Lane information and/or access advantages
  • Prioritizing transaction structures designed to offer enhanced downside protection
  • Emphasizing asset quality by targeting defensible, market-leading assets

Deal Flow Since 2015


Committed Capital Across 130+ Transactions


Years Investing in Direct Credit

*As of 09/30/20

Case Studies

Hamilton Lane-sourced opportunity highlighting direct value-add, flexible capital structure and small business investing capabilities

The Transaction

Provided debt and equity capital to allow management to buy out a previous owner

The HL Approach

  • Hamilton Lane proprietarily sourced the opportunity adding value through our expertise in private investing bringing in partner investors
  • Successfully negotiated a capital structure that solved the company’s challenge while helping to provide significant protection and upside to investors
  • Transaction demonstrated Hamilton Lane’s commitment to investing in small business credits

The Outcome

Successful exit following buyout of the business by another sponsor

Dedicated, experienced team executes an expedited process

The Transaction

Provided first lien debt to support management’s buyout of a Founder

The HL Approach

  • Dedicated direct credit Team evaluated and executed the transaction to meet the needs of the general partner’s expedited process
  • Hamilton Lane participated in a well-structured first lien security with what we believe to be a strong covenant package and downside protection

The Outcome

Successful refinancing of the transaction by the broadly syndicated markets

Opportunistic investor with experience and access

The Transaction

Provided convertible senior notes to support pre-IPO growth

The HL Approach

  • Hamilton Lane’s multiple platform mandates enabled participation in a unique structure
  • Given the growth trajectory of the company, the direct credit team utilized growth investing expertise from elsewhere in the organization to underwrite the opportunity
  • Hamilton Lane’s deep relationships with all sponsors in the deal gave differentiated access to allocation

The Outcome

Successful IPO of the company allowed Hamilton Lane to exit through sale of public shares
The Hamilton Lane credit platform provides our investors with differentiated access to the private credit market opportunity through our broad and well-established network of investment partners. A flexible investment approach targeting more senior portions of the capital structure allows us the opportunity to generate attractive, risk-adjusted returns, but with an aim toward downside protection, shorter duration and current yield.
Drew Schardt
Head of Direct Credit

Enhancing Deal Selection and Portfolio Construction with Proprietary Data

Our vast proprietary database comprises over $13T in fund assets and 98,000 portfolio companies over 50 vintage years. Our significant investments in leading private markets technology platforms and our extensive network of relationships with general partners allows us to be highly selective investors. We gain access to unique opportunities in part by leveraging our technology capabilities to make better-informed investment decisions.

*As of 09/30/20

Discover Hamilton Lane Technology

Recent Content


Quick Hits | Talking Private Credit

Managing Director Nayef Perry unpacks the 2020 private credit market faster than any U.S. state took to count election ballots. How did GPs react to the COVID-19 crisis and how will they handle 2021?

Watch the Video

Pandemic Ponderings: What's Ahead for the Credit Market

With the global pandemic upending every corner of the financial markets, it is perhaps not surprising that the credit space appears to be at another inflection point. Though we admittedly aren’t in possession of a crystal ball, we dissect this part of the market and attempt to offer some predictions for the near and long term.

Read the Research Article

Rainy Days, Credit Quality and Market Conditions: 5 Key Considerations for Private Credit

In our first attempt at a "listicle" (yes, we are extremely hip), we're tackling some of the pros and cons around the current economic cycle, and taking a closer look at private credit as an asset class to see how it might fare. [Spoiler alert: We think private credit is a pretty good and relatively more predictable spot to be in when the going gets tough – whenever that may be.] Here's our list of some key considerations for private credit investors right now.

Read the Research Article

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