Erik Hirsch, Hamilton Lane

Global asset manager Hamilton Lane has reported “a net IRR of almost 47 percent” as of 31 March, 2021, for its $95 million, 2018-vintage first impact fund.

Speaking on an earnings call last week for the first quarter fiscal year 2022, Hamilton Lane’s vice-chairman Erik Hirsch said the debut impact fund was “deployed relatively quickly… given the small[er] nature of the fund, combined with very strong dealflow”.

The manager’s second impact fund, launched in April 2021 with a $400 million target, reached its first close at $149 million last month – nearly $148 million of which was raised by external investors, Hirsch said. Hamilton Lane has until January 2023 to complete fundraising.

“Interest in this space continues to grow. And given our strong market position and early returns in the predecessor fund, we are encouraged by the demand we are seeing from investors,” Hirsch added.

Impact Fund I has made 13 direct investments “in businesses with positive social and environmental themes” and three primary investments, according to a statement by Hamilton Lane last month.

The second impact fund has a similar mandate to the first: it will focus on sectors including clean energy transition, sustainable processes, health and wellness and community development, and strategies including buyout, growth, late-stage venture and real assets.