Hamilton Lane is buying back Cascade Investment’s minority stake in the alternatives money management firm.
Cascade invests the personal wealth of Microsoft Corp. Chairman Bill Gates as well as the assets of the $36.4 billion Bill & Melinda Gates Foundation, Seattle.
The deal will result in about 100 Hamilton Lane employees controlling the vast majority of the firm's equity, said a news release from the firm.
The purchase price is not being disclosed.
Cascade owned about one-fifth of Hamilton Lane, said people with knowledge of the transaction. Cascade bought a minority interest in 2003 and then was part of an investor group in 2006 that bought out founder Leslie A. Brun’s 12% interest in Hamilton Lane. The 2006 investor group also included Credit Agricole; Hartley R. Rogers, Hamilton Lane chairman; 22 Hamilton Lane senior managers; and an unknown number of outside investors.
Mr. Rogers continues to be an active shareholder and firm employee. He did not sell any shares as part of the repurchase of Cascade’s shares.
Hamilton Lane repurchased Credit Agricole’s interest in the firm in 2011 for about €60 million ($78 million), a Credit Agricole Group financial statement shows.
Hamilton Lane bought Cascade’s interest to increase its employee ownership.
“We are strong believers in the power of broader employee ownership — something all too rare in our industry,” said Mario Giannini, Hamilton Lane’s CEO, in the news release. “We see this transaction as the logical next step in our firm’s evolution.”
The firm is now about 85% employee owned.
For Cascade, the sale was an opportunity to receive a return on its investment, the people with knowledge of the transaction said.
“We want to thank Hamilton Lane for the very successful partnership over the last 12 years,” said Michael Larson, manager and chief investment officer of Cascade, in the news release. “While our direct economic interest has come to an end, our partnership has not. We look forward to watching Hamilton Lane continue to grow and thrive.”
Mr. Larson could not be reached by press time.