Hamilton Lane's New Infrastructure Fund Surpasses $2 Billion, Triples Predecessor Fund Size

Hamilton Lane, a prominent player in private market investment management, has reached a significant milestone with the closing of its Infrastructure Opportunities Fund II (IOF II). This profound success comes with the Fund amassing $1.5 billion in direct capital commitments. Additionally, an almost $400 million infusion from related investment vehicles brings the total capitalization to nearly $2 billion, which is impressive considering the Fund's target was set at $1.25 billion. Notably, IOF II is over three times larger than its predecessor, IOF I, illustrating a robust appeal for Hamilton Lane's diversified middle-market strategy.

The Fund focuses on tapping into unique direct co-investment opportunities while also pursuing secondary investments, primarily within the middle market segment. This approach aims to provide its investors with a varied exposure, promising attractive income and total returns. The launch of this Fund has not only seen high participation rates from previous investors but has also attracted over 30 new investors globally, witnessing particularly strong interest from markets in Asia and the Middle East, alongside growing participation from North and South America as well as European investors.

Among the diverse group of limited partners included in IOF II are public and private pension funds, Taft-Hartley plans, endowments, foundations, family offices, and insurance companies, indicating a wide-ranging interest in the Fund's offerings.

Brent Burnett, who oversees Hamilton Lane's Infrastructure and Real Assets division, expressed enthusiasm regarding the Fund's closing, highlighting it as a pivotal achievement for the company's infrastructure initiatives. He remarked on the overarching megatrends influencing global economies today—namely, digitization, artificial intelligence, power management, supply chain efficiency, and resource allocation—all of which fundamentally rely on infrastructure. This presents a compelling investment landscape ripe with opportunities that IOF II is well-positioned to capitalize on, leveraging Hamilton Lane's extensive global reach and information resources.

The strong interest from investors allowed the Fund to not only meet but exceed its initial target by approximately 20%. Given that infrastructure remains crucial in portfolio strategies within private markets, IOF II aims to set the stage for providing clients differentiated access along with strong performance metrics, building upon Hamilton Lane's established investment strategies.

So far, IOF II has allocated around 40% of its capital across 14 distinct deals. Its existing portfolio is well rounded, diversifying investments across various assets, sectors, and geographical locations through both general partner-led and limited partner secondaries, in addition to direct non-controlling equity positions. Some noteworthy portfolio examples include Cold-Link Logistics, Flexential, and Dispatch Energy.

Hamilton Lane's dedication to infrastructure investment spans over a quarter of a century, having developed a portfolio that comprises commingled funds, open-ended vehicles, and separate account solutions tailored for clients. The firm maintains nearly 200 relationships with general partners, all while overseeing assets that amount to more than $87 billion as of September 30, 2025.

In summary, Hamilton Lane's IOF II reflects a strong commitment to developing infrastructure investment opportunities, responding to an increasing demand for flexible and profitable investment strategies within the private markets sector. As the firm continues to adapt to the evolving global landscape, it remains at the forefront of providing innovative investment solutions for its diverse clientele.

Topics Financial Services & Investing)

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