HLNE - Earnings call transcript Q4 2022 | Hamilton Lane Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Patricia and I will be your conference operator today. At this time, I would like to welcome everyone to the Hamilton Lane Fiscal Year 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like the now Mr. over to would conference hand to I Oh, Relations John Manager. Investor

the begin may You conference.

John Oh

I by Thank the Vice fiscal Today, Hamilton Good Chairman; Lane be Patricia. morning, CFO. QX XXXX and and Atul earnings Erik Giannini, CEO; Mario welcome Varma, to will Hirsch, joined call.

uncertainties we to the business. may our you current that for to the that risks statements, we results Before we materially. want forward-looking on discuss will statements based subject are These and quarter's results, actual differ the remind be making cause expectations to

the discussion factors XXXX a of we For these subsequent risks, and in fiscal filed please review Lane the SEC. risk Hamilton with reports included XX-K

of also measures materials those to non-GAAP of section be can as non-GAAP website. that measures will Hamilton to important on found available referring of presentation business. the earnings our the in the Lane GAAP Reconciliation view We shareholder performance the be made we in assessing

on Our note fiscal on detailed offer or GAAP financial results purchase grew for of grew net while as a Beginning revenue represents on of EPS Lane's and with solicitation highlights, income nothing interest million GAAP by This to products. this non-GAAP that adjusted filed. financial the advisory an sell $XXX Hamilton to management available call fee XX-K translated our full-year any of million versus on our and in by XXXX will be of made Please fee-related X%, the earnings XX% into year. net based based $X.XX prior of $XXX income. EPS $X.XX

with share This annual public average increase marks increase over fiscal approved our has the fifth share and each per going of an a quarter. to board now annual Lastly, per dividend since XXXX, XX% per to $X.XX $X.XX increase XX%. over or in consecutive dividend our XX%

over year strength that, to of now turn shareholders the our increase call to speaks to the I’ll every ability Our With business. consistently for Mario. distribution growth and

Mario Giannini

culture, Hamilton the supporting from region will Ford Thank I and On the wealth partnership which to space. updates was importance The within move consortium Shifting decades Goldman clients including of I'll in we our Ownership morning. of also Hamilton expand few employee build Zurich, new companies particularly announced. our the office base the owners now and Directors its belief Lane. and with employees U.S. a Board supporting and create organization on KKR, Foundation, Ownership of Sachs, our firm behalf A XXXX, bill investors a all firm be provides over private Works servicing regarding ownership here, Lane organization continues you, in good Xth, works equity. Works We've gears footprint provide an now to mission. quick serving with Lane and the for an the region, and to that anticipates office to joins public clients in have Rockefeller private locations. of April update nonprofit beginning to the opened office joined two Echoing the through direct our joining to thousands geographic John JPMorgan, well and Foundation movement hundreds our recently own momentum opportunity that the been a models. and organizations, companies ownership continue created the and Switzerland. on equity we to the Hamilton and shared shared that with the Ownership support prominent transitioning of By will across of new Works,

now Our count total office stands XX. at

opportunity want overview. to XXXX take release for this the results I to some to market of on move I the before highlight Lastly, quarter, our

markets drivers driven attendees data the more going of may who research reach of us unfold those represented capabilities. yet. with X,XXX market asset presented forward. format, it, a you the highly private in-depth in the powered of the be an report an may Over of overview, own in live the This and largest what review the in-house and year, conduct private to XX% of we many globally review thought we demand. the and In which the and our event are narrative database with markets addition analysis audience XX% market overview, for leaders. of class the our allowed on the virtual on fund industry remaining viewing a but not, year managers familiar investors individuals by annual release over joined and provide in to Some key markets it's piece perspective version last produced our the our

are those our in overview, market For who for year's information. interested please this more visit website

Let the me across of strong now results the year, for entirety turn business. to fiscal were which the the

AUM, Our growth which and assets under XX% continuing from XX% $XXX at the or management sum AUM and both growth and our year-over-year total stood fiscal trend. separate advisement under AUA, to asset billion which came represents as a footprint billion long-term customized at specialized our XX assets increase accounts. of year-over-year, funds our approximately footprint we year-end, our define was

came growth and for geographic XX%. or and that client at from As region billion similar across was AUA, AUM, our in to XXX of type

can does earnings As the we but variety fluctuate on move calls, those changes. AUA necessarily reasons, with have not lockstep a from in of with quarter-to-quarter prior associated revenue mentioned AUA

to Erik. now it turn me Let over

Erik Hirsch

Mario, and morning, you, Thank everyone. good

relative and billion commentary our This year. our separate customized across grew with fiscal funds specialized earning or me billion positive on both year-end, At XX%, Let our total accounts. AUM. from fund stood prior flows AUM stemmed some fee the earning and fee $XX.X to begin $X.X at

fee funds. billion billion came same $X.X accounts net separate of our $X.X the customized over Taken our AUM came separately, earning time specialized from period from and

large primarily resulted fifth in from fund elevated of separate Our clarify, blended our funds XXXX specialized amount rate [ph] and rate for fiscal to to fees relative we've fiscal accounts blended it And years prior a] coming both remains an across year, XXXX. fee secondary just and steady. fee customized and fiscal retro last [benefited from

our of XX in fees fee have points amount more XXXX, back fiscal to retro levels limited trended points. basis the Given basis to of XX normalized rates

Let's customized and accounts move start two the make accounts. at our $XX.X The earning AUM growing stood separate separate over our parts with that from I'll customized months. earning up to XX% XX fee now AUM billion the past our

clients. growth coming type to and geographic of We across location the continue see the size

accounts it As of the to base this from more last the customized months, client XX% over existing inflows into XX our relates came group. separate than gross

Fee at $XX.X billion here our fiscal specialized stood funds, specialized our be earning year-end. to funds from Moving growth continues AUM at strong. to

Over from our representing the XX% currently year. inflows relative closes growth months, evergreen to of robust growth stemmed we past market, positive in XX investment prior inflows funds and for platform. This additional achieved activity, into continued $X.X net the billion, monthly of

this on drivers the fiscal I'll from with some expand and me of start platform. Let evergreen past our year

As exposure a quick the reminder, of individual wealth by to private our and with evergreen semi-liquidity. way and private platform immediate channels monthly markets investors direct with provides subscriptions

For interest net potential deal invested value AUM on us, by asset fee a we carried on dollar. on management earn fees where every basis it deal for and the earning represents perpetual

strong. remains here momentum Our

$X reported We existing small and one volatile resilient surpassed investments pipeline and have has uncertain a and performed managers of a XXXX. billion. nearly are the billion $X.X growth this $XXX robust net macro the for globe. from the stands an backdrop of AUM to of existing platform average platform for The and were adding now that and the is remain channels size. that to quarter, The the million inflows platform our market, public has month January number well. expanding platform Against we continued additional had per only of channels steadily we nearly evergreen mark portfolio April around and Last at a equity

future to We continue with very of well remain bullish we strategy this and the the platform. execute on

direct Moving our equity on fund. fifth to

we the quarter. QX the quarter, May total we and million will and closes that close fund fees the recently, of sixth in million for of will through held the essentially and totaled two billion of be the held retro retro at matched fiscal Stepping that This fund in fund generated for $XX XXXX. these $XXX the we the a More fees $X.X of in approximately the fund, commitments. raised still for seventh nearly have to we the combination market fourth X, that level, for close brings which result amount $X.X prior totaled recognized close size LP be back, XXXX. the on of million October During

continued and history. we for Next up announced installment of seventh the Subsequent are quarter, of to close we in that totaled the we and series series we the product's $XXX over second month is total held totaled now last a $XXX series, this closes credit current million currently $XXX commitments. additional held the raising annual momentum to the that largest this the has first quarter series this that in million. April, brings current our of million fiscal The that and direct during our over for close raise we held LP

a structure Therefore, set management simultaneously invested raising our and dollars and dollars fees As reminder, a earning deploying on a we relatively credit amount it strategy which in-line targeting from less and see can capital. about opportunity unique is we has whereby continually are traditionally with to installment to installment. would ensuring you period size product about variability multi-year deployment the funds current more a with that as set, some across lead size the of

We of until and strong this continuing we demand. XXXX expect are market September be in to see installment with to

for for close deliver fifth $X.X secondaries February largest marked an raised secondaries Let a to as support. results to of Lane It me execute ability LPs. [ph], has our on to the fund. very In back million. market highlights secondaries the held the turn close at and are our very now On with demand coupled start held are the fund fund XX] we our our of secondary final all our such, both fund strong [April for with remain fundraise the has continued strong sixth over and for ever we been platform. we appreciative the billion. XXXX, pacing and That and the we Xth strong was and Hamilton update $XXX the raised first Investment in and we

quarters. on market coming date. to closing that look April in providing closes for actively over from remain months will XX updates We We you the with future forward

balance on introduce on Tifin. me our with technology our strategic I'll start update provide with investment an newest existing an existing our of investment. and let sheet Lastly, an relationship update

Hamilton investors, the Tifin’s The it platforms of and the two to technological As raised smart far utilize opportunity focused D technology the Franklin fintech generated Templeton front learning validates May investors. it. in participated on Tifin investment, XX, million Tifin artificial the On several a these support has journey. the in unique and to and investors success round evolving analytics our reminder, successfully valuation, wealth of Partners. Lane based individual addition our managers, round D and platforms or and months the inclusive on has financials has provide gain intelligence thus lead data our Series next of the operates in only in and RIAs, quarter. of Series meeting flow of The power two from will initial advisor that multiple X.Xx Tifin our investment. generated included through already financial unrealized $XXX on Motive investment their a and generated six the tools, new round the since individual a needs

XX, Lane partnered investment as And its the on progress forward assets investments for institutions the attractively tokenized [ph], by providing private we technology ADDX of move driven I'll call Temasek sheet this on stock the our and round the partnered retail joins allows on implements investor with to our a all in fund to March Temasek of opportunity investing ADDX latest affluent growing Development region view platform. on Singapore Atul in look ADDX. called group Hamilton and company ADDX to Thailand. investment that, conviction the we and updates announced now as of the in contract Subsequent around platform the with founded successfully custody blockchain leading the in over XXXX to [Investcorp] Group, smart automate issuance, participated digital an tokens offering technology turn distribution as opportunities that with fundraise non-institutional as cover Partners offer at ADDX financials. was minimums I'll investors. offering, managers to We that, Hamilton Exchange, newest funds our to and space ADDX low digital tokenized into providing balance the and Bank alternative access highlights they to tokenized in to as base access to the investment its ADDX such providing to Japan aimed positioned who this attractive ADDX digital led and private Asia. $XX,XXX. to such for mass markets operates XX, a global and Lane security channel. And the we access Next, and increasingly with exchange ADDX in have within the joined as the May fast selected future. providing that of the manage. now With in

Atul Varma

Great. Thank you, morning, and good everyone. Erik,

For fiscal advisory solid XXXX, the we versus prior growth fees year with X% year. business and up our achieved nearly in management

March over our revenue from funds X% or specialized evergreen primarily increased slightly prior direct net alongside equity X.X driven $X.X [indiscernible] fund. billion inflows compared platform over Our the to year billion into by by to a raised X.X of

limited fund prior our secondary been during relative fiscal to recognized we on where fund. year that have turned retro this fifth fees fees in for given to retro XXXX, was direct fiscal $XX.X million the equity our latest year For

expect as we latest retro We direct additional our generate hold to closings fund. fees subsequent equity for

investments come to back dating the later closings fund's a retroactive fund raise, that a close. As during fees into the first reminder,

in re-ups by million year, activity. and addition reporting, Moving separate of year, Revenue of offerings the several near advisory, that continued the funds prior team accounts, to to compared to our and accounts revenue the clients, million, approximately new primarily the compared impact XXX or to we from associated increased XXXX. the and investment XX%, other acquired our $X.X of existing by April with on increased pre-existing due $XX.X customer Capital prior managed revenue full-year driven from

revenue revenues. a business IPO saw of our The for equity million XXXX. we the $XX.X fiscal addition, our distribution represented component fees stemming XX% final from market and with strong In Incentive fees. $X.X performance increase in million incentive throughout management total public for robust from along fiscal XXXX market activity is totaled much of

of carry our to The unrealized the unrealized from to at additional to some we million and up as control prior positions on fees that recognized balance during incentive just now of $X.X information turn we don’t The stands earnings. remind I’ll our timing control we me balance XX% color And don’t Let carry year some period. thus even the these now was $XX.X everyone, exit. balance. billion. on move

up were XX% prior Our the year. fee-related earning versus

expenses, included associated increased growth I’ll $X.X the year. Capital of in during sales As XXX In regard the $XX.X our expenses million. full-year a increased discussed impact result revenue and million, total wrap rent here expenses from commentary growth compared decreased with our margin. year which new the with along and sheet. of some G&A million, our to our benefits with to prior Total $XX.X with compensation on along balance a expense commissions. headquarters, by

assets specialized our accounts largest our Our our to alongside and continues customized separate investment, funds. be clients and

to to sheet and modestly that, invest capital continue alongside we the up you joining are Over we'll continue clients. questions. continued to investments regard our and open the it our our important for long-term, thank be to in liabilities, In with of we our view levered. for And component as these happy growth we an call balance

Operator

Thank you. Morgan question from first line Cyprys [Operator Your the of Instructions] comes from Michael Stanley.

is open. line Your

Michael Cyprys

morning. Hey, for Thanks taking question. good the

pension And of effect, being able SMA of be that the for the impacted perspective any indexed pipeline to help if for some the of in out or investors potential kind That's relationships part the on more you around then to fee markets around first marketplace, out of risks of say is or some are what asset of now just part. curious if fundraising you the community commentary Is you're given just the your seeing how unpack ones? asset the is I is there? some community? S. come perhaps U. back in there? there being side. denominator given the the us, was conversations? can second, share on up coming what private And that concerns AUM the markets, to want re-upping and just might fund to, you would there hoping in so, Just that? [ph] [unpack] commentary base color over on existing to the downdraft owner new paying help from And much sort public What

Mario Giannini

Thanks. things. A it's of couple Mario. Mike,

On the pension amount. fund side, it's relatively a small

it's So, not which to a or our there. considerable that a business heavily part amount of we're levered represents

the it's What of they have the features on an effect, They one. one and do that. it it's whole they I and can't to their in And lean people and say, going fund, but cash down? but many and bit do step one a not way not they and I a an look but do they it going and out data in saw we just quickly, pick, whether wait markets said said, your best time. at what And tends mistake go a So, been over XXXX, the what do just going it and mean, a different seen size interesting we They I nervous, might denominator XXXX, the realistic. that's The talking anecdote, be, it. to an people I'll play infrastructure, move when It's client go assets back bottom make do. not just that suggests historically large investors now, thing. markets we and to into these private if thing it. the seen. mistake very relate have that think look they is, cycles into whenever say, has this equity, markets question moving mean, next play I'm to is markets. The know clearly into of little They the markets they ours, take performance little the it's that assets that you're and natural. what going to that's I think of whenever in just to fundraising people we've down whether I don't XXXX. get be very made you interesting I that to we're We're The at saw into data They at mean, environment. in context example, decreases then where XXXX. look the private have you out in starts? a do until the I'm get just convert in tougher least it the cycle, think whatever in the debt, XXXX. we're everything it's say, at

what what people way – gosh, just sanguine pretty hearing when markets and Which oh we're around, my am have and that panic panic the I are hearing so what gosh, do? cycles are like careful much feels seen capital? really private am aren't down And my I'm view it am I and going address oh to what prior pretty it. I get go people going taking where around, in more to happens right allocate a we're is, So, looking about markets now, I not hearing out. they've to at to about going

Michael Cyprys

Great.

versus year just just re-upping? ago how pipeline, commentary as on or around ones existing color relationships, potentially any maybe well side, as Just new a compares the SMA that the today

Mario Giannini

it lot of from the a I I think I People I Yes, but things and look we mean, nature. and longer-term it's say strong. it's the again, reality. easy it know to remains a pipeline is that at the one important say, mean

it going at take private to period. not they're look and they really do quarter-to-quarter so they’re what a in markets And over multi-year looking they and the

people want happening but change go invest the I So, ago oh, a markets year I that public investing, in in at to we're what's decision seeing markets because to I'm going to where look made this private not of today.

back seeing out SMAs shift we've process. that market. people It's people either we're they in any in pulling have back So, dramatic of not SMAs the pulling not seen terms there or just what that's in their

Michael Cyprys

That's Thank you. Great. helpful.

maybe us was from expand the how platforms hoping on the Just the on front the some warehouses be the to about strategy. many of yet? a you to question strategy? XX build taking you a are months over quick able on? Evergreen follow-up on guys in I distribution of of terms you are out might steps next on And that help where talk you you're just distribution update Are

Erik Hirsch

I'll jump that Erik. on in it's Mike, one.

trying very seen, been this I We think we have you've as to and we're flows fund think a putting steady for. as incredibly marathon, I up sprint. that's a not clearly build what view

really for coming we make have want aligning immediately not you drag. As fund deploy with can and the we're flows that opportunities nicely in cash our to know, the investment sure product, we

executing of that depend to and to are So, And has think relationship. to been $X.X channels. or one getting geographic the those date, continuing here ground our we're our future. resources. We're We've built We're more the well. believe strategy at more as globe, across expand I we're We in that on a game but in added presence. simply and big sitting of more warehouse a that without incredibly future, the we're coming and promise the coming billion not on said, in I

So, that for their looking deployment for. exactly increasing all them we into of the confidence is are put channels whatever platform, scale, to be. platform you continued want think order this where size, We kinds you what People are. eventually that in handle an channels, like we may growth and can

Michael Cyprys

for much so questions. taking Thanks the Great.

Operator

line the from comes Worthington next of Ken Your from question JPMorgan.

open. is line Your

Ken Worthington

of maybe it's [ph] if results, more a seeing that the pretty say Hi, historically, flowing strong was of diversified we that deployment, of accounts nature quarter my but first, first you color could seemed an would good the be in you've particularly concentrated us the And commitments of saw And this the and more would through stopped again, have in M&A big there to color the any in commitments slowdown or helpful? through in flow seen [M&A] hold, flavor separate slowdown in for in quarter, slow, sort from deployment when some I COVID strength questions. again morning your saw of quarter. terms industry, XXXX more particularly the and was you March it give and case in deployment taking I apparent was taking impact to thanks in Maybe the or were any no we're on numbers. hoping really

So, help me persist. sort paying would conditions the understand of expect you fee if impact AUM conditions to how to market these were challenging

Erik Hirsch

Thanks Ken. deployment. separate first with Erik. I'm It's start will piece then on Mario happy and the account the to the jump in on

I what a think bit on said a separate which it's past, bit the can account, it the we've bit in seasonal, be little episodic. of a can is, little be it little

decisions we've of the I those decision beginning generally calendar makers year sort of and coming contracts making the into more deployment at more seen thus think year. capital signing of end boards,

from think massive it, well, but keep of flows the means a yes, given XX% new base that brand saying, I customers we places. but new of think So, the existing coming that diversity for the that installed still I accounts diversity install XX% the some from and and of even base is

of brand, distribution I speaks the relationships. think strength the of that the

not into quarter. think I to So, a read particular a lot

of I With Mario that, to talk remain can think trend strong. very pieces. deployment year-over-year the very, lines the sort

Mario Giannini

Yes. Ken. Thanks,

On couple a I'd of the say deployment piece, things.

And I slowdown XXXX no situation, ever or a is it was dramatic stopping because was a you seen first The had really. think one before. stopped there – had

or any are and dramatic. how XX% to discovery closing, no knew markets because In have. they move that was with, knew really the had economies had seeing pricing this we anytime something And level. assess one no a you deal You to to one There's pandemic, price a how way question slowdown. no XX%, environment, you anything how at had

have discovery, we've but XXXX. pricing doesn't doesn't like this It people period feel it going You're of as people a never to seen before. to to feel though

that price how slow rate period I feel a so, this will but anything. place new there that increases a have we interest was been it this than that inflation economic rate where view maybe period, down, one is think to no the lead is through slowdown doesn't knows to higher while like And to things

So, flying anything down what and just slow don't expect we growth high areas perhaps in it others slow more some like than and will others, we we but of venture saw would will than down the see more activity, XXXX. areas some

I that but was was more in going much like, period activity. think it there it back further continuing [XXXX, will be where XXXX] [ph] slow,

I you'll see that. think

to again, today. again, So, cover don't broader We anticipate markets in anticipate stay other broader kind prior terms have are remember And that – credit, private the private a things than there huge a they of are activity. also assuming we is, there's all these that way don't be change equity, range, range will of the much a they thing in cycles. of

said, be there's venture, so, if example, going And as I credit. is slowdown, for a to stronger in

terms So, reach into own market. there's just a in of better and balance in terms of the designed how portfolios our are

Ken Worthington

choosing distinguishing are continue Michael's on the in could how products sort your wealth was of I product, hear follow-up has maybe it you us product first on And this selection you mover are thoughts first at is managers really important of increasingly give important to channel? there do managers be see on or then to the how enough got maybe And if been alternative or we more it's just selection you. I not to where the evergreen therefore, having firms you've asset you what process point, wealth product? they how more Thank go displace the is they're on here? channel? Is key prioritizing the that over choosing Hamilton other then hard And from some when really product a And products mover first these channels? product to entering great. launching hoping you through Okay, these sort advantage see if Lane's products? As who process, a intermediaries, management great

Mario Giannini

your A parts, of Ken, break question. Mario. I'll couple two up into it's things. it

what differently this to and there groups of all some diversified by it part, base on depending And they the what they're of generally, but can. going will want are first those real you they they we are some the is platforms better things. is for, seeing kinds bit probably be space. a entrants credit, equity, looking will are that that The estate, question means private a markets. the diversify wealth I into want will at managers, some for their their probably little want looking think we looking will size of And for into And answer client want some can lot they the access than can intermediaries

And things a environment, of couple clearly. so performance in that matter,

to have you record. track have So, a

element time. done to an hard is there a now, like of doing It's of this come So, product period from, been to having for it. some I've at this I'm never

is a a there having you and of of mover record, first established both of and track channel question, brand in So, the advantage familiarity sense generally matters, yourself again, products. have kinds that markets terms as the the with little that the in and brand the second bit in those your a

so where shorter-term, that that feel something second have in the good we as sized and the said we to it on first pretty probably his We to does are Erik scale. platform with question, comments, in And advantage, good size that think channel. mover because I the in mean have a

everything to behalf size, record, the your people be of with you're enormous first advantage you've being everywhere the like track an on and comfortable have terms time, ability and platforms, execute I there think else, else, as scale with clients. over in there on if more seen you will players have of the the you but

Ken Worthington

Thank Great. this Appreciate morning. the comments here you.

Operator

the question from Blostein comes next Goldman of line Alexander Sachs. from Your

open. is line Your

Ryan Bailey

to the on Good the come back of and the actually morning. fundraising strong Ryan pace. secondaries commentary behalf and I business around both investment It's wanted Alex. to

And sources are? of LPs? to flows if on wondering the for causing that's help investment do that whether what effect liquidity? the equity any for that cash crowding with you them and private more the impact strong could pace demand has Just whether to And explain for of look

Erik Hirsch

Hey, to take happy Ryan, that. it's Erik. I'm

also mean of led It I sort could stream. that as could one, single asset. mean think means GP thing. what It is transfer. class mean has one simply asset But it could of you're It don't a is a a doesn't could mean things. return it single seeing secondaries, mean portfolio. matured, lot one It this a what represent fund

how there's what secondaries trying And do driver inside with a They've so, example. think portfolio a for your them. been successfully leveraged great to greater on been of depending be of yield can of appreciation I you're

gets number I maturing, is that and flow market asset just you're driving is can is of volume bigger, deal secondary that growing, There's would the think in rise solve I increasing. a would that that market liquidity. And in dollars what's the have of between deploying the market in you that expect for the markets rise chunk overall So, ways. as the class problems because more channels different and you correlation private for a that's the it the real market think also

of and kind strong getting Off coming seeing it's and I Mario's no. good think effect are environment, those see expect those sort here any into at, all of the deployment, dollar selling, driving of period. people comments, think to don't today's earlier I I really So, back a is. it's see not are of the of we and answer going panicking if we're fundraising you're driving bunch panic change. to In

grown sophisticated about construction, think they're LPs have and asset very portfolio are being thinking in I their very weighting. the how tactical their

are tomorrow fire stop and seeing committing, not nor sale we're to seeing so, a turn them bunch trying of And them either. around we assets

Ryan Bailey

Understood.

It you're maybe very tease drivers well. performance for the just quarter. just like out of any could I reporting And another Okay. if we the there? was looks question wondering a P&L

Erik Hirsch

the of I What sentence? first in Ryan, the beginning part that. the missed was

Ryan Bailey

a the question results just quarter. looked like this wondering tease of quarter done was a the better and and I out? was Just to if there quite It reporting regarding anything And there had quarter. lot although the

Erik Hirsch

Yes.

comments, nothing what through. think Atul is to which than highlighted tease other, other revenue is in the you're which in of his out full fund the there's the coming XXX I seeing effect

a together what finalized as I think seeing doing better that, co-mingling sales LP cobalt and say service, is more package. now I time those we've job that would of the us back that macro traditional Cobalt you're integrated a as complete think a acquisition really bringing with some fully into of in and both service level model, for I at two selling our kind software office have

that helped bit that a us has of reporting higher. little kind drive, I revenue certainly think

Ryan Bailey

Got it. Thank you.

Operator

UBS. your question Beatty line And comes from next of Adam from the

open. is Your line

Adam Beatty

the ahead? good ratcheting Looks ticked of lower? higher ask about fiscal been And expense drive forward rate, you expenses carry the has might the one-off run Thank and looking you. year, mentioned like what kind big the are factors and but a of both sort just the ahead about the the margin and that for non-comp higher, morning. that how growth to compensation Thank that thinking growth Atul Wanted margin. down expense items you of might little outlook for bit, G&A in or know I are and in some

Atul Varma

Adam, Atul. Hey, it's

Let me take that.

was, what pandemic, low-XXs, – you COVID of think to bump margin. if follow a the our we a and about margin, I recall, pre-pandemic bit we FRE is in So, as

the we would are back I over travel that come So, with over [contract mentioning come say time, what is, back, saw from you're increasing to the we where couple wage that [ph] way starts we maybe bit. as little talk the time we still a about [indiscernible] expenses] know but and COVID doesn't increasing over in that years, the that blip – margin of holds, last

be margin the think that's here, don't but down] a we maybe substantial going [ph] [picks a from to bit change. little So,

Adam Beatty

in Okay. to should of And comp similar terms years? be prior growth, it

Atul Varma

mean, Yes, the where comp think I market the growth you guys I know is. is,

people. in a I growth of We're hiring think everywhere. we're increasing We're mode. lot

industry what be So, comp the is we're to and in-line with seeing. is growth seeing what going

Adam Beatty

Got it.

just stable. XXXX, bigger thinking there up fiscal finished just transparency but with at a ahead, the fees as kind and end AUM around about segment, of period that growth the year, the look that point-to-point going think this to turning you. catch lot revenue just growth, in of in were up about noisy because mentioned Thanks. And kind Thank picture, of The looking Okay. year-over-year the of rates kind funds, fees specialized was we a little fundraising so then according should growth? in then many you we coming pretty are of you've expected fee given

Erik Hirsch

I that. take can it's Sure, Erik.

someone I very and This in not product. expensive super have think of world, a product fund seen fee the has has someone what rates been is steady. an you've question cheap a specialized just

to or have a game which kind good brand, execute you deal good good etcetera either a that. allowed flow, in track good can You have record, with don't and of the product play case you you're

think why that And expect the we that's stay so the steady you're reason case. and remain to I seeing fee rates there

that we've really us, do. us, specialized a really specialized you're seeing the think for good revenue So, here have. which got not what new fund going to of to AUM record And products world, a continue is products to fund to continue only for track factor looking I of that introducing be expanding do, do that the into we already we we're are and but

and there very So, I continues to be our outlook strong positive. think are we

Adam Beatty

Thank you, it. Erik. Appreciate Excellent.

Operator

of question [Operator Your Wells Instructions] you. Thank next Fargo. O'Shea from from Finian is the line

Your line is open.

Finian O'Shea

good do to into Series Hi, managed Question see in-house upstream morning. for an lending Credit eventual franchise, a way the opportunity product sort regular of you direct line?

Erik Hirsch

Erik. Sure. take I'm It's that. happy to

think our think other I focus managers. today. to with fund to partnerships leveraging really be our been has we are that business our date I one And where continues

I we area to back pacing. I deal and that where but earlier some the that done think mindful think have real we that co-leading benefits of space transactions, flow go is an we of we're have sometimes an around one question credit the is

platform able geography, this access provider We're our and able equity across be, pacing beneficiary kind of powers of of evergreen from lots and flows deals different One lots that lots and one seeing to is stays and of credit why to we're reasons shapes the partners consistent one and size that shape and where into power you stop to sizes that give we so of all our product. geographies. are real of across solution the in That's etcetera. and and

it's actually in so, incredibly a that is powerful more model powerful and even this. And think like market we

Finian O'Shea

for any deal you. in Thank in January, the lapses? a update to of about regards can that a vehicle financial And Helpful. to then any the And is the you just vehicle? wrong vehicle – I there? if just form correct you me I'm there next but on if think for SPAC, that, execution follow-up impact, today bring provide buyout it's talk can a environment for

Erik Hirsch

I'll Erik. stick it's Sure, that. with

has think I the The of been severely the by, regulations. all we need hampered sort SPAC same things. market latest

said for we've so SPAC not And manager, a make real one-off always SPAC business that were trying were to we to a the but trying we be us, line.

ongoing. selective of that I make to anything in us be need do but our be able sure we're that that's is think to we that up do, I sort environment market still means also think we whatever and focus, thoughtful that, something this to sets to incredibly if

We are they a We to of sort to important exist. should SPAC serve think market continue continue an that tool. that believe SPACs that We niche. think

would manager them. a of I also the kind kind the of with say think out difference We to we SPAC of that market we're there. got raise able low hand that of was think real quality

with our market. our level, to hasn't bring reputation changed. that to and make at someone focused line focus We're business a that And flow our on and think so, philosophy to caliber macro a trying and deal I high

we to hunt. So, continue

whether so right year cross to of allows focused have know, kind us but we bridge, think there. be I to market for that the and on next focused as what's to remains until to, something happens to determined, something be or continue just We we're there Whether potentially happen now, you do.

Finian O'Shea

much. Great. Thanks so

Operator

question from a Adam UBS. have Beatty from We

line open. Your is

Adam Beatty

very Thanks for again. taking Hi, follow-up. the much it. Appreciate

pension in of States? earlier about but a just sort or that was what the apologize, a I'm Just kind or make and could heard but the I of if sure that about United to that I misheard sure I not Thank just you I your you. mentioned clarify heard minimal way pension what bit clarification. exposure exposure it little exactly, you you, or correctly it have was,

Mario Giannini

very specialized But we different, clients. related there if certainly, about was in AUA the then funds. terms in to least in exposure funds area, assets, on I that Yes, the if the not part talking Mario. I heard Adam, And a is question, it's fund specialized exposure have you're overall was relation the of it I question, as but that's understood of The right, to think exposure there. the at material the

Adam Beatty

right. that's Yes, Okay.

much. very Thanks clarification. the Appreciate Okay.

Operator

Mr. this I'll you. turn questions And call to no you. further are there Thank Hirsch, Erik at back time. over the

Erik Hirsch

Wishing very Thank you. Day And celebration. all good We Memorial we the time. much. support. of you you Thank again, appreciate appreciate the a

Operator

This concludes today's call. conference

disconnect. now may You Goodbye.

Hamilton Lane (HLNE) 26 May 222022 Q4 Earnings call transcript