The investment management company Hamilton Lane, which oversees and manages a total of $824 billion worth of assets, recently established the first of three tokenized funds that it had previously said it would establish in an attempt to broaden the pool of investors who have access to private markets.
Hamilton Lane’s securitize equity fund
The company made the announcement in October 2022 that it intended to tokenize three of its funds as part of a cooperation with a company that deals in digital asset securities called Securitize.
The Pennsylvania business said in a statement that it has raised $2.1 billion for its flagship Equity Opportunities Fund V from investors and is now making a part of it available to retail investors via a tokenized feeder fund on Securitize supported by the Polygon blockchain.
According to the statement released by Hamilton Lane, the fund provides investors with convenient access to diversified exposure to innovative and distinctive projects via an advantageous fee structure. A feeder fund takes money from a pool of investors.
The old form of the feeder fund required an investment of at least $5 million. However, with the tokenized version of the fund, the minimum investment amount has been reduced to $20,000.
Carlos Domingo, co-founder and CEO of Securitize, was quoted in a release as saying that the new tokenized fund established by Hamilton Lane is a key step toward further democratizing the private markets.
Domingo added that this new fund would greatly extend access to the historically high-performing private-equity asset class, notably via decreased investment minimums.
During the last 20 years, he added that private equity had experienced a performance that is 70 percent higher than that of the S&P 500. However, the majority of this success has been enjoyed by significant institutions, sovereign wealth funds, and university endowments. He went on to say that individual investors may also begin to have access to these possibilities.
Within the next coming months, Hamilton Lane intends to initiate the launch of the two additional feeder funds that were previously announced. These funds provide exposure to private credit as well as secondary transactions.
The efforts of Polygon to bring more people into Web 3.0
Over the past few years, Polygon has been one of the most successful ecosystems in driving more people into web3. Collaborating, integrating, and hosting many initiatives until 2022, it finally came to an end. In the same vein as last year, Polygon got the new year began on the right foot by adding Fractal to its network on January 24.
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