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 - Nasdaq has launched the Nasdaq Private Capital Indexes to benchmark the performance of private market funds, aiming to enhance transparency in private markets [1][3] - The indexes track over 14,000 institutional private market funds, totaling approximately $11.4 trillion globally, sourced from Nasdaq's eVestment LP dataset [2] - The indexes utilize a rules-based methodology, including quarterly performance measurements and NAV-weighted aggregation, accessible through various Nasdaq platforms [2] Group 1: Nasdaq Private Capital Indexes - The Nasdaq Private Capital Indexes provide a comprehensive view of private markets, addressing fragmentation and data silos in the ecosystem [3] - The importance of private market allocations is increasing in both institutional and private wealth portfolios, leading to a rise in performance tracking efforts [3] Group 2: Competitive Landscape - Other firms, such as YCharts and Hamilton Lane, are also entering the private market benchmarking space, with Hamilton Lane using proprietary fund-level data [4] - Morningstar has launched its own indexes for non-traded semiliquid funds, while FTSE Russell and BlackRock are also developing benchmarks for private market investments [5]

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].

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 ...

分组1 - Hamilton Lane reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and showing an increase from $1.25 per share a year ago, resulting in an earnings surprise of +21.41% [1] - The company achieved revenues of $198.59 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.92%, and up from $168.26 million in the same quarter last year [2] - Hamilton Lane has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 5.3% since the beginning of the year, outperforming the S&P 500, which has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $197.42 million, and for the current fiscal year, it is $5.46 on revenues of $771.44 million [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Financial Performance - Hamilton Lane reported GAAP net income of $92.8 million for Q3 FY2026, with year-to-date net income of $273.5 million[20]. - Net income attributable to Hamilton Lane Incorporated for Q3 FY2026 was $58.4 million, a 10% increase from the same quarter last year[20]. - Net income for the nine months ended December 31, 2025, was $273.471 million, up from $240.463 million in the previous year[87]. - Adjusted net income increased by 24% to $84.5 million for the quarter and by 16% to $240.1 million year-to-date[28]. - Non-GAAP earnings per share for the three months ended December 31, 2025, was $1.55, up from $1.25 in 2024[89]. Revenue Growth - Total revenues for Q3 FY2026 reached $198.6 million, an 18% increase compared to the same quarter last year, with year-to-date revenues of $565.4 million, up 10%[21]. - Total fee-related revenues increased by 47% to $185.4 million for the quarter and by 31% to $507.0 million year-to-date[23]. - The company expects continued growth in revenues and net income for the upcoming fiscal year[22]. - The company anticipates continued growth in management fees and performance revenues, driven by strategic market expansions and new product offerings[102]. Expenses and Costs - Compensation and benefits expenses rose by 26% to $77.9 million for the quarter, and 15% to $224.5 million year-to-date[21]. - Total expenses increased by 22% to $92,539 from $112,583 year-over-year[22]. - Compensation and benefits for the three months ended December 31, 2025, were $77,944,000, reflecting a 26% increase from $61,905,000 in 2024[92]. Dividends - The company declared a quarterly dividend of $0.54 per share, representing a 10% increase from the prior fiscal year, targeting a full-year dividend of $2.16[3]. - The company declared a quarterly dividend of $0.54 per share of Class A common stock[29]. Assets Under Management - Hamilton Lane manages approximately $1.0 trillion in assets, with $146.1 billion in discretionary assets and $871.5 billion in non-discretionary assets as of December 31, 2025[6]. - Assets under management (AUM) reached $146 billion, an 8% increase year-over-year, while fee-earning assets under management (FEAUM) grew by 11% to $79 billion[30]. - Total assets under management (AUM) and fee-earning AUM are critical metrics for the company, reflecting its growth and market position[97]. Investment Performance - The company experienced a significant increase in net gain on investments, which rose by 539% to $19.7 million for the quarter[21]. - Interest income increased by 2,716% to $1.0 million for the quarter, reflecting strong performance in investment income[21]. - The company experienced a significant increase in incentive fees from Evergreen funds, which rose by 2,671% to $38.130 million for the three months ended December 31, 2025[81]. Financial Position - As of December 31, 2025, the company reported $280 million in debt, indicating modest leverage[73]. - Cash and cash equivalents increased to $338.504 million as of December 31, 2025, up from $229.161 million at the end of March 2025[85]. - The company reported a net cash provided by operating activities of $321.944 million for the nine months ended December 31, 2025[87]. - The company’s total assets increased to $2.171 billion as of December 31, 2025, compared to $1.690 billion at the end of March 2025[85]. Strategic Outlook - As of February 3, 2026, the company positions itself as a global leader in the private markets, highlighting its strategic market presence[105]. - The company emphasizes the importance of reviewing the "Risk Factors" detailed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and subsequent reports filed with the SEC[103]. - Values in the presentation are rounded approximations, indicating a focus on clarity in financial reporting[104].