Financial Performance - GAAP net income was $77.1 million for the quarter, a decrease of 12% compared to the three months ended June 30, 2024[8] - Net income attributable to Hamilton Lane Incorporated was $53.7 million for the quarter, a decrease of 9% compared to the three months ended June 30, 2024[8] - Management and advisory fees were $133.7 million, a decrease of 4% year-over-year[14, 29] - Incentive fees decreased by 26% year-over-year to $42 million[9, 37] - Fee Related Earnings increased 31% compared to the three months ended June 30, 2024, reaching $83.7 million[10, 16] - Adjusted EBITDA was $95.8 million, remaining flat year-over-year[14, 45] Assets Under Management - Assets under management reached $141 billion as of June 30, 2025, an increase of 9% compared to June 30, 2024[16] - Fee-earning assets under management were $74 billion as of June 30, 2025, an increase of 10% compared to June 30, 2024[16] Unrealized Carried Interest - Unrealized carried interest was $1.309 billion as of June 30, 2025[38, 40] - 52% of the unrealized carry is from vehicles aged 5-8 years[41] Other - The company declared a quarterly dividend of $0.54 per share of Class A common stock[15]

Group 1 - Hamilton Lane reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, but down from $1.51 per share a year ago, representing an earnings surprise of +33.67% [1] - The company posted revenues of $175.96 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.52%, compared to year-ago revenues of $196.73 million [2] - Over the last four quarters, Hamilton Lane has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Hamilton Lane shares have increased by approximately 1.9% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $167.25 million, and for the current fiscal year, it is $4.42 on revenues of $692.73 million [7] Group 3 - The Zacks Industry Rank indicates that the Financial - Investment Management sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

[Report Overview](index=1&type=section&id=Report%20Overview) This section provides an overview of Hamilton Lane's Q1 FY2026 results, including its financial position, dividend declaration, and standard forward-looking statement disclosures [Company Profile & Dividend Announcement](index=1&type=section&id=Company%20Profile%20%26%20Dividend%20Announcement) Hamilton Lane, a leading private markets investment firm, reported its first quarter fiscal 2026 results, with $986.2 billion in assets under management and supervision as of June 30, 2025, and declared a quarterly dividend of $0.54 per share, marking a 10% increase in the target full-year dividend from the prior fiscal year - Declared a quarterly dividend of **$0.54 per share** of Class A common stock, with a target full-year dividend of **$2.16**, representing a **10% increase** from the prior fiscal year[3](index=3&type=chunk) Assets Under Management and Supervision (AUMS) as of June 30, 2025 | Category | Amount (USD) | | :--- | :--- | | Discretionary Assets | $140.9 billion | | Non-discretionary Assets | $845.3 billion | | **Total AUMS** | **$986.2 billion** | - The company employs approximately **750 professionals** in offices across North America, Europe, Asia Pacific, and the Middle East[6](index=6&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains standard cautionary language regarding forward-looking statements, outlining numerous known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, directing investors to the company's SEC filings for a more detailed discussion of risk factors - The report includes forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially[7](index=7&type=chunk) - Key risks include historical performance not being indicative of future results, intense competition, potential conflicts of interest, reliance on senior management, and volatile market conditions[7](index=7&type=chunk) - Investors are advised to refer to the "Risk Factors" in the company's Annual Report on Form 10-K for more comprehensive information on potential risks[8](index=8&type=chunk) [Financial & Operational Highlights](index=8&type=section&id=Financial%20%26%20Operational%20Highlights) This section details Hamilton Lane's first quarter fiscal 2026 financial performance, including key revenue and earnings metrics, alongside significant growth in its asset management base [Q1 FY2026 Key Financial Results](index=8&type=section&id=Q1%20FY2026%20Key%20Financial%20Results) For Q1 FY2026, Hamilton Lane reported GAAP net income attributable to the company of $53.7 million, a 9% decrease year-over-year, with diluted GAAP EPS of $1.28, primarily driven by lower total revenues which fell 11% to $176.0 million due to a significant drop in incentive fees, though Fee Related Earnings (FRE) increased 31% year-over-year to $83.7 million Q1 FY2026 Financial Performance vs. Prior Periods | Metric (in millions, except EPS) | Q1 FY26 | vs. Q1 FY25 | vs. Q4 FY25 | | :--- | :--- | :--- | :--- | | Management and advisory fees | $133.7 | (4)% | 5% | | Net income attributable to HLNE | $53.7 | (9)% | 6% | | GAAP EPS | $1.28 | (13)% | 4% | | Fee Related Earnings (Non-GAAP) | $83.7 | 31% | (7)% | | Adjusted EBITDA (Non-GAAP) | $95.8 | 0% | (6)% | - Total revenues for Q1 FY26 were **$176.0 million**, an **11% decrease** YoY, primarily due to a **26% decline** in incentive fees[19](index=19&type=chunk) - GAAP net income was **$77.1 million** for the quarter, a **12% decrease** compared to the prior-year quarter[18](index=18&type=chunk) [Asset Management Performance](index=14&type=section&id=Asset%20Management%20Performance) The company demonstrated continued growth in its asset base, with total Assets Under Management and Advisement (AUM/AUA) reaching $986 billion as of June 30, 2025, driven by new client wins, re-ups, and successful fundraising for various specialized funds, resulting in AUM growing 9% to $141 billion and Fee-Earning AUM (FEAUM) increasing 10% to $74 billion - Total Assets Under Management/Advisement (AUM/AUA) reached **$986 billion** as of June 30, 2025[31](index=31&type=chunk) Year-over-Year Asset Growth (as of June 30, 2025) | Metric | Value (USD) | YoY Growth | | :--- | :--- | :--- | | Assets Under Management (AUM) | $141 billion | 9% | | Fee-Earning AUM (FEAUM) | $74 billion | 10% | | Assets Under Advisement (AUA) | $845 billion | 4% | - Growth in FEAUM was driven by both Customized Separate Accounts (**+$4.6 billion** YoY increase) and Specialized Funds (**+$2.1 billion** YoY increase), with over **80%** of gross contributions in the last 12 months coming from existing clients[41](index=41&type=chunk)[43](index=43&type=chunk) - The company is actively fundraising for several specialized funds, including its **9th credit-oriented fund**, **6th direct equity fund**, and various evergreen funds[38](index=38&type=chunk)[44](index=44&type=chunk) [Detailed Financial Analysis](index=20&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of Hamilton Lane's Q1 FY2026 financial performance, focusing on revenue streams, earnings metrics, unrealized carried interest, and the strength of its balance sheet [Revenue Analysis](index=22&type=section&id=Revenue%20Analysis) Total revenues for Q1 FY26 decreased 11% year-over-year to $176 million, with management and advisory fees falling 4% to $134 million due to a significant reduction in retroactive fees, and incentive fees seeing a more significant decline of 26% to $42 million, reflecting the unpredictable timing of realizations Q1 Revenue Breakdown (Year-over-Year) | Revenue Stream (in millions) | Q1 FY25 | Q1 FY26 | YoY Change | | :--- | :--- | :--- | :--- | | Management & Advisory Fees | $140 | $134 | (4)% | | Incentive Fees | $57 | $42 | (26)% | | **Total Revenues** | **$197** | **$176** | **(11)%** | - The YoY decrease in Management and Advisory Fees was largely due to **$20.7 million** in retroactive fees in the prior year quarter, compared to only **$0.3 million** in the current quarter[58](index=58&type=chunk) - Recurring management and advisory fees have constituted approximately **80%** of total revenues over the past five fiscal years, providing a stable base[58](index=58&type=chunk) [Earnings Analysis](index=26&type=section&id=Earnings%20Analysis) Despite lower revenues, the company's core profitability remained strong, with Fee Related Earnings (FRE) growing 31% year-over-year to $84 million, Adjusted EBITDA remaining flat at $96 million, and Net income attributable to Hamilton Lane Incorporated (HLI) decreasing by 9% to $54 million due to lower incentive fees Q1 Earnings Breakdown (Year-over-Year) | Metric (in millions) | Q1 FY25 | Q1 FY26 | YoY Change | | :--- | :--- | :--- | :--- | | Fee Related Earnings | $64 | $84 | 31% | | Adjusted EBITDA | $96 | $96 | 0% | | Net Income Attributable to HLI | $59 | $54 | (9)% | - The **31% YoY growth** in Fee Related Earnings highlights the strength and long-term double-digit growth trajectory of the company's core earnings stream[71](index=71&type=chunk) [Unrealized Carried Interest](index=24&type=section&id=Unrealized%20Carried%20Interest) The balance of unrealized carried interest, a key indicator of future potential incentive fee revenue, grew to $1.31 billion as of June 30, 2025, representing a 6% increase from $1.24 billion in the prior year, with the portfolio diversified across 116 vehicles and the majority (52%) of value in funds aged between 5 and 8 years, indicating a mature pipeline for future realizations - Unrealized carried interest increased to **$1.309 billion** as of June 30, 2025, up from **$1.238 billion** as of June 30, 2024[62](index=62&type=chunk) - The unrealized carry is diversified across **116 different vehicles**[62](index=62&type=chunk) Unrealized Carry by Fund Age | Age of Fund | Percentage of Total | | :--- | :--- | | < 5 years | 26% | | 5-8 years | 52% | | 8-12 years | 17% | | > 12 years | 5% | [Balance Sheet & Key Items](index=28&type=section&id=Balance%20Sheet%20%26%20Key%20Items) Hamilton Lane maintains a strong balance sheet with a total investment balance of $863 million as of June 30, 2025, primarily composed of investments in its own funds (~$464 million) and technology-related investments (~$399 million), while employing modest leverage with total debt standing at $289 million - The total investment balance was **$863 million** as of June 30, 2025[76](index=76&type=chunk) - The investment portfolio consists of approximately **$464 million** in Hamilton Lane funds and **$399 million** in technology-related and other investments[79](index=79&type=chunk) - The company maintains a modest leverage profile with **$289 million** of debt as of June 30, 2025[80](index=80&type=chunk) [Appendix](index=30&type=section&id=Appendix) This appendix provides comprehensive supporting financial data, including detailed breakdowns of revenue and asset growth, consolidated financial statements, non-GAAP reconciliations, and definitions of key financial and operational terms [Detailed Financial Tables](index=32&type=section&id=Detailed%20Financial%20Tables) The appendix provides detailed breakdowns of key financial and operational metrics, showing that for Q1 FY26, management and advisory fees were primarily driven by specialized funds (62%) and customized separate accounts (26%), incentive fees were significantly impacted by a sharp decline in secondary and direct credit funds, and Fee-Earning AUM saw a net increase of $2.35 billion during the quarter - For the three months ended June 30, 2025, Specialized Funds contributed **$82.7 million (62%)** and Customized Separate Accounts contributed **$34.6 million (26%)** to total management and advisory fees[85](index=85&type=chunk)[86](index=86&type=chunk) - Incentive fees from Evergreen funds were the largest contributor in Q1 FY26 at **$32.6 million**, though this was down **47% sequentially**. Fees from secondary funds dropped **95% YoY** to **$0.5 million**[88](index=88&type=chunk) - Total Fee-Earning AUM increased from **$72.0 billion** at the beginning of the quarter to **$74.4 billion** at the end, driven by **$3.4 billion** in contributions offset by **$1.6 billion** in distributions[90](index=90&type=chunk) [Consolidated Financial Statements](index=38&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated balance sheets and statements of cash flows, showing total assets of $1.80 billion as of June 30, 2025, with cash and cash equivalents increasing to $263.3 million, and net cash provided by operating activities of $128.9 million for the quarter, while net cash used in investing activities was $93.8 million Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | June 30, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $229,161 | $263,347 | | Investments | $664,354 | $674,453 | | Total Assets | $1,690,355 | $1,802,038 | | Debt | $290,303 | $288,582 | | Total Liabilities | $766,460 | $806,992 | Key Cash Flow Items (Three Months Ended June 30) | Activity (in thousands) | 2024 | 2025 | | :--- | :--- | :--- | | Net cash provided by operating activities | $79,743 | $128,932 | | Net cash provided by (used in) investing activities | $2,132 | $(93,807) | | Net cash (used in) provided by financing activities | $(30,418) | $3,261 | [Non-GAAP Reconciliations](index=42&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP counterparts, bridging GAAP Net Income to key metrics such as Fee Related Earnings (FRE), Adjusted EBITDA, and Adjusted Net Income, offering transparency into the adjustments made for items like incentive fees, equity-based compensation, and other non-core expenses - Provides a full reconciliation from GAAP Net Income to Fee Related Earnings and Adjusted EBITDA for current and historical periods[96](index=96&type=chunk) - Details the calculation of Adjusted Net Income and Non-GAAP Earnings Per Share, including adjustments for taxes and share counts[96](index=96&type=chunk) - Breaks down GAAP revenue and expense lines into their 'fee related' non-GAAP components, such as 'Fee related management and advisory fees' and 'Fee related compensation and benefits expenses'[100](index=100&type=chunk) [Definitions and Disclosures](index=46&type=section&id=Definitions%20and%20Disclosures) The final section of the appendix defines the key terms and non-GAAP measures used throughout the presentation, such as Adjusted EBITDA, Fee Related Earnings (FRE), Assets Under Management (AUM), and Fee-Earning AUM (FEAUM), and includes the full forward-looking statements disclosure, reiterating the risks and uncertainties associated with the company's business - Provides specific definitions for non-GAAP measures like Fee Related Earnings (FRE), which is used to highlight recurring revenue streams[103](index=103&type=chunk) - Defines operational metrics including Assets Under Management (AUM), Assets Under Advisement (AUA), and Fee-Earning AUM (FEAUM), explaining how each is calculated and its relevance[105](index=105&type=chunk)[106](index=106&type=chunk) - Contains the full legal disclosure regarding forward-looking statements, consistent with the information presented at the beginning of the report[110](index=110&type=chunk)[111](index=111&type=chunk)

Conference Call Hamilton Lane will discuss first quarter fiscal 2026 results in a webcast and conference call today, Tuesday, August 5, 2025, at 11:00 a.m. Eastern Time. For access to the live event via the webcast, visit Hamilton Lane's Shareholders website (https://shareholders.hamiltonlane.com) at least 15 minutes prior to the start of the call. This feature will be in listen-only mode. A replay of the webcast will be available approximately two hours after the live broadcast for a period of one year and ...

The market expects Hamilton Lane (HLNE) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better ...

Core Insights - Wormhole has been selected as the official multichain partner for the SCOPE Access Fund, which provides access to Hamilton Lane's Senior Credit Opportunities Fund, with Hamilton Lane managing approximately $958 billion in assets as of March 31, 2025 [1][7]. Company Overview - Wormhole is a leading interoperability platform that connects traditional finance with the internet economy, enabling seamless movement of assets across multiple blockchain networks [2][8]. - Securitize is a prominent tokenized asset platform that partners with top-tier asset managers to tokenize real-world assets, enhancing accessibility and liquidity in institutional finance [9]. Product Development - The SCOPE Access Fund is a tokenized feeder fund that has been upgraded to include on-chain capabilities such as daily NAV pricing, instant subscriptions, and on-demand redemptions across Ethereum and Optimism [3][4]. - The integration of Wormhole's multichain capabilities transforms the SCOPE Feeder Fund into an interoperable asset, facilitating unified liquidity and composable integrations for developers [4][5]. Market Trends - There is a growing trend among large asset managers to not only tokenize funds but also to seek infrastructure that allows for the free flow of assets across different blockchain networks [5][6]. - The partnership between Wormhole and Securitize aims to redefine capital movement in the internet economy, making institutional-grade credit strategies more accessible [6]. Financial Metrics - Wormhole currently manages over $3.5 billion in multichain tokenized assets under management (MTAUM), reflecting its significant role in the evolving landscape of multichain infrastructure [5]. - Hamilton Lane's asset management includes over $138 billion in discretionary assets and more than $819 billion in non-discretionary assets [7][10].

About Hamilton Lane Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 760 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has approximately $958 billion in assets under management and supe ...

Core Viewpoint - Hamilton Lane has launched the Asia Private Assets Fund (HLAPA), a semi-liquid investment vehicle aimed at providing diversified access to Asia's private markets for private wealth and institutional investors [1][2]. Fund Overview - HLAPA focuses on private equity through direct investments and secondaries, leveraging Hamilton Lane's 15 years of experience in Asia and its extensive regional network [2][3]. - The Fund aims to capitalize on Asia's macroeconomic growth, which drives 60% of global GDP growth, and deliver quality risk-adjusted returns [3][6]. Fund Features - The Fund offers flexible portfolio construction to adapt to market dynamics, optimizing risk-adjusted returns across growth investments and mature buyout deals [7]. - Investors will have access to top-tier fund managers across Asia, including strong relationships with premier general partners in Australia, Japan, Korea, India, Southeast Asia, and China [7]. - HLAPA features an open-ended structure that allows for immediate capital deployment without capital calls, lower minimum investments compared to traditional funds, monthly subscriptions, and potential limited quarterly liquidity [7]. Company Background - Hamilton Lane is a leading private markets investment firm with approximately $958 billion in assets under management as of March 31, 2025, and has been dedicated to private markets investing for over 30 years [5][6]. - The Asia Private Assets Fund is part of Hamilton Lane's broader $11 billion Evergreen Platform, which includes nine funds across multiple strategies [4][6].

Core Insights - Banner Capital Management has successfully closed a portfolio recapitalization into Banner Capital Fund I and launched Banner Capital Fund II [1][4] Fund I - Fund I is a multi-asset continuation fund with over $400 million in capital commitments, aimed at acquiring interests in eight pre-fund portfolio companies [2] - Hamilton Lane acted as the lead investor, with many pre-fund investors retaining significant interests in the portfolio companies through this new vehicle [2] - The transaction provides additional time and capital for portfolio companies while offering partial liquidity to pre-fund investors [2][3] Fund II - Fund II is a lower middle market buyout fund with a target size of $200 million, following the close of Fund I [4] - A preliminary closing for Fund II was held to facilitate the Western Pavement Services transaction, with participation from the Larry H. & Gail Miller Family Foundation and other legacy LPs [4][5] - A traditional first closing for Fund II is anticipated in Q4 2025 [4] Company Overview - Banner Capital Management focuses on providing partnership capital to family-owned and founder-led businesses across the Western United States, investing in sectors such as industrial, services, consumer, and healthcare [6] - As of the closing of Fund I, Banner has $653 million in assets under management [6][7]

Group 1 - Hamilton Lane Incorporated (NASDAQ: HLNE) shares have sharply declined following the release of Q4 FY 2025 earnings despite reporting strong results [1] - The company's stock was trading at a substantial premium to peers, creating a high bar for performance expectations [1] Group 2 - Blue Chip Portfolios is an investment publication focused on providing insights on single stocks, ETFs, and CEFs [1]