Hamilton Lane Eyes China Deals With New $220M Yuan Fund
Synopsis
The private equity investor is preparing its first local-currency fund to capitalize on lower valuations and emerging opportunities in Chinese private markets.
Hamilton Lane China yuan fund is aiming to raise 1 billion to 1.5 billion yuan ($150 million to $220 million) as the US private equity firm is poised to roll out its first China yuan denominated, locally funded private markets vehicle in the mainland, sources with knowledge of the plans said.
The fund, expected to be launched by the end of 2026, will be wholly funded by Chinese domestic investors, largely consisting of insurance companies.
The move marks a significant development that will allow Hamilton Lane to raise and invest in private funds within China as well as pursuing US dollar strategies.
Hamilton Lane manages a private markets investment platform of about $1 trillion in assets and has held a Qualified Foreign Limited Partner (QFLP) licence in Shanghai for some time, permitting it to participate in China's private markets.
The Hamilton Lane China yuan fund will invest primarily in secondary transactions in private equity funds, buying interests before their investment term concludes, seeking assets that can be acquired at discounts amid a lull in fundraising and dealmaking in the Chinese private equity market in the past two years. Global secondary market is still growing.
Global Secondary Market Continues to Grow
Demand for secondary transactions in private equity is also high outside of China, as market transactions reached a global record high of $162 billion in 2024, according to Jefferies Global Secondary Market Review 2025.
North America remained the largest market, followed by Europe, and while Asia captured a smaller share, its institutional investor base continued to attract some capital as liquidity and portfolio rebalancing needs were directed to the region for opportunities.
Hamilton Lane had $142 billion of assets under management and $905 billion of assets under advisement as of March 31, 2026, totaling an asset platform of about $1 trillion. The firm reported net income of $249 million in its fiscal year to date, up from $215 million last year, while its management and advisory fees grew 14% year-over-year to $584 million.
China Exposure Draws Wider Investor Interest
The latest China yuan fund from the global provider of private capital solutions and data is part of a growing wave of recent offerings, as institutions assess long-term positioning for Asian private markets.
Despite a challenging environment, a number of Australian superannuation funds have continued to invest in China through broad based Asian private equity and infrastructure opportunities, and large US pension plans are active in the Asian private markets.
A locally denominated fund also provides Hamilton Lane greater flexibility to source local transactions in China and to partner with domestic investors.
Hamilton Lane has not responded to inquiries regarding its fund-raising plans.
Source: Bloomberg
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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