Hamilton Lane is bolstering its real assets platform with the purchase of Real Asset Portfolio Management, a Portland, Oregon-based investment management firm focused on real estate, infrastructure and natural resources.
The Pennsylvania-based alternatives investment manager plans to buy the bulk of RAPM’s assets and will bring on the firm’s nine-person team, which is led by managing member Steve Gruber and managing director Brent Burnett and also includes managing director Scott Davies and chief financial officer Tracy Woodward.
The team will remain based in Portland and retain their existing roles. Gruber and Burnett also will join Hamilton Lane’s real assets investment committee. The transaction is expected to close later in the year. Additional terms of the deal were not disclosed.
“This is an important development in the evolution of our real assets platform,” said Mario Giannini, Hamilton Lane’s chief executive. “Real assets is an area of increasing importance within the private markets, and the addition of the RAPM team will allow us to thoughtfully broaden our capabilities and investment resources in order to better serve our clients.”
Added Burnett: “This deal will enable us to deepen our focus on investing and client service, while leveraging Hamilton Lane’s extensive platform to enhance our operational capabilities and middle- and back-office functions.”
Hamilton Lane began providing private markets consulting services in 1991 and launched its real estate-specific consulting business in 1999. The firm had eight discretionary real estate accounts and 24 advisory mandates as of December 31, according to documents from the Santa Barbara County Employees’ Retirement System. The firm also provides advisory services in private equity and investment management services for natural resources and infrastructure assets.
Hamilton Lane had approximately $42 billion of assets under management and $300 billion of assets under advisory of about $300 billion, according to its earnings call presentation earlier this month. Real estate accounted for 6 percent of its discretionary commitments for active investments as of March 31. The firm currently employs more than 290 professionals across the US, Europe, Asia, Latin America and the Middle East.
Established in 2011, RAPM manages or advises on approximately $3.8 billion of real asset investments, according to its website.