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 ...

At WSJ Invest Live, the asset manager's CEO shares optimism for IPOs and M&A in 2026, as well as the health of the private credit market, and discusses Blackstone’s investment strategy in AI infrastructure. ...

Core Viewpoint - Jon Gray, President of Blackstone, stated that data will enable the Federal Reserve to lower interest rates over time [1] Group 1 - The Federal Reserve's ability to adjust interest rates is influenced by economic data [1] - Blackstone's perspective highlights the importance of data in monetary policy decisions [1]

The upcoming report from Ares Management (ARES) is expected to reveal quarterly earnings of $1.71 per share, indicating an increase of 39% compared to the year-ago period. Analysts forecast revenues of $1.63 billion, representing an increase of 31.5% year over year.Over the last 30 days, there has been an upward revision of 6.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the cou ...

Core Insights - Canadian pension plans demonstrated resilience with a median return of 0.2% for Q4 2025 and a total return of 4.4% for the year, as reported by the Northern Trust Canada Universe [1][2] Economic Environment - The fourth quarter of 2025 experienced market volatility due to geopolitical tensions, trade policy issues, and a U.S. government shutdown lasting 43 days, yet major economies showed reasonable stability [1][6] - The U.S. Federal Reserve cut its overnight interest rate twice during the quarter, while the Bank of Canada cut its benchmark rate in October and maintained it in December, indicating improvements in the labor market [1][7] Market Performance - Canadian equities, as measured by the S&P/TSX Composite Index, rose 6.2% for the quarter and 31.7% for the year, with the Materials sector leading at a remarkable 100.6% return [5] - U.S. equities, represented by the S&P 500 Index, gained 1.1% in CAD for the quarter and 12.4% for the year, with the Health Care and Communication Services sectors showing strong performance [5] - International developed markets, measured by the MSCI EAFE Index, returned 3.4% in CAD for the quarter and 25.7% for the year, with Financials and Utilities being the strongest performers [5] Fixed Income Market - The Canadian fixed income market, as per the FTSE Canada Universe Bond Index, reported a modest decline for the quarter, with short-term bonds showing slight gains while mid and long-term bonds declined [9] Global Economic Indicators - Emerging markets performed well despite global uncertainties, with the People's Bank of China maintaining its loan prime rates amid weak economic data [8]

The dollar is weakening. In simple terms, that means one U.S. dollar buys less, especially when compared to another currency, such as the euro. One year ago, on Feb. 2, 2025, the dollar and the euro were very close to parity. One dollar would buy 0.98 euros. Today, a dollar buys 0.85 euros. It buys 0.73 British pounds and 0.78 Swiss francs. Conversely, one USD buys 155 Japanese yen. The dollar has generally been declining since January 2025, when it closed above 109, and has recently fallen to a four-yea ...

Core Viewpoint - Wade W. Slome is a prominent figure in investment management, recognized for his significant achievements and contributions to the field [1] Group 1: Professional Background - Wade W. Slome is the President and Founder of Sidoxia Capital Management, LLC, and has authored a book detailing his management of $20 billion by age 32 [1] - He has been featured in major media outlets such as CNBC, ABC News, and the Wall Street Journal, highlighting his expertise and influence in the investment community [1] - Slome is also an instructor at the University of California, Irvine, where he teaches an Advanced Stock Investment course, indicating his role in educating future investors [1] Group 2: Credentials and Achievements - He holds an MBA from Cornell University with a focus on Finance and a B.A. in Economics from UCLA, showcasing his strong academic background [1] - Slome is recognized as the second youngest manager among the largest 25 actively-managed U.S. mutual funds in 2005, reflecting his early success in the industry [1] - He previously managed one of the ten largest growth funds in the U.S. with $20 billion in assets under management at American Century Investments [1]

Financial Data and Key Metrics Changes - Patria reported organic fundraising of $1.7 billion in Q4 2025 and a record $7.7 billion for the full year, exceeding the revised target of $6.6 billion by over $1 billion [5][34] - Fee-related earnings reached $203 million in 2025, up 19% year-over-year, with distributable earnings per share at $1.27 [6][23] - Total fee-earning AUM rose to $41 billion in Q4 2025, a 5% sequential increase and 24% year-over-year growth [8][17] Business Line Data and Key Metrics Changes - Infrastructure strategies raised approximately $2.3 billion in 2025, significantly up from the previous year, driven by strong global interest [11] - GPMS raised nearly $2 billion in 2025, reflecting strong client support and integration success [12] - The credit platform raised a record $1.8 billion, surpassing the previous year's record of $1.4 billion [12] Market Data and Key Metrics Changes - The Brazilian credit market reached $1.7 trillion in 2024, with an estimated $800 billion addressable market for asset-backed, non-bank private credit [13] - The company is positioned to capitalize on the growing demand for private credit in Brazil, supported by favorable regulations and financial deepening [13][28] Company Strategy and Development Direction - Patria aims to achieve a fee-earning AUM target of $70 billion by year-end 2027, supported by recent acquisitions and strong fundraising momentum [8][10] - The company is expanding its investment strategies, including infrastructure development, private equity, and real estate, to enhance its competitive position [22][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2026 and 2027 fundraising and fee-related earnings targets, citing strong market demand and operational efficiencies [34][41] - The macroeconomic environment is seen as favorable, with increasing allocations to alternatives and robust demand for infrastructure investing [28][30] Other Important Information - The company announced a share buyback program of up to 7 million shares to return capital to shareholders [9] - A transition in the CFO role is planned, with Rafael Denadai set to take over in April 2026 [31][32] Q&A Session Summary Question: Inquiry on private equity valuation process - Management explained that an independent appraiser is used annually to value private assets, employing a discounted cash flow model and comparing results with industry peers [55][56] - The valuation process is standard in the industry, and unrealized performance fees do not impact management fees or employee bonuses [60][62] - Management confirmed that two private equity funds are currently underperforming and do not expect performance fees from these funds [66][68]

Financial Data and Key Metrics Changes - Patria reported organic fundraising of $1.7 billion in Q4 2025 and a record $7.7 billion for the full year, exceeding the revised target of $6.6 billion by over $1 billion [5][34] - Fee-related earnings reached $203 million in 2025, up 19% year-over-year, with distributable earnings per share at $1.27 [6][23] - Total fee revenue for Q4 was $101 million, an increase of 8% year-over-year, while full-year total fee revenue reached $344 million, up 14% [39] Business Line Data and Key Metrics Changes - Infrastructure strategies raised approximately $2.3 billion in 2025, significantly higher than the previous year, driven by strong global interest [11] - The credit platform raised a record $1.8 billion in 2025, surpassing the previous record of $1.4 billion in 2024 [12] - Real estate strategies raised over $520 million in Q4 2025, contributing to Patria becoming the largest manager of REITs in Brazil [14] Market Data and Key Metrics Changes - The Brazilian credit market reached $1.7 trillion in 2024, with an estimated $800 billion addressable market for asset-backed, non-bank private credit [13] - Approximately 90% of Patria's fee-earning AUM is in vehicles with no or limited redemptions, indicating a stable asset base [15][21] Company Strategy and Development Direction - Patria aims to achieve a fee-earning AUM target of $70 billion by year-end 2027, with recent acquisitions expected to enhance capabilities in private credit and real estate [8][10] - The company is expanding its investment strategies, including infrastructure development, private equity buyout, and venture capital, to diversify its performance fee earnings stream [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2026 and 2027 fundraising targets of $7 billion and $8 billion, respectively, due to strong demand for their investment strategies [10][34] - The macroeconomic environment is seen as favorable, with financial deepening and deregulation in Latin America driving increased investor interest [28][30] Other Important Information - Patria announced a share buyback program of up to 7 million shares to return capital to shareholders [9] - The company is undergoing leadership changes, with a new CFO set to take over in April 2026 [31][32] Q&A Session Questions and Answers Question: Can you discuss the private equity valuation process? - The company uses an independent appraiser annually to value funds, employing a discounted cash flow model and comparing results with industry multiples [56][58] Question: How do unrealized performance fees affect your financials? - Unrealized performance fees do not impact revenues as management fees are charged based on invested capital, not valuations [62][64] Question: What is the outlook for fundraising in 2026? - The company is optimistic about exceeding the $7 billion fundraising target for 2026, given the strong performance in 2025 [70]

Financial Data and Key Metrics Changes - The company reported organic fundraising of $1.7 billion in Q4 2025 and a record $7.7 billion for the full year, exceeding the revised target of $6 billion by over $1 billion [4] - Fee-related earnings reached $203 million in 2025, up 19% year-over-year, with distributable earnings per share at $1.27 [5][23] - Total fee-earning AUM rose to $41 billion in Q4 2025, a 5% sequential increase and 24% year-over-year growth [7][17] - Fee-related earnings for Q4 2025 were $64.2 million, representing a 30% sequential and 17% year-over-year growth [21] Business Line Data and Key Metrics Changes - Infrastructure strategies raised approximately $2.3 billion in 2025, significantly up from the previous year [10] - GPMS raised almost $2 billion in 2025, indicating strong client support [11] - The credit platform raised a record $1.8 billion in 2025, surpassing the previous record of $1.4 billion in 2024 [11] - Real estate strategies raised over $520 million in Q4 2025, contributing to the company's position as the largest manager of REITs in Brazil [13] Market Data and Key Metrics Changes - The Brazilian credit market reached $1.7 trillion in 2024, with $800 billion estimated as the addressable market for asset-backed, non-bank private credit [12] - The company noted a 30%+ CAGR for CLOs in Brazil since 2019, highlighting strong growth in this asset management strategy [12] Company Strategy and Development Direction - The company aims to achieve a fee-earning AUM target of $70 billion by year-end 2027, supported by recent acquisitions and strong fundraising momentum [7][9] - The acquisition of Solis and several REITs is expected to enhance capabilities in private credit and real estate, respectively [5][6] - The company is expanding its investment strategies, including infrastructure development, private equity buyout, and venture capital, to diversify its performance fee earnings stream [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2026 and 2027 fundraising targets of $7 billion and $8 billion, respectively, due to strong demand for their investment strategies [9][33] - The macroeconomic environment is seen as favorable, with financial deepening, deregulation, and increased allocations to alternatives driving demand [28][29] - Management remains optimistic about generating future performance fees, particularly from Infrastructure Fund III and other new strategies [25][64] Other Important Information - The company announced a dividend increase to $0.65 per share for 2026, reflecting strong cash generation [51] - A new CFO, Rafael Denadai, will assume the role in April 2026, following Ana Russo's transition to advisory roles [30][31] Q&A Session Summary Question: Can you discuss the private equity valuation process and how valuations are validated by third parties? - The company uses an independent appraiser annually to value private assets, employing a discounted cash flow model and comparing results with industry multiples [56][58] - Valuations are adjusted quarterly based on the cost of capital unless significant changes occur [60] - Unrealized performance fees do not affect management fees or employee bonuses, as performance fees are only recognized when cash is received [62][63] Question: What are the prospects for IPOs and strategic exits in private equity in 2026? - The company noted that while exits to other private equity firms are limited, the strong performance of public equities and declining interest rates in Brazil could benefit private equity realizations [70]