Louisiana TRS retains Hamilton Lane as private markets manager

The appointment, subject to fee negotiations, will be for the period of 1 January 2020 through 31 December 2025. Hamilton Lane has been the private market investment manager for TRSL since 2008.

Hamilton Lane will manage $6.8bn's worth of TRSL's private market assets, including private equity, venture capital, private debt, infrastructure and real estate.

Hamilton Lane has identified several strategic objectives to enhance the TRSL portfolio for the 2020 fiscal year starting in July 2019.

The manager will maintain existing buyout relationships through a disciplined pacing strategy, targeting $400-500m in buyout commitments.

It will continue to gain access to growth equity managers directly and top-performing managers via the venture capital/growth equity separate account, targeting $100-150m in commitments.

According to Unquote Data, recent TRSL commitments include to Blackstone Capital Partners VIII, ICG Europe VII and Bridgepoint Europe VI.

For private debt, it will continue to increase TRSL's exposure to credit and debt to meet target allocation, targeting $450-500m in private market debt commitments. It will also seek various strategies/risk profiles to gain blended exposure to private market debt.

Private markets manager candidates
As of December 2018, Hamilton Lane had $58.8bn in discretionary assets under management and oversaw an additional $409.9bn in advisory assets.

Hamilton Lane proposed $1.5m flat in annual fees for private equity and real assets, while GCM Grosvenor, the other candidate for final consideration, proposed $750,000 flat for private equity only.

Although GCM Grosvenor has significant experience within private equity and offered a competitive fee for private equity, it has low private equity assets under discretion for public plans at $264m and did not propose real assets manager services, according to meeting materials.

Hamilton Lane, on the other hand, has significant employee ownership of 50%. Eight of its 15 offices are located internationally, and it has long-tenured investment committee members, which were taken as key decision factors by TRSL.

Respondents that were excluded from final consideration include CenterSquare Value-Add Fund IV, Madison International Realty Holdings, and Portfolio Advisors.

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