Core Insights - Hamilton Lane reported strong financial performance with total management and advisory fees up 11% year over year, and fee-related revenue increased by 31% to $57 million, driven by growth in technology solutions and back-office mandates [1][31] - The company’s total asset footprint reached over $1 trillion, marking a 6% increase year over year, with assets under management (AUM) at $146 billion, reflecting an 8% growth [2] - The partnership with Guardian has officially closed, allowing Hamilton Lane to manage nearly $5 billion of Guardian's private equity portfolio and expect annual commitments of approximately $500 million for at least ten years [8][9] Financial Performance - Year-to-date GAAP EPS was $4.35 based on $183 million of GAAP net income, while non-GAAP EPS was $4.41 based on $240.1 million of adjusted net income [1] - Fee-earning AUM grew to $79.1 billion, an increase of $8.1 billion or 11% year over year, with net quarter-over-quarter growth of $2.7 billion or 4% [10] - The company declared a dividend of $0.54 per share, aiming for a 10% increase over the previous fiscal year [5] Growth Drivers - The Evergreen platform generated over $1.2 billion of net inflows for the quarter, with total Evergreen AUM reaching over $16 billion, representing over 70% year-over-year growth [21] - Specialized funds revenue increased by $35 million or 15% compared to the prior year, driven by the growth of the Evergreen platform [31] - Customized separate accounts fee-earning AUM stood at $41.1 billion, growing $1.3 billion or 3% over the last twelve months [24] Strategic Developments - The partnership with Guardian is expected to enhance Hamilton Lane's revenue through management fees and performance fees aligned with underlying strategies [37] - The company is focused on expanding its product offerings and enhancing distribution for its flagship strategies in both the US and international markets [22][41] - Hamilton Lane is actively investing in technology solutions, such as Pluto Financial Technologies, to improve access to private markets and enhance investor experience [27][28] Market Position - Hamilton Lane continues to be recognized as one of the best places to work in money management, achieving this recognition for the fourteenth consecutive year [7] - The company is positioned to capitalize on the growing demand for private market investments, with a diversified portfolio and a strong pipeline of mandates [25][26] - The firm is optimistic about the exit environment for 2026, anticipating stronger distribution activity as market conditions improve [45]

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]

Core Insights - In 2026, private wealth investors are expected to increase allocations to private market investments, driven by portfolio optimization [1][2] Private Markets Allocations - 86% of private wealth professionals plan to increase private market investments this year, with 97% currently allocating between 1-20% of their business to private markets [2] - The allocation breakdown includes Private Equity at 19%, Private Real Estate at 18%, Private Credit at 16%, Venture Capital & Growth at 16%, and Private Infrastructure at 15% [2] Client Interest Drivers - Performance and diversification are ranked as the top reasons for investing in private markets by advisors [3] Risk Perception - 83% of respondents do not view private markets as riskier than public markets, with many perceiving a similar risk/reward profile or a higher reward potential [4][8] Venture Capital Interest - Venture Capital & Growth is highlighted as a favored strategy for 2026, with 47% of respondents planning to increase allocations to this area [5][9] - More than half of the respondents indicated that Venture Capital & Growth resonates most with new, highly engaged investors [5] Education's Role - 81% of wealth professionals believe that client education significantly boosts interest in private markets, emphasizing the need to address knowledge gaps [9] Additional Findings - 46% of respondents plan to increase allocations to Infrastructure in 2026, closely following Venture Capital & Growth [9] - Hamilton Lane's Evergreen Platform manages $15 billion in assets under management, serving thousands of advisors [7]