Core Viewpoint - Hamilton Lane reported strong growth in assets and fee-related results during its fiscal third-quarter 2026 earnings call, highlighting a strategic partnership with Guardian and the performance of its Evergreen platform. Financial Performance - The company declared a quarterly dividend of $0.54 per share, targeting $2.16 per share for fiscal year 2026, representing a planned 10% increase over the prior fiscal year [1] - GAAP EPS was $4.35 on $183 million of GAAP net income, while non-GAAP EPS was $4.41 on $240.1 million of adjusted net income [1] Asset Management - Hamilton Lane ended the quarter with a total asset footprint of over $1 trillion, up 6% year-over-year [2][6] - Assets under management (AUM) were $146 billion, an increase of $11 billion or 8%, driven by specialized funds and customized separate accounts [2] - Assets under advisement (AUA) totaled $871 billion, up $50 billion or 6%, attributed to market value growth and technology solutions [2] Growth Drivers - Fee-earning AUM rose to $79.1 billion, an increase of 11%, with specialized fund fee-earning AUM reaching $38.1 billion, up 22% [4][9] - The Evergreen platform surpassed $16 billion in AUM with over $1.2 billion of net inflows this quarter, contributing to a blended fee rate of 67 basis points [4][16] Strategic Partnership - The strategic partnership with Guardian has closed, with Hamilton Lane overseeing nearly $5 billion of Guardian's private equity portfolio and expecting approximately $500 million in annual commitments for at least 10 years [5][7] - Initial economic impacts from the partnership are expected in fiscal Q4 2026, with warrant dilution anticipated to be under 1% [8] Fundraising and Product Development - The firm expects first closes for its seventh secondary fund and second venture access product in the second calendar quarter of 2026 [12] - The sixth Equity Opportunities Fund raised nearly $300 million during the quarter, with a total exceeding $2.3 billion [13] - The second infrastructure fund raised nearly $2 billion, with over $1.5 billion committed to the fund [14] Market Outlook - Distribution activity is increasing as buyers and sellers approach price equilibrium, with expectations for a stronger exit environment in 2026 compared to 2025 [18] - The secondaries market is characterized as undercapitalized relative to transaction demand, indicating growth potential for Hamilton Lane [18] Technology Investment - Hamilton Lane made an investment in Pluto Financial Technologies, an AI-driven platform aimed at enhancing access to private market portfolios and providing liquidity solutions for investors [19]

Core Insights - Hamilton Lane has achieved a significant milestone by surpassing a total asset footprint of $1 trillion, marking a 6% year-over-year increase, with AUM reaching $145 billion, up $14 billion or 11% from the previous year [1][5][6] - The company has formed a strategic partnership with Guardian Life Insurance Company, which includes managing Guardian's existing private equity portfolio of nearly $5 billion and a commitment to invest approximately $500 million annually for the next ten years [9][10][40] - The firm reported strong financial performance, with fee-related revenue increasing by 23% year-over-year, driven by growth in management and advisory fees [5][36] Financial Performance - Total asset footprint reached just over $1 trillion, with AUM at $145 billion, reflecting an 11% increase year-over-year [1] - AUA stood at $860 billion, growing by $44 billion or 5% compared to the prior year, primarily due to market value growth [5] - Fee-related earnings were $160.7 million year-to-date, representing a 34% growth year-over-year [6] - GAAP EPS for the fiscal year-to-date was $2.98, with non-GAAP EPS at $2.86 [6] Strategic Developments - The partnership with Guardian Life will involve managing their private equity portfolio and includes financial incentives such as HLNE equity warrants [10][40] - Hamilton Lane's Evergreen platform has seen substantial growth, with total Evergreen AUM reaching $14.3 billion, nearly doubling since 2024 [24][25] - The company has expanded its product offerings, launching additional evergreen products and enhancing its technology solutions [8][27] Market Position and Outlook - The firm maintains a strong position in the private equity market, with a focus on customized solutions for institutional clients [10][11] - The company has observed a low default rate of around 1%, indicating strong credit fundamentals within the private credit sector [14] - Hamilton Lane's strategic focus on expanding its insurance solutions platform is expected to drive future growth [11][12]

Core Insights - Hamilton Lane reported mixed results for Q1 FY2026, with Non-GAAP EPS at $1.31, below the consensus estimate of $1.34, and GAAP revenue at $175.958 million, missing the projected $186.65 million [1][5] - The company experienced a 13% year-over-year decline in Non-GAAP EPS and a 14% drop in GAAP EPS, attributed to unpredictable incentive fee flows and lower revenue [1][5] - Despite the revenue shortfall, management highlighted growth in key asset metrics and strong Fee Related Earnings, which increased by 31% year-over-year to $83.7 million [1][6] Financial Performance - Non-GAAP EPS for Q1 FY2026 was $1.31, down 13% from $1.51 in Q1 FY2025 [2] - GAAP revenue fell to $175.958 million, a 5% decrease from $197 million in the previous year [2] - Fee Related Earnings margin improved to 51%, up from 45% a year ago, despite a 26% decrease in incentive fees [6] Asset Management - Assets under management (AUM) reached $140.9 billion, a 9% increase from the previous year, while assets under advisement (AUA) grew to $845.3 billion, a 4% increase [8] - Fee-earning assets under management increased by 10% to $74.4 billion, with specialized funds growing by 16% [8] Business Strategy - Hamilton Lane focuses on building long-term, fee-earning relationships, with management and advisory fees constituting the majority of recurring revenue [4] - The company has launched new products, including Evergreen funds and expanded its proprietary analytics platform, Cobalt LP [4][9] Segment Performance - Specialized funds saw a decline in fees year-over-year, while customized separate accounts posted modest fee growth of 3% [7] - Reporting, monitoring, data, and analytics fees increased by 20%, indicating a growing demand for technology-driven services [7] Future Outlook - Management emphasized a healthy fundraising pipeline and plans for growth in assets, although they did not provide explicit revenue or earnings guidance [12] - Key items for investors to monitor include trends in incentive and retroactive fee realization, which can impact quarterly performance [13]