Company Overview - Hamilton Lane (NASDAQ: HLNE) shares have decreased approximately 8% since the last analysis, primarily due to its premium valuation leading to a Hold rating [1]. Investment Focus - The analysis emphasizes a focus on undercovered companies, with a watchlist of over 50 companies across sectors such as technology, software, electronics, and energy transition [1]. Investment Strategy - The goal is to identify asymmetric investment opportunities that can achieve market-beating returns, leveraging extensive experience in analyzing small to mid-cap companies [1].

Core Viewpoint - Hamilton Lane Incorporated has announced a public offering of 1,572,536 shares of Class A common stock, aiming for gross proceeds of approximately $252 million, with the offering expected to close on February 12, 2025 [1][2]. Group 1: Offering Details - The offering consists of shares sold by Hamilton Lane and a selling stockholder, with Hamilton Lane intending to use the proceeds to settle cash exchanges of membership units in Hamilton Lane Advisors, L.L.C. held by certain members [2]. - Morgan Stanley is acting as the book-running manager and underwriter for this offering [2]. Group 2: Regulatory Information - The offering is made under an effective shelf registration statement filed with the SEC, which includes a prospectus and related prospectus supplement [3]. Group 3: Company Overview - Hamilton Lane is one of the largest private markets investment firms globally, with over 30 years of exclusive focus on private markets investing [4]. - The firm manages approximately $956 billion in assets, including nearly $135 billion in discretionary assets and more than $821 billion in non-discretionary assets as of December 31, 2024 [4]. - Hamilton Lane employs around 740 professionals worldwide, operating in various regions including North America, Europe, Asia Pacific, and the Middle East [4].

Core Viewpoint - Hamilton Lane Incorporated has initiated an underwritten public offering of 1,572,536 shares of Class A common stock, which will be sold by the company and a selling stockholder, subject to market conditions [1][2]. Group 1: Offering Details - The proceeds from the share sale will be used to settle cash exchanges of membership units in Hamilton Lane Advisors, L.L.C. held by certain members, with the company not receiving any proceeds from the selling stockholder [2]. - Morgan Stanley is serving as the book-running manager and underwriter for this offering [2]. Group 2: Regulatory Information - The offering is made under an effective shelf registration statement (Registration No. 333-283233) filed with the SEC, and related documents can be accessed for free on the SEC's website [3]. Group 3: Company Overview - Hamilton Lane is one of the largest private markets investment firms globally, with over 30 years of exclusive focus on private markets investing [4]. - The firm employs approximately 740 professionals worldwide and has $956 billion in assets under management, including nearly $135 billion in discretionary assets and over $821 billion in non-discretionary assets as of December 31, 2024 [4]. - Hamilton Lane specializes in creating flexible investment programs that provide clients access to a wide range of private markets strategies, sectors, and geographies [4].

Financial Performance - Total revenues increased by $42.2 million for the three months ended December 31, 2024, compared to the same period in 2023, driven by increases in management and advisory fees and incentive fees [137]. - Management and advisory fees rose by $12.6 million for the three months ended December 31, 2024, compared to the same period in 2023 [137]. - Incentive fees surged by $29.6 million for the three months ended December 31, 2024, primarily due to proceeds from the sale of underlying investments in specialized funds [140]. - Total revenues for the nine months ended December 31, 2024, increased by $137.0 million compared to the same period in 2023, attributed to both management and advisory fees and incentive fees [141]. - Specialized funds revenue increased by $50.9 million for the nine months ended December 31, 2024, mainly due to a $37.7 million increase from evergreen funds [142]. - Net income attributable to Hamilton Lane Incorporated for the three months ended December 31, 2024, was $52.972 million, compared to $19.506 million for the same period in 2023 [135]. - Fee Related Earnings (FRE) for the nine months ended December 31, 2024, reached $165.8 million, up from $137.3 million in the same period of 2023, representing a 20.8% increase [183]. - Adjusted EBITDA for the nine months ended December 31, 2024, was $264.4 million, compared to $181.4 million for the same period in 2023, reflecting a 46% increase [183]. - Non-GAAP EPS for the nine months ended December 31, 2024, was $3.82, up from $2.54 in the same period of 2023, indicating a 50.8% increase [185]. - The company reported net income attributable to Hamilton Lane Incorporated of $166.9 million for the nine months ended December 31, 2024, compared to $92.5 million in 2023, a 80.5% increase [183]. Assets and Management - As of December 31, 2024, the company had $96.4 billion in assets under management (AUM) from customized separate accounts and $38.3 billion from specialized funds [101]. - The company reported $821.2 billion in assets under advisement (AUA) as of December 31, 2024, indicating a strong advisory service presence [101]. - Fee-earning AUM is a key metric, comprising assets from which management fees are derived, with a focus on commitments and net invested capital [130]. - Fee-earning AUM increased by $1.3 billion during the three months ended December 31, 2024, primarily due to contributions from customized separate accounts and specialized funds [172]. - Customized separate accounts fee-earning AUM increased by $0.4 billion, with contributions of $1.4 billion and distributions of $1.1 billion for the three months ended December 31, 2024 [173]. - Specialized funds fee-earning AUM increased by $0.8 billion, with contributions of $1.5 billion and distributions of $0.7 billion for the three months ended December 31, 2024 [174]. - Fee-earning AUM increased by $5.2 billion for the nine months ended December 31, 2024, driven by contributions from customized separate accounts and specialized funds [175]. - Customized separate accounts contributed $4.7 billion, with an increase in fee-earning AUM of $2.2 billion during the same period [176]. - Specialized funds saw contributions of $5.5 billion, resulting in a fee-earning AUM increase of $3.0 billion for the nine months ended December 31, 2024 [177]. Expenses - Total expenses increased by $18.6 million for the three months ended December 31, 2024, compared to the same period in 2023, due to higher compensation and benefits and general administrative expenses [146]. - Compensation and benefits expenses rose by $12.2 million for the three months ended December 31, 2024, driven by increases in incentive fee compensation and equity-based compensation [147]. - Total expenses for the nine months ended December 31, 2024, increased by $67.6 million compared to the same period in 2023, due to higher compensation and benefits and general administrative expenses [149]. - General, administrative and other expenses increased by $12.0 million for the nine months ended December 31, 2024, primarily due to higher third-party commissions and fund reimbursement expenses [152]. Debt and Capital Structure - The company issued $100 million in senior notes with a 5.28% interest rate due on October 15, 2029, to enhance its capital structure [105]. - The company amended its credit facilities on October 7, 2024, allowing for additional indebtedness and updating maturity dates [104]. - The Term Loan Agreement had an outstanding balance of $95 million as of December 31, 2024, with a maturity date of July 1, 2029 [206]. - The company has access to a Revolving Loan Agreement with a cap of $50 million, with no outstanding balance as of December 31, 2024 [207]. - The principal amount of debt outstanding was $295.0 million as of December 31, 2024, compared to $196.9 million as of March 31, 2024 [209]. - The annual interest rate on the Term Loan Agreement was 6.25% as of December 31, 2024, with $195 million in borrowings outstanding [237]. - A 100 basis point increase in interest rates is estimated to result in increased interest expense of approximately $1.0 million over the next 12 months [238]. - The aggregate principal amount of loans under all Loan Agreements is subject to a cap of $325 million [204]. - The company had $125.0 million in availability under the Loan Agreements as of December 31, 2024 [209]. Investment Performance - The company reported a gross IRR of 47.6% for Secondary Fund VI, with a net IRR of 57.7% [195]. - The total capital invested in Secondary Fund V was $3.9 billion, achieving a gross multiple of 1.5 and a net IRR of 16.1% [196]. - The gross multiple for PEF IX was reported at 1.9, with a net IRR of 15.5% [196]. - The gross IRR for Co-Investment Fund IV was 24.0%, with a net IRR of 22.4% [195]. Strategic Initiatives - The company plans to create new funds with different asset mixes and investment strategies, which may yield different returns compared to historical funds [191]. - The company expects to evaluate opportunities for strategic investments in technology-driven private markets data and wealth management solutions [212]. - The company intends to continue paying cash dividends on a quarterly basis, subject to funds being legally available [217]. - The Stock Repurchase Program allows for the repurchase of up to 6% of outstanding shares, not to exceed $50 million, with full purchase authority remaining available as no shares have been repurchased [213]. Regulatory and Compliance - As of December 31, 2024, the company was required to maintain approximately $5.9 million in liquid net assets for regulatory purposes [216].

Core Viewpoint - Hamilton Lane Incorporated is conducting its Q3 2025 earnings call, indicating a focus on discussing financial results and future projections [1][3]. Group 1: Company Overview - The earnings call is led by key executives including John Oh, Erik Hirsch, and Jeff Armbrister, highlighting the leadership structure of the company [3]. - A press release and slide presentation related to the earnings results have been made available on the company's website, demonstrating transparency and communication with stakeholders [4]. Group 2: Financial Performance - The call will include discussions on the company's financial position, operational results, and future performance expectations, which are critical for investors [4]. - Forward-looking statements will be made, emphasizing the company's current expectations and projections, although these are subject to risks and uncertainties [4][5].

Financial Performance - Hamilton Lane reported revenue of $168.26 million for the quarter ended December 2024, marking a year-over-year increase of 34.3% [1] - The EPS for the same period was $1.25, compared to $0.71 a year ago, representing a significant increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $156.95 million by 7.21% [1] - The EPS surprise was +11.61% against the consensus estimate of $1.12 [1] Key Metrics - Fee Earning AUM - Customized Separate Accounts (CSA) was $39.78 billion, slightly below the estimated $40.20 billion [4] - Total Fee Earning AUM reached $70.99 billion, compared to the average estimate of $71.86 billion [4] - Total AUM & AUA was reported at $955.98 billion, lower than the estimated $975.33 billion [4] - Assets Under Management (AUM) stood at $134.74 billion, compared to the average estimate of $137 billion [4] - Assets Under Advisement (AUA) was $821.24 billion, below the estimated $838.33 billion [4] Revenue Breakdown - Incentive fees revenue was $41.18 million, significantly exceeding the average estimate of $31.14 million, with a year-over-year change of +254.3% [4] - Management and advisory fees for Customized Separate Accounts were $33.93 million, slightly below the estimate of $35.71 million, with a year-over-year change of +3% [4] - Management and advisory fees totaled $126.28 million, slightly above the estimate of $125.82 million, reflecting an 11.1% year-over-year increase [4] - Specialized funds management and advisory fees were $75.76 million, exceeding the estimate of $73.75 million, with a year-over-year change of +16.8% [4] - Fund reimbursement revenue was $2.81 million, surpassing the estimate of $1.75 million, representing a +60.3% change year-over-year [4] - Distribution management revenue was $1 million, slightly above the estimate of $0.90 million, but showed a year-over-year decrease of -33.7% [4] Stock Performance - Hamilton Lane shares returned +7.7% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Fiscal Year 2025 Third Quarter Results February 4, 2025 Today's Speakers Erik Hirsch Co-CEO Jeff Armbrister Chief Financial Officer Hamilton Lane | Global Leader in the Private Markets 2 John Oh Head of Shareholder Relations Period Highlights Business Performance Financial Results | USD in millions except per share amounts | Q3 FY25 QTD | Q3 FY25 YTD | vs Q3 FY24 YTD | | --- | --- | --- | --- | | Management and advisory fees | $126.3 | $386.0 | 18 % | | GAAP net income | $53.0 | $166.9 | 80 % | | GAAP EPS | ...

Group 1 - Hamilton Lane reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing a significant increase from $0.71 per share a year ago, representing an earnings surprise of 11.61% [1] - The company achieved revenues of $168.26 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 7.21%, and up from $125.26 million year-over-year [2] - Hamilton Lane has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Group 2 - The stock has gained approximately 6.7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.19, with expected revenues of $165.89 million, and for the current fiscal year, the estimate is $4.88 on revenues of $669.6 million [7] - The Zacks Industry Rank places Financial - Investment Management in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

HAMILTON LANE INCORPORATED REPORTS THIRD QUARTER FISCAL 2025 RESULTS, WITH MANAGEMENT & ADVISORY FEES GROWING BY 11% AND ASSETS UNDER MANAGEMENT GROWING BY 12% YEAR-OVER-YEAR Conference Call Hamilton Lane will discuss third quarter fiscal 2025 results in a webcast and conference call today, Tuesday, February 4, 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 st ...

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