Core Viewpoint - Hamilton Lane (HLNE) has experienced a significant decline of 20% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, supported by analyst expectations of better-than-expected earnings [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - HLNE's current RSI reading is 29.69, suggesting that the heavy selling pressure may be exhausting itself and a trend reversal could occur soon [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that HLNE's earnings estimates for the current year have increased by 15.4% over the last 30 days, indicating a positive outlook for the stock [7]. - HLNE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Insights - OKX Ventures has made a strategic investment in STBL, a next-generation stablecoin and yield infrastructure provider, and announced a partnership with Hamilton Lane and Securitize to launch a new real-world-asset-backed stablecoin on X Layer [2][4]. Company Overview - STBL is co-founded by Reeve Collins and Dr. Avtar Sehra, focusing on creating ecosystem-specific stablecoins (ESSs) that are backed by real-world assets (RWAs) [9][10]. - Hamilton Lane is a leading private markets investment firm with $1.0 trillion in assets under management, specializing in private markets investing for over 30 years [13]. - Securitize is a digital securities issuance and tokenization platform with over $4 billion in assets under management, recognized as a top fintech company [15]. Investment and Partnership Details - The investment from OKX Ventures aims to support STBL's mission to build Money-as-a-Service infrastructure, allowing ecosystems to issue their own branded stablecoins backed by RWAs [6]. - The collaboration seeks to integrate traditional market frameworks with blockchain ecosystems, enhancing regulated onchain financial products [4][6]. - STBL will introduce the first Ecosystem-Specific Stablecoin (ESS) on X Layer, utilizing a dual-token architecture to separate liquid settlement from yield generation [5][10]. Technological Framework - The asset framework for the new stablecoin includes a feeder fund to Hamilton Lane's Senior Credit Opportunities Fund (SCOPE), tokenized via Securitize [5]. - STBL's dual token architecture consists of USST, a fully collateralized, dollar-pegged base layer, and YLD, which represents the yield rights of the underlying reserves [10]. Market Implications - The collaboration is expected to unlock deeper liquidity and efficient utility across onchain ecosystems, emphasizing the need for tokenization to deliver real utility [6][10]. - The initiative aims to create scalable, regulated stablecoin issuance backed by tokenized real-world assets, enhancing the overall financial infrastructure [5][6].

Valuation and Market Dynamics - The public markets are experiencing valuation fallout due to a mark-to-market approach using public market comparables, leading to instability [1] - There is a loss of nuance in stock picking as the market has shifted towards a passive trading model, making it difficult to distinguish between true winners and losers [2] - Valuations in the public markets vary significantly, from five times to 200 times forward, while private sector valuations, such as those of SpaceX and OpenAI, are rapidly increasing [3] Private Market Insights - The private market is currently receiving significant hype from follow-on financing rounds, which are opening up to retail investors, indicating a potential shift in investment dynamics [4] - There is a wide array of valuations in the private markets, with many companies being small and not widely recognized [4] - The private equity sector is facing challenges, as concerns over private credit and the ownership of software by private equity firms are negatively impacting stock performance despite double-digit revenue growth in asset management [6] Technology and Disruption - Anthropic is expected to enter the market with an IPO, but the recent downturn in technology stocks raises questions about its valuation despite being seen as a market disruptor [7] - The software industry is adapting to incorporate AI tools rather than starting from scratch, which may influence the competitive landscape and the role of disruptors like Anthropic [9] - The perception of Anthropic as a disruptor may vary, with some companies viewing it as a potential partner rather than a direct competitor [10] Private Equity Trends - The traditional "exit markup" in private equity returns has diminished, indicating a shift towards more accurate valuation practices within the industry [11] - The private equity industry has improved its valuation methods, moving away from sandbagging valuations and waiting for upside surprises, which is seen as a healthier approach [12][14] - The recent political developments in Japan are expected to enhance the attractiveness of the private equity market, with increased capital deployment from US-based firms into Japanese equities [15][17]

Financial Performance - Total revenues for the three months ended December 31, 2025, increased by $31.1 million to $198.589 million compared to $168.261 million for the same period in 2024, driven by increases in management and advisory fees and incentive fees [155]. - Management and advisory fees rose by $26.9 million for the three months ended December 31, 2025, totaling $153.177 million, with specialized funds revenue contributing $22.8 million of this increase [156]. - Incentive fees increased by $4.2 million for the three months ended December 31, 2025, reaching $45.375 million, primarily due to higher performance fees from evergreen-related funds [157]. - For the nine months ended December 31, 2025, total revenues increased by $47.0 million to $565.427 million compared to $514.991 million for the same period in 2024 [158]. - Management and advisory fees for the nine months ended December 31, 2025, increased by $43.0 million, totaling $429.000 million, with specialized funds revenue contributing $35.3 million of this increase [159]. - Fee Related Earnings (FRE) for the three months ended December 31, 2025, was $93.8 million, compared to $66.0 million for the same period in 2024 [207]. - Adjusted EBITDA for the three months ended December 31, 2025, was $107.5 million, an increase from $92.7 million in the prior year [207]. - Non-GAAP EPS for the three months ended December 31, 2025, was $1.55, up from $1.25 in the same period of 2024 [209]. - Adjusted net income for the three months ended December 31, 2025, was $84.5 million, compared to $68.0 million for the same period in 2024 [209]. Assets and Management - As of December 31, 2025, the company had $98.1 billion in assets under management (AUM) from customized separate accounts and $48.0 billion from specialized funds [119]. - The company reported $871.5 billion in assets under advisement (AUA) as of December 31, 2025 [119]. - Fee-earning AUM reached $79.142 billion by the end of the nine months ended December 31, 2025, reflecting contributions and market value changes [190]. - Fee-earning AUM increased by $2.7 billion for the three months ended December 31, 2025, primarily due to contributions from customized separate accounts and specialized funds [193]. - Customized separate accounts fee-earning AUM rose by $0.3 billion, with contributions of $1.3 billion and distributions of $1.1 billion for the same period [194]. - Specialized funds fee-earning AUM increased by $2.4 billion, with contributions of $2.7 billion and distributions of $0.8 billion for the three months ended December 31, 2025 [195]. - For the nine months ended December 31, 2025, fee-earning AUM increased by $7.1 billion, driven by contributions from customized separate accounts and specialized funds [196]. - Customized separate accounts contributions totaled $4.3 billion for the nine months ended December 31, 2025, with distributions amounting to $2.9 billion [197]. - Specialized funds contributions reached $6.1 billion for the nine months ended December 31, 2025, with distributions of $2.0 billion [199]. Expenses and Income - Total expenses for the three months ended December 31, 2025, increased by $19.8 million to $112.583 million compared to $92.539 million for the same period in 2024 [163]. - Compensation and benefits expenses rose by $16.0 million for the three months ended December 31, 2025, totaling $77.944 million, driven by increased salary expenses and annual bonus plan accruals [164]. - Total expenses increased by $39.0 million for the nine months ended December 31, 2025, compared to the same period in 2024, driven by increases in both compensation and benefits and general, administrative and other expenses [166]. - Compensation and benefits expenses rose by $29.1 million for the nine months ended December 31, 2025, with base compensation and benefits increasing by $26.6 million due to additional headcount and a stronger annual bonus plan accrual [167]. - Net income attributable to Hamilton Lane Incorporated for the three months ended December 31, 2025, was $58.372 million, compared to $52.972 million for the same period in 2024 [153]. - The company reported a net gain on investments of $19.681 million for the three months ended December 31, 2025, compared to $3.082 million for the same period in 2024 [153]. - Net income attributable to non-controlling interests increased by $9.9 million for the three months ended December 31, 2025, due to an increase in overall net income during the period [183]. Strategic Partnerships and Investments - A long-term strategic partnership was established with The Guardian Life Insurance Company, involving oversight of a nearly $5 billion private equity portfolio and a commitment of approximately $500 million per year for the next 10 years [124]. - The company has utilized available cash and borrowings to make strategic investments in technology-driven private markets data and wealth management solutions [226]. - HLA plans to evaluate opportunities for strategic investments in technology-driven private markets data and wealth management solutions [236]. Debt and Financing - The company amended its credit facility, reducing the borrowing capacity from $75 million to $50 million [122]. - HLA issued $100 million of 5.28% senior notes due October 15, 2029, with interest payable semi-annually starting April 15, 2025 [227]. - As of December 31, 2025, HLA had an outstanding balance of $84 million under the Term Loan Agreement, which has a maturity date of July 1, 2029 [229]. - The 2020 Multi-Draw Term Loan Agreement has an outstanding balance of $98 million as of December 31, 2025, with a fixed interest rate of 3.50% and a maturity date of April 1, 2030 [231]. - HLA's net cash provided by operating activities for the nine months ended December 31, 2025, was $321,944 thousand, an increase from $261,539 thousand in the same period of 2024 [243]. - The company used $345,020 thousand in investing activities for the nine months ended December 31, 2025, compared to $67,949 thousand in 2024 [243]. - HLA had $143.1 million in availability under the Loan Agreements as of December 31, 2025 [233]. - The company is required to maintain approximately $7.8 million in liquid net assets for regulatory net capital and capital adequacy requirements as of December 31, 2025 [239]. - HLA intends to continue paying cash dividends on a quarterly basis, subject to funds being legally available [240]. - The company has authorized a Stock Repurchase Program to repurchase up to 6% of its outstanding shares, not to exceed $50 million, with no shares repurchased to date [237]. Market Conditions and Future Outlook - The company anticipates that future market conditions may be less favorable for generating positive performance compared to previous periods [214]. - Historical returns are primarily driven by earlier funds, while future returns will increasingly depend on newer funds [214]. - Newly-established funds may experience lower returns during their initial capital deployment phase [214]. Risk Management - The company limits counterparties in financial transactions to reputable financial institutions to minimize credit risk [263]. - Availability of financing from financial institutions may be uncertain due to market events, impacting access to financing markets [263]. - Currency exposure related to investments in foreign currency assets is limited to the general partner interest, typically one percent of total capital commitments [260]. - Changes in exchange rates are not expected to materially impact the company's financial statements [260]. - The company does not possess significant assets in foreign countries or engage in material transactions in currencies other than the U.S. dollar [260].

Core Viewpoint - Hamilton Lane reported strong growth in assets and fee-related results during its fiscal third-quarter 2026 earnings call, highlighting a strategic partnership with Guardian and the performance of its Evergreen platform. Financial Performance - The company declared a quarterly dividend of $0.54 per share, targeting $2.16 per share for fiscal year 2026, representing a planned 10% increase over the prior fiscal year [1] - GAAP EPS was $4.35 on $183 million of GAAP net income, while non-GAAP EPS was $4.41 on $240.1 million of adjusted net income [1] Asset Management - Hamilton Lane ended the quarter with a total asset footprint of over $1 trillion, up 6% year-over-year [2][6] - Assets under management (AUM) were $146 billion, an increase of $11 billion or 8%, driven by specialized funds and customized separate accounts [2] - Assets under advisement (AUA) totaled $871 billion, up $50 billion or 6%, attributed to market value growth and technology solutions [2] Growth Drivers - Fee-earning AUM rose to $79.1 billion, an increase of 11%, with specialized fund fee-earning AUM reaching $38.1 billion, up 22% [4][9] - The Evergreen platform surpassed $16 billion in AUM with over $1.2 billion of net inflows this quarter, contributing to a blended fee rate of 67 basis points [4][16] Strategic Partnership - The strategic partnership with Guardian has closed, with Hamilton Lane overseeing nearly $5 billion of Guardian's private equity portfolio and expecting approximately $500 million in annual commitments for at least 10 years [5][7] - Initial economic impacts from the partnership are expected in fiscal Q4 2026, with warrant dilution anticipated to be under 1% [8] Fundraising and Product Development - The firm expects first closes for its seventh secondary fund and second venture access product in the second calendar quarter of 2026 [12] - The sixth Equity Opportunities Fund raised nearly $300 million during the quarter, with a total exceeding $2.3 billion [13] - The second infrastructure fund raised nearly $2 billion, with over $1.5 billion committed to the fund [14] Market Outlook - Distribution activity is increasing as buyers and sellers approach price equilibrium, with expectations for a stronger exit environment in 2026 compared to 2025 [18] - The secondaries market is characterized as undercapitalized relative to transaction demand, indicating growth potential for Hamilton Lane [18] Technology Investment - Hamilton Lane made an investment in Pluto Financial Technologies, an AI-driven platform aimed at enhancing access to private market portfolios and providing liquidity solutions for investors [19]

Core Insights - Hamilton Lane reported strong financial performance with total management and advisory fees up 11% year over year, and fee-related revenue increased by 31% to $57 million, driven by growth in technology solutions and back-office mandates [1][31] - The company’s total asset footprint reached over $1 trillion, marking a 6% increase year over year, with assets under management (AUM) at $146 billion, reflecting an 8% growth [2] - The partnership with Guardian has officially closed, allowing Hamilton Lane to manage nearly $5 billion of Guardian's private equity portfolio and expect annual commitments of approximately $500 million for at least ten years [8][9] Financial Performance - Year-to-date GAAP EPS was $4.35 based on $183 million of GAAP net income, while non-GAAP EPS was $4.41 based on $240.1 million of adjusted net income [1] - Fee-earning AUM grew to $79.1 billion, an increase of $8.1 billion or 11% year over year, with net quarter-over-quarter growth of $2.7 billion or 4% [10] - The company declared a dividend of $0.54 per share, aiming for a 10% increase over the previous fiscal year [5] Growth Drivers - The Evergreen platform generated over $1.2 billion of net inflows for the quarter, with total Evergreen AUM reaching over $16 billion, representing over 70% year-over-year growth [21] - Specialized funds revenue increased by $35 million or 15% compared to the prior year, driven by the growth of the Evergreen platform [31] - Customized separate accounts fee-earning AUM stood at $41.1 billion, growing $1.3 billion or 3% over the last twelve months [24] Strategic Developments - The partnership with Guardian is expected to enhance Hamilton Lane's revenue through management fees and performance fees aligned with underlying strategies [37] - The company is focused on expanding its product offerings and enhancing distribution for its flagship strategies in both the US and international markets [22][41] - Hamilton Lane is actively investing in technology solutions, such as Pluto Financial Technologies, to improve access to private markets and enhance investor experience [27][28] Market Position - Hamilton Lane continues to be recognized as one of the best places to work in money management, achieving this recognition for the fourteenth consecutive year [7] - The company is positioned to capitalize on the growing demand for private market investments, with a diversified portfolio and a strong pipeline of mandates [25][26] - The firm is optimistic about the exit environment for 2026, anticipating stronger distribution activity as market conditions improve [45]

Financial Data and Key Metrics Changes - Total asset footprint increased to over $1 trillion, representing a 6% year-over-year growth [3] - Assets Under Management (AUM) reached $146 billion, growing by $11 billion or 8% compared to the prior year [4] - Assets Under Advisement (AUA) totaled $871 billion, up $50 billion or 6% year-over-year [4] - Total management and advisory fees increased by 11% year-over-year, with fee-related revenue growing by 31% to $507 million [4][29] - GAAP EPS for the fiscal year-to-date was $4.35, with non-GAAP EPS at $4.41 [5] Business Line Data and Key Metrics Changes - Fee-earning AUM stood at $79.1 billion, growing by $8.1 billion or 11% year-over-year [10] - Specialized funds revenue increased by $35 million or 15% compared to the prior year, driven by growth in the Evergreen Platform [29] - Customized Separate Accounts fee-earning AUM grew to $41.1 billion, up $1.3 billion or 3% year-over-year [23] Market Data and Key Metrics Changes - The Evergreen Platform generated over $1.2 billion of net inflows, with total AUM reaching over $16 billion, representing over 70% year-over-year growth [21] - The international credit Evergreen fund surpassed $2 billion in AUM, with a strong performance and positive net inflows [22] Company Strategy and Development Direction - The strategic partnership with Guardian has closed, overseeing nearly $5 billion of Guardian's private equity portfolio, with expected annual commitments of approximately $500 million for at least 10 years [9] - The company aims to broaden distribution for its flagship strategies and enhance its product offerings in the wealth management sector [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating changing markets and high client expectations, highlighting strong growth and momentum [7] - The exit environment is expected to improve in 2026, with increased distribution activity anticipated [49] Other Important Information - The company has invested in Pluto Financial Technologies to enhance technology solutions in private markets [25][26] - The partnership with Guardian is expected to have initial economic impacts recognized in the fiscal fourth quarter of 2026 [9][33] Q&A Session Summary Question: Product roadmap for wealth in calendar 2026 - Management indicated that while new products will be added, the volume will not match the previous year as focus shifts to scaling existing products [39] Question: Software exposure and AI risk - Management noted that their diversified portfolio mitigates concentration risk in software, and they do not see AI disruption as a significant issue [43][44] Question: Exit activity and industry evolution - Management observed an increase in distribution activity, with a stronger exit environment expected in 2026 [49] Question: Opportunities from the evolving Evergreen Platform - Management discussed the potential for using Evergreen products as tools for portfolio construction and the ongoing education around these products [50][51] Question: Institutional interest in Evergreen products - Management clarified that institutional clients are using Evergreen products for ease of use and tactical portfolio management rather than high redemption rates [56] Question: Market sentiment regarding secondary funds - Management expressed optimism about the secondary market, noting it remains undercapitalized and has significant growth potential [71]

Financial Data and Key Metrics Changes - Total asset footprint increased to over $1 trillion, representing a 6% year-over-year growth [3] - Assets Under Management (AUM) reached $146 billion, growing by $11 billion or 8% compared to the prior-year period [4] - Assets Under Advisement (AUA) totaled $871 billion, up $50 billion or 6% year-over-year [4] - Total management and advisory fees increased by 11% year-over-year, with fee-related revenue at $507 million, reflecting a 31% growth [4][28] - GAAP EPS for the fiscal year-to-date was $4.35, with non-GAAP EPS at $4.41 [5] Business Line Data and Key Metrics Changes - Fee-earning AUM grew to $79.1 billion, an increase of $8.1 billion or 11% year-over-year [10] - Specialized funds revenue increased by $35 million or 15% compared to the prior-year period, driven by growth in the Evergreen Platform [29] - Customized separate accounts revenue rose by $4 million or 4% due to new accounts and re-ups from existing clients [30] - Evergreen Platform AUM reached over $16 billion, representing over 70% year-over-year growth [21] Market Data and Key Metrics Changes - The partnership with Guardian is expected to bring in annual commitments of approximately $500 million for at least 10 years, enhancing access to private market opportunities [9] - The second infrastructure fund raised nearly $2 billion, tripling the capital raised in the inaugural fund [17] Company Strategy and Development Direction - The company aims to leverage its diversified platform and expand client relationships while focusing on scaling existing products rather than launching numerous new ones [7][39] - The strategic partnership with Guardian is a significant step in working with sophisticated institutional investors to design comprehensive private market programs [9] - The company is focused on enhancing liquidity solutions for individual investors to drive deeper penetration into private markets [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities ahead, citing strong performance and a favorable exit environment for 2026 [7][49] - The company is witnessing a rationalization in the market, with buyers and sellers reaching equilibrium, which is expected to enhance distribution activity [49] - Management noted that the liquidity provision of Evergreen products is not the primary attraction for institutional clients, who value ease of use and tactical portfolio management [58] Other Important Information - The company has a strong pipeline of mandates and substantial committed capital ready to deploy, indicating robust future growth potential [24] - The company is actively investing in technology solutions to broaden access to private markets and enhance investor experience [25] Q&A Session Summary Question: Product roadmap for wealth in calendar 2026 - Management indicated that while new products were launched in 2025, the pace will slow in 2026 as focus shifts to scaling existing products [39] Question: Software exposure and AI risk - Management clarified that their diversified portfolio mitigates concentration risk in software, and they do not see AI disruption as a significant issue [43][44] Question: Exit activity and industry evolution - Management noted an increase in distribution activity and expects a stronger exit environment in 2026 due to maturing assets [49] Question: Opportunities from the evolving Evergreen Platform - Management is exploring various structuring and partnership opportunities as the Evergreen Platform evolves into a multi-asset, multi-strategy offering [51] Question: Institutional client behavior regarding liquidity - Management stated that institutional clients are using Evergreen products for portfolio construction rather than exhibiting higher redemption rates [58] Question: Sentiment and interest in secondaries - Management expressed optimism about the secondary market, noting it remains undercapitalized and has significant growth potential [72]

Financial Data and Key Metrics Changes - Total asset footprint increased to over $1 trillion, representing a 6% year-over-year growth [3] - Assets Under Management (AUM) reached $146 billion, growing by $11 billion or 8% compared to the prior year [4] - Assets Under Administration (AUA) totaled $871 billion, up $50 billion or 6% year-over-year [4] - Year-to-date total management and advisory fees increased by 11% year-over-year [27] - Fee-related revenue for the period was $507 million, reflecting a 31% growth year-over-year [4] - GAAP EPS for the fiscal year-to-date was $4.35, with non-GAAP EPS at $4.41 [5] - Total expenses increased by $40 million or 14% compared to the prior year period [30] Business Line Data and Key Metrics Changes - Fee-earning AUM for specialized funds reached $38.1 billion, growing by $6.9 billion or 22% year-over-year [11] - Customized Separate Accounts fee-earning AUM stood at $41.1 billion, growing by $1.3 billion or 3% over the last 12 months [22] - Evergreen Platform AUM reached over $16 billion, representing over 70% year-over-year growth [19] Market Data and Key Metrics Changes - Total fee-earning AUM grew to $79.1 billion, an increase of $8.1 billion or 11% year-over-year [9] - The international credit Evergreen fund surpassed $2 billion in AUM, with a strong performance and positive net inflows [20] Company Strategy and Development Direction - The partnership with Guardian has officially closed, overseeing nearly $5 billion of Guardian's existing private equity portfolio [7][8] - The company aims to expand its global reach and diversify its platform, focusing on new product lines and deeper client relationships [6] - The Evergreen Platform is seen as a multi-strategy, multi-asset growth engine for the firm over time [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating changing markets and high client expectations, highlighting strong growth and momentum [6] - The exit environment is expected to improve in 2026, with a rationalization occurring between buyers and sellers [38] - Management noted that the company is well-positioned to capitalize on opportunities in the private markets, particularly through the Evergreen Platform [19] Other Important Information - The company declared a dividend of $0.54 per share, maintaining a 10% increase over the previous fiscal year [5] - The unrealized carry balance increased by 15% year-over-year, now standing at approximately $1.5 billion [30] Q&A Session Summary Question: Product roadmap for wealth in calendar 2026 - Management indicated that while new products will be added, the volume will not match the previous year as focus shifts to scaling existing products [34] Question: Software exposure and AI risk - Management noted that their diversified portfolio mitigates concentration risks in software, and they do not see significant issues arising from AI disruptions [36] Question: Exit activity and pathways - Management observed an increase in distribution activity, with a stronger exit environment anticipated in 2026 due to improved buyer-seller equilibrium [38] Question: Opportunities from the Evergreen Platform - Management discussed the evolution of the Evergreen Platform and its potential for partnerships and model portfolios, emphasizing ease of use for institutional investors [39] Question: Institutional investor behavior regarding liquidity - Management clarified that institutional investors are using Evergreen products for portfolio construction rather than exhibiting higher redemption rates [41] Question: Secondary market sentiment and fund size expectations - Management expressed optimism about the secondary market, noting it remains undercapitalized and that they aim to grow their presence in this space [48][50]

Fiscal Year 2026 Third Quarter Results February 3, 2026 Today's Speakers Erik Hirsch Co-CEO Jeff Armbrister Chief Financial Officer John Oh Head of Shareholder Relations Hamilton Lane | Global Leader in the Private Markets 2 Condensed Consolidated Statements of Income (Unaudited) • GAAP net income was $92.8 million for the quarter and $273.5 million year-to-date. GAAP net income attributable to Hamilton Lane Incorporated was $58.4 million for the quarter and $183.0 million year-to-date. | | | Three Months E ...