Key Takeaways
- • Hamilton Lane's Secondary Investment team, co-headed by Keith Brittain, rejects more than 90% of the deals it evaluates, sometimes as many as 98%, according to an interview with Calcalist published by CTech.
- • Hamilton Lane recently raised about $5 billion for its sixth secondary fund, part of a platform managing roughly $20 billion, and has invested approximately $470 million in Israel over the past three years since October 7.
- • Brittain says the secondary market has grown to about $240 billion in annual volume, up from roughly $10 billion when he joined in 2010, while PitchBook estimates potential technology-sector share supply at $10 trillion.
- • Average discounts on venture capital fund stake purchases currently range from 20% to 25%, but Brittain argues a low price alone does not justify a deal.
- • Distributions to LPs have fallen to 10%-15% of net asset value annually over the past three to four years, versus about 22% over the prior 25 years, driving demand for secondary liquidity.
Summary
Secondary markets have become a central liquidity route for employees, founders and investors in Israel's high-tech sector, as traditional exits slow and many private companies remain private for longer. According to the CTech interview, specialist secondary funds buy shares in private companies and stakes in venture capital funds, typically at discounts to the latest funding-round valuation or fund carrying value, and often hold them for several years. International participants active in Israel include StepStone, alongside local player Sunvest, founded by Fiona Darmon and Merav Weinryb. Hamilton Lane, which oversees approximately $1 trillion in assets, is among the largest global participants and is looking to expand its Israeli activity.
Keith Brittain, Co-Head of Hamilton Lane's Secondary Investment team, told Calcalist that the market has grown from about $10 billion in transaction volume when he joined in 2010 to approximately $240 billion today. Hamilton Lane says it has invested about $470 million in Israel over the past three years and roughly $1.5 billion since beginning operations there. Its Israeli exposure includes a secondary transaction in the venture fund Vgames and fund-led transactions that gave it exposure to Wiz, Pentera and CyberArk before their public listings. Deal sizes range from approximately $5 million to over $100 million.
Brittain said the firm's selection process is highly selective, with more than 90% of opportunities declined and evaluated volume roughly double the $240 billion of completed transactions in 2025. For venture fund stakes, average discounts currently range from 20% to 25%, while direct share purchases show a far wider range. Brittain argued that deep discounts alone do not produce adequate returns, and that Hamilton Lane focuses on company quality and fund manager quality, using proprietary benchmarking tools to set independent valuations rather than accepting carrying values.
Brittain described the buyer's market as a result of more opportunities than buyers can fund, citing PitchBook figures placing potential technology-sector share supply at $10 trillion. He attributed the liquidity gap to a sharp fall in distributions, from about 22% of NAV annually over 25 years to 10%-15% in recent years, as managers hold companies longer. He said the IPO window remains volatile and that many private companies no longer seek public listings, calling this a long-term shift. He described a potential Anthropic IPO as a significant milestone that could show an exit path for very large private companies.
Keith Brittain, Co-Head of Hamilton Lane's Secondary Investment team, told Calcalist that the market has grown from about $10 billion in transaction volume when he joined in 2010 to approximately $240 billion today. Hamilton Lane says it has invested about $470 million in Israel over the past three years and roughly $1.5 billion since beginning operations there. Its Israeli exposure includes a secondary transaction in the venture fund Vgames and fund-led transactions that gave it exposure to Wiz, Pentera and CyberArk before their public listings. Deal sizes range from approximately $5 million to over $100 million.
Brittain said the firm's selection process is highly selective, with more than 90% of opportunities declined and evaluated volume roughly double the $240 billion of completed transactions in 2025. For venture fund stakes, average discounts currently range from 20% to 25%, while direct share purchases show a far wider range. Brittain argued that deep discounts alone do not produce adequate returns, and that Hamilton Lane focuses on company quality and fund manager quality, using proprietary benchmarking tools to set independent valuations rather than accepting carrying values.
Brittain described the buyer's market as a result of more opportunities than buyers can fund, citing PitchBook figures placing potential technology-sector share supply at $10 trillion. He attributed the liquidity gap to a sharp fall in distributions, from about 22% of NAV annually over 25 years to 10%-15% in recent years, as managers hold companies longer. He said the IPO window remains volatile and that many private companies no longer seek public listings, calling this a long-term shift. He described a potential Anthropic IPO as a significant milestone that could show an exit path for very large private companies.
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