On Friday, the Wall Street Journal reported on an updated fee structure for Hamilton Lane’s retail-facing Private Assets Fund, which changes how the firm receives carry.

The fund typically purchases private equity stakes in competitive processes at a discount to the official net asset value. After acquiring the stake, the fund marks up the stake to the GP’s official NAV, booking near-immediate paper gains on the holding (a practice referred to as “NAV squeezing” by the WSJ).

In one September 2023 purchase of a group of new positions, nearly half of the 36 stakes at least doubled in value following this initial mark-up. One fund, an Advent International-managed Latin America vehicle, was marked up by nearly eight-fold from the price paid by Hamilton Lane.

In February, the fund asked shareholders to approve a change in the vehicle's fee structure.

Previously, Hamilton Lane collected a 1.5 percent management fee and a 12.5 percent performance fee above a hurdle. But, the performance fee was payable only on a deal-by-deal basis when the fund exited a position.

Under the February proposal, which was approved in March by a majority of shareholders, the performance fee falls to 10 percent but becomes payable quarterly across the entire fund, including unrealized gains. The previous 8 percent hurdle was also removed.

With no need to wait until exit, the change dramatically reduces the timeline for the fund's carry realization. With the quick paper gains from post-purchase markups to the GP's NAV, the fund is now in a position where it can receive performance fees shortly after completing new secondary purchases.

Speaking to the WSJ, Brian Gildea, a managing director at Hamilton Lane, says the complexity of the old fee structure made it “difficult for investors to calculate on their own,” and said the new terms provide "a simpler-to-understand fee structure with a lower performance-fee rate."

According to the fund's prospectus, there's no clawback provision to make investors whole should they pay fees on unrealized gains that later evaporate.

The structure does include a loss recovery account mechanism that halts payment of performance fees until cumulative profits since inception exceed the balance of the LRA. But, a subsequent draw-down in NAV merely pauses future incentive fees; it does not reverse what was already paid.

• GFL Environmental (NYSE: GFL) is considering the sale of a stake in its Green Infrastructure Partners business, which could be valued at as much as C$5 billion, attracting initial interest from suitors including General Atlantic, Energy Capital Partners and Neuberger Berman, per Bloomberg.

• Advent International has offered to acquire Spectris PLC (LSE: SXS), a London-based provider of high-tech instruments, test equipment and software, for £37.63 per share, or an enterprise value of £4.4 billion.

• Brown & Brown (NYSE: BRO) agreed to acquire Accession Risk Management Group, parent company of Risk Strategies and One80 Intermediaries with 5,000 insurance professionals across the U.S. and Canada, for $9.825 billion.

• Qualcomm (Nasdaq: QCOM) agreed to acquire Alphawave Semi (AWE.L), a provider of high-speed wired connectivity and compute technologies, for $2.4 billion.

• Crane Company (NYSE: CR) agreed to acquire Baker Hughes' (Nasdaq: BKR) Precision Sensors & Instrumentation product line, which includes the Druck, Panametrics and Reuter-Stokes brands that manufacture sensor-based technologies for pressure, flow, gas, moisture and radiation detection, for $1.15 billion in cash.

• GTCR has entered into a partnership with maritime industry veteran Manish Singh to form Maris Investments, which will seek to acquire companies in the maritime technology sector.

• H.I.G. Capital acquired ITH Group Limited, a UK-based provider of aseptic pharmaceutical compounding services.

• Speyside Equity-backed GSC Technologies acquired F&M Tool and Plastic, a Massachusetts-based plastic injection molding company that manufactures storage products.

• Sagard Private Equity Canada agreed to acquire Lorne Park Capital Partners (TSXV: LPC), a wealth management platform, for $126.8 million.

• L'Oréal Groupe agreed to acquire a majority stake in Medik8, a British premium skincare brand known for its Crystal Retinal serum, from Inflexion, which will retain a minority stake.

• Abry Partners invested in Burgess Hodgson, a Canterbury-based accounting and business advisory services provider to SMEs and individual clients across London and Southeast England.

• Security 101, a portfolio company of Gemspring Capital, acquired JAC Security, a Houston-based franchise partner providing commercial security solutions.

• Synapse ITS, a portfolio company of Vance Street Capital, acquired GovComm, a Florida-based traffic technology company specializing in wrong-way vehicle detection systems.

• Argosy Private Equity acquired Heavy Equipment Colleges of America, a provider of specialized heavy equipment and crane operator training programs across four campuses in Georgia, Oklahoma, California, and Washington.

• Sixth Street Growth acquired a majority stake in Wealthbox, a CRM software platform for financial advisors, for $200 million.

• Oakley Capital is in talks to acquire a significant stake in G3, a corporate intelligence firm that advises clients on commercial risks including cybersecurity, in a deal that could value the business between £200m and £250m, per Sky News.

• Eurazeo, Nordic Capital, and Tikehau are among firms that have held preliminary talks to potentially acquire Capital Four, a Danish credit manager backed by Swiss billionaire Ernesto Bertarelli's B-FLEXION vehicle, with German insurer Allianz SE also in discussions, per Bloomberg.

• Autodoc, an Apollo Global Management-backed German online automotive parts retailer, plans to list on the Frankfurt Stock Exchange in 2025 in a deal that could value the company at up to €10 billion, with Barclays, Citigroup, Deutsche Bank, and Jefferies serving as bookrunners.

• Masco Group, an Ardian portfolio company, acquired Techniserv, a Pennsylvania-based provider of bioreactor and process systems for pharmaceutical, biotech, food, and fine chemical industries.

Tech, Vertical SaaS, & Misc. Enterprise

• Laurel, a time management platform for professional services firms, raised $100 million in Series C funding led by IVP, with participation from GV, 01A, DST Global, TIME Ventures, ACME, Anthos, and AIX Ventures.

• Linear, a project management software maker, raised $82 million in Series C funding led by Accel, with participation from Sequoia Capital, 01A, Seven Seven Six, and Designer Fund, valuing the company at $1.25 billion.

• Runwise, a platform that automates and optimizes building operations, raised $55 million in Series B funding led by Menlo Ventures, with participation from MassMutual Ventures, Nuveen Real Estate, Multiplier Capital, Munich Re Ventures, Soma Capital, Alumni Ventures, Helium-3, Cooley, and Fifth Wall.

• Pactum, an agentic AI platform for enterprise procurement, raised $54 million in Series C funding led by Insight Partners, bringing its total funding to over $100 million.

• Tastewise, a food and beverage market intelligence platform, raised $50 million in Series B funding led by TELUS Global Ventures, with participation from Disruptive AI, Peakbridge Capital, Duo Partners, and PICO Venture Partners.

• Swimlane, a Denver-based AI security automation platform, raised $45 million in growth funding co-led by Energy Impact Partners and Activate Capital, with participation from Trinity Capital.

• Definely, a legal tech platform for reviewing and editing contracts within Microsoft Word, raised $30 million in Series B funding led by Revaia, with participation from Alumni Ventures, Beacon Capital, Clio, Octopus Ventures, Zrosk Investment Management, The Raine Group, and Cornerstone VC.

• Maze, a London-based AI-powered cloud security platform for investigating and resolving vulnerabilities, raised $25 million in Series A funding led by Theory Ventures, with participation from Cherry Ventures and Tapestry VC.

• Nooks, a Crystal City-based provider of secure government workspaces, raised $25 million in Series A funding led by Zigg Capital, with participation from Upper90, SAIC, and Lockheed Martin.

• Sintra, a Lithuanian startup developing virtual assistants for small businesses, raised $17 million in seed funding led by Earlybird VC, with participation from Inovo and Practica Capital.

• Scale AI, a data labeling platform for AI training systems, raised $14.8 billion in new funding from Meta, which will take a 49 percent stake in the company valued at $13.8 billion.

• ai.work, an AI platform for autonomous enterprise operations, raised $10 million in seed funding co-led by A* and lool ventures, with participation from Firstminute Capital, FirsthandVC, Timeless Partners, SV Angel, Eckstein Capital, Liquid2, and Crossover VC.

• Altura, a bid management platform, raised €8 million in Series A funding led by Octopus Ventures, with participation from Fortino Capital, Curiosity VC, and P1ST investors.

• Row64, a Cheyenne-based business intelligence platform for data analytics, raised $4 million in seed funding led by Galaxy Interactive, with participation from Alumni Ventures and Differential Ventures.

Fintech

• Octaura, an electronic trading platform for syndicated loans and CLOs, raised $46.5 million in Series A funding from Bank of America, Citi, Goldman Sachs, J.P. Morgan, Morgan Stanley, Wells Fargo, Moody's, Barclays, Deutsche Bank, BNP Paribas, Apollo, Motive Partners, MassMutual Ventures, and OMERS Ventures.

• Hypernative, a real-time threat prevention platform for Web3, raised $40 million in Series B funding co-led by Ten Eleven Ventures and Ballistic Ventures, with participation from StepStone Group, boldstart ventures, and IBI Tech Fund.

• Turnkey, a crypto wallet infrastructure provider for developers, raised $30 million in Series B funding led by Bain Capital Crypto, with participation from Sequoia Capital, Lightspeed Faction, Galaxy Ventures, Wintermute Ventures, and Variant.

• Aiera, an AI event intelligence platform for financial professionals, raised $25 million in Series B funding led by a consortium of ten Wall Street investment banks and Third Bridge, with Microsoft joining as a strategic technology partner.

• Noah, a stablecoin payment network, raised $22 million in seed funding led by LocalGlobe, with participation from Felix Capital and FJ Labs.

• Piston, a cardless payments platform for commercial fleets and gas stations, raised $6.1 million in seed funding led by Spark Capital, with participation from Pear VC and BOND.

Consumer & Media

• Holidu, a Munich-based vacation rental platform, raised €46 million in growth funding led by Key1 Capital, with participation from Vintage Investment Partners, Prime Ventures, and 83North.

Healthcare

• Mosanna Therapeutics, developing a nighttime nasal spray for obstructive sleep apnea, raised $80 million in Series A funding co-led by EQT Life Sciences and Pivotal bioVenture Partners, with participation from Forbion, Broadview Ventures, Norwest, Forty51 Ventures, Supermoon Capital, and High-Tech Gründerfonds.

• Eli Health, a company developing a saliva-based hormone monitoring system, raised $12 million in Series A funding led by BDC Capital's Thrive Venture Fund, with participation from Muse Capital, TELUS Global Ventures, Foreground Capital, Rocana Ventures, Accelia Capital, Garage Capital, Swizzle Ventures, IKJ Capital, Next Blue, Real Ventures, and Leva Capital.

• myLaurel, a healthcare company providing at-home acute care services, raised $12 million in Series A funding co-led by Deerfield Management and GV, with participation from Emerson Collective, Pinta Partners, and Ochsner Health.

• Somnee, a Berkeley-based sleep tech company developing a neurotech headband, raised $10 million in seed extension funding led by Khosla Ventures, with participation from TIME Ventures, LEAD VC, Seaside Ventures, Nelstone Ventures, and Metalab.

• Salvo Health, a digital GI care platform, raised $4 million in seed extension funding from The Artemis Fund, with participation from City Light, Human Ventures, Threshold Ventures, Alumni Ventures, Felicis Ventures, and Torch Capital.

Industrials, Greentech, & Other

• Coral Vita, a Bahamas-based coral reef restoration company, raised $8 million in Series A funding led by Builders Vision, with participation from Katapult Ocean, iAlumbra, BDT & MSD, 2050, Rypples, Colorado Coral, Rising Tide, Aureolis Ventures, and Wilson Sonsini.

• Co-Power, a Munich-based developer of decentralized energy solutions for European industry, raised €6.4 million in seed funding led by Cherry Ventures, with participation from Abacon Capital and Aurum Impact.

• Centerbridge Partners is planning to raise around $1 billion for a continuation fund to extend its hold on its minority position in Fairstone Bank of Canada, with the final amount depending on how many existing investors cash out or roll their commitments into the new vehicle.

• BharCap Partners raised $652 million for its oversubscribed Fund II, which targets management buyouts of asset-light financial services businesses.

• Lakestar is raising $300 million for a dedicated European defence technology fund, as geopolitical tensions drive increased investment in the sector.

• Geodesic Capital raised $250 million for its Geodesic Alliance Fund focused on advancing the U.S.-Japan alliance by investing in early-stage U.S. startups in national security sectors including AI, space, cybersecurity, and dual-use deep technologies.

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