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Hamilton Lane closes on $427 mln for new FoF

Firm: Hamilton Lane

Fund: Hamilton Lane Private Equity Fund VIII LP

Target: $400 million

Amount raised: $426.8 million

Hamilton Lane described its Hamilton Lane Private Equity Fund VIII LP as a “global and diversified private equity fund-of-funds” with participation from a “diverse group” of new and existing investors, including public pension funds, Taft-Hartley pension plans, endowments, foundations and other institutions.

The fund is designed to provide both short- and long-term performance through a blend of strategies, vintage years and geographies, Jackie Rantanen, principal in the Product Management Group at Hamilton Lane, said in a prepared statement.

Bala Cynwyd, Pennsylvania-based Hamilton Lane filed its first Form D for Hamilton Lane Private Equity Fund VII LP in late 2012. It listed its date of first sale of Oct. 26, 2012, with $150 million raised at the time.

“Despite the consolidation happening in the funds-of-funds market today, we believe the demand for Fund VIII is a testament to Hamilton Lane’s highly selective investment process and track record within this sector,” Hamilton Lane CEO Mario Giannini said in the statement.

Among the consolidation in recent years, Carlyle Group bought AlpInvest and ACG Group bought Quartilium as part of its acquisition of Groupama Private EquityStepStone Group bought Parish Capital Advisors and FLAG Capital bought Hong Kong-based Squadron Capital.

Other funds of funds in the market in the last couple of years included HarbourVest Partners IX and Abbott Capital Private Equity Fund VII. The latter fund cut its target to $500 million from $1 billion, according to regulatory filings.

The latest fundraising effort surpassed the $150 million Hamilton Lane raised for its 2008 vintage Hamilton Lane Private Equity Fund VII LP, but fell short of the $494 million raised for its 2006 vintage Fund VI.

Among Hamilton Lane’s known LPs, the firm runs a separate account for the Wyoming Loan and Investment Board. The Public Employee Retirement System of Idaho also committed to the 2005 vintage Hamilton Lane Secondary Fund LP and the 2005 vintage Hamilton Lane CoInvestment Fund LP, as well as the 2008 vintage Hamilton Lane CoInvestment Fund II LP. The latter fund generated an IRR of 15.9 percent as of Dec. 31, 2012.