−Removed: We are a global private markets investment solutions provider with approximately $112 billion of assets under management (“AUM”), and approximately $745 billion of assets under advisement (“AUA”) as of March 31, 2023.
+Added: We are a global private markets investment solutions provider with approximately $124 billion of discretionary assets under management (“AUM”), and approximately $796 billion of non-discretionary assets under advisement (“AUA”) as of March 31, 2024.
We work with our clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and we help them access a diversified set of such investment opportunities worldwide.
−Removed: Our clients are principally large, sophisticated, global investors that rely on our private markets expertise, deep industry relationships, differentiated investment access, risk management capabilities, proprietary data advantages and analytical tools to navigate the increasing complexity and opacity of private markets investing.
+Added: Our clients are principally large, sophisticated, global investors that rely on our private markets expertise, deep industry relationships, differentiated investment access, risk management capabilities, proprietary data advantages and analytical tools to navigate the complexity and opacity of private markets investing.
While some maintain their own internal investment teams, our clients look to us for additional expertise, advice and outsourcing capabilities.
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We were founded in 1991 and have been dedicated to private markets investing for over three decades.
−Removed: We currently have over 600 employees, including 204 investment professionals, operating across 22 global offices servicing our clients throughout the world.
+Added: We currently have approximately 700 employees, including 238 investment professionals, operating across 22 global offices servicing our clients throughout the world.
We offer a variety of investment solutions to address our clients’ needs across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity, venture capital and impact.
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• Advisory Services :
−Removed: We offer investment advisory services to assist clients in developing and implementing their private markets investment programs.
+Added: We offer non-discretionary investment advisory services to assist clients in developing and implementing their private markets investment programs.
Our investment advisory services include asset allocation, strategic plan creation, development of investment policies and guidelines, the screening and recommending of investments, the monitoring of and reporting on investments and investment manager review and due diligence.
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labor union pension plans, and we serve numerous smaller public and corporate pension plans, sovereign wealth funds, financial institutions and insurance companies, endowments and foundations, as well as family offices and high-net-worth individuals.
−Removed: Our intermediary clients, which also include registered investment advisers, enable us to provide our investment products to an expanded range of high-net-worth individuals and family offices.
+Added: Our intermediary clients, which include registered investment advisers, enable us to provide our investment products to an expanded range of high-net-worth individuals and family offices.
Historically, this segment of investors has had limited options for gaining exposure to the private markets.
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Organizational Structure
−Removed: Initial Public Offering and Reorganization
−Removed: HLI was incorporated in the State of Delaware on December 31, 2007 and conducted its initial public offering (“IPO”) in 2017.
−Removed: HLI is a holding company with no direct operations.
+Added: HLI was incorporated in the State of Delaware on December 31, 2007 and is a holding company with no direct operations.
Its principal asset is an equity interest in HLA.
−Removed: It serves as the managing member of HLA and operates and controls all of HLA’s business and affairs.
−Removed: In connection with the IPO, we completed a series of transactions in order to effect a corporate reorganization, which we refer to collectively throughout this Form 10-K as the “Reorganization”.
−Removed: As part of the Reorganization, we changed our structure to what is commonly referred to as an “Up-C” structure, which provides our pre-IPO owners with the tax advantage of continuing to own interests in a pass-through structure and provides potential future tax benefits for both the public company and the legacy owners (through the tax receivable agreement) when they ultimately exchange their pass-through interests for shares of Class A common stock or, at our election, for cash.
+Added: HLI serves as the managing member of HLA and operates and controls all of HLA’s business and affairs.
+Added: HLI conducted its initial public offering (“IPO”) in 2017.
+Added: We have what is commonly referred to as an “Up-C” structure, which provides our pre-IPO owners with the tax advantage of continuing to own interests in a pass-through structure and provides potential future tax
+Added: benefits for both the public company and the legacy owners (through the tax receivable agreement) when they ultimately exchange their pass-through interests for shares of Class A common stock or, at our election, for cash.
HLI has dual-class common stock, the rights of which are described in more detail below.
The below chart summarizes our organizational structure as of March 31, 2024.
−Removed: (1) The Class B Holders, who hold Class B units, and Class C Holders, who hold Class C units, are pre-IPO owners of our business who continue to hold their interests directly in HLA.
+Added: (1) The Class B Holders, who hold Class B units of HLA, and Class C Holders, who hold Class C units of HLA, are pre-IPO owners of our business who continue to hold their interests directly in HLA.
Class B units and Class C units may be exchanged on a one-for-one basis for shares of Class A common stock or, at our election, for cash, pursuant to and subject to the restrictions set forth in the exchange agreement.
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Our Class A common stock is our publicly traded stock and is listed on the Nasdaq Stock Market (“Nasdaq”) under the symbol “HLNE”.
−Removed: Our Class B common stock was issued as part of the Reorganization to the holders of our Class B units, who are certain significant outside investors, members of management and significant employee owners.
+Added: Our Class B common stock was issued as part of a series of corporate reorganization transactions in connection with our IPO to the holders of our Class B units, who are certain significant outside investors, members of management and significant employee owners.
There is no trading market for our Class B common stock.
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Examples of such expansion include asset classes such as private credit, infrastructure and real assets.
−Removed: Newer strategies include investments in businesses with a focus on the core categories of environmental and/or social impact.
+Added: Strategies include investments in businesses with a focus on the core categories of environmental and/or social impact.
Diversify and grow client base.
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We view the implementation of technology into our workflows as critical to maintaining our market-leading position in private markets.
−Removed: Given this status, we are often a sought-after partner for technology-oriented businesses that are developing cutting-edge and innovative solutions that will help grow
−Removed: and improve the industry.
+Added: Given this status, we are often a sought-after partner for technology-oriented businesses that are developing cutting-edge and innovative solutions that will help grow and improve the industry.
We identify and develop strategic partnerships with, and/or opportunistically seek minority stakes in these companies and often, are either a client of these companies or share in a common vision that will provide strategic benefits to both parties.
−Removed: Examples of these partnerships include Russell Investments Group (a leading outsourced chief investment officer function), Cobalt LP (benchmarking and diligence), Canoe Intelligence (document digitalization and processing), iCapital Network (high-net-worth fundraising portal), Fairwords (formerly known as Honcho) (governance/monitoring software), Novata (private company ESG data collection), TIFIN (tech-enabled wealth management platform), ADDX (Singapore digital securities exchange), CAIS (alternative investment retail platform), Stashaway (digital wealth management platform), Hazeltree (treasury and portfolio finance solutions), Securitize (digital/tokenized asset securities firm), Figure (digital fund management solutions) and Alta (digital marketplace for alternative investments).
+Added: Examples of these partnerships include Russell Investments Group (a leading outsourced chief investment officer function), Canoe Intelligence (document digitalization and processing), iCapital Network (high-net-worth fundraising portal), Novata (private company ESG data collection), TIFIN (tech-enabled wealth management platform), ADDX (Singapore digital securities exchange), CAIS (alternative investment retail platform), Stashaway (digital wealth management
+Added: platform), Hazeltree (treasury and portfolio finance solutions), Securitize (digital/tokenized asset securities firm), Figure (digital fund management solutions), Alta (digital marketplace for alternative investments), ID Register Holdings Limited (investor onboarding services), Daphne Tech Holdings LLC (digital and data infrastructure for the distribution of alternative assets) and Helix by HL (AI enabled wealth management platform).
Expand private markets solutions and products to defined contribution, retail and similar pools of investable assets.
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We have substantially grown our global presence, both in terms of clients and investments, by expanding our international offices as well as our client presence.
−Removed: We have built a significant presence to serve clients in Europe, Latin America, the Middle East, Asia, Australia and Canada, and we have offices in Frankfurt, London, Milan, Stockholm, Zug, Mexico City, Tel Aviv, Hong Kong, Seoul, Shanghai, Singapore, Tokyo, Sydney and Toronto.
−Removed: In each of these places, we serve major institutional clients, and we review and commit capital to established local private markets funds on behalf of our clients.
+Added: We have established offices throughout the world, from which we serve major institutional clients and review and commit capital to established local private markets funds on behalf of our clients.
Our aim is to continue expanding our global presence through further direct investment in personnel, development of client relationships and increased investments with, and direct investments alongside, established private markets fund managers.
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investors will require a highly bespoke approach and will demand high levels of transparency, governance and reporting.
−Removed: We have seen this pattern developing in many places, including Europe, the Middle East, Latin America, Australasia, Japan, South Korea, Southeast Asia and China, and have positioned ourselves to take advantage of it by establishing local presences with global investment capabilities.
−Removed: We believe we are uniquely capable of pursuing the opportunities arising from increased allocations among institutional investors and the rapid wealth creation globally among high-net-worth individuals because of our strong brand recognition, multi-office resources, experienced team of investment professionals and comprehensive suite of products and services.
+Added: We have seen this pattern developing in many places, including Europe, the Middle East, Latin America, Australasia, Japan, South Korea, Southeast Asia and China, and have positioned ourselves to take advantage of it by establishing local presences with global investment capabilities in these regions.
+Added: We believe we are particularly well-placed to pursue the opportunities arising from increased allocations among institutional investors and the rapid wealth creation globally among high-net-worth individuals because of our strong brand recognition, multi-office resources, experienced team of investment professionals and comprehensive suite of products and services.
Leverage proprietary databases and analytics to enhance our existing service offerings and develop new products and services.
When compared to more liquid investment areas, the private markets industry is characterized by the limited availability and inconsistency of quality information.
−Removed: We believe that the general trend toward transparency and consistency in private markets reporting will create new opportunities for us.
−Removed: We intend to use the advantages afforded to us by our proprietary databases, analytical tools and deep industry knowledge to drive our performance and provide our clients with customized solutions across private
−Removed: markets asset classes.
+Added: We believe that the general trend toward more transparency and consistency in private markets reporting will create new opportunities for us.
+Added: We intend to use the advantages afforded to us by our proprietary databases, analytical tools and deep industry knowledge to drive our performance and provide our clients with customized solutions across private markets asset classes.
We expect that our data and analytical capabilities will play an important role in continuing to differentiate our products and services from those of our competitors.
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Primary investments are investments in private markets funds at the time the funds are initially launched.
−Removed: The investments take the form of a capital commitment, where the fund will call capital from investors over time as investments are made.
+Added: The investments take the form of a capital commitment, where the fund
+Added: will call capital from investors over time as investments are made.
At the time we commit capital to a fund on behalf of our specialized funds or customized separate accounts, the investments that the fund will make are generally not known and investors typically have very little or no ability to influence the investments that are made during the fund’s investment period.
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Our evergreen investment team utilizes the same investment process and allocation priority as our institutional single-strategy funds.
−Removed: Lastly, our portfolio management group draws upon data analysis to form
−Removed: views at the industry level.
+Added: Lastly, our portfolio management group draws upon data analysis to form views at the industry level.
Each of these teams, with the exception of private market analytics, has its own discrete investment committees, although there is significant overlap among committee members.
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Each of our investment teams incorporates an investment committee that is composed of select senior professionals from the organization who collectively review, opine and make the ultimate decision as to the opportunities in which we will invest.
−Removed: Our operational due diligence (“ODD”) team is empowered with separate voting rights on each of the firm’s fund investment opportunities, which means that we will only proceed with investments that are approved by both our investment committee and our ODD team.
+Added: Our operational due diligence (“ODD”) team is empowered with
+Added: separate voting rights on each of the firm’s fund investment opportunities, which means that we will only proceed with investments that are approved by both our investment committee and our ODD team.
Each review completed by our ODD team results in a full report documenting each risk area and any existing mitigating factors, our recommendations to each manager and our proprietary risk-rating system.
−Removed: As investments are approved by the relevant investment committees, our allocation committee reviews each opportunity in light of the policies and procedures of the accounts that will be investing and oversees the implementation of our allocation policies.
−Removed: This committee generally serves to help ensure that investment opportunities are treated in accordance with our contractual obligations and fiduciary duties to our clients and are consistent with our allocation policies.
−Removed: The allocation committee is composed of senior professionals throughout the organization.
+Added: As investments are approved by the relevant investment committees, our portfolio management group utilizes portfolio construction methodologies as it deems appropriate to analyze the portfolios of all clients currently investing and submits a proposed allocation to the chief compliance officer or his designee for review and approval.
+Added: On at least a quarterly basis, the allocation committee will review the materials presented by the portfolio management group to determine that the allocations among clients are fair and reasonable, were made in accordance with our contractual obligations and fiduciary duties to our clients and are consistent with our allocation policies.
+Added: The allocation committee is composed of senior professionals throughout the organization, including the chief risk officer.
We have worked to institutionalize our approach to responsible investment.
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RIC members are also present at every investment committee meeting to monitor investment compliance.
−Removed: Today, we fully integrate ESG into all of our due diligence processes, ensuring that ESG issues are taken into account when making investment decisions.
−Removed: We employ a proprietary rating system that seeks to benchmark the fund managers with whom we invest to best practices, which means that the standards we expect from our general partners are continuously increasing.
+Added: Today, we integrate ESG into our due diligence processes, taking ESG issues into account when making investment decisions.
+Added: We employ a proprietary rating system that seeks to benchmark the fund managers with whom we invest to ESG best practices, which means that the standards we expect from our general partners are continuously increasing.
Included in our overall approach to ESG is our ongoing focus on diversity, equity and inclusion (“DE&I”), both at the general partner and underlying portfolio company level.
−Removed: For more information on ESG and our investment process, see “—Corporate Responsibility” below.
+Added: For more information on ESG and our investment process, see “—Corporate Social Responsibility” below.
Assets Under Management and Advisement
−Removed: As of March 31, 2023, we had total AUA and AUM of approximately $857 billion, of which $112 billion represents AUM from our customized separate accounts and specialized funds, and $745 billion represents AUA managed on behalf of our advisory accounts.
+Added: As of March 31, 2024, we had total AUA and AUM of approximately $921 billion, of which $124 billion represents discretionary AUM from our customized separate accounts and specialized funds, and $796 billion represents non-discretionary AUA managed on behalf of our advisory accounts.
Our AUM and AUA have distinctive terms and fee arrangements, and therefore are presented separately in this section.
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We classify customized separate account revenue as management fees if the client is charged an asset-based fee, which includes the majority of our discretionary AUM accounts but also includes certain non-discretionary AUA accounts.
−Removed: Our fee-earning AUM is equal to the amount of capital commitments, net invested capital and NAV of our customized separate accounts and specialized funds depending on the fee terms.
+Added: Our fee-earning AUM is equal to the amount of capital commitments, net invested capital or NAV of our customized separate accounts and specialized funds depending on the fee terms.
The vast majority of our customized separate accounts and specialized funds earn fees based on commitments or net invested capital, which are not affected by market appreciation or depreciation.
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of funds for which we categorize revenue as advisory and reporting.
−Removed: This was partially offset by $3 billion of fee-earning AUM from customized separate accounts clients with non-discretionary AUA.
+Added: This was partially offset by a decrease of $3 billion of fee-earning AUM from customized separate accounts clients with non-discretionary AUA.
The remaining $21 billion is non fee-earning AUM, which includes accounts that earn fees as discretionary AUM is invested or considered active as well as accounts past their fee-earning period.
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As we offer a highly customized, flexible service, we are equipped to provide investment services to clients of all sizes and with different needs, internal resources and investment objectives.
−Removed: Our clients include prominent investors in the United States, Canada, Europe, the Middle East, Asia, Australia and Latin America.
+Added: Our clients include prominent investors located throughout the world.
We believe we are a leading provider of private markets solutions for U.S.
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Sales and Marketing
−Removed: Our client and private wealth solutions groups consist of employees around the world, including in the United States, United Kingdom, Hong Kong, Japan, Singapore, South Korea, Israel, Australia, Canada and throughout continental Europe.
+Added: Our client and private wealth solutions groups consists of a global employee base located strategically throughout the world that allows us to have a local presence in many markets and be closer to our clients.
We intend to grow our global sales force as we seek to continue to build our client base and pursue growth opportunities in less developed private equity markets such as Asia and Australia.
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Our client and private wealth solutions groups are responsible for identifying and contacting prospective clients for our products and services.
−Removed: Our sales people also work directly with consultants and financial advisers that advise smaller and medium-size institutional investors and high-net-worth individuals, who often rely on advice in the alternative investment area.
+Added: Our sales professionals also work directly with consultants and financial advisers that advise smaller and medium-size institutional investors and high-net-worth individuals, who often rely on advice in the alternative investment area.
Following the initial round of meetings and presentations, prospective advisory and customized separate account clients and specialized fund investors that wish to learn more about us often visit our offices with a team to conduct in-depth due diligence of our firm.
−Removed: Our sales people lead this process, coordinate meetings, and continue to be the prospective client’s principal contact with us through the decision-making process.
+Added: Our sales professionals lead this process, coordinate meetings, and continue to be the prospective client’s principal contact with us through the decision-making process.
Client Service
−Removed: Our client service group includes employees located in the United States, United Kingdom, Italy, Israel, Japan, Hong Kong, South Korea, Singapore and Australia.
+Added: Our client service group includes employees located strategically throughout the world.
At the beginning of the engagement for each advisory account and customized separate account, a relationship manager is assigned as the principal contact person with that client.
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iLevel, our online, interactive client reporting platform, affords clients always available, secure, internet-based access to their portfolios.
−Removed: download timely information on cash flows, adjusted valuations, adjusted capital account schedules, underlying portfolio company information and other data provided by private markets fund managers or developed internally by our in-house reporting team.
+Added: Clients can download timely information on cash flows, adjusted valuations, adjusted capital account schedules,
+Added: underlying portfolio company information and other data provided by private markets fund managers or developed internally by our in-house reporting team.
Fees and Other Key Contractual Terms
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In certain cases, we have formed investment vehicles utilizing other forms, including Delaware limited liability companies, Cayman unit trusts and/or Luxembourg companies.
−Removed: Our capital commitment to such an investment vehicle is generally 1% of total capital commitments but in certain
−Removed: cases may be higher or lower.
−Removed: We manage these investment vehicles under an investment management agreement between the investment vehicle entity and us, and we manage all aspects of the vehicles, utilizing the services of third parties as needed, including administrators and custodial banks.
+Added: Our capital commitment to such an investment vehicle is generally 1% of total capital commitments but in certain cases may be higher or lower.
+Added: We manage these investment vehicles under an investment management
+Added: agreement between the investment vehicle entity and us, and we manage all aspects of the vehicles, utilizing the services of third parties as needed, including administrators and custodial banks.
Specialized Funds
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investors, which is registered under the Securities Act and as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”).
−Removed: Additionally, we sponsor a credit-focused evergreen fund on a private placement basis, primarily outside of the United States.
+Added: Additionally, we sponsor a credit-focused evergreen fund on a private placement basis, primarily outside of the United States, and we may offer additional evergreen funds in the future with other specialized strategies.
Capital Commitments.
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Management fees for certain funds are discounted based on the amount of the limited partners’ commitments, whether the limited partner commits early in the offering period or if the limited partners are investors in our other funds.
−Removed: Management fees would be reduced in the event that any monitoring, consulting, investment banking, advisory, transaction, directors’ or break-up or similar fees are paid to the fund’s general partner, the Manager or any of their affiliates or principals.
+Added: Management fees would be offset in the event that any monitoring, consulting, investment banking, advisory, transaction, directors’ or break-up or similar fees are paid to the fund’s general partner, the Manager or any of their affiliates or principals.
Incentive Fees.
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In our secondary funds, we generally earn carried interest on a full-return basis.
−Removed: In the case of certain of our direct investment funds, strategic opportunity funds and evergreen funds, we earn carried interest on a deal-by-deal basis.
+Added: In the case of certain of our direct investment funds, strategic opportunity funds and evergreen funds other than our credit-focused evergreen fund, we earn carried interest on a deal-by-deal basis.
If, upon the final distribution of any of our specialized funds from which we earn carried interest, we and our affiliates have received cumulative carried interest in excess of the amount to which we would be entitled from the profits calculated for such investments in the aggregate, or if the limited partners have not received distributions equal to those to which they are entitled, the carried interest recipient will typically return such part of any carried interest to the limited partners as is necessary to ensure that they receive the amounts to which they are entitled, less taxes on the carried interest.
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Distribution Management
−Removed: We enter into written contracts with each of our distribution management clients.
+Added: We enter into written contracts with each of our distribution management clients, including our specialized funds.
These clients engage us to manage the liquidation of publicly traded securities that they receive as distributions from funds in which they are investors.
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Legal and Compliance
−Removed: Our general counsel reports to our chief executive officer.
−Removed: Our attorneys are embedded in our corporate legal, relationship management and investment teams.
+Added: Our general counsel reports to Erik Hirsch, one of our co-chief executive officers.
+Added: Our attorneys are embedded in our corporate legal and investment legal teams.
Most of our customized separate account clients, certain of our advisory clients and our specialized funds rely on us to review, analyze and negotiate the terms of the documents relating to primary, secondary and direct investments.
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In addition, our legal team is responsible for preparing, reviewing
−Removed: and negotiating all documents relating to the formation and operation of our specialized funds.
+Added: and negotiating all documents relating to the formation and operation of our specialized funds to investors in the United States.
We utilize the services of outside counsel as we deem necessary.
−Removed: Our compliance team is led by our chief compliance officer, who reports to our vice chairman and head of strategic initiatives.
+Added: Our compliance team is led by our chief compliance officer, who reports to our chief operating officer.
Our chief compliance officer has day-to-day management responsibility for the compliance team.
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Risk Management
−Removed: Risk management oversight and direction across the firm is provided by various committees.
−Removed: Significant risk matters are ultimately raised to the firm’s executive committee.
−Removed: The executive committee is composed of some of the most senior professionals at the firm, including our chief risk officer, across the spectrum of departments.
+Added: Our enterprise risk management committee (“ERM committee”) monitors the adequacy and effectiveness of the firm’s risk management processes, including the identification, assessment, management, mitigation and reporting of risks that may affect the firm’s global business operations, financial performance and reputation.
+Added: The ERM committee’s primary purpose is to seek to ensure that an effective risk management framework is in place, monitor risk-related activities on an ongoing basis, and opine on issues involving material conflicts of interest.
+Added: The committee is composed of the chief operating officer, who is also our chief risk officer, general counsel, chief financial officer, chief compliance officer, chief technology officer, head of investments, and head of client legal.
+Added: The ERM committee meets on a quarterly and as-needed basis.
Regulatory Environment
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For example, our subsidiaries that are authorized and regulated by the U.K.
−Removed: Financial Conduct Authority no longer have “passporting” privileges under certain EU directives, such as the AIFMD and the Markets in Financial Instruments Directive II (“MiFID II”), which certain of our specialized funds and customized separate accounts rely upon for access to markets throughout the EU.
+Added: Financial Conduct Authority no longer have “passporting” privileges under certain EU directives, such as the AIFMD and the Markets in Financial Instruments Directive II (“MiFID II”), which certain of our specialized funds and customized separate accounts relied upon for access to markets throughout the EU.
In preparation for this, we engaged with third-party alternative investment fund managers (“AIFM”) based in Luxembourg to replace, prior to Brexit, our U.K.-based AIFM for our funds and certain customized separate accounts for the EU.
We have also obtained a MiFID II license for one of our EU-based (non-U.K.) subsidiaries to replace the MiFID II license held by our U.K.-based subsidiary, which is no longer valid after Brexit.
−Removed: Our Culture and Focus on Diversity, Equity & Inclusion
+Added: Our Culture and Focus on Diversity, Equity, Inclusion & Belonging
Fostering a diverse, equitable and inclusive environment is core to our corporate mission to enrich lives and safeguard futures, and we leverage our status as a global leader in the private markets to promote diversity and inclusion to the benefit of employees, clients, the community and our industry overall.
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Any employee found to have exhibited any inappropriate conduct or behavior against others will be subject to disciplinary action, up to and including termination.
−Removed: Formed in 2016, our Diversity, Equity & Inclusion Council (“DE&I Council”) aims to raise awareness about the importance and benefits of fostering an inclusive work environment and culture.
+Added: Our Diversity, Equity, Inclusion & Belonging (“DEI&B”) Council aims to raise awareness about the importance and benefits of fostering an inclusive work environment and culture.
We know that smart teams do great things, but diverse teams can do truly incredible things, and the way to affect change is to help create it.
This is articulated in one of our corporate values, “Promoting Equity and Inclusion from Within.”
+Added: We are guided by a genuine belief that in order to diversify and, therefore, improve the composition of our asset class, we must advocate for, educate and include underrepresented candidates early and often.
+Added: Our partnerships with organizations such as Girls Who Invest, Women Societies Alliance, SEO, Heights Philadelphia, Big Brothers Big Sisters and Philadelphia Financial Scholars, as well as initiatives aimed at expanding our recruiting efforts at diverse colleges and universities, the Hamilton Lane Women’s Exchange (“HLWE”), our annual Undergraduate Women’s Private Equity Summit and our Emerging Talent Program, are a testament to this belief.
+Added: In addition to our recruiting and retention efforts, we recognize that a true commitment to diversity requires a proactive and multi-faceted approach.
+Added: We have multiple employee-led programs designed to help our colleagues with skill development, career progression and work-life balance, as well as to facilitate open dialogues around important topics such as race, inclusion and social justice.
+Added: We empower our people to come together to share experiences, culture and perspectives so that we can support each other.
+Added: Employee resource groups and community action groups allow for our people to unite around a common goal of uplifting our colleagues and our communities around us.
We believe that our strong culture is a key factor driving our success in developing and maintaining high-quality relationships with current/prospective employees, clients, prospects, business partners and the communities within which we live and work.
−Removed: In early 2021, we became a signatory to the Diversity in Action Initiative of the Institutional Limited Partners Association (“ILPA”).
−Removed: This effort focuses on foundational actions that limited partner and general partner organizations are taking to advance DE&I, both internally and throughout the industry more broadly.
−Removed: With approximately 600 employees worldwide as of March 31, 2023, we are proud that our culture has been recognized annually for the last 11 years by Pensions & Investments (“P&I”) magazine, a leading investment publication, as a “Best Place to Work in Money Management” since P&I created the list in 2012.
−Removed: We are one of just five firms to hold this distinction.
+Added: With approximately 700 employees worldwide as of March 31, 2024, we are proud that our culture has been recognized annually for the last 12 years by Pensions & Investments magazine, a leading investment publication, as a “Best Place to Work in Money Management” since the inception of the list in 2012.
In addition, we have been recognized by the Central Penn Business Journal as a “Best Place to Work in Pennsylvania,” also for the last 12 consecutive years.
Most recently, Hamilton Lane was named to Forbes’ inaugural Financial All-Stars list in 2023.
+Added: At Hamilton Lane, we remain fully committed to DEI&B.
+Added: We are proud of our organization’s history of embracing and championing diversity.
+Added: Our success is because of our people – our colleagues across the globe who bring their authentic selves to work every day.
+Added: Together, we believe diverse perspectives lead to informed decisions designed to benefit our clients, our employees and our competitive edge.
Talent Acquisition and Retention
−Removed: In 2020, our Human Resources Department, in conjunction with the firm’s DE&I Council, implemented a strategic plan, called HL All, aimed at expanding upon existing efforts to intentionally embed DE&I into the fabric of the firm’s values, culture, and recruiting and retention practices.
−Removed: The five-pillar strategy of HL All includes (i) workforce diversity, (ii) training and development, (iii) workplace inclusion, (iv) culture and accountability and (v) supplier diversity.
−Removed: HL All outlines enhanced recruiting and retention efforts, including an emphasis on ongoing training, accountability and inclusivity.
−Removed: In recognition of our efforts, we were designated by the Private Equity Women Investor Network as International LP of the Year for 2020.
−Removed: This award is given annually to an outstanding institutional limited partner who has demonstrated a commitment to encouraging and supporting female investors in the private equity industry.
−Removed: As of March 31, 2023, 53% of our employees were women or ethnically underrepresented professionals, 60% of departments were led by women or ethnically underrepresented professionals and 51% of investment team roles were held by women or ethnically underrepresented professionals.
+Added: Our Human Resources department, in close collaboration with our DEI&B Council, has implemented a core set of competencies and practices that equip employees with the knowledge and skills to create a supportive environment for all.
+Added: This program centers around four pillars (recruiting/retention, education, employee resource groups and external partnerships) that collectively lay the foundation that ensures that Hamilton Lane remains a place that is inclusive of everyone, seeking to ensure that no individual feels excluded or marginalized.
+Added: We are committed to enhancing our DEI&B initiatives, emphasizing the importance of community and inclusivity as core values.
+Added: The firm recognizes that our people are the essence of Hamilton Lane, and aims to ensure that every individual feels included and valued.
+Added: The DEI&B program is designed to celebrate and leverage the diversity of its team members, acknowledging their unique perspectives as critical to the firm’s success.
+Added: The goal is to create an environment where differences drive innovation and growth, fostering a
+Added: culture of belonging and communal harmony.
+Added: This program is not merely a set of initiatives but a reflection of Hamilton Lane’s identity and aspirations, striving to build a firm where every person, regardless of background or identity, feels like an integral part of a shared journey.
+Added: As of March 31, 2024, 53% of our employees were women or ethnically underrepresented professionals and 49% of investment team roles were held by women or ethnically underrepresented professionals.
+Added: “Ethnically underrepresented” means employees who self-identify based on race or ethnicity in the country of the employee’s principal office location.
As of March 31, 2024, approximately 42% of our employees were women and 32% of senior leadership roles were held by women.
−Removed: We believe that our culture and commitment to fostering a truly diverse workforce will continue to play an important role in supporting our future growth.
Employee Engagement
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Furthermore, employees have the opportunity to participate in our formal Mentoring Program, which is designed to help less tenured employees foster relationships with more experienced colleagues and/or peers in different departments with the goal of enhancing professional and personal development and growth.
−Removed: In addition to formalizing a DE&I strategy with clear objectives and aspirations for increasing the diversity of our workforce, we have recently focused on a number of other human capital initiatives.
−Removed: In support of our DE&I strategy, we launched the Hamilton Lane Emerging Talent Internship program, designed to introduce women and ethnically underrepresented students to Hamilton Lane and to the opportunities in the private markets.
−Removed: Finally, we have a software program for financial management and human capital management, which provides a platform to deliver our human capital processes, allowing enhanced data analysis, better controls through trackable and auditable transactions, and employee and manager self service.
−Removed: Our success is because of our people, our colleagues across the globe who bring their authentic selves to work every day.
−Removed: We are not only private markets specialists, but we are artists, musicians, athletes, parents and so much more.
−Removed: It is that intersection of experiences that drives our culture and our unique spirit of competition that inspires innovation.
−Removed: Together, we believe diverse perspectives lead to informed decisions;
−Removed: decisions designed to benefit our clients, our employees and our competitive edge.
+Added: In addition to formalizing a DEI&B strategy with clear objectives and aspirations for increasing the diversity of our workforce, we have recently focused on a number of other human capital initiatives.
+Added: In support of our DEI&B strategy, we launched the Hamilton Lane Emerging Talent Internship program, designed to introduce women and ethnically underrepresented students to Hamilton Lane and to the opportunities in the private markets.
+Added: Our employees are empowered to organize efforts, with the support of the DEI&B Council and the broader firm, to create affinity and action groups.
+Added: Today, we are proud to support the work of our employee resource groups (HLWE – Women’s exchange for women+ employees, HLPride – for LGBTQIA+ and allies, HLHome – black, indigenous, and other people of color affinity group, HLinAction – volunteerism and charitable giving opportunities, HLGreen – promoting sustainability and HLWell – fostering personal wellness).
Compensation and Benefits
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Our benefits include 16 weeks of fully paid parental leave plus one additional week to be used on demand, regardless of gender identity, lactation and milk shipping services, assisted reproductive technology and adoption support, back-up child, elder and self-care, workplace flexibility, mental health services and a number of financial wellness benefits including educational assistance, a student loan refinancing and repayment program, commuter benefits and our Employee Share Purchase Plan, as amended, through which employees can purchase shares of our Class A common stock at a discounted price.
−Removed: Corporate Responsibility
+Added: Corporate Social Responsibility
For more than 30 years, Hamilton Lane has proudly helped our clients and their beneficiaries achieve more financially secure futures.
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As a global leader in our asset class, Hamilton Lane has consistently been at the forefront of industry changes, often helping to influence and drive them.
−Removed: And our commitment to responsible and sustainable
−Removed: investing practices is no exception.
+Added: And our commitment to responsible and sustainable investing practices is no exception.
In fact, one needs to look no further than our mission statement – we enrich lives and safeguard futures – to see that the notion of investing responsibly is core to our culture and values.
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Our Continued Commitment to ESG & Sustainability Issues
−Removed: Hamilton Lane has long been focused on ESG issues, and has been formally issuing our ESG diligence questionnaire to fund managers since 2010.
+Added: Hamilton Lane has long been focused on ESG issues, and has been formally including ESG in our final investment reports since 2010.
Our RIC was established in 2012, and each of our investment teams factor ESG considerations into their investment processes.
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We work with each investment team to learn, educate, discuss and integrate best practices across functional areas, including due diligence, investment memoranda development, monitoring and reporting.
−Removed: Since 2020, we have had a long-tenured, senior member of our organization serving as Director of ESG & Sustainability.
−Removed: This individual is focused on bringing more cohesion, consistency, centralization and employee training to our efforts and leads our RIC.
−Removed: In addition, each of our distinct investment teams (specialized funds, direct investments, secondaries, real assets) has ESG task force champions that lend to our ESG efforts and liaise with the dedicated ESG team.
−Removed: We are actively growing our dedicated ESG team and resources.
−Removed: As a financial services company, we do not burn fossil fuels on site to operate our business, and thus we do not have material Scope 1 emissions.
−Removed: The majority of our carbon footprint is comprised of Scope 2 emissions (power purchased to run our offices) and select portions of Scope 3 emissions that we are able to capture (business car, rail and air transport and employees commuting to our offices).
−Removed: We have measured the carbon footprint associated with the energy usage at our global offices, our business travel and the commuting of our global employees and have committed to carbon neutrality for our operations going back to 2019.
−Removed: We have partnered with climate and sustainable development expert, Climate Impact Partners, to offset the emissions of our calendar 2019 - 2021 operations, we are currently working toward offsetting emissions from our calendar 2022 operations, and we intend to continue doing so going forward.
−Removed: The partnership seeks to offset carbon dioxide emissions by supporting projects with third-party verified carbon credits as well as societal benefit, including a wind power project in India, two world-leading clean cooking projects in Bangladesh and Ghana and the Aqua Clara water filter project in Kenya.
−Removed: This water filter project reduces emissions by removing the current practice of using fire to boil and clean water and promotes health, safety and improved quality of life within the population.
−Removed: In 2022, we worked with a third party on data verification and calculation before purchasing offsets.
−Removed: This expanded our data collection to include emissions stemming from remote working and other sources and allowed us to officially list the firm as carbon neutral for our calendar 2021 operations.
+Added: We have a dedicated sustainability team whose responsibilities include supporting the broader firm with insights and solutions seeking to evolve and develop our sustainability and impact programs, as well as our ESG risk management practices, in line with client needs and industry best practices.
+Added: Our sustainability team partners across Hamilton Lane, influencing and contributing to activities such as sustainable investing, sustainable portfolio construction, risk management, post-investment management and monitoring, reporting, client solutions and compliance, among others.
+Added: In addition, we intend to continue to develop our investment team integration as it relates to ESG and sustainability topics with the goals of enhancing collaboration, broadening the scope of coverage, and increasing participation across our investment business.
+Added: We are actively growing our dedicated sustainability team and resources.
+Added: As a financial services company, the majority of our emissions stem from purchased energy to run our offices and business travel.
+Added: We calculate our carbon footprint based on our Scope 1, 2, and 3 emissions, excluding financed emissions, and have committed to carbon neutrality for our operations going back to 2019.
+Added: We have partnered with a climate and sustainable development expert, Climate Impact Partners, to offset the emissions of our calendar 2019 - 2021 operations, we are currently working toward offsetting emissions from our calendar 2022 operations, and we are collecting data necessary to calculate our calendar 2023 emissions.
+Added: The partnership seeks to offset carbon dioxide emissions by supporting projects with third-party verified carbon credits as well as societal benefit.
+Added: We have historically supported a wind power project in India, two world-leading clean cooking projects in Bangladesh and Ghana and the Aqua Clara water filter project in Kenya.
+Added: This water filter project reduces emissions by removing the current practice of using fire to boil and
+Added: clean water and promotes health, safety and improved quality of life within the population.
+Added: Since 2022, we have worked with a third party on data verification and calculation of our carbon footprint before purchasing offsets.
+Added: We received a carbon neutral certification from Climate Impact Partners for our calendar 2021 operations.
We are also exploring multiple avenues to reduce our carbon intensity in line with the Task Force on Climate-Related Financial Disclosures (“TCFD”) recommendations.
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As an important first step towards this goal, we became a signatory to Initiative Climate International (“iCI”) in 2022.
−Removed: iCI is affiliated with the PRI and is composed of a platform of leading private equity investors dedicated to understanding and reducing carbon emissions of private equity-backed companies.
+Added: iCI is affiliated with PRI and is composed of a platform of leading private equity investors dedicated to understanding and reducing carbon emissions of private equity-backed companies.
It was founded to help ensure the private equity industry plays its part in meeting the goals of the Paris Agreement on Climate Change (the “Paris Agreement”).
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The LEED certification demonstrates the value we place on locating our headquarters in an energy and resource-efficient building.
−Removed: The Fitwel certification demonstrates our commitment to the health and wellness
−Removed: of our employees.
+Added: The Fitwel certification demonstrates our commitment to the health and wellness of our employees.
We incorporated ESG considerations into our design and furnishing choices, the office offers spaces designated for personal wellness, mental health and well-being and employee connectivity, and we have taken steps to reduce paper and single-use plastics consumption and other waste.
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We worked with Novata to digitize our fund ESG diligence questionnaire and our annual ESG/DE&I survey, both of which we are now issuing through Novata’s platform.
−Removed: Next, we plan to begin collecting ESG and impact data for a number of our products with Novata.
+Added: We are also issuing data collection for impact key performance indicators and other non-financial metrics across selected products through Novata and seek to explore the buildout of further use cases.
In 2023, we became signatories to the ESG Data Convergence Initiative, an organization with the goal of creating a critical mass of meaningful, performance-based ESG data from private companies by converging on a standardized set of ESG metrics for private markets.
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At Hamilton Lane, we take seriously our goal of generating strong investment returns for our clients and their beneficiaries, while incorporating ESG and sustainability principles into our investing practices.
−Removed: Our long-standing focus on ESG and sustainability issues has been reinvigorated in part because of the growing importance such practices have for our clients and our own genuine commitment to responsible investing.
+Added: long-standing focus on ESG and sustainability issues has been reinvigorated in part because of the growing importance such practices have for our clients and our own genuine commitment to responsible investing.
Investing Responsibly
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Further, the RIC meets to approve all investments that are considered for Hamilton Lane’s impact funds.
−Removed: We fully integrate ESG into all of our due diligence processes and utilize third-party risk rating and identification metrics to understand the geographic, social and environmental risks across industries and investments.
+Added: We fully integrate ESG into all of our investment due diligence processes and utilize third-party risk rating and identification metrics to understand the geographic, social and environmental risks across industries and investments.
As part of our standard process, we rate general partners based on their approach and integration of ESG, the risk profile of their track record and the risk profile of the proposed strategy, helping our clients understand how their general partners are performing while also allowing us to identify the areas in which to engage with the general partners.
Our proprietary rating system seeks to benchmark general partners to best practices, which means that the standards we expect from our general partners are continuously increasing.
−Removed: In 2022, we continued to embed ESG throughout our due diligence processes, including the integration of ESG, earlier, through the inclusion of EU Sustainable Finance Disclosure Regulation (“SFDR”) ratings and ESG factors in our screening and meeting memoranda.
−Removed: Further, we have introduced a proprietary ESG Organizational Rating Framework as an extension of the ESG rating system, comprised of 23 variably weighted ESG-related questions.
+Added: In 2022, we continued to embed ESG throughout our due diligence processes, including the integration of ESG earlier in our process, through the inclusion of tracking EU Sustainable Finance Disclosure Regulation (“SFDR”) Articles and other ESG factors in our screening and meeting memoranda.
+Added: Further, we have enhanced our proprietary ESG Organizational Rating Framework as an extension of the ESG rating system, comprised of 23 variably weighted ESG-related questions.
General partners are ranked on a scale of one to five to produce an aggregated organizational ESG score.
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By incorporating ESG factors across our investment process and increasing the level of available information, we are aiming to help our clients better understand and meet their responsible investing objectives.
−Removed: We use our best efforts not to invest discretionary capital in companies that operate in excluded sectors, as further detailed in our ESG investment guidelines below.
+Added: We use our best efforts not to invest discretionary capital in companies that operate in excluded sectors.
Post-investment, we monitor general partners and their developing portfolios and direct investment portfolio companies to ensure adherence to ESG policies and commitments.
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This new technology allows us to become aware of ESG risks sooner and engage our investment teams and the general partners with whom we have invested, depending on a materiality assessment.
−Removed: We have procedures in place for our evergreen and closed-end products for materiality evaluation, escalation and engagement, and we are working to develop procedures with respect to discretionary client portfolios.
+Added: We have procedures in place for our evergreen and closed-end products for materiality evaluation, escalation and engagement, and have developed procedures with respect to several discretionary client portfolios.
To further increase our monitoring of ESG metrics, Hamilton Lane began issuing our detailed annual ESG/DE&I survey to all managers with whom we have invested discretionary capital as an annual exercise in 2020, so our teams can assess whether managers are meeting their ESG goals year over year, and where they may be lagging.
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We ultimately seek to standardize ESG reporting capabilities across our platform.
−Removed: Our current ESG investment guidelines are the following:
−Removed: • Environmental—Greenhouse gas emission, pollution, natural resource consumption and waste management are all criteria that we evaluate and consider in our investment process.
−Removed: Furthermore, given the risks they pose to our planet and collective well-being, we do not directly invest through our discretionary capital in thermal coal, oil sands, or non-sustainable forestry practices.
−Removed: • Social—Board composition and employee diversity, workplace conditions, supply chain practices, consumer protections and broader societal impacts are criteria that we evaluate and consider in our investment process.
−Removed: Furthermore, given the risks they pose to our neighbors around the world, we do not directly invest through our discretionary capital in companies that derive revenue from or support controversial weapons (defined as chemical/biological, nuclear, cluster munitions and landmines), abusive lending practices, pornography, animal cruelty, child labor, human trafficking or forced labor.
−Removed: • Governance—Ownership structures, voting rights, compensation, accounting practices and processes for dealing with conflicts of interest are critical to our underwriting process.
−Removed: Sound governance is the bedrock for implementing responsible investing across the “E” and the “S” components of ESG.
−Removed: • The above exclusions represent areas where we see an intolerable level of risk to proceed with investment.
−Removed: Outside of those exclusions, our guiding philosophy is that investing with managers who can mitigate ESG risk and promote sustainability is preferable to divestment from entire sectors.
−Removed: Special consideration and enhanced scrutiny are given to investments in areas with potentially higher ESG risks, such as mining, fossil fuel production, deforestation, alcohol, gambling and companies with operations in regions with a history of ESG abuses.
−Removed: Hamilton Lane’s approach to impact investing moves beyond our integrated ESG procedures, and targets investments that have intentionality around non-financial environmental or social goals.
+Added: At Hamilton Lane, we guide our team to take a materiality approach to risk assessment pre-investment, outlining core risks and attributes of each investment to our investment committee, including those related to ESG.
+Added: We seek to partner with managers who are managing and mitigating ESG risk within their investment practices rather than excluding entire sectors from our investment remit.
+Added: However, special consideration and enhanced scrutiny are given to investments in areas with potentially higher ESG risks, such as mining, fossil fuel production, deforestation, alcohol, gambling and companies with operations in regions with a history of ESG abuses.
+Added: We aim to highlight material risks in our pre-investment assessments and generally have not prescribed a defined list of investment criteria given our broad investment coverage;
+Added: however, we have outlined some sensitivities to guide our investment teams.
+Added: As it relates to environmental risks, we are sensitive to topics such as greenhouse gas emissions, pollution, natural resource consumption and waste management.
+Added: As it relates to social risks, we are sensitive to topics such as board composition, employee diversity, workplace conditions, supply chain practices, consumer protections and broader societal impacts.
+Added: As it relates to governance, we are sensitive to topics such as ownership structures, voting rights, compensation, accounting practices, and processes for dealing with conflicts of interest.
+Added: As we evolve, we will continue to review and revisit our approach.
+Added: While we do not anticipate changing our broad views around the importance of responsible investing and taking a materiality approach within our underwriting process, we may evolve our policies and procedures as it relates to our sensitivities and exclusions and guidance to our investment teams on handling them.
+Added: Today, given the risks they pose to our planet and collective well-being, we do not directly invest through our discretionary capital in thermal coal, oil sands, or non-sustainable forestry practices.
+Added: Given the risks they pose to our neighbors around the world, we do not directly invest through our discretionary capital in companies that derive revenue from or support controversial weapons (defined as chemical/biological, nuclear, cluster munitions and landmines), abusive lending practices, pornography, animal cruelty, child labor, human trafficking or forced labor.
+Added: Our approach to impact investing moves beyond our integrated ESG procedures and targets investments that have intentionality around non-financial environmental or social goals.
We place emphasis on measurable and reportable impact through a variety of matrices.
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The impact assessment consists of an initial impact screening, full impact due diligence and post-close monitoring and reporting of identified impact metrics.
−Removed: Furthermore, we have been a signatory to the United Nations Principles for Responsible Investment (“PRI”) since 2008 and also helped develop the PRI Limited Partners’ Responsible Investment Due Diligence Questionnaire.
+Added: Furthermore, we have been a signatory to the PRI since 2008 and also helped develop the PRI Limited Partners’ Responsible Investment Due Diligence Questionnaire.
In 2023, we became a member of the Responsible Investment Association Australasia (“RIAA”), which champions responsible investing and a sustainable financial system in Australia and New Zealand.
RIAA is dedicated to ensuring capital is aligned with achieving a healthy society, environment and economy.
−Removed: Finally, we are an Influencer member of Pensions for Purpose (“PfP”), whose mission is to encourage ESG and impact investing at pension funds and increase knowledge sharing among market participants, and we have endorsed the ILPA Principles, which are aimed at improving the private equity industry for the long-term benefit of all industry participants and beneficiaries.
Environmental Best Practices
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We expect to expand this to other carbon intensive sectors in the future.
−Removed: As an influential voice in the private markets, Hamilton Lane seeks to identify managers and investments that incorporate environmental best practices, some of which include:
−Removed: • An official Environmental Policy Statement at the managing company and portfolio company level—This statement should set clear messaging and expectations from the top down.
−Removed: • Robust environmental due diligence—Managers must consider the material risks and opportunities that arise from an investment’s impact on the natural world.
−Removed: • A focus on reducing the carbon footprint of the management company and portfolio companies—Material and measurable reductions demonstrate a commitment to a better future and create a favorable position for future regulation.
−Removed: • Efforts toward compliance with the TCFD—TCFD has become a widely accepted framework for monitoring and reporting climate-related risks and potential opportunities.
−Removed: • Monitoring and reporting of environmental key performance indicators (“KPIs”)—Transparency with limited partners and general partners enhances accountability.
−Removed: While we ask the same questions of each general partner through our request-for-information process, we recognize that risks vary by sector and deal and understand a suitable environmental risk mitigation strategy will depend on the associated risks of the manager’s investment focus.
−Removed: Strategies such as energy, which have much higher relative material environmental risks, will receive added scrutiny in the due diligence process.
−Removed: Committing to Being an Ally
−Removed: As a firm, Hamilton Lane acknowledges the systemic racism that oppresses billions of people around the world, and we recognize that we share in the responsibility to listen to our communities, to understand the issues and to act.
−Removed: We are committed to offering attention, influence and resources to be part of the solution.
−Removed: Building a better future means joining together in our efforts through increased engagement and continued sharing of ideas, concerns and personal experiences.
−Removed: As one of our core values states, we strive to “Do the Right Thing”.
−Removed: We understand that being an ally means that we must listen and reflect on our actions and opportunities.
−Removed: We also adopted the core value of “Promoting Equity and Inclusion from Within” in an
−Removed: effort to further expand our commitment to promoting and supporting a more diverse workforce.
−Removed: In practice, this has coalesced into the following initiatives:
−Removed: • A strategic plan aimed at expanding upon existing efforts to intentionally embed DE&I into the fabric of the firm’s values, culture, and recruiting and retention practices.
−Removed: The plan outlines enhanced recruiting and retention efforts, including an emphasis on ongoing training, accountability and inclusivity.
−Removed: • We have identified ways in which our employees can listen to and learn from each other.
−Removed: Our Diversity, Equity & Inclusion Speaker Series, which launched in 2017 as a means to provide outside perspectives on DE&I issues, shifted its focus to activism and social justice, hosting speakers on topics such as corporate responsibility, general awareness of racism and implementing effective approaches to racial equality.
−Removed: • Our DE&I Council also hosts outside speakers offering perspectives and conversations around allyship, racial and social inequities, barriers and constructs.
−Removed: In 2022, Hamilton Lane officially became a member of the National Association of Investment Companies (“NAIC”), the largest network of diverse-owned private equity firms and hedge funds.
−Removed: Through education, advocacy and industry events, NAIC is focused on increasing the flow of capital to high-performing diverse investment managers often underutilized by institutional investors.
−Removed: We believe this membership reflects our commitment to the promotion of excellence and inclusion in the private markets.
−Removed: We also moved our vendor risk management program to a third-party platform that offers detailed diligence protocols, customizable questionnaires, contract review mechanisms and an ability to track specific data categories, including ESG metrics.
−Removed: This will allow us to survey our vendors for their statistics and commitment to diversity.
−Removed: These initiatives speak to Hamilton Lane’s acknowledgment of the present moment and important progress underway, as well as to our long-standing commitment to advancing women and other underrepresented groups within the private markets industry.
+Added: We seek to identify managers that incorporate environmental best practices or who have shown significant progress towards industry best practices through our request-for-information process and annual ESG/DE&I surveys.
+Added: We recognize that risks vary by sector and deal and understand a suitable environmental risk mitigation strategy will depend on the associated risks of the manager’s investment focus.
Social Best Practices
Hamilton Lane has long prioritized both our internal diversity efforts across our global teams and the health of the communities in which we invest and operate.
−Removed: In 2022, we partnered with Ownership Works, a nonprofit organization that works with companies and investors to provide all employees with the opportunity to build wealth through equity, and our chief executive officer serves on its board of directors.
−Removed: We also joined as a member firm of Out Investors, a global network with a mission to make the investing industry more welcoming for LGBTQ+ professionals.
−Removed: In addition, we seek to partner with managers who share our dedication to these issues and exhibit best practices, including:
−Removed: • An official DE&I policy statement at the managing and portfolio company levels
−Removed: • A focus on expanding diversity of decision-making within portfolio company management
−Removed: • A diverse board composition
−Removed: • Diversity mandates for hiring third-party service providers
−Removed: • Monitoring and reporting of social KPIs
−Removed: • Supplier due diligence
+Added: In early 2021, we became a signatory to the
+Added: Diversity in Action Initiative of the Institutional Limited Partners Association (“ILPA”).
+Added: This effort focuses on foundational actions that limited partner and general partner organizations are taking to advance DE&I, both internally and throughout the industry more broadly.
+Added: In 2022, we partnered with Ownership Works, a nonprofit organization that works with companies and investors to provide all employees with the opportunity to build wealth through equity, and Mario Giannini, one of our executive co-chairmen, serves on its board of directors.
+Added: Also in 2022, we officially became a member of the National Association of Investment Companies, the largest network of diverse-owned private equity firms and hedge funds.
+Added: We are a member firm of Out Investors, a global network with a mission to make the investing industry more welcoming for LGBTQ professionals.
+Added: In addition, we seek to partner with managers who share our dedication to these issues and exhibit progress towards industry best practices, which we assess through our request-for-information process and annual ESG/DE&I survey.
We also seek to invest in diverse organizations and partner with managers who share a commitment to DE&I.
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ownership level, carried interest, investment committee or investment team.
−Removed: Promoting Equity and Inclusion from Within
−Removed: In today’s world, humans are intertwined in a way unlike any other time in our history.
−Removed: Across the globe, nations, communities and individuals are demanding that companies prioritize ESG and sustainability issues, as well as advance more diverse, equitable and inclusive workplaces.
−Removed: It is our view that the more diverse professionals we can attract to our asset class, the more our industry can thrive.
−Removed: We know that smart teams do great things, but diverse teams can do truly incredible things, and the way to affect change is to help create it.
−Removed: We leverage our status as a global leader in the private markets to advance these initiatives in an effort to benefit our clients, our employees, our industry and our communities.
−Removed: We are proud of our organization’s history of embracing and championing diversity.
−Removed: That authentic commitment is demonstrated by the meaningfully diverse representation across our organization.
−Removed: As of March 31, 2023, 53% of our employees and 45% of senior leaders were women or ethnically underrepresented professionals.
−Removed: We know that talent is everywhere, but that not all talent has access.
−Removed: Our goal is to provide a path for more diverse professionals to become part of the private markets industry.
−Removed: We are guided by a genuine belief that in order to diversify and, therefore, improve the composition of our asset class, we must advocate for, educate and include women and ethnically diverse candidates early and often.
−Removed: Our partnerships with organizations such as Girls Who Invest, Women Societies Alliance, Cristo Rey Philadelphia, Big Brothers Big Sisters and Philadelphia Financial Scholars, as well as initiatives aimed at expanding our recruiting efforts at diverse colleges and universities, the Hamilton Lane Women’s Exchange (“HL WE”), our annual Undergraduate Women’s Private Equity Summit and our Emerging Talent Program, are a testament to this belief.
−Removed: In early 2021, Hamilton Lane became a signatory to ILPA’s newly announced Diversity in Action Initiative.
−Removed: This effort focuses on foundational actions that limited partner and general partner organizations are taking to advance DE&I, both internally and throughout the industry more broadly.
−Removed: Hamilton Lane is honored to join our founding co-signatories in this important effort across our industry, and we remain committed to creating and maintaining an inclusive and collaborative workplace across the world.
−Removed: In addition to our recruiting and retention efforts, we recognize that a true commitment to diversity requires a proactive and multi-faceted approach.
−Removed: We have multiple employee-led programs designed to help our colleagues with skill development, career progression and work-life balance, as well as to facilitate open dialogues around important topics such as race, inclusion and social justice, including:
−Removed: • Coffee Connects—internal networking opportunities for Hamilton Lane women intended to facilitate building new relationships and sharing experiences across the organization
−Removed: • DE&I Speaker Series—interview series intended to promote and encourage the honest discussion of issues related to diversity and inclusion within our firm and broader industry
−Removed: • HL WE—creating experiences designed to bring Hamilton Lane women together to support their development and success
−Removed: • Mentoring Program—formal program designed to help employees foster relationships with more experienced colleagues and/or peers in different departments for professional and personal development and growth
−Removed: At Hamilton Lane, we remain fully committed to DE&I.
−Removed: Our success is because of our people – our colleagues across the globe who bring their authentic selves to work every day.
−Removed: Together, we believe diverse perspectives lead to informed decisions designed to benefit our clients, our employees and our competitive edge.
−Removed: Cybersecurity
−Removed: Our cybersecurity programs and strategies are continuously evolving in response to new and emerging threats.
−Removed: When our employees returned to the office in April 2022, we bolstered our systems to accommodate
−Removed: the shift from fully remote connectivity to a hybrid work model.
−Removed: With the increase in phishing attacks around the world, we expanded and augmented our email security systems in response to that potential threat.
−Removed: User education in tandem with these security systems have helped deter attacks.
−Removed: We have also updated and expanded our cybersecurity policies, replaced and upgraded our firewalls, and moved security services to the endpoint in addition to the network edge.
Available Information
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.