Securitize, a firm digitizing the issuance, management, and trading of real-world assets, today launched a new feeder fund offering tokenized exposure to an evergreen private credit fund from leading private markets investment firm, Hamilton Lane, available exclusively on the Polygon blockchain.
Hamilton Lane launched the Senior Credit Opportunities Fund in October 2022, and is now making a portion of the vehicle accessible to individual investors via a feeder fund from Securitize. The vehicle offers immediate deployment of investors’ capital with a reduced minimum investment of $10,000, from $2 million, with the option for monthly subscription and redemptions on demand. The new tokenized fund is expected to broaden access to senior private credit, which has historically been a stable strategy through up and down markets.
SCOPE is a senior private credit vehicle intended for investors seeking potential yield by targeting floating-rate, senior secured loans, which are typically in the safest part of a company’s capital structure. The Fund generally invests in privately-held, market-leading assets in historically recession-resilient sectors such as health care, information technology and business services.
The new feeder fund is the second in a series of three Hamilton Lane products being made available on the Securitize platform, following the launch of the Hamilton Lane Equity Opportunities Securitize Fund V in January.
“Many recent technology and blockchain innovations are solutions in search of problems. Through this new digitized private credit fund, Securitize is solving a major problem faced by investors, particularly in private markets,” said Carlos Domingo, CEO of Securitize Inc. “Smart contracts built on blockchain networks can dramatically accelerate previously manual processes–such as share redemption–from weeks to seconds, eliminate intermediaries and their unnecessary fees, and ultimately reduce barriers for more investors to participate in the value being created in the private markets.”
Investors in the SCOPE feeder fund will generally have the option to redeem their shares on demand at the previous quarter’s Net Asset Value per share, through a fully digital process, and with no transaction fees from Securitize.
Nayef Perry, Co-Head of Direct Credit at Hamilton Lane, commented: “This partnership comes at a time when investors of all sizes are looking to private credit to provide diversification amidst an uncertain market backdrop. SCOPE offers investors access to a multi-manager portfolio with immediate deployment, and builds on the historical success of our broader private credit platform, bringing Hamilton Lane’s premier institutional private credit platform to individual investors.”
“As we continue to expand access to more investors to the historically strong returns and performance opportunities within the private markets, we are excited to make available SCOPE, the second offering on the Securitize platform with exposure to a Hamilton Lane fund, and which has special on-demand redemption features that will be solely available to Securitize’s clients,” said Victor Jung, Head of Digital Assets at Hamilton Lane.
“Hamilton Lane is committed to investing in and adopting transformational solutions with an aim to deliver best-in-class services to investors looking to access the private markets, while increasing usability and transparency through the use of blockchain technology.”
Shares in the feeder fund will be tokenized on the Polygon blockchain, which is fully compatible with the Ethereum ecosystem, inheriting its robust security while also making orders of magnitude more efficient.
“Tokenizing access to the fund in this way delivers countless benefits, both in terms of liquidity potential and accessibility,” said Colin Butler, Global Head of Institutional Capital at Polygon Labs. “Reducing the threshold for participation levels the playing field for individuals democratizing access to private equity and opening the fund up to a more diverse range of investors.”
While tokenizing access to the fund has its benefits, investing in private equity does involve risk and you should familiarize yourself with the fund documents before investing.
The feeder fund will be accessible to qualified purchasers with at least $5 million in invested assets, of which there are approximately two million in the U.S. The feeder fund is offered and solely managed by Securitize’s exempt reporting advisor, Securitize Capital, through its broker-dealer and alternative trading system, Securitize Markets, which is also a member of FINRA and SIPC.
Any offering of the feeder fund is separate and distinct from the offering of SCOPE. Securitize and Hamilton Lane intend to launch a third feeder fund solely managed by Securitize Capital in the months ahead, with share ownership also tokenized on the Polygon blockchain.