Core Insights - The asset management landscape is evolving, with companies employing innovative strategies and strong partnerships gaining investor interest [1] - Goldman Sachs analyst upgraded Hamilton Lane Inc. to Buy, with a price forecast of $165, indicating over 30% upside potential [1][2] Company Performance - Hamilton Lane's strong position in the alternative asset management sector, particularly in Wealth/Evergreen funds and Secondaries, is highlighted [2] - The company's Evergreen franchise manages approximately $14 billion in NAV, contributing over 30% to fee-related revenue, the highest among alternative managers [4] - Recent financial results show Hamilton Lane reported adjusted EPS of $1.54, exceeding estimates, and revenue of $190.9 million, surpassing consensus [6] Growth Projections - Fee-related earnings (FRE) are expected to grow at a 27% compound annual rate from 2025 to 2027, driven by management fees from Evergreen products and performance-fee contributions [3] - Earnings per share are projected to grow at a 20% annual rate, supported by a significant performance-fee pool with unrealized value [3] Valuation Metrics - Hamilton Lane shares are currently trading at 21 times next-twelve-month P/E, below the historical average of 27× and peers' 23× [5] - Goldman Sachs estimates for EPS are $5.36 for 2025, $6.28 for 2026, and $7.77 for 2027, reflecting expected margin and revenue acceleration [5]

Assets Under Management and Advisory - As of September 30, 2025, the company had $101.0 billion in assets under management (AUM) from customized separate accounts and $44.4 billion from specialized funds[117] - The company reported $859.8 billion in assets under advisement (AUA) as of September 30, 2025, indicating a strong advisory service segment[117] - Fee-earning AUM increased by $2.0 billion during the three months ended September 30, 2025, primarily due to contributions from customized separate accounts and specialized funds[191] - Customized separate accounts fee-earning AUM rose by $0.5 billion, with contributions of $1.1 billion and distributions of $0.8 billion for the same period[192] - Specialized funds fee-earning AUM increased by $1.5 billion, with contributions of $1.8 billion and distributions of $0.6 billion for the three months ended September 30, 2025[193] - For the six months ended September 30, 2025, fee-earning AUM increased by $4.4 billion, driven by contributions from both customized separate accounts and specialized funds[194] - Customized separate accounts fee-earning AUM grew by $1.5 billion, with contributions totaling $2.9 billion and distributions of $1.8 billion for the six months ended September 30, 2025[195] - Specialized funds fee-earning AUM increased by $2.9 billion, with contributions of $3.4 billion and distributions of $1.2 billion for the same period[196] Financial Performance - Total revenues for the three months ended September 30, 2025, increased by $36.7 million to $190.9 million compared to $149.9 million for the same period in 2024, driven by increases in management and advisory fees and incentive fees[153] - Management and advisory fees rose by $22.3 million to $142.1 million for the three months ended September 30, 2025, compared to $119.8 million in 2024, with specialized funds revenue contributing $19.5 million of this increase[154] - Incentive fees increased by $14.3 million to $44.6 million for the three months ended September 30, 2025, primarily due to the recognition of $13.1 million in performance fees from evergreen funds[155] - For the six months ended September 30, 2025, total revenues increased by $15.9 million to $366.8 million compared to $346.7 million in 2024, primarily due to higher management and advisory fees[156] - Management and advisory fees for the six months ended September 30, 2025, increased by $16.1 million to $275.8 million, with specialized funds revenue contributing significantly to this growth[157] - Total expenses for the three months ended September 30, 2025, increased by $27.7 million to $111.2 million compared to $82.8 million in 2024, mainly due to higher compensation and benefits[161] - Compensation and benefits expenses rose by $21.9 million to $77.0 million for the three months ended September 30, 2025, driven by increased salary expenses and annual bonus plan accruals[162] - Net income attributable to Hamilton Lane Incorporated for the three months ended September 30, 2025, was $70.9 million, compared to $55.0 million in 2024, reflecting a year-over-year increase of 28.5%[150] - Non-GAAP EPS for the three months ended September 30, 2025, was $1.54, up from $1.07 in the same period of 2024[206] - Adjusted EBITDA for the three months ended September 30, 2025, was $100.815 million, compared to $75.638 million for the same period in 2024[204] - Fee Related Earnings (FRE) for the three months ended September 30, 2025, were $77.037 million, compared to $56.292 million for the same period in 2024[204] Investment Activities - The company completed a registered offering of 528,705 shares of Class A common stock, generating $55.5 million in net proceeds[120] - On October 23, 2025, the company sold its interests in a wholly-owned entity for $92.3 million in cash[122] - The company recognized $0.8 million in retroactive fees from its latest direct equity fund for the six months ended September 30, 2025, compared to $20.7 million from a secondary fund in the same period of 2024[157] - Total other income for the three months ended September 30, 2025, was $37.9 million, significantly higher than $9.9 million in 2024, indicating improved investment performance[152] - Other income (expense) increased by $12.4 million for the three months ended September 30, 2025, primarily due to an increase in equity in income of investees[168] - Equity in income of investees increased by $13.7 million for the three months ended September 30, 2025, attributed to larger increases in investment valuations[169] - Other income (expense) of Consolidated Funds and Partnerships increased by $15.6 million for the three months ended September 30, 2025, due to increased investment activity[176] - Net cash provided by operating activities for the six months ended September 30, 2025, was $247.83 million, compared to $197.15 million for the same period in 2024, reflecting a year-over-year increase of approximately 25.7%[239] - Net cash used in investing activities for the six months ended September 30, 2025, was $227.92 million, significantly higher than $25.04 million in 2024, indicating increased investment activity[239] Debt and Liquidity - The company amended its credit facility on October 1, 2025, which included a decrease in the aggregate principal amount available to be borrowed and changes to interest rates[121] - The company had an outstanding balance of $89 million under the Term Loan Agreement as of September 30, 2025, with a maturity date of July 1, 2029[225] - The aggregate principal amount of loans that may be outstanding under all Loan Agreements is capped at $325 million, with $325 million available as of September 30, 2025[229] - The company issued $100 million in Senior Notes with a 5.28% interest rate, maturing on October 15, 2029, with interest payments starting on April 15, 2025[223] - As of September 30, 2025, the principal amount of debt outstanding was $288.1 million, down from $293.1 million as of March 31, 2025[229] - The company expects to continue paying quarterly cash dividends, subject to funds being legally available[237] - The company is required to maintain approximately $7.8 million in liquid net assets to meet regulatory net capital and capital adequacy requirements as of September 30, 2025[236] - The annual interest rate on the Term Loan Agreement was 6.00% as of September 30, 2025[259] - A 100 basis point increase in interest rates is estimated to result in an increased interest expense of approximately $0.9 million over the next 12 months[260] Strategic Partnerships and Investments - A long-term strategic partnership was established with The Guardian Life Insurance Company, managing nearly $5 billion in private equity and committing to invest approximately $500 million annually for the next 10 years[124] - The company plans to make strategic investments in technology-driven private markets data and wealth management solutions[233] Tax and Regulatory Matters - The effective tax rate was 11.9% for the three months ended September 30, 2025, compared to 1.5% for the same period in 2024, reflecting changes in income allocation and tax adjustments[179] - The One Big Beautiful Bill Act signed into law on July 4, 2025, did not have a material impact on the company's consolidated financial statements[145] Market Conditions and Competition - The company has noted increased competition for investment opportunities, which may impact future returns due to rising costs[211] - The performance of the funds is increasingly dependent on newer funds, as historical returns are primarily derived from earlier funds[211] - The company utilizes revolving credit facilities to enhance liquidity, which can magnify performance outcomes[217] - The company’s investment strategy includes a focus on private markets, with specialized funds investing across various sectors[210] Currency and Credit Risk - The company has limited currency exposure related to investments in foreign currency assets, typically at 1% of total capital commitments[258] - The company does not expect changes in exchange rates to materially impact its financial statements[258] - Credit risk is managed by limiting counterparties to reputable financial institutions[261] - The company does not possess significant assets in foreign countries or engage in material transactions in currencies other than the U.S. dollar[258] - The company’s general partner investments include thousands of unique underlying portfolio investments with no significant concentration in any industry or country outside of the United States[256] Performance Metrics - The gross internal rate of return (IRR) for the Secondary Fund VI established in 2022 was 40.6%, while the net IRR was 44.1%[212] - The Infrastructure Opps Fund II, set to launch in 2024, has a projected gross IRR of 32.3% and a net IRR of 30.8%[212] - The company’s specialized funds have shown varying performance, with the PEF IX fund achieving a net IRR of 14.7%[212] - The average gross multiple across the specialized funds is approximately 1.5, indicating a strong return on capital invested[212] - The company’s strategic opportunities funds have a gross IRR of 14.4% for the year 2022, reflecting solid performance in the market[212]

Core Insights - Hamilton Lane has achieved a significant milestone by surpassing a total asset footprint of $1 trillion, marking a 6% year-over-year increase, with AUM reaching $145 billion, up $14 billion or 11% from the previous year [1][5][6] - The company has formed a strategic partnership with Guardian Life Insurance Company, which includes managing Guardian's existing private equity portfolio of nearly $5 billion and a commitment to invest approximately $500 million annually for the next ten years [9][10][40] - The firm reported strong financial performance, with fee-related revenue increasing by 23% year-over-year, driven by growth in management and advisory fees [5][36] Financial Performance - Total asset footprint reached just over $1 trillion, with AUM at $145 billion, reflecting an 11% increase year-over-year [1] - AUA stood at $860 billion, growing by $44 billion or 5% compared to the prior year, primarily due to market value growth [5] - Fee-related earnings were $160.7 million year-to-date, representing a 34% growth year-over-year [6] - GAAP EPS for the fiscal year-to-date was $2.98, with non-GAAP EPS at $2.86 [6] Strategic Developments - The partnership with Guardian Life will involve managing their private equity portfolio and includes financial incentives such as HLNE equity warrants [10][40] - Hamilton Lane's Evergreen platform has seen substantial growth, with total Evergreen AUM reaching $14.3 billion, nearly doubling since 2024 [24][25] - The company has expanded its product offerings, launching additional evergreen products and enhancing its technology solutions [8][27] Market Position and Outlook - The firm maintains a strong position in the private equity market, with a focus on customized solutions for institutional clients [10][11] - The company has observed a low default rate of around 1%, indicating strong credit fundamentals within the private credit sector [14] - Hamilton Lane's strategic focus on expanding its insurance solutions platform is expected to drive future growth [11][12]

Core Insights - Hamilton Lane (HLNE) reported a revenue of $190.88 million for the quarter ended September 2025, reflecting a year-over-year increase of 27.3% and exceeding the Zacks Consensus Estimate of $166.82 million by 14.43% [1] - The company's earnings per share (EPS) for the quarter was $1.54, up from $1.07 in the same quarter last year, representing a surprise of 42.59% compared to the consensus estimate of $1.08 [1] Financial Performance Metrics - Fee Earning AUM for Customized Separate Accounts (CSA) was reported at $40.8 billion, slightly below the average estimate of $41.29 billion [4] - Total Fee Earning AUM stood at $76.42 billion, compared to the estimated $76.99 billion [4] - Fee Earning AUM for Specialized Funds (SF) was $35.62 billion, close to the average estimate of $35.7 billion [4] - Total AUM & AUA reached $1005.2 billion, compared to the average estimate of $1008.53 billion [4] - Assets Under Management (AUM) were reported at $145.36 billion, exceeding the average estimate of $144.22 billion [4] - Assets Under Advisement (AUA) totaled $859.84 billion, slightly below the average estimate of $864.31 billion [4] Revenue Breakdown - Incentive fees revenue was $44.55 million, significantly higher than the average estimate of $26.55 million, marking a year-over-year increase of 47.4% [4] - Management and advisory fees for Customized Separate Accounts were $35.77 million, slightly above the estimated $34.82 million, reflecting a 2.9% increase year-over-year [4] - Total management and advisory fees revenue was $142.13 million, surpassing the average estimate of $139.9 million, with an 18.7% year-over-year increase [4] - Management and advisory fees for Specialized Funds reached $89.86 million, exceeding the average estimate of $87.97 million, representing a 27.8% year-over-year increase [4] - Fund reimbursement revenue was reported at $1.97 million, below the estimated $2.25 million, but still showing a 36.8% increase year-over-year [4] - Distribution management revenue was $0.45 million, significantly lower than the average estimate of $1.18 million, with an 8.7% year-over-year increase [4]

Financial Data and Key Metrics Changes - Total asset footprint reached just over $1 trillion, a 6% increase year over year [3] - AUM stood at $145 billion, growing by $14 billion or 11% compared to the prior year [4] - AUA came in at $860 billion, up $44 billion or 5% year over year [4] - Total fee-related revenue for the period was $321.6 million, representing a 23% growth year over year [5] - GAAP EPS for the fiscal year-to-date was $2.98, with non-GAAP EPS at $2.86 [5] Business Line Data and Key Metrics Changes - Total PR and AUM stood at $76.4 billion, growing by $6.7 billion or 10% year over year [14] - Customized separate accounts PR and AUM reached $40.8 billion, growing by $1.4 billion or 4% over the last 12 months [15] - Specialized Funds PR and AUM ended fiscal Q2 at $35.6 billion, having grown $5.3 billion or 17% year over year [16] Market Data and Key Metrics Changes - The partnership with Guardian Life Insurance Company will manage a private equity portfolio of nearly $5 billion and commit to invest approximately $500 million per year for the next 10 years [7][8] - The firm has scaled its insurance solutions platform to over $119 billion [9] Company Strategy and Development Direction - The company is focused on sustainable growth and success, expanding product offerings and launching new Evergreen products [6] - The partnership with Guardian is seen as a testament to the company's ability to provide customized solutions to leading institutions [9] - The firm aims to deepen expertise and relationships within the insurance sector through a dedicated insurance solutions team [9] Management's Comments on Operating Environment and Future Outlook - Management sees no data supporting a broader credit crisis, noting strong credit fundamentals and low default rates [10][11] - The company emphasizes the importance of data and transparency in the private market, leveraging its extensive database for insights [12] Other Important Information - The company announced a partnership with Bloomberg to provide access to Hamilton Lane Private Market Indices via the Bloomberg Terminal [24] - Securitize is set to become a publicly traded company, with Hamilton Lane having a strategic partnership in place [26] - Novata's acquisition of Atlas Metrics aims to meet the growing demand for sustainability data solutions [29] Q&A Session Summary Question: Details on the Guardian partnership fee structure - The majority of revenue will come from the $5 billion being managed, with $250 million allocated to Evergreen products [39][40] Question: Insights on the Bloomberg partnership and data monetization - The Bloomberg arrangement is a revenue share model, enhancing brand visibility and providing valuable data for private market benchmarks [40][41][42] Question: Development of the SMA business pipeline - The pipeline is robust, with billions of dollars expected to flow in over time as contracts are finalized [45] Question: Impact of Guardian team joining Hamilton Lane - The team acquisition is expected to have a minimal impact on expenses, as they will fill existing open positions [53]

Core Insights - Hamilton Lane (HLNE) reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, and showing an increase from $1.07 per share a year ago, resulting in an earnings surprise of +42.59% [1] - The company achieved revenues of $190.88 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 14.43% and increasing from $150 million year-over-year [2] - Hamilton Lane has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $180.94 million, while for the current fiscal year, the estimate is $5.11 on revenues of $734.03 million [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock performance [3][4] Industry Context - The Financial - Investment Management industry, to which Hamilton Lane belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable environment for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Fiscal Year 2026 Second Quarter Results November 4, 2025 Today's Speakers Erik Hirsch Co-CEO Non-GAAP Financial Measures Jeff Armbrister Chief Financial Officer Hamilton Lane | Global Leader in the Private Markets 2 John Oh Head of Shareholder Relations Condensed Consolidated Statements of Income (Unaudited) • GAAP net income was $103.6 million for the quarter and $180.7 million year-to-date. GAAP net income attributable to Hamilton Lane Incorporated was $70.9 million for the quarter and $124.6 million year ...

Financial Performance - GAAP net income for the second quarter was $103.6 million, a 36% increase compared to $75.9 million in the same quarter last year[20]. - Total revenues increased by 27% to $190.9 million, up from $150.0 million year-over-year[21]. - Management and advisory fees rose by 19% to $142.1 million, while incentive fees surged by 47% to $44.6 million[21]. - Total expenses increased by 34% to $111.2 million, with compensation and benefits rising by 40% to $77.0 million[21]. - Income before income taxes increased by 53% to $117.6 million compared to $77.1 million in the prior year[21]. - Net income attributable to Hamilton Lane Incorporated was $70.9 million for the quarter, a 29% increase from $55.0 million in the same quarter last year[21]. - Basic earnings per share of Class A common stock decreased by 24% year-over-year to $1.38, while diluted earnings per share decreased by 23% to $1.37[22]. - Net income attributable to Hamilton Lane Incorporated was $54.98 million, reflecting a 29% increase from the previous year[22]. - Net income attributable to Hamilton Lane for the quarter was $71 million, reflecting a year-over-year increase of 15%[65]. - Adjusted net income grew by 44% year-over-year to $84.1 million for the quarter, and 11% to $155.7 million year-to-date[27]. Assets and Management - Assets under management and supervision reached $1.0 trillion, with $145.4 billion in discretionary assets and $859.8 billion in non-discretionary assets as of September 30, 2025[6]. - Total assets under management reached $145.4 billion, an 11% increase year-over-year[85]. - Fee-earning assets under management (AUM) are defined as assets from which management fees are earned, primarily from customized separate accounts and specialized funds[101]. - The company’s total assets under management (AUM) include customized separate accounts and specialized funds, reflecting the firm’s growth strategy in private markets[100]. Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.54 per share, representing a 10% increase from the previous fiscal year[3]. - The company declared a quarterly dividend of $0.54 per share of Class A common stock[28]. Revenue Growth and Projections - Future outlook indicates continued growth in management and advisory fees, driven by market expansion and new product offerings[22]. - The company anticipates continued growth in management fees, projecting a 6% increase for the six months ended September 30, 2025, compared to the previous year[95]. Expenses and Liabilities - Total liabilities increased to $822.3 million as of September 30, 2025, while total equity rose to $1.16 billion[87]. - The company maintained a modest leverage with $286 million of debt as of September 30, 2025[75]. - Total expenses increased by 34% year-over-year to $111.16 million, with compensation and benefits rising by 40% to $76.99 million[22]. Cash Flow and Investments - Net cash provided by operating activities rose to $247,830 for the six months ended September 30, 2025, compared to $197,145 in 2024, reflecting a growth of about 25.7%[90]. - The company reported a net cash used in investing activities of $(227,916) for the six months ended September 30, 2025, compared to $(25,037) in 2024[90]. - Investments in technology-related and other areas amounted to $215 million, contributing to a strong balance sheet[74]. Market Position and Strategy - The company continues to focus on expanding its investment strategies and enhancing its service offerings in private markets[6]. - Hamilton Lane Incorporated became a publicly-traded entity following its IPO on March 6, 2017[102]. - As of November 4, 2025, Hamilton Lane continues to position itself as a global leader in private markets[108]. Risk Management - Forward-looking statements highlight risks including competition for investment opportunities and the ability to manage obligations under debt agreements[105]. - The company emphasizes the importance of compliance with investment guidelines set by clients to mitigate risks[106]. - The company’s only material asset is its interest in Hamilton Lane Advisors, LLC, which is essential for covering dividends and expenses[105].

Core Viewpoint - Hamilton Lane Incorporated is a leading investment firm with a positive outlook from analysts, reflected in the increasing consensus price target for its stock despite recent declines [2][5]. Company Overview - Hamilton Lane specializes in direct and fund of fund investments, offering services such as separate accounts, specialized strategies, and advisory solutions [1]. - The company operates globally, investing in sectors including technology, healthcare, and energy, and competes with firms like Blackstone and KKR [1]. Stock Performance - The consensus price target for Hamilton Lane's stock has risen to $167.5, up from $165.67 last quarter and $163.5 a year ago, indicating a positive analyst outlook [2]. - Despite a recent 10.4% decline in stock value, the stock is considered technically oversold, suggesting potential for a rebound [2][5]. Growth Potential - Hamilton Lane is recognized as a top growth stock by MarketBeat, with expectations for significant revenue and earnings growth [3]. - Co-CEO Erik Hirsch highlighted the importance of fund manager selection over thematic investments, aligning with the company's strategy to navigate the evolving private markets landscape [3]. Financial Insights - The Q1 2026 earnings call provided insights into Hamilton Lane's financial performance and strategic direction, emphasizing the need for investors to monitor upcoming earnings reports and strategic developments [4].

Core Insights - Hamilton Lane and Guardian Life Insurance Company have formed a long-term strategic partnership to manage Guardian's private equity portfolio and enhance investment opportunities [1][2][5] Partnership Details - Hamilton Lane will manage Guardian's existing private equity portfolio valued at nearly $5 billion and will receive an annual commitment of approximately $500 million from Guardian for the next 10 years [2] - The partnership includes $250 million in seed capital for new Evergreen initiatives to support Hamilton Lane's Global Evergreen Platform [2] - Guardian's general account will gain access to a broader range of investment opportunities through Hamilton Lane's platform, which includes primary, co-investment, and secondary market opportunities [2][4] Strategic Goals - The partnership aims to accelerate growth and drive value creation, with Guardian receiving equity warrants and additional financial incentives [2][5] - Hamilton Lane's Insurance Solutions platform, which manages over $119 billion, will be enhanced through this partnership, leveraging proprietary private markets data [4] Client Engagement - Hamilton Lane will collaborate with Guardian's broker-dealer, Park Avenue Securities, to provide investment solutions and strategic support to over 2,400 advisors managing approximately $58.5 billion in client assets [3] Future Outlook - The partnership transaction is expected to close by the end of Q4 2025, with Guardian's investment professionals joining Hamilton Lane to expand expertise in the insurance sector [6]