Hamilton Lane (HLNE) 2 Aug 222023 Q1 Earnings call transcript

Company Profile

Participants

John Oh	Investor Relations Manager
Erik Hirsch	Vice Chairman
Brian Gildea	Head-Investment Solutions
Atul Varma	Chief Financial Officer
Michael Cyprys	Morgan Stanley
Ken Worthington	JPMorgan
Alexander Blostein	Goldman Sachs
Adam Beatty	UBS
Robert Lee	KBW
Finian O’Shea	Wells Fargo Securities
Michael Cyprys	Morgan Stanley

Call transcript

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

Operator

Good morning. My name is Chris and I will be your conference operator today. At this time I would like to welcome everyone to the Hamilton Lane First Quarter Fiscal 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. A supplemental slide presentation to accompany the prepared remarks can be found on the company's website. there a remarks, session. speakers' the will question-and-answer be After limit a one [Operator as please yourself up. Instructions] Also follow reminder, to one question and you. Thank call Investor time, to this would over the to At John Manager. Relations I Oh, turn like Mr. Oh, you may begin.

John Oh

Atul to Brian Good XXXX QX Investment Gildea, Today, will Head welcome call. Erik by and Hamilton be Lane of Thank you, joined and Varma, Hirsch, the Chris. I morning CFO. fiscal earnings Vice Solutions; Chairman;

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

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

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

will purchase made of Lane's Our offer results highlights. call products. sell with an is solicitation nothing on be note any financial available this represents XX-Q on to a the financial or filed. interest detailed in Please to our that Beginning Hamilton

of based grew income. adjusted EPS quarter, EPS of management GAAP non-GAAP versus XX% by million the GAAP on earnings based XX%, by translated net $XX.X of prior million fee-related into of the For period. and our and advisory grew on fee $X.XX net while income year This $XX.X revenue $X.XX

consecutive track fiscal the which $X.XX share to of to targeted turn an year, that, since call fifth over over each XX% fiscal $X.XX XX% sheets XXXX, over increase dividend increase increase a public targeted Erik. us share per average the declared With last I'll XXXX. and also this annual year the have for now the per with going in marks of equating dividend The over quarter, XX%. for on We

Erik Hirsch

good clearly reflecting had morning the and asset as and Thank of quarter well everyone. we you, diversity extremely asset is strong globally solution attractiveness office a is remain and of overall client. to which remain speak and another in and strength overall strength back We've In the the in clearly and are continues. the is rising working resiliency exposure, us our operate. order bases, service John, however, then to the to rates, class they of vast of – results, majority want to provider The the increased our shrinking with as suite platform, volatility. of the challenged the capital. cases, clients asset harder grow that markets and diligently identify technology business us and to sources Fundraising The continue do, to offers class active offerings strong their relationship their for to advisory the diversified the separate account which our for sole teams

are and various further on and We that also strategic clear our look and differentiators brand technology advancing lean are investments our position. market to partnerships

quarter pipeline. the of see we what growth and optimistic the and encouraged this by remain are proud We we results in our and continued

now me the the turn for to Let quarter. results

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

to and $X.X type specialized fee-earning came was X%. $XX the our growth positive at grew AUM funds fund and XX% billion our stemming both and region AUA, prior of our accounts. across that customized for from year Total separate $XX.X geographic stood relative billion similar flows and to client As at AUM, in from our across billion or or

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

across remain steady. funds customized Our rate separate accounts blended and both fee specialized

up XX Moving customized to the fee-earning accounts I'll AUM our $XX.X Fee-earning separate at XX% stood our two over growing customized AUM, with from components the that make accounts. our start separate billion, past months.

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

separate customized specialized our to be funds XX client from this I'll Over over base Brian that, update. existing XX% and our steady the gross separate inflows of months, account a source to last the more accounts With than business. growth turn to for into continues came the of cover

Brian Gildea

you, good and Erik, morning. Thank

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

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

inaugural nearly detail go now some investor commitments. close July fund growth. of the $XXX Let's Xth, around million for drivers of opportunities final and recent infrastructure our announced fund, site this we On into which totaled

began for fund relationships our has the managing separate providing speaks a this active the platform, The and fund advisory client Lane. past of clients of the investor last marks Hamilton infrastructure also the for and few in this a in more We infrastructure sizes. first While existing able this only Lane raising new commingled pride accounts XX getting were occurred distribution market here the the half were challenging the hold adds to fund to our where strong all been first vehicle, longstanding leverage also of Nearly of to fund solutions were during environment What's with in started physically network. having space years, that a where not power fundraisers just a a investors time navigate while are traditional meet environment, take months we and period that for our came proud of typically the execute for fundraise. which period, could the we relationships to remote to much investors success of pandemic kind done. into well to as global Hamilton able global we fundraising of the [ph] fact

our continues this is and credit direct currently be our strong. of to momentum series. the We're series installment raising annual seventh Next

the During closes installment. quarter, over and $XXX million we held multiple amount bring commitments total for $XXX that LP million to of the over totaled this now raised

but hold to the as the close look series. coming already stands will We the it largest months, marks final installment this the in in

fees vehicle this this a after next As reminder, capital we'll fundraising management with charged invested capital. We've for the shortly and this the single installment. final year begin begun close investment deploying holding series on a capital reflects already for

Moving equity to our progress direct on fundraising well. continues to fund,

and total which this this through equity of market $X.X fourth in back, that close that Stepping that closes million generated $XXX,XXX the amount fund we $XX $XXX the for and of largest makes QX we now for raised commitments, During in size totaled fund fiscal the fees we over fourth the million nearly approximately in the of held of and retro fees to fund direct the prior result fund for an quarter, stands end, year. XXXX. which recognize the quarter held LP totaled Post additional with that level the we will quarter. billion, quarter date still already surpasses a retro will our be nearly in at

$XXX million, on an over the turn That now call, update fund. me the that delivering earnings we $X.X retro will XXnd platform. record strong million. continued and in secondaries had for on XXst, fund strategy our combination to coupled held two our nearly track result we Let fees billion nearly with which second sixth demonstrates a held next amount close the brings modest close The totaled on will from our close of quarter. on be July prior closes secondaries first we our April the to results. demand of the announced On first $XXX of investors for Subsequently that this recognized

the the investor are with of the appreciative to early we pleased and days are date. fundraise of meaningful support We

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

our now to me to Let platform. back cover turn Erik it Evergreen

Erik Hirsch

and attribute up We what and of saw softness of Performance for public market private decline combination base. came May investors largely months net saw comments heard simply wrap outpacing of Again, In at to million inflows equity and from now private strong, Evergreen on over stands $X.X the managers. and markets. that the managers, other we have total, same August. platform retail modest inflows. platform. market also July this The the from much a investor each we to summer Asian their an experienced April with significantly had other billion another we expect I'll our month. to outflows Similar the while have The in you Brian. from net equity sector and $XXX doldrums similar the have significant investments. June Thanks, quarter product public and of caused is across heard to update some debt the quarter pause nearly the section softness strong this of you

expanding continues our across focus and the building space. be on channel to Our penetration relationships

are specialized into to Evergreen relationships funds. flows traditional our flows into addition delivering our these In products, also

capital totaling Evergreen this more and from example, XX% represents seen from raised million fund, from Our the segment apart commitments total and fund capital an nearly investors Again far. raised separate flows. in so the this secondary latest of as has already than retail $XXX is the

inflows for the fall, a As we the and stabilized into we market public see relationships. reward rebound as expansion and push to expect of a bit

of sheet. XXth, in technology fundraising while as other managers with and our operates Let that introduce other their vast seamless provides Hamilton investors strategic moment able $X marketplace Partners Lane X,XXX Motive tech-enabled the financial most participation coupled platforms to wealth powerful financial me CAIS oriented learning we iCapital advisors joined the advisors provide CAIS' their than balance joins trust access who for leverage now the On companies where partners and CAIS, over and technology be where private commitment investments of CAIS Funds recent these and we'll to Franklin to oversee in newest a drive engage cutting alternative within those and space, Templeton. our universe. have strategic such TIFIN, in and infrastructure directly. investment and investment of system unique This announced strategies now wealth the partnering help improve we with technology client June are transact and asset those firms network Apollo, more believe enabling take can open represents enabled CAIS round a to a markets broader alternative strategic on our assets. thesis empowers teams, a the driving and strategic who investment trillion advisors selection advisor platform broad the for and to CAIS latest investing and companies, by the edge access of example with IQ accessibility. we private that we our outcomes. clients in with and built our adoption

providing We to with And the are the excited CAIS and now beneficial with financials. over mutually that, forward this to updates look I'll the turn in begin cover call to journey to Atul with future.

Atul Varma

Thank you, Erik, good and morning everyone.

achieved period. year growth For the and our business fees year versus we XXXX, prior the first quarter advisory with management of of fiscal XX% in strong

June Retro $XXX,XXX, in stemming funds increased prior quarter and than fund in at prior our year primarily specialized $XXX the $X.X compared million over period. the our fund. versus were equity direct from approximately $XX.X quarter latest fund or more revenue from the Our the year through million raised amount for primarily billion our billion direct platform, Evergreen by raised $X.X fee to increased latest minimal XX% from by AUM equity our secondary fee-earning driven

pay come to a investors back into close. reminder, fundraise fund's dating the first closes As the retroactive during fees that later

both hold for We generate as latest as equity fund our well direct as retro our latest expect we additional to fees fund. subsequent secondary closes

our million addition from advisory, to prior business. Moving reporting the million of distribution decrease period $X.X and the accounts, increased to separate and new due year Revenue in period activity. existing management decreased other reups revenue on continued a compared offerings several to investment XX% compared prior $X.X or customized from primarily revenue from accounts to year clients, due to the our

specialized in the relative million. vast funds and quarters our into is due final carried We GP is interest conservative in fee. the for to our is $XX.X fact their find of primarily increase prior Incentive that compared respective typically to European style portion for component a earning to with number GP connection fees catchups the method that catchup fund method totaled for related the represents majority the waterfalls, incentive revenue the Lastly, The the the waterfalls. quarter incentive which fees entered most [indiscernible]. of

and interest, more the stability favorable of represents and method any does client for avoids shareholders. to it carried delay the While receipt this thus risk clawback is our

Our strong this by move performance across funds performance remain evidenced fees. continued as towards our greater

first For satisfied. Hamilton of value then our of investors allocated familiar share of investors with that are which preferred European equals the that interest percentage, and Lane us fees as allocated the invested being return After the then our is their stated with those that manager less capital all waterfall dollars works, catch-up level result carried waterfall. puts a how and is in expenses, style portion

percentage. remaining value is satisfied, [ph] allocated While the carried that the is interest on based

the typically is GP, catch-up the you period, amount flows experienced GP this quarter. see value of outsized to we what which an During that

turn balance. even now recognized is carried if from now XX unrealized incentive prior year up to color of XX% billion. last balance some additional months. unrealized $XX.X at on we The fees $X.X The during our balance the carry period me the million Let stands

Moving increased of million $XX.X incentive to the associated increased driven expenses fees travel compensation primarily in million prior included with with costs. which compared Total increased $XX.X quarter. our compensation in the year Total expenses the increased million, amount $X.X period. G&A benefits by increases expenses.

our up commentary our growth the relative I’ll XX% earnings up the were discussed sheet. result as management some For of fee prior with fee-related earlier. the year quarter, wrap a we revenue on here balance to

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

is component to continue to to levered. long Thank happy the thank regard questions. call will term, as are to our continue view the Michael for And Stanley. modestly open continued sheet of growth liabilities, we Our that, balance Morgan Instructions] be with these important today Over capital Cyprys alongside an our you and clients. investments invest we [Operator first it In we with from up and for our you. joining question

open. line Your is

Michael Cyprys

look to I the Hey, catch-up hope for the first account last period so have incentive this off point kind had Thanks to? as able elaborate where you account you couple might European to the of stage a forward, of question. sort meaningful on to on just as or entering the fees quarter in you It If were into something good entered taking past the or is sort right. which fund to or you if strategy catch years? when that right, is hear if this the morning. And which fund up, performance, can or Maybe of point this fund relates you the I I of impact see which be? that might you related taking fund waterfall be GP And the recall sounds like strategy you closer the getting look back being strong care. point might the over

Erik Hirsch

of although a that, by as not going had We – generally across we a have waterfall. happy it. answering vehicles. our know, The – I’m sort is majority so take it to Yes, move that account space, billion our Erik. the specialized of to we separate of funds value Mike. many I’m different that varies. you European into utilized It’s Once take $X

are of Some are some deal-by-deal, European. Americans, them some are

had past roll phase. this other catch-up and this in so into have over that move GP had large occur we’ve We has the And as occurred. certainly vehicles

is those invested report which getting So closer our funds where you over to event distributed see history of all our can an out that. see strong can on future. past. an again has that will as just willing the that event in see funds, are specialized you the continuing the This are But occurred we we performance we kind dollars is with this on dollars, of that in

Michael Cyprys

Understood.

fundraising. then Thanks. Okay. on And just question maybe follow-up

think that. I a to were seeing bit you bit getting the broader harder. just environment on elaborate that mentioned I’m Erik, able you hoping fundraising a be might you

industry? your marketplace, in you institutional timing the side be impact magnitude retail Just what outlook Lane on How well? are in maybe of across terms as Thank both that but and of for raise also the you comment to you. Hamilton could looking what seeing the does sort can

Erik Hirsch

Erik, It’s I’ll Mike. Sure, that. stick with

it’s people you reported institutional that’s both to say and available which for you’ve capital is have months. the what means of other earnings out the invest, of That just kind in lot generally a in raise, managers, less calls heard I prior knocked think of over from to there’s retail cetera. investors had several last et value markets that

you So once investors reassess we’ve you their of effect. see strategy. markets, begin public been real. the It’s talking in said, also allocation That volatility about see the kind to denominator

important goal meet they X% a if tilt kind funding And to obligations not they believe that need have achieve tends returning markets. that it’s that return. would of current do continue towards to to they’re sort their of higher And X% to to their needs. plus to remember that think they to and rate to and a that I that going allocation goal of target their private redo investment they’re which strategies model, to asset the model in be be going

a factors. just I think you’re today of So seeing combination

I today vacation. for everyone is it that think cousin, working like hard on except all of seems their on are one, us

you back hurry heard just decision travel, as to People beginning to road, earlier, are just I slow so have tight again, investors, capital a just not seeing as down, you’re pipeline make a today. are on returning definitely also normalcy. our the events think But And me and not, returning. in a are kind to state seen they’re people a bit But summer you’ve big. of surprising not more is

this to growth history. sprint, think a for that exactly marathon, positioned always And rates over so We that built how the been a we’ve is delivering kind and that’s not on our same we talk focused of about I today. we’re firm remain continuing deliver very

Michael Cyprys

you. Thank Great.

Operator

from The Worthington next question with is Ken JPMorgan.

Your line open. is

Ken Worthington

Thanks for Hi, question. good the morning. taking

up following of on that. sort And

see a is sort barometer does, outlook to private can it address intermediate what sentiment? extent And about to of the So for market as way does Are starting the asset And there extent macro conditions perspective, what for of are real sent to equity, asset or extent macro seeing sort of from are messages looking in messages those term divergences for being term the activity classes secondary on based it, private near same the at private you or to market telling class? a the sort act by estate credit today? the it different infrastructure, the investors we’re are investing? the investment you and you market

Erik Hirsch

Ken. Sure, It’s Erik.

market or an at point sort think abnormally that higher LP secondary look that interesting of might volume, if because indicate some is to were cases, selling I see the to data concern for you in is is rebalance, that asset there’s about is or Today, there that clear, need you not are there’s liquidity. the need class which a the that. seeing a to or data very high

not of selling. all seeing LP levels We’re elevated any or at abnormal

want indicating barometer, probably And it you we kind it’s I barometer use is to that the the a so tell then if as course business would as of stay usual.

asset the where maybe sort uptick or a mix seen around kind single transactions. of change So competitive a in GP the in is slight led we’ve of

themselves got remorse we’re from bit that too got and think some maybe I just who active very think space I a in little think out some folks there, concentrated. the in market buyers I you’ve

into raise think I that space. dollars good fundraising, our continuing to you we’re at look

is makes where think I in little capital a very attractive scarce. very, more us bit a a partner to it get going market

as a look I so that net think we And positive. at

Ken Worthington

that you fund sort could, Okay, things retail I you. from or was June sort in net flows earlier? inflows talked either sort if of was of made that the went a July, there? And think just you fund mentioned, And was you on change then you commentary it XXX you think the of July it into great. about, Thank could clarify your more comments of You elevated just redemptions? the If million. gross I Did elevated product redemptions, clarify go retail outflows?

Erik Hirsch

Sure.

July. to you of similar the we I the came I again, April, heard out from year, think of folks, sort hit you – February, January, you’ve very March, combination think sort other on the saying think again August is, summer. June of in beginning which And is I August X what May, the we’re and strong saw all were here. you of

you to pressured think feeling you the I summer into think the rest the two had time. vacation real just or think what back One, see decisions which needing my of moment sort combination I make looks of people and comment, and we’ll the in But month of like. I this again, So came is to things. the not at I effective go

that’s gyrating. the and has that’s think of huge market And You just a add of geopolitical taking sort I uncertainty, and volatility to there looming people that sort that again, just, of pause. the is combo out the

number public from just I who managers have other that product So you’ve heard of space now heard in think we a all seen you’ve us, a from retail that slowdown. also raising are

be better. I all, think looks that I signaling think to we’re fall also

We summer people to expect of of making and decisions. kind start to resolve portfolio doldrum again sort piece need the itself

the them we before we softness mentioning saw seen had we said, outflows that So Asia. even as We in not I worth them, were saw really saw board. across

I of the But mean, kind I and sit – where today. back so sort forget of take I go And month-to-month we that’s piece. step a

takeaway raised forward, got certainly our infancy a the in space continues group big is of a far. relatively think to $X.X us real product drive to done its differentiator the that and sitting is we’ve so in picture among continuing you’ve at with young capital as position still I what peer billion

Ken Worthington

much. very you Thank Great.

Operator

next is from Blostein Goldman The Sachs. with question Alexander

Your line is open.

Alexander Blostein

morning. Good Thanks. guys. Hey,

right, or combined of from think Asia customer your point, well. heard as with much retail products, to the we Asia then base? Anyway seeing guys of is clear frame, based outflows? kind how $X.X of So the billion the the outflows AUM just Erik, you to others help we’ve something I as in know sits make the about net net in products to distribution it And not are retail those

Erik Hirsch

Erik. it’s Yes, Alex,

breakout the So think the want kind don’t of exactly probably to of mix. I’d geographic disclose I

driver flow. is Asia our not certainly the biggest asset of

kind non-U.S. flows lot If you of Australia particular. in throughout look a the lot Europe, of at of in flows

And was pretty so a unknowable of August sort probably positive a think is was to again, been net of zero. The are I net still close diversified it’s now. right and getting, I that. numbers geographically across kind mean, June August

Alexander Blostein

you couple can Got maybe Thanks. help earlier. us right. There’s you. that raising appetite in you a question you’re one, as capital that All I deployment, just kind guess have capital of as seeing products, fees frame been control has today, in for the well obviously you business. the mentioned that That’s around that you directly deployed, will as guys we’ll then and bill on that And helpful. have both strategies, the are what my of upon follow-up the you partners GP amount turn deployed? still guys currently raised on the

months? side most areas So to the next the expect helpful. be just active at would what deployment XX help And on then sizing in be you over call that

Erik Hirsch

start Sure. Why on deal Brian and and don’t to activity. the beginning I partner generally, seeing kind sort we’re ask just about of and flow my on what talk of then I’ll

echo capital. annual again, what uninvested just a would year As period. our are series one assets that credit But The the on That’s you for of majority highlighted earlier. Brian he that had so vehicle I said vast us, know, as committed is capital. investment

raised is basically capital within cycle. then a rolling deployed because kind it’s that So that of XX-month and modest delay relatively

what spending about having that’s that it commitments base annual want rhythm from series. of raising always to just basically is that can a is of think the and year based they yield be benefit needing because at sort they’re always of they investor kind to very sizing about of allows that sort the that be as And product portfolio. of I tactical So the how look each

to we’ve we on addition powder that that, mean, billions and dry will turn said as of billions kind In eventually. of dollars have before, I of

in it’s way, go out just said out. the that of our We’ve think not I’ve gone sort industry. the nature to of past calls as I break of

in is the not give view online. normal. deploy so we’re can’t we special It’s that. Our about paid. cases. wait sort to think comes again, trying And a It’s sense works of that, how to of it unique nothing There’s a capital lot we like, the or investors the I get can industry

robust be deploy turn We’re make to of give thoughtful, to investment commentary long-term Brian bit the significant. decisions deal little be continues good, flow around here and a And continues I’ll that. to The that. activity to to to sort of

Brian Gildea

strategy Thank Erik. about geography, that and that Erik dry be as of flexible be And to we’ll benefits real able of cetera. diversified Sure. one the you, is course, talked powder, by et by

to So the I of opportunity were new at see we – be X,XXX our set pace continues to funds. But investing look little to bit this talked a know you about on we volumes. if really fund robust. transaction over slower opportunity year, we're

be our down activity about likewise. fund be second basis. would year, opportunity the industry credit In but that seeing from overall year slightly would we're our down, largest year-to-date So a set be by volumes last ever where might of on that XX% down space,

strategies, the for we're in and current choosing the best fit able selective a we across environment. those of that still things opportunity highly be think to set all the So market massive are

Alexander Blostein

Thanks Great. again.

Operator

from Beatty The next UBS. question is Adam with

Your line is open.

Adam Beatty

Thank good you and morning.

wanted needs channel, Just products strategy is the products just new and particular there? about the you the in Thank I expect you the or you. with product of outlook remind involves developing that that, CAIS, partnerships. us some to other similar what kind know and partnership you around about that existing with ask whether Can have rollout

Erik Hirsch

the coming the also and to on And and I and we help just the and else impressive this stakes alignment Sure. getting products It's that I the receiving think, a Erik. with channel, ownership around chose customer I I'll and cetera, Part a platforms. mentioned noteworthy. which educate is take to that differentiator. et item class. And that. big body continuing It's do. to the customer across The around like equally partners our built, carefully decision-making of think end strategy partner was TIFIN, from is what RIA, stake products flows that important, largely running with is is an gating the – really they've is those leveraging good evergreen have. strategic we we secondaries that as There's iCapital, strategy and up FA, currently CAIS which asset clearly has their simple, with them take nobody education. channels is away the

I think and understood, too really from can participation. much a of still understanding not that cause hesitation real there's that's lack

provide to insights a makes to and little that transparency And us only and so things class be in what's to folks try happening comfortable peel of but one to and back kind able the to attractive hard higher to being bit the facts not data of more an those to asset levels. around partner more to at participate get them provide participate is

here, early far, see we So what we days but we're so encouraged. like and very

Adam Beatty

mentioned around investors the you Makes new And infrastructure the institutional for Thank sense. turning then process. the the good half you success of some relationships. to side, being comments the on front,

clients in level And I types of is flesh Where the of seeing the Thank little certain existing or demand maybe not relationships new a maybe similar your or new sort relationships, out the much? geographies? demand that among bit. to to So you if maybe just you will, client sort you. are of wanted so pause, among potential or

Erik Hirsch

I expanding is of result Sure, mean, would I to the that. Erik. platform. stick say this that largely you with I'll an –

sales more hire continue resources. We to

continue open globe. up offices to We the around

in do brand. invest continue directly things our We to to

marketing to and continue all of better, on around communication smarter get We that.

of customers were the what's that's the support prior that yourself, have to, come that. to there, so as that you fact in a out able in start half relationship introduce And Brian think I beginning had business go pandemic fund, and you've in not the of and said, leading that

to I platform, think telling it's of the just people out the frankly, a of testament the the our the power team the power and we story. have high-caliber are on that who there brand

different the that type. again, a wildly across seeing past not quarter been sort divergent we're slowing. geography of So you really there's And or shows paths not

sake get a asset as quick that's you've is decision-making the day, barraged and got be long-dated raced up every be that simply nature of looks class I at think to that that. and to But people's making all to not wakes normal as going decision is, the everyone deliberate when it's it the kind of just they're doing the being we're and and for purposeful into with there. headlines of going that

You've doing. customers to talking got be seeing patient what their being to exactly them be we're and to the long-term partner, and that's and waiting

Adam Beatty

Appreciated. you. Thank Excellent.

Operator

The is KBW. question next Lee Robert from with

Your open. line is

Robert Lee

for come my Great, the have one, thanks. the morning. Thanks separate Good Maybe business. first account questions. in taking I

commitment When bit. kind drill the XX% You then are change those have seeing re-ups, follow their upsize highlighted re-upping and you're or you little a from just up. that any that their level that commitments generally getting they're size can LPs and of capital one re-ups maybe for of in would

Erik Hirsch

draw going Erik. that. nothing that large into of Rob. everything. you're got have part to No, you've I Sure, mean it a such to installed there is base

maintains keep the going at so re-upping to at, investors levels very target need that of that already that they're level. You're is have mature which level kind allocation simply some to and are

You class, and building. have so to brand and they're they're asset the that investors starting are new

subsequently the if And become into building larger they're that. has so tranche

You've scenarios. got really a array of broad

say, customer So we're would seeing result of in that's behavior sort base. that's, not I just or of of And a in heart. abnormal sort Again, or diversified change some of some indicative anything large a change is the normal.

manager the a or It's in my asset said do re-upping class in a different they’re you much decision. And you're I separate think with single to be the sticking asset comments, to deciding sentiment not of, or that's seeing either wanting class not. than I in of choice decision not. That's markets. to one back account, more a fundamental allocation stay want with separate account one to want the very tactical the creating change is particular As around or why is The their to private sort participate. a or

why be that's flows think I so the continue there to And strong.

Robert Lee

of And question. a then maybe kind modeling

obviously, the So investing business, inflation, elsewhere. the in comp and wealth pressure, in channel

Is back. pressure into just of us how think here? a thinking your as thoughts to seeing run we put additional we should update progresses, kind that this kind trying on should about you from be to the good we're upward Is from what there about progression So hang could rate? year anything expense of

Atul Varma

is Atul. it Well,

Let me in pieces. take a of that couple

ago, I comments pipeline sort expenses, from COVID revenue we asset expense up -- a So expenses on forward, really growth as environment, where growth, commensurate if right? good to the from year partly So of had about other follow as of growth about is pretty what that this think and coming we you quarter look are are for the sort saw the based you G&A up. modeling you you said the that, from for the good And heard our out a And growth. and revenue at we travel feel standpoint.

revenue. G&A look think frankly, as in run we should line we forward. be compensation, a will rate But with move So good

And growth clients. assets. We're so be gaining hiring mode. to We're We're employees. continue gaining we new in

good. that that And so are looking I think from we standpoint,

Robert Lee

for Great. Thanks. taking Thanks my questions.

Operator

Securities. from is with question Wells next The O’Shea Fargo Finian

is line Your open.

Finian O’Shea

Mostly Hi, answered asked good me. for morning.

perhaps single-asset follow-up that bit was a the or suggesting a concentrated just part in deals too struggled? you market Can market that that are being more – on related Just of buyers you question GP-led remorse. earlier being or with have on to – the overheated LPs

Erik Hirsch

it's Finian, Erik. Yes,

maybe think more be of maybe either sort to articulate. try I'll I

the sort funds secondary been buyer or maturation If of space, one had think were portfolios secondary it a the about buying big of funds. you of you as where traditionally

underlying funds lots you that and companies. lots so and you ended buying lots and lots the portfolio advantages And of company with of had you advantage you positions by lots funds, were of definition, with diversification buying and were underlying was one lots that of when the and lots of up

diversification, power you of the so of think, kept sort out of concentration I risk. And

our – what these simply the driven of see ways assets. not had that buyers single about And you is by to I you concentration was weren't in some I fun, secondary maybe the were of some single companies. that think past in sort seen these of literally started Again, we've forgot benefit. occur that think some portfolio that

and not that getting mindful I'm inherent of strategy. diversification were about watching the the that true extremely market. sure consistently benefit And across so in entirety exists we that's not from sort of the straying away

still has now think asset of anxious single shrunk. or potential for you're GP buyers those but to sort lots seeing buyers deals, seeing do today, so you're And number deals, of the at now I least of

of. think And we and the imbalances intend with us history with capital And imbalance. that so us real favor buyer advantage we a for demand supply creates to the that like at take ready, a one person would feel that's that that I supply-demand indicate who the advantage and having is

Finian O’Shea

Very helpful. Thank you.

Operator

from question with Michael Morgan Cyprys Stanley. is next The

Your is open. line

Michael Cyprys

Hi, up. for thanks taking the follow

conclude be expenses, Just the good around and then XX% comp it hearing see quarter. should G&A, from growth to line on as to growth to in And forward so from the revenues, then fee-related move you would grow kind level here. that FRE the that revenue fair run rate upward expense lift of outpace fair? we from Is from should margin in we thus, here the with

Atul Varma

its Michael, Atul.

me that. take Let

unknown retention is move if what growth – we while bit about that that think where I G&A that return could part is some is, think see the increase we say travel I potentially you good pretty to to normal I there. and revenue look you at expense more little the continue the to office, here would feel a growth, is

at feel it, were in look at getting But where the don't with it pretty we would growth the I I expand I short term. fee. we FR way think the if now, are know you right know the we rates So if about happens good don't that

Michael Cyprys

Okay.

term, be quarter's you level of it sounds sure guys good a could current kind that margin it move of FRE but probably longer like from are Does term. So to forward it maybe a in near synopsis? sort is here. positive expand the the like sounds I'm fair

Atul Varma

statement. fair a That's

Michael Cyprys

Thank Great. you.

Operator

Hirsch further over time. it no Mr. have at I'll remarks. this turn for any closing to questions We

Erik Hirsch

taking successful Well, you, again, Thanks We we a you the the summer. appreciate the are questions, and support. appreciate interest. time. the everyone, We appreciate in thank for the wishing again. We completion

Operator

Ladies call. you and gentlemen, Thank this concludes participating. for conference today's

disconnect. now may You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.