Hamilton Lane(US:HLNE)2024-11-06 21:12Assets Under Management and Advisory - As of September 30, 2024, the company reported $95.1 billion in assets under management (AUM) from customized separate accounts and $36.2 billion from specialized funds[109][110]. - The company had $816.1 billion in assets under advisement (AUA) as of September 30, 2024, indicating a strong advisory service segment[111]. - Fee-earning AUM is a key metric, comprising assets from which management fees are derived, with the majority based on commitments or net invested capital[144]. - Fee-earning AUM balance at the end of the period was $69.740 billion for the six months ended September 30, 2024, showing a growth from the previous period[184]. - Contributions to fee-earning AUM totaled $3.053 billion for the three months ended September 30, 2024[184]. - Fee-earning AUM increased by $2.0 billion during the three months ended September 30, 2024, primarily due to contributions from customized separate accounts and specialized funds[186]. - Customized separate accounts fee-earning AUM increased by $1.2 billion for the three months ended September 30, 2024, with contributions of $1.7 billion and distributions of $0.5 billion[187]. - Specialized funds fee-earning AUM increased by $0.9 billion for the three months ended September 30, 2024, with contributions of $1.4 billion and distributions of $0.8 billion[188]. - For the six months ended September 30, 2024, fee-earning AUM increased by $4.0 billion, driven by contributions from customized separate accounts and specialized funds[189]. - Customized separate accounts contributions totaled $3.3 billion for the six months ended September 30, 2024, with distributions of $1.5 billion[190]. - Specialized funds contributions reached $4.0 billion for the six months ended September 30, 2024, with distributions of $2.1 billion[191]. Revenue and Income - Total revenues increased by $23.1 million to $149.999 million for the three months ended September 30, 2024, compared to the same period in 2023, driven by increases in management and advisory fees and incentive fees[151]. - Management and advisory fees rose by $10.6 million to $119.783 million for the three months ended September 30, 2024, compared to the same period in 2023[151]. - Specialized funds revenue increased by $7.9 million for the three months ended September 30, 2024, primarily due to a $12.1 million increase in revenue from evergreen funds, which added $3.6 billion in fee-earning AUM[152]. - Incentive fees increased by $12.5 million to $30.216 million for the three months ended September 30, 2024, compared to the same period in 2023, mainly due to an increase in tax-related carried interest distributions[154]. - Total revenues increased by $94.8 million to $346.730 million for the six months ended September 30, 2024, compared to the same period in 2023[155]. - Specialized funds revenue increased by $40.0 million for the six months ended September 30, 2024, primarily due to a $23.4 million increase in revenue from evergreen funds and a $22.1 million increase from the latest secondary fund, which added $3.6 billion and $2.5 billion in fee-earning AUM, respectively[156]. - Net income attributable to Hamilton Lane Incorporated increased by $12.988 million to $54.982 million for the three months ended September 30, 2024, compared to the same period in 2023[148]. - Adjusted net income for the three months ended September 30, 2024, was $58.2 million, compared to $47.8 million in 2023[200]. Expenses - Total expenses increased by $11.9 million to $82.807 million for the three months ended September 30, 2024, compared to the same period in 2023[160]. - Compensation and benefits expenses rose by $9.1 million to $55.070 million for the three months ended September 30, 2024, compared to the same period in 2023[161]. - Total expenses increased by $49.0 million to $189.927 million for the six months ended September 30, 2024, compared to the same period in 2023[164]. - Compensation and benefits expenses increased by $43.5 million for the six months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in headcount and annual bonus plan accruals[165]. - General, administrative and other expenses rose by $5.5 million for the six months ended September 30, 2024, driven mainly by increases in consulting fees and fund reimbursement expenses[166]. Cash Flow and Debt - The company generated net cash provided by operating activities of $197.1 million for the six months ended September 30, 2024, compared to $135.6 million for the same period in 2023, representing a 45.4% increase[238]. - The total outstanding debt as of September 30, 2024, was $195.6 million, with an aggregate cap of $325 million under the Loan Agreements[227]. - The company had an outstanding balance of $96 million under the Term Loan Agreement and $100 million under the 2020 Multi-Draw Term Loan Agreement as of September 30, 2024[223][226]. - The company had $125 million in availability under the Loan Agreements as of September 30, 2024[227]. - The annual interest rate on the Term Loan Agreement was 6.75% and on the Revolving Loan Agreement was 6.50% as of September 30, 2024[252]. - A 100 basis point increase in interest rates is estimated to result in an increased interest expense of approximately $1.0 million over the next 12 months[253]. Investments and Returns - The total capital invested across various funds amounts to $19.5 billion, with a gross multiple of 1.5 and a net multiple of 1.4[207]. - The pooled IRR for discretionary investments from inception to June 30, 2024, is reported at 12.9%[212]. - The Secondary Fund VI, launched in 2022, has a capital size of $5.6 billion and an IRR of 55.2%[207]. - The Co-Investment Fund IV, established in 2018, achieved a gross multiple of 2.3 and a net IRR of 24.7%[207]. - The Strategic Opportunities VII fund, initiated in 2022, has a capital size of $953 million and an IRR of 14.7%[208]. - The total distributions from underlying investments to the fund, plus the fund's market value, divided by total contributed capital, is referred to as the "Multiple"[213]. Strategic Plans and Risks - The company intends to continue paying cash dividends on a quarterly basis, subject to funds being legally available[235]. - The company plans to evaluate opportunities for strategic investments in technology-driven private markets data and wealth management solutions[230]. - The company is exposed to credit risk due to agreements with counterparties that may not fulfill their obligations[254]. - The company aims to minimize exposure by limiting transactions to reputable financial institutions[254]. - Uncertainty in financing availability from financial institutions may arise due to market events[254].