- Hamilton Lane’s Equity Opportunities Fund V will be now available to retail investors through the Securitize feeder fund.
- The tokenization of the shares in the feeder fund will happen on the high-speed, low-cost, carbon-neutral Polygon network.
Hamilton Lane, one of the leading global investment firms with $800 billion in assets under management, is now looking to tokenize its $2.1 billion flagship investment fund on the Polygon blockchain network.
Hamilton Lane will leverage Polygon’s Securitize’s tokenization platform thereby opening doors to individual retail investors. By tokenizing this fund, the minimum investment in the fund drops down from $5 million to $20K, thus making it available to small investors.
.@hamilton_lane, a leading global investment firm ($800B+ in assets) is tokenizing its $2.1B fund on @0xPolygon! 🤯🔥
This reduces the minimum investment in the fund from typical $5M to $20k, making it available to smaller investors.
The future of France is on Polygon. 🦄💫 pic.twitter.com/JqhLLcYvQJ
— Mihailo Bjelic (@MihailoBjelic) February 1, 2023
Hamilton Lane’s Equity Opportunities Fund V will be now available to individual investors via a new Securitize feeder fund. This tokenized fund will give investors the opportunity to access historically high-performing private equity asset classes.
As said, Securitize currently offers this feeder fund only to qualified investors with a minimum of $5 million in assets. Securitize has emerged as a pioneering Fintech platform that democratizes access to other alternative investments including private equity via the process of tokenization. As per reports, Hamilton Lane and Securitize are planning to launch two more feeder funds in the coming months.
A major value unlocking usually happens in businesses that are privately held. Securitize’s fintech platform allows people to invest in the private assets market, the recent example being the Hamilton Lane tokenized fund. Besides, Securitize also invests in private companies doing initial capital raises all consistent with U.S. regulations.
Digitizing assets as tokens on the blockchain
Blockchain technology makes it possible to trade fractions of assets as we have seen in the trading of Bitcoin fractional value – Satoshis. Similarly, it also allows the tokenization of digital assets. This tokenization of assets is thus opening up opportunities to a new class of investors.
Historically, several high-performing assets have also remained illiquid and enjoyed only by big institutions and sovereign wealth funds. Tokenization allows the fractional ownership of assets giving buyers more investment options. Besides, it also opens up gates for retail participation. Speaking on the development, Colin Butler, Global Head of Institutional Capital at Polygon Labs said:
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The tokenization of private funds is a massive leap forward for investors and fund managers – a broader pool of investors enticed by greater opportunity and disintermediation – but also for the greater understanding that practical applications of blockchain will make a marked difference in democratizing financial opportunity. Polygon makes these asset classes accessible, secure, and scalable, and frankly, the Polygon network is being built to become the home of global financial markets.
Hamilton Lane launched its Equity Opportunity Fund V last year in June 2022 which has registered a double-digit gross internal rate of return. With the latest development, the shares in the feeder fund will be tokenized on the high-speed, low-cost, carbon-neutral Polygon network.