Soaring electricity demand from artificial intelligence and data centers powered the year’s gains, even as the fund trimmed its expense cap for shareholders.

June 11, 2026

The Hamilton Lane Private Infrastructure Fund closed its fiscal year on March 31, 2026 with double-digit gains across all three of its share classes, capping a year in which booming demand for data centers and power reshaped the private infrastructure market and triggered a fundamental change in how investors can access the strategy.

All three classes finished firmly in positive territory:

• Class I, the institutional shares, returned 15.26 percent.
• Class Y returned 15.21 percent.
• Class R, the retail-facing shares, returned 13.75 percent.

The advisor, Hamilton Lane Advisors, reported gains across both of the fund’s main building blocks: direct co-investments and secondary purchases. By the end of the period, the portfolio held 37 investments spanning more than 115 underlying companies and overseen by 29 separate sponsors. It leans toward core-plus and value-add assets, which the manager views as steadier and more rewarding over a long horizon, and it is concentrated in North America, where roughly two-thirds of net asset value sits, a tilt the advisor ties to its more optimistic outlook for the U.S. economy.

A record year for deal flow

Hamilton Lane described 2025 as a high-water mark for infrastructure transactions, citing roughly 57.4 billion dollars in deal flow across its platform, a sharp jump from about 40.5 billion the year before. The firm credited both the maturing of the asset class and the growth of its own platform. Even so, it stressed that it stayed highly selective, acting on only about 3.2 percent of the opportunities it reviewed. A steady supply of co-investments from established sponsors, combined with an expanding pool of secondary deals, produced what the advisor called an especially favorable backdrop for the fund.

Data centers and power do the heavy lifting

Digital infrastructure and power were the year’s clear standouts. Data centers rode the rapid expansion of artificial intelligence and cloud computing, which drove record capital spending from large cloud operators and pushed vacancy rates in key markets to historic lows. Returns from digital infrastructure ran well ahead of the broader private infrastructure benchmark, supported by long-dated contracts with investment-grade counterparties.

That build-out carries system-wide weight. The advisor noted that the International Energy Agency and outside forecasters alike expect global electricity demand, driven heavily by data centers, to more than double by 2030, a path that points to substantial investment in generation, grid upgrades, and storage across both conventional and renewable power. Policy uncertainty in the United States, including revisions to clean energy tax incentives, and energy security concerns in Europe added volatility, but the manager argued those pressures also widened the opportunity set for investors able to price regulatory risk.

For 2026, the firm struck a constructive note, singling out fiber infrastructure, renewables following the One Big Beautiful Bill Act, cold storage and logistics, and European energy security. It also cast private infrastructure as a useful hedge against inflation, since many assets generate contracted revenue linked to consumer price indices, and pointed to lasting demand for digital connectivity and power as a structural tailwind that should support the strategy for years.

A new structure and a lower expense cap

The most consequential shift for shareholders came just after the reporting period. As of April 1, 2026, the fund began operating as an interval fund under Rule 23c-3 of the Investment Company Act, offering each share class daily and calculating its net asset value daily. The move built on the fund’s earlier transition from a private vehicle to a registered closed-end fund in June 2024. In keeping with the periodic liquidity that interval funds provide, the fund launched a repurchase offer on May 15, 2026, with a valuation date in mid-June. Under its repurchase framework, the manager generally expects to offer to buy back no more than 5 percent of net assets each quarter, and an early repurchase fee can apply to shares redeemed within a year of purchase.

Costs came down as well. On March 30, 2026, the board approved a revised expense limitation agreement that caps total annual expenses at 0.65 percent of average daily net assets for every share class. The prior structure had set separate ceilings of 1.50 percent for Class R, 0.80 percent for Class I, and 0.65 percent for Class Y, so the change lowers the cap for two of the three classes. Hamilton Lane keeps the right to recover waived amounts within three years, as long as doing so does not lift expenses back above the cap. Over the year, the advisor absorbed about 1.2 million dollars in fund expenses, with a cumulative recoverable balance of roughly 3.1 million dollars. The investment management fee holds steady at an annual 1.40 percent of net asset value, and Class R shares also carry a distribution and servicing fee of up to 0.85 percent.

Inside the portfolio

The fund’s holdings are almost entirely restricted and illiquid. At period-end, restricted securities were valued at about 146.6 million dollars, or 80.6 percent of net assets. During the year the fund purchased roughly 95.2 million dollars of investments and recorded no sales, and it carried about 30.8 million dollars in unfunded commitments to deals not yet closed. The fund operates through four active subsidiaries and held no securities in the harder-to-value lower tiers of the fair value hierarchy at year-end.

In October 2025, the fund arranged a committed, secured line of credit with JPMorgan Chase worth up to 25 million dollars, priced at adjusted term SOFR plus 2.60 percent and maturing in late 2029. It went undrawn through the end of the year.

Cohen & Company, the fund’s auditor since 2020, issued a clean opinion on the financial statements, dated May 29, 2026. As a non-diversified, closed-end vehicle, the fund continues to caution that its shares are speculative and illiquid, suited only to investors who can absorb substantial risk and do not need quick access to their money. Minimum initial investments run 25,000 dollars for the Class R and Class I shares and 1 million dollars for Class Y.

Taken together, the strong results and the structural changes suggest a fund built for wider reach. With daily pricing, a lower expense ceiling, and exposure concentrated in the infrastructure themes attracting the most capital, Hamilton Lane is wagering that appetite for private infrastructure will keep growing well past 2026.