“We think tech is the biggest disruption in our industry,” says Hamilton Lane
“We think tech is the biggest disruption in our industry,” says Hamilton Lane
Remarks were shared during a Fireside Chat at the Hamilton Lane Annual Investor Event 2024
“I would like to take this opportunity to say how devastated we have been and Hamilton Lane as a firm by the horrific events that took place on October 7th and all the events that followed,” said Juan Delgado-Moreira, Co-CEO at Hamilton Lane. “We know that many of you in this room have been personally affected by what has happened, we have friends and colleagues who have lost loved ones, we have clients in this room from kibbutzim who have been hurt in the worst way possible and we are off course praying with you for the safe return of the hostages to their homes.”
The opening remarks at a Fireside Chat during the Hamilton Lane Annual Investor Event were a somber recognition of the times that Israel has experienced in the last year. Joined on stage by Executive Co-Chairman Mario Giannini with Managing Director, Head of Hamilton Lane Israel and moderator Limor Beker, it was a staunch reminder that while the country still undergoes tough times, the global investment firm has remained a dedicated supporter.
“We have always said we support our local team,” added Giannini. “If it is safe for you it is for us. Today we had the Governor opening our event and this audience. It is an unbelievable act of resilience and determination that Israel is strong and will continue to be strong. We are happy and proud to be a part of that.”
Hamilton Lane was founded in 1991 and is a private markets investment management firm, the biggest in Israel for over 20 years. With over $900 billion Assets Under Management and supervision, it has experienced a 93% growth since 2018 (up from $469 billion) and is the biggest allocator of private markets in the world. As of 2023, it has more than 2,000 clients and investors in over 50 countries. The company has 22 offices globally in North America, Europe, and the Middle East and Asia-Pacific.
During the chat, Beker highlighted how Delgado-Moreira has been to Israel three times since the events of October 7, and challenged him to explain how Israel looks from the outside compared to how the alternative investment management and advisory company sees Israel these days.
“We have supported our companies in follow-on rounds and we are very much open for business as usual,” he added. “The high-tech industry is shining brightly and proved once again it is the leading export of the country and one of the world’s centers of innovation. In a funny way the attractiveness is more now. Unfortunately, so far, that is not enough to fix the political issues and the neighborhood.”
As previously reported on CTech, Hamilton Lane invested in Israel from national investors worldwide. Its investments include local VC funds Pitango, Greenfield, New Era, and vGames. Hamilton Lane also likes to invest in the Israeli investment funds FIMI and Fortissimo. It has invested hundreds of millions of dollars over the years, both in these funds and directly in high-tech companies, such as the software company monday.com, the sports media company Minute Media, or the residential community management company Venn, alongside industrial companies including Netafim and Ashot Ashkelon.
While Israel faces its local challenges, such as the political unrest that took up most of 2023 and the war that has engulfed the last seven months, Giannini assured the crowd of roughly 200 that “the main message is to invest more in Israel. Be active. The market is investing more in Israel. Stop doing nothing, as most LPs did in 2023. Don’t try to time the market, which is what most people tried to do last year. The market is not going to get any cheaper, valuations are what they are and we are likely to stay in this type of market for a while.”
Giannini revealed that for its existing clients, the main focus has generally been valuations and lack of liquidity. At the event the message of its market overview was that valuations are ok, “because they have been supported by fundamentals,” he said. “Liquidity is down versus records, but exits will surprise people on the upside this year. Liquidity is coming back.”
The Fireside Chat also brought attention to Evergreen, its platform that brings Hamilton Lane’s institutional private assets platform to individuals or smaller institutions. The Evergreen fund, also known as "open funds", is a flexible investment tool that allows long-term investments in private companies without a predetermined end date, unlike closed end funds which traditionally have a fixed lifespan of about 10 years.
“The biggest area of expansion in the world right now is Evergreen,” said Giannini. “Why? Because the single biggest type of new investor in private markets is individuals… we do not know why the Israeli market hasn’t picked up on that. It must have to do with how people save in Israel.”
Questions on how Israel manages its money led the trio to discuss the final topic of the discussion: the role of AI in the future of investments. “We think [tech] is the biggest disruption in our industry,” concluded Giannini. “It is not that returns are going to disappear or the world will no longer need private markets… But how we access private markets is changing for the better. Private wealth in the world is changing that. You will all have digital wallets in your pockets in a few years.”
The Hamilton Lane Investor Event 2024 was held in Israel and highlighted some of the most noteworthy updates in the industry. It contained a fireside chat as well as opening remarks by Beker and a Keynote Speech by Professor Amir Yaron, Governor of the Bank of Israel about the strengths and challenges faced by the Israeli economy, especially in wartime. The event was concluded by a dinner and cocktails celebration that showed a sign of unity with Israel as it continues to overcome its economic challenges brought on by the war with Hamas.
