Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion [7][24] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The private equity business launched its seventh vintage, focusing on essential service businesses, with expectations for it to be the largest fund ever [18][75] - The real estate business sold approximately $23 billion of properties, representing $10 billion of equity value over the past 12 months [21] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest since 2021 [8] - The demand for electricity is increasing at an unprecedented rate, driven by electrification trends and the surge in electricity demand from data centers [16][17] Company Strategy and Development Direction - The company is launching an AI Infrastructure Fund to capture opportunities in AI-related infrastructure investments, estimated to exceed $7 trillion over the next decade [14] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company plans to double its business by 2030, with fee-related earnings reaching $5.8 billion and fee-bearing capital reaching $1.2 trillion [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundraising momentum and expects 2026 to exceed 2025 levels [37][38] - The company is well-positioned to meet the increasing demand for power solutions, leveraging its renewable power business [17][23] - Management highlighted the importance of operational improvement as a key driver of value creation in the current economic environment [73] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The acquisition of the remaining 26% in Oaktree Capital Management is expected to close in the first half of 2026, enhancing the company's credit capabilities [9][32] Q&A Session Summary Question: Fundraising momentum and management fee growth outlook for 2026 - Management expects fundraising to exceed 2024 levels and anticipates strong growth in management fees driven by new acquisitions and fundraising [37][38] Question: Credit business fee rate and growth aspirations - The elevated fee rate was driven by a mix shift and one-off transaction fees, with a positive trend expected in the credit business [42][43] Question: Integration benefits from acquiring Oaktree - The acquisition will allow for operational synergies, improved marketing capabilities, and enhanced client service [49][52] Question: Retail market momentum and distribution strategy - The company is seeing robust momentum in the retail market and is focused on building relationships with key stakeholders to capture growth opportunities [55][56] Question: Private equity outlook amidst market backdrop - The private equity business is expected to perform well due to its focus on essential assets and operational improvement, differentiating it from peers [73][75]

Financial Data and Key Metrics Changes - The company reported fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all of which are among the highest in its history as a public company [4][6] - Management fees reached $1.1 billion, up 19% year-over-year, with a healthy growth of 16% excluding catch-up fees [4][5] - Total transaction and monitoring fees were $328 million, while capital markets fees were strong at $276 million, driven by private equity and infrastructure activities [5][6] - Adjusted net income was $1.3 billion, or $1.41 per share, reflecting an 8% increase year-over-year [7][8] Business Line Data and Key Metrics Changes - The insurance segment reported operating earnings of $305 million, with a run rate around $250 million [6] - Strategic Holdings operating earnings were $58 million for the quarter, significantly ahead of the previous year [6] - Realized performance and investment income totaled $935 million within the asset management segment [7] Market Data and Key Metrics Changes - The company raised $43 billion in capital during Q3, marking the second-highest fundraising quarter in its history [8][9] - Inflows from Global Atlantic within credit were $15 billion, significantly up year-over-year [9] - The private equity and real asset business lines raised $16 billion of capital in the quarter [10] Company Strategy and Development Direction - The company is evolving its insurance business to extend the duration of its book and leverage its global investment management capabilities [12][14] - There is a focus on raising third-party capital to grow Global Atlantic in a capital-efficient manner [13][14] - The company aims to achieve $4.50+ in fee-related earnings per share and $7+ in after-tax adjusted net income per share by 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundraising momentum and the ability to achieve 2026 guidance despite potential challenges in the monetization environment [24][26] - The company noted that the current monetization environment is constructive, with expectations for continued strong performance [26][34] - Management highlighted the importance of maintaining a conservative approach to capital deployment and portfolio construction [29][30] Other Important Information - The company has over $1 billion in monetization activity, indicating a healthy portfolio maturity [7][8] - There is a focus on cash outcomes in segment reporting, with a conservative approach to recognizing earnings [19][20] - The company expects to take a one-time charge related to the Asia Private Equity Fund, which will impact net realized performance income in Q4 [22][23] Q&A Session Summary Question: Can you summarize the international perspective regarding investor demand in Asia? - Management noted that investor demand for Asia continues to increase, with a broad understanding of opportunities in markets like Japan, India, and Southeast Asia [36][37] Question: What is the normalized level of ROE for the insurance business? - Management indicated that they expect to achieve an all-in ROE of over 20% as the insurance business matures and third-party capital contributions increase [42][55] Question: How do you see the capital markets business expanding from the GA side? - Management highlighted the potential for significant capital markets opportunities, estimating hundreds of millions of dollars annually as the business develops [60][61] Question: Can you elaborate on how changes in the insurance business enhance client partnerships? - Management emphasized that owning an insurance company provides a better understanding of client needs, allowing for improved service and competitive advantages [70]

Financial Data and Key Metrics Changes - The company reported fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all of which are among the highest in its history as a public company [3][6] - Management fees reached $1.1 billion, up 19% year over year, with a healthy growth of 16% excluding catch-up fees [3][4] - Total operating earnings were $1.55 per share, a record quarter and 17% ahead of the previous quarter [5][6] - Adjusted net income was $1.3 billion, or $1.41 per share, reflecting an 8% increase year over year [6][7] Business Line Data and Key Metrics Changes - The insurance segment reported operating earnings of $305 million, maintaining a run rate around $250 million [5] - Strategic Holdings operating earnings were $58 million for the quarter, significantly ahead of the previous year [5] - Realized performance and investment income totaled $935 million within the asset management segment [6] Market Data and Key Metrics Changes - The company raised $43 billion in capital during Q3, marking the second-highest fundraising quarter in its history [8][9] - Inflows from Global Atlantic within credit were $15 billion, significantly up year over year [9] - The private equity and real asset business lines raised $16 billion of capital in the quarter [10] Company Strategy and Development Direction - The company is evolving its insurance business to extend the duration of its book and leverage its global investment management capabilities [12][13] - There is a focus on raising more third-party capital across its IV Sidecar strategy to grow Global Atlantic in a capital-efficient manner [12][13] - The company aims to achieve $4.50+ in fee-related earnings per share and $7+ in after-tax adjusted net income per share by 2026 [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance, citing strong fundraising momentum and a constructive monetization environment [26][27] - The company noted that while the monetization environment is currently favorable, it may delay some activities if conditions deteriorate [27] - Management highlighted the importance of maintaining a disciplined approach to investment pacing and portfolio construction [30][31] Other Important Information - The company has over $1 billion in monetization activity, indicating the strength and maturity of its portfolio [6] - The company has $126 billion of dry powder available for future investments, positioning it well for growth [10] - The company expects to see a significant increase in third-party capital capacity, which could translate to over $60 billion of additional fee-paying AUM [17][18] Q&A Session Summary Question: Can you summarize your international perspective, particularly regarding Asia? - Management noted increasing investor demand for Asia, with a broad understanding of opportunities in markets like Japan, India, and Southeast Asia [36][37] Question: What is the normalized level of ROE for the insurance business? - Management indicated that they expect to achieve an all-in ROE of over 20% as the portfolio matures and third-party capital contributions increase [49][50] Question: How do you see the capital markets business expanding? - Management highlighted the potential for significant annual opportunities in capital markets, driven by the capabilities built out in distribution and origination [54][55] Question: What are the expectations for fee-related earnings in 2026? - Management expressed confidence in achieving the $4.50+ target for fee-related earnings per share, driven by strong fundraising and operational leverage [46][47] Question: How will the changes in the insurance business improve client partnerships? - Management emphasized that owning an insurance company allows for a better understanding of client needs and enhances the quality of engagement with insurance CIOs and CEOs [62]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion, marking the highest pace of organic fundraising ever [6][27] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The company is launching an AI Infrastructure Fund, anticipating AI-related infrastructure investments to exceed $7 trillion over the next decade [13] - In the private equity business, the company launched its seventh vintage of its flagship strategy, focusing on essential service businesses [18][19] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest level since 2021 [6][7] - The company noted improving transaction conditions and a resilient global economy despite trade uncertainties [6][7] Company Strategy and Development Direction - The company aims to double its business by 2030, with plans to expand product offerings and diversify its investor base [30][31] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company is focused on capturing opportunities in AI infrastructure, energy transition, and essential real assets, aligning with global trends of digitalization, decarbonization, and deglobalization [23][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong fundraising year for 2026, expecting to exceed 2025 levels [34][35] - The company anticipates continued growth in fee-related earnings driven by acquisitions and new fundraising initiatives [36] - Management highlighted a solid balance sheet and a strong liquidity position, with $2.6 billion in liquidity at quarter-end [31][32] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The company is actively monetizing stabilized assets, selling approximately $23 billion of properties over the past 12 months [20][22] Q&A Session Summary Question: Fundraising momentum into 2026 - Management expects fundraising in 2026 to exceed 2025 levels, driven by infrastructure and private equity flagships [34][35] Question: Credit business fee rates - The elevated fee rate in the credit business was driven by a mix shift and one-off transaction fees, with a positive trend expected [37][39] Question: Oaktree acquisition benefits - The acquisition of Oaktree will unlock operational synergies, enhance marketing capabilities, and improve client service [42][44] Question: Retail market momentum - The company is seeing robust momentum in the retail market, with new product launches expected to drive growth [45][46] Question: Corporate direct lending outlook - Management noted that while competition in corporate lending is intensifying, private credit remains a significant and growing component of global finance [49][52] Question: Private equity fundraising outlook - The company is optimistic about raising its largest private equity fund ever, focusing on essential assets that generate consistent results [56][57]

Core Insights - The asset management landscape is evolving, with companies employing innovative strategies and strong partnerships gaining investor interest [1] - Goldman Sachs analyst upgraded Hamilton Lane Inc. to Buy, with a price forecast of $165, indicating over 30% upside potential [1][2] Company Performance - Hamilton Lane's strong position in the alternative asset management sector, particularly in Wealth/Evergreen funds and Secondaries, is highlighted [2] - The company's Evergreen franchise manages approximately $14 billion in NAV, contributing over 30% to fee-related revenue, the highest among alternative managers [4] - Recent financial results show Hamilton Lane reported adjusted EPS of $1.54, exceeding estimates, and revenue of $190.9 million, surpassing consensus [6] Growth Projections - Fee-related earnings (FRE) are expected to grow at a 27% compound annual rate from 2025 to 2027, driven by management fees from Evergreen products and performance-fee contributions [3] - Earnings per share are projected to grow at a 20% annual rate, supported by a significant performance-fee pool with unrealized value [3] Valuation Metrics - Hamilton Lane shares are currently trading at 21 times next-twelve-month P/E, below the historical average of 27× and peers' 23× [5] - Goldman Sachs estimates for EPS are $5.36 for 2025, $6.28 for 2026, and $7.77 for 2027, reflecting expected margin and revenue acceleration [5]

Core Insights - Lawrence Fuller has 30 years of experience managing portfolios, starting at Merrill Lynch and later founding Fuller Asset Management, achieving his goal of independence [1] - Fuller manages the Focused Growth portfolio on Dub, a copy-trading platform approved by US securities regulators, allowing retail investors to automatically copy chosen managers' trades [1] - The Portfolio Architect, led by Fuller, focuses on economic and market outlooks, offering an all-weather investment strategy aimed at consistent risk-adjusted returns [1] Company Overview - Fuller Asset Management (FAM) is a state-registered investment adviser, providing educational content and investment strategies without making specific offers for securities [3] - The firm emphasizes that past performance is not indicative of future results and that investments involve risks [4] Services Offered - The Portfolio Architect provides portfolio construction guidance, access to an "All-Weather" model portfolio, a dividend and options income portfolio, and various market insights [1] - Services include a daily brief on current events, a week-ahead newsletter, technical and fundamental reports, trade alerts, and 24/7 chat support [1]

Financial Data and Key Metrics Changes - The company achieved record-high gross flows and net flows finished just under flat for the quarter, with total assets reaching $313 billion [5] - Adjusted EBITDA set a new all-time quarterly high at $191 million, resulting in an adjusted EBITDA margin of 52.7% [5][22] - Adjusted earnings per diluted share rose to a record $1.63, up 4% from the second quarter and 20% higher than the quarter preceding the Amundi transaction [5][22] - Revenue increased 3% from the second quarter to $361.2 million, with average assets for the quarter rising 7% quarter over quarter [21] - The company returned a total of $163 million to shareholders in the quarter, marking an all-time high [22][28] Business Line Data and Key Metrics Changes - Long-term gross flows rose 10% quarter over quarter to $17 billion, reflecting the expanded U.S. distribution team and strong sales outside the U.S. [5][24] - Multiple investment franchises generated positive net long-term flows, including Victory Income Investors, Pioneer Investments, RS Global, Trivalent, and the VictoryShares ETF platform [24] - Year-to-date positive net flows for the ETF platform reached $5.4 billion, representing a 53% organic growth rate [13] Market Data and Key Metrics Changes - The company currently manages $52 billion of AUM from clients outside the U.S. across 60 countries, with net flows remaining positive [7] - 17% of total AUM was from investors outside the United States as of quarter end [23] Company Strategy and Development Direction - The company aims to be a $1 trillion firm, focusing on strategic acquisitions that enhance its competitive position and shareholder value [34][36] - The integration process at Pioneer Investments is ahead of plan, with $86 million of net expense synergies achieved on a run-rate basis [6][40] - The company is investing in expanding its distribution capacity outside the U.S. and launching new UCITS products [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the distribution opportunities outside the U.S. and the potential for significant growth in 2026 [11][48] - The company anticipates a transformational opportunity in the non-U.S. segment, with strong sales expected from legacy Victory products [48] - Management highlighted the importance of strategic acquisitions in a fragmented industry, emphasizing the need for firms to partner to grow [36][72] Other Important Information - The company has achieved $86 million of net expense synergies and expects to reach a total of $110 million [6][25] - The balance sheet remains strong with $116 million of cash and a net leverage ratio of 1.1x, providing financial flexibility for growth [22][28] Q&A Session Summary Question: M&A Strategy and Focus - Management aims for strategic acquisitions rather than purely financial transactions, with a focus on enhancing the company's capabilities and shareholder value [34][36] Question: Pioneer Acquisition Synergies - The company is ahead of synergy targets due to conservative planning and the identification of operational efficiencies [38][40] Question: Non-U.S. Business Performance - Positive net sales have primarily come from the Pioneer franchise, with expectations for increased flows from legacy Victory products in 2026 [46][48] Question: Inorganic Pipeline and Risks - The inorganic pipeline is full, with active discussions ongoing, and the environment for acquisitions has improved [72][73] Question: Integration Challenges with Alternatives - Management is aware of cultural integration challenges and has been patient in observing the market before pursuing acquisitions in the alternatives space [77]

Financial Data and Key Metrics Changes - The company achieved record-high gross flows and net flows finished just under flat for the quarter, with total assets reaching $313 billion [5] - Adjusted EBITDA set a new all-time quarterly high at $191 million, resulting in an adjusted EBITDA margin of 52.7% [5][22] - Adjusted earnings per diluted share rose to a record $1.63, up 4% from the second quarter and 20% higher than the quarter immediately preceding the Amundi transaction [5][22] Business Line Data and Key Metrics Changes - Long-term gross flows rose 10% quarter over quarter to $17 billion, reflecting the expanded U.S. distribution team and strong sales outside the U.S. [5][21] - Multiple investment franchises generated positive net long-term flows, including Victory Income Investors, Pioneer Investments, RS Global, Trivalent, and the Victory Shares ETF platform [24] Market Data and Key Metrics Changes - The company currently manages $52 billion of AUM from clients outside the U.S. from 60 countries, where net flows remain positive [7] - 17% of total AUM was from investors outside the United States as of quarter end [23] Company Strategy and Development Direction - The company aims to be a trillion-dollar firm, focusing on strategic acquisitions that enhance its competitive position and shareholder value [34] - The integration process at Pioneer Investments is ahead of plan, with approximately $86 million of net expense synergies achieved on a run-rate basis [6][25] - The company is investing in expanding its distribution capacity outside the U.S. and launching new UCITS products [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the distribution opportunities outside the U.S. and the potential for significant growth in 2026 and beyond [11][46] - The company anticipates a phase of intense consolidation in the industry, which it is well-positioned to navigate [35] Other Important Information - The company repurchased 1.8 million shares during the quarter and has $355 million of capacity remaining on its repurchase authorization [6][27] - The balance sheet remains strong with $116 million of cash and a net leverage ratio of 1.1 times, providing financial flexibility for growth initiatives [27] Q&A Session Summary Question: M&A Strategy and Focus - Management emphasized that all acquisitions will be strategic, aiming for size and scale while also considering smaller, highly strategic deals [34] Question: Pioneer Acquisition Synergies - The company is ahead of synergy targets due to conservative planning and the discovery of operational efficiencies during integration [36][38] Question: Non-U.S. Business Performance - Positive net sales have primarily come from the Pioneer franchise, with expectations for increased flows from legacy Victory products in 2026 [45][46] Question: Inorganic Pipeline and Risks - The inorganic pipeline is full, with active discussions ongoing, and the environment for acquisitions has improved [71][72] Question: Integration Challenges with Alternatives - Management is aware of cultural integration challenges and has been patient in observing the market before pursuing acquisitions in the alternatives space [76]

Financial Data and Key Metrics Changes - Victory Capital achieved record-high gross flows and net flows finished just under flat for the quarter, with total assets reaching $313 billion [4] - Adjusted EBITDA set a new all-time quarterly high at $191 million, resulting in an adjusted EBITDA margin of 52.7% [4][22] - Adjusted earnings per diluted share rose to a record $1.63, up 4% from the second quarter and 20% higher than the quarter immediately preceding the Amundi transaction [4][22] Business Line Data and Key Metrics Changes - Long-term gross flows rose 10% quarter over quarter to $17 billion, reflecting the expanded U.S. distribution team and strong sales outside the U.S. [4] - The ETF business, Victory Shares, saw year-to-date positive net flows of $5.4 billion, representing a 53% organic growth rate through the first nine months of the year [12] - Nearly half of the mutual fund and ETF AUM ranks in the top quartile based on Morningstar's three-year rankings [14] Market Data and Key Metrics Changes - 17% of total AUM was from investors outside the United States, indicating meaningful diversification into non-U.S. geographies [23] - The company currently manages $52 billion of AUM from clients outside the U.S. from 60 countries, where net flows remain positive [6] Company Strategy and Development Direction - The company aims to be a trillion-dollar firm, focusing on strategic acquisitions that enhance its competitive position and satisfy growth objectives [30][31] - The integration process at Pioneer Investments is ahead of plan, with approximately $86 million of net expense synergies achieved on a run-rate basis [5][25] - The company is investing in expanding its distribution capacity outside the U.S. and launching new UCITS products [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the distribution opportunities outside the U.S., particularly in Asia and the Middle East, where there is high demand for U.S. dollar-denominated products [10][11] - The company anticipates that the integration of Pioneer Investments will lead to significant growth in the non-U.S. segment starting in 2026 [38] Other Important Information - The company repurchased 1.8 million shares during the quarter and has $355 million of capacity remaining on its existing repurchase authorization [5][22] - The balance sheet remains strong with $116 million of cash and a net leverage ratio of 1.1 times, providing financial flexibility for growth initiatives [27] Q&A Session Summary Question: M&A Strategy and Focus - Management emphasized that all acquisitions will be strategic, aiming for size and scale to compete effectively in the long term [30][31] Question: Pioneer Acquisition Synergies - The company is ahead of synergy targets due to conservative planning and the identification of operational efficiencies [32][34] Question: Non-U.S. Business Performance - Positive net sales have primarily come from the Pioneer franchise, with expectations for increased flows into legacy Victory products in 2026 [38] Question: Inorganic Pipeline and Opportunities - The inorganic pipeline is full, with active discussions ongoing, and the environment for acquisitions has improved [50][51] Question: Integration Challenges with Alternatives - Management acknowledged the cultural differences between traditional and alternative investments and emphasized a careful approach to integration [52]

Financial Performance - The Board of Directors approved a fourth quarter 2025 dividend of $0.26 per share[25] - Net investment income for the quarter ended September 30, 2025, was $0.32 per share[25] - Net asset value (NAV) as of September 30, 2025, was $11.10 per share, compared to $11.18 per share as of June 30, 25, a decrease of 0.8%[25, 60] - Total investment income was $72.4 million[27] - Net income was $23.6 million[27] Portfolio Composition and Performance - Total originations during the quarter were $149 million, while sales and repayments totaled $230 million, for net repayments of $81 million[25] - The weighted-average portfolio yield as of September 30, 2025, was 9.9%[25] - The investment portfolio at fair value was $2,536.3 million[27] - Non-accruals represented 0.4% of the total portfolio at fair value[25] - First lien investments accounted for 70% of the portfolio[30] - Sponsored investments accounted for 78% of the portfolio[35]