The Strategic Rise of Secondary Markets in Private Equity: A Case for Hamilton Lane’s HLGPS Fund

The private equity landscape is undergoing a seismic shift, and secondary markets are at the epicenter of this transformation. Investors are increasingly recognizing the strategic value of secondary assets—mature private equity holdings with near-term liquidity potential—as a way to optimize returns and mitigate the illiquidity trap. At the forefront of this movement is Hamilton Lane’s Global Private Secondary Fund (HLGPS), a $365 million evergreen vehicle that leverages the firm’s 24+ years of secondary market expertise and a $20 billion AUM platform to deliver a compelling value proposition.

The Evergreen Edge: Liquidity in an Illiquid World

Traditional private equity funds are plagued by rigid terms and long lock-up periods, leaving investors vulnerable to the J-curve—a period of negative returns in the early stages of an investment. HLGPS, however, is structured as an evergreen fund, allowing for continuous capital deployment and quarterly limited liquidity [1]. This model not only accelerates the reinvestment of distributions but also aligns with the growing demand for flexibility in an era where liquidity is king.

According to Hamilton Lane’s 2025 Market Overview, evergreen structures are projected to outpace public market growth over the next five years, with institutional investors increasingly favoring their agility [2]. The HLGPS’s $365 million AUM at launch—surpassing its initial target—underscores this trend, reflecting strong investor appetite for a vehicle that balances illiquid returns with strategic liquidity [3].

J-Curve Mitigation: The Power of Maturity

One of HLGPS’s most compelling features is its focus on mature private equity assets with near-term distribution potential. By acquiring secondary interests in high-quality middle-market buyout funds, the fund bypasses the early-stage drag of the J-curve and positions investors to capture cash flows sooner [4]. This approach is particularly attractive in today’s environment, where rising interest rates and market volatility have amplified the risks of holding young, illiquid assets.

Hamilton Lane’s 24-year track record in secondary markets provides a critical edge here. The firm’s deep expertise in sourcing and underwriting mature assets ensures that HLGPS is not just a liquidity tool but a high-conviction play on the mid-market, a segment that has historically outperformed larger buyouts in terms of risk-adjusted returns [5].

Diversification and Global Reach: A Strategic Portfolio Play

HLGPS’s mandate extends beyond liquidity—it’s a vehicle for geographic and strategic diversification. The fund invests across industries, vintages, and geographies, offering exposure to a curated portfolio of secondary assets in Europe, the Middle East, Asia, Latin America, and Canada [6]. This global footprint is a key differentiator, as it allows investors to tap into markets that are often inaccessible through traditional private equity vehicles.

Moreover, the fund’s $12 billion+ evergreen platform provides a robust infrastructure for execution. With nearly $141 billion in discretionary assets and over $845 billion in non-discretionary assets under management as of June 2025, Hamilton Lane’s scale and operational depth give HLGPS a competitive edge in sourcing and managing secondary opportunities [7].

The Case for Immediate Allocation

The numbers tell a clear story: HLGPS is not just a niche product but a strategic response to the evolving needs of private markets. Its $365 million AUM at launch, coupled with the broader $20 billion secondary platform, demonstrates that Hamilton Lane has cracked the code on liquidity optimization. For investors seeking to diversify their illiquid holdings while mitigating the J-curve, this fund is a no-brainer.

As secondary markets continue to mature—projected to account for 30% of global private equity activity by 2030—HLGPS offers a rare combination of experience, structure, and global access. In a world where liquidity is the new currency, this is a bet worth making.

Source:
[1] Hamilton Lane Launches Global Private Secondary Fund [https://www.prnewswire.com/news-releases/hamilton-lane-launches-global-private-secondary-fund-302544369.html]
[2] 2025 Market Overview [https://www.hamiltonlane.com/en-us/news/2025-market-overview]
[3] Hamilton Lane Launches Global Private Secondary Fund [https://www.stocktitan.net/news/HLNE/hamilton-lane-launches-global-private-secondary-k24qwcyiowx3.html]
[4] Hamilton Lane’s Global Private Secondary Fund [https://www.ainvest.com/news/hamilton-lane-global-private-secondary-fund-strategic-approach-diversification-liquidity-illiquid-markets-2509/]
[5] Private Secondary Fund | Hamilton Lane [https://www.hamiltonlane.com/en-us/strategies/evergreen/us-private-wealth/private-secondary-fund]
[6] Hamilton Lane Launches Global Private Secondary Fund [https://www.gurufocus.com/news/3091857/hamilton-lane-launches-global-private-secondary-fund-hlne-stock-news]
[7] Hamilton Lane Launches Global Private Secondary Fund [https://www.morningstar.com/news/pr-newswire/20250903ph61218/hamilton-lane-launches-global-private-secondary-fund]