HLNE - Earnings call 3 2024 | Hamilton Lane Incorporated

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Operator

Good morning, ladies and gentlemen, and welcome to the Hamilton Lane Fiscal Third Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded on Tuesday, February 6, 2024.

I would now like to turn the conference over to John Oh, Head of Shareholder Relations. Please go ahead.

John Oh

Joana. you, Thank welcome earnings and Hamilton QX Lane Good to XXXX call. fiscal morning, the will Erik Today, Delgado, joined be I by Jeff CFO. Co-CEO; Hirsch, Armbrister, and Juan Co-CEO;

presentation, a Earlier we website. press which are release this available issued and morning, our on slide

quarter's discuss want we will the that to statements. making forward-looking Before you we results, we remind be

events Forward-looking financial and operations, future of future materially performance performance, position, business. not our forward-looking or plans, that expectations do our projected. actual projections and subject and current discuss results are results statements relating to our statements These to differ to and uncertainties those cause objectives, from guarantee risks may

XX-K discussion factors today, we no or file and statements these of forward-looking obligation review please with and the a SEC. update of included the are of Hamilton them. risk the we as These made only cautionary required, undertake to XXXX any subsequent For in statements and reports risks, fiscal as except revise Lane

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

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

EPS million on of period. income This non-GAAP while $X.XX the the year XX%, fee-related into EPS by and net $XXX net fee of GAAP earnings versus on with advisory revenue grew Beginning highlights. income. our GAAP of by $XX XX%, Year-to-date, based financial and management based adjusted our prior of million $X.XX translated grew

of fiscal XXXX. With $X.XX XX% to now share share that, dividend fiscal turn for the us track keeps on over to per quarter, have year Erik. increase per equating the for $X.XXX a targeted the call this over which declared last also We year, I'll

Erik Hirsch

wanted first Hello, to everyone, as that post and will partner, start thank to management opportunity begin the you, we living It to now directly our strong Hamilton on Lane. year, prior this an Juan begin, at Juan hear X his by and Juan broad background these it's shortly, hear providing Delgado, to of John. But transition in will on he you Hong calls introduction. as is a been me the important roles from we has an my regularity. be sees you but with Kong, we joining earnings With not call officially and as thought co-CEOs firm. This January

with it turn that, to Juan. And I so over

Juan Delgado-Moreira

I begin Thank over chapter. and simply for continuing forward been and you, of our to partnership hello, that business. years. XX this saying everyone. have to by I'd Erik partners continuing about next and expansion excited the extremely this Erik, the I growth and friends And I'm like look and really

an investment build London. our was at Private where to brief in manager I Stanford investing mid-market a I joined and to focused Lane As Universidad my out in joining, I was Hamilton And BA throughout on Europe. Partners, Scholar de a presence Complutense XXXX Baring Equity PhD in and Madrid Prior help I have Fulbright from Spain. at I lecturer background, University.

many worn hats. In joining Hamilton Lane I've

Asian EMEA our in offices and and Kong Aviv sales our in East. presence open I Hong Middle and our working today the I opening have in in in leadership build the for was responsible to investment also First, Tel team XXXX. Tokyo place and Europe was of office. out managed I hiring the first

of In APAC, then, Hamilton and Singapore, several Vice XXXX, business young our for offices, family Shanghai. expansion XXXX. since X Lane. International, as of Seoul, of overseeing of Chairman my I And with As Kong Sydney Head in of Head and including June Asia opening to title Hong took relocated and I the have grew, the I the served on

our of Today, as committees. I X, on of of I And joined the HLNE. investment January several serve Board

As I be investment the and teams in with highlighted client have Hong business our overseeing we global our development Erik announcement, of initial from oversight and Kong global will joint teams.

at our years had I've non-U.S. the of Hamilton XX-plus witnessing Lane growth these business. of the privilege During

has speak one and and to to investment global Our team a model strong us forward working service and that localized a the collaboration and furthering truly close in best-in-class We teams the with really having embrace global all language approach leadership. deliver allowed to to Erik Lane of teams and their brings become results. culture native client markets in strategy, private with look alongside I leader our resources Hamilton access bear. We've this utilize

often. the that from myself want I now I currently mention And en I'm that, to Erik. Before as excuse prospects, and to live it And I with I quite will will I'm conclude, see pass traveling therefore, to doing clients Q&A. back route

Erik Hirsch

of in firms business am proud and impressive the Money has bestowed year for to and calendar base announce is employee the our are tremendous Coming of every to this X Investments creation. who Work Best single been Pension award's fact year. distinction only X consecutive the excited Management XXXX, are Hamilton is we Lane about excited XXth has excitement that, the that very that once and Even stems from by been since we again, have Place named culture. a a more come. Juan, And is of about momentum, off you, travels. Thank Part what safe strong I to XXXX. The

have Be about strong culture aids and and Some use culture that for all cultures. deliver We culture your a Those think results. a matter, collaboration good. excellence great and to firms to and results. healthy that and creating of doesn't it's tend in great say clients do not Create firms good partners.

and our at stood start and growth $XXX footprint a our total our highlights quarter. to as asset of the footprint, move we results I'll our to steady This with for billion the X% which as firm. increase represents continued define Let's and on and AUA. AUM a year-over-year, the sum

AUM stood at $XX separate mandates. billion primarily both customized growth grew AUA year-over-year, result and came the XX%. up addition The quarter-end or and accounts. X% funds of billion $XXX reporting $XX advisory the our billion specialized was from at and of or

a in for As revenue does a the not those fluctuate with changes. can lockstep necessarily of AUA reminder, AUA reasons, but variety move associated with

continues which to be fee management AUM, of the now Turning earning fees. driver largest to

continue strong generate customized our We funds. both in to growth specialized accounts and separate

prior billion or billion AUM fee-earning $XX.X grew XX% year $X.X at period. and Our total stood to relative the

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

from fee Evergreen growth rate fee-earning strong. the continues shift mix notably blended product to of our remains This continuing specialized increase. also platform towards Our stems in where AUM most higher our fee the across the funds, rate

now Moving past additional detail accounts. months. customized billion, Fee stood to XX% here separate over on earning the AUM $XX.X XX our growing at

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

XX the our came last months, from than accounts base. inflows customized client into separate gross the Over existing XX% of more

the to model, remainder it base of new the While a plenty relationship relationships, power with tells recurring the the that, coming installed you also continues this new large a opportunities. of to that from very market of clearly flows, despite offer speaks

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

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

some quarter's drivers market. fund Going secondary detail growth, begin of specialized into around that fund flows with during the I'll our currently in is the

LP and retro over fees. over that generated we $XXX brings million billion. During closed $X.X total This of commitments, now the $X.X raised of quarter, on the to million

our $X.X prior to quick on with a we prior fund, this surpass secondary fund. are reminder, meaningfully we target As size and raised fund for the current billion

the hold expect this final over for weeks. We the coming to funds close

encouraged largest, continue expect closes true to and momentum with to be the pattern we And tended final that the stages. here. be heading We into have our historically, our to final hold

Moving the fund on to opportunities credit strategic targeting direct LP. which our is annual our fund, institutional

market this and capital. the charge capital is periods short in invested on series raise fees a investment we management and of with funds deploy As effectively always refresher, as

currently an additional with on we've in our this million $XXX current market $XXX our last are eighth closed This LP We update, series brings series nearly commitments. million. and, raised of since for to total the

final into this to the Like many fund. investors to we've the series additional time close allow an been close on granted products, of of for extension our for

our with this to like over to experience Again, institutional We now separate to the evergreen expect we credit-focused being to growth see capital, weeks. other represents coming complemented continue flows strong has scale. credit few with and highlight opportunity in the past including and AUM, years funds. credit the platform of final Today, continued of I'd that XX% various series our to direct sleeves annual our total accounts hold

our Let's now turn Funds. to Evergreen

which XX% growth, XXXX. across the turn driven stood total performance, calendar beginning As along in AUM NAV the XX, by our XXXX, inflows. offerings drove investment billion, $X.X December X continued net since of at strong with solid growing was This of growth

we've year wirehouse received per offering than U.S. we inflows relationships. strong of progress million net making XXXX, market net inflows. our averaged up calendar more than with on less X $XXX those of private our being $XXX For a platforms, of month with million In

only Our journey. We've competitive this are as is channel, an leader a and of our confident the emerged thrive exciting real evergreen marketplace. to complex beginning we continues this increasingly despite that in

our additional in our expansion are partnerships. footprint We grow offerings the through of to distribution and eager space product

around now our move Let's some technology announcements recent most partnerships. to

vision We retail partners accomplish need where to most is we the through to private noninstitutional to access meet believe efficient markets technology. way who you'll investor in they increased firmly are, As our seek that the for driving the and hear, investor. continue share the to that out of managers

and let's newest TIFIN. that, announced call, we with our on joint our update partners, X start With of on strategic prior Helix, with venture our an is which

for leading round information DealCloud, announced Cobalt. Hamilton data-centric analysis kind As around digital and Capital. benchmarking, Helix investing investors platforms track FINTOP It led markets private and successfully of assistant markets. first designed completed Helix December private by have allocation its forecasting market is private companies, to for technology seeking including a combines database the seed markets. advisers and private Lane's by focused that of reminder, within TIFIN successful markets-focused it solely in diligence and has partnering advisers. On the and and Lane Hamilton expertise Helix provide used wealth its future the and a financial AI Hazeltree to with is technological on proprietary X, developed integration generative FINTOP record funding marketplaces

common our markets. shares We of innovation thrilled who within goal are partner once with the FINTOP Capital access private broadening driving to technological again, and

Next, investors XX, to high announced high to alternative the on that managers partnership Libre access tokenization with our strategic global will wealth a net Libre. offering and and with January we with direct Howard asset provide seamless worth them advisers, managers connectivity worth that connects contracts Libre the will leverage newest is market. tech platform Brevan alternatives smart asset growing net alongside channel.

integration several Libre provides Libre's data infrastructure. for with go This live is scheduled makes already access management and services, wealth XXXX suite first and partnered distributors the distributors. Libre connectivity. during quarter comprehensive of of API to simple through global has into

you we We look of journey. the to go partner one and future forward strategic are a be this providing and with to live to first updates to on exciting Libre them, with excited

that, call over the to I'll Jeff to now the cover turn financials. with And

Jeffrey Armbrister

and Thank period. the Erik, management good business versus with our advisory you, we Fiscal prior growth strong year-to-date, achieved and morning, fees year everyone. up XX% in

platform last revenue funds fee-earning secondary our a by $X.X primarily XX% our to specialized XX and since latest Evergreen This was in the year prior billion the million increased AUM increase over months Our $XX driven fund. billion compared raised $X.X period. in or by inception to in

fees the our the funded fund fiscal direct Retro period. from -- versus in year-to-date for market secondary equity $X.X for million from prior-year our included million $XX.X

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

retro generate the hold expect as additional fees Fund to VI. closes We final for we Secondary

XXX investment to the revenue by Moving accounts. $X in compared from new existing and accounts due continued the customized advisory, other the activity. from addition year by the on to of due clients Revenue period $X coming period our decreased XX% the primarily to Revenue our and offerings partially prior separate increased from million offset to -- reporting of prior-year assets. compared technology sale Capital to solutions. increases or million several

fees. Recall incentive incentive last incentive XX% a large last of several Lastly, relative the year revenue our we're generated period. fiscal fees year, and amount are vehicles fees eligible Year-to-date our final that component totaled that of is to the we -- the million catch-up down to $XX due period in. prior-year of carry

me some unrealized having to $X.X our recognized Let The carry incentive last stands up turn fees balance. at on prior carry XX from the additional The XX% approximately is period, now unrealized during of now while billion. the $XX balance detail months. million balance year

the are expenses prior the Moving that to expenses. increased $X flows will an the with the Total associated dollars primarily have which dollars into like fund. million, those the third-party the million, discussed compensation we've period. with Evergreen payment commissions decreased Year-to-date that to compensation million fees. lower associated wirehouses upfront decreased is and you driven our channel remind wirehouse driven raised That incentive of come the and related to total on $XX amount made decreased offered by applied being by G&A fee prior-year benefits U.S. total to expenses, through close compared from primarily there. when that by amount on revenue-related in product $XX calls. I'd the

a from the those Said subsequent However, simply, on associated we our to earn This the as invested cost the offsetting and over a revenue and same and management of come long bringing come years. flows. in creates the the This corresponding we fund. between of those the is for the in dollars receive fees with during as causes with to G&A revenue the course mismatch upfront over full more timing client the quarters dollars bear cost eventual our in increase time. then revenue year those

FRE, AUM or earlier. earnings, prior earning fee fee a fee-related discussed up the the management XX% result year-to-date as relative year Lastly, of were to and growth period

final the close is this movements the we our the Fund on prior quarterly Secondary impacted that in will and call, VI. was interim noted quarter. timing extending to retro quarter timing could of for extend Fund fees the Recall VI's cause margin close we extending out what which margins. Secondary As the receiving final potentially FRE due for our of associated witnessed FRE

maintain for on XXXX. I'll levels However, fiscal of XXXX, year the fiscal quarters up some and commentary to our with we balance fiscal with consistent X first wrap expect sheet. the XXXX here

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

clients. In of long sheet levered. the investments for our growth, up to will view continue to an Over open these be as we'll we we we continued With to questions. continue important our call and component term, invest regard liabilities, balance the that, modestly capital alongside our now our

Operator

Instructions] Thank we you. question-and-answer Ladies begin now gentlemen, session. [Operator the will and

comes First Stanley. Morgan question from Cyprys Michael from

Michael Cyprys

about the ask that to wanted have. new strategic tokenization I relationship you

Asia. prior can and could called had And it Libre. of just in some I that Maybe think on that. elaborate over you with the if you maybe you with on securitized had ADDX tokenization us update you partnerships

was. it think I

from tokenized lessons Just you your developing informs and view funds. curious private that on see learned those for market the what you how how take relationships market away

Erik Hirsch

It's Thanks, Erik. that. Mike. I'll take

clearly of beginning of find the better to investor. be at going to my things things. going the we're both those In one sort this. that cheaper. a goes, long is fund is industry, for manager the and journey. I think of faster, we think a It that question better, this lot you And in think, is the don't How XX of is be I to mark. a years what truly of are Tokenization very this really what adoption goes journey is

both easing believers retail so institutional in and into these increasing products and, technology. investors investors. access believers frankly, the We're are the big And we for in

you're to to winner. that it's so do one seeing us what going And suspect it's know don't a today hard who's going I is be winner. be to

And regulatory locales, sure because in strategic covering of to different so different make the the each building we're those different. we relationships globe set exchanges of a that for is around of kinds markets are

is experienced have far so we flows. What

amounts variety out capital through investments, has partnerships are have But it It massively are capital? receiving We and believe, panning think our of of significant modest, it been well. I these costs Has around channel. been our strategic the coming token from not. different the we

And continues continue and are they to it's customers the all and I are that continue there -- things those that needs so rise, think awareness to to educated us need telling be to think we and happening.

space. And as we ourselves see the in clear very very, leader a

else channels. strategic than believe in there these we these of we've anybody and think variety I a relationships various got of more now products out sitting

Michael Cyprys

new Hamilton question Great. around And follow-up just customers coming a Lane. to

existing the XX% this bring SMA installed the from suggesting finding grow, that to customers still to customers, about mentioned to is of continues that meaningful as are you're the contributions base new You firm. even opportunity

see are coming. elaborate that winning that the need folks you elaborate So -- you're maybe Maybe that flesh these asset where a or are you the marketplace help that already on that can new little but just assistance? could you are the opportunities on invested just customers folks can class more these in out. bit new you Maybe

Erik Hirsch

Erik. I'll with stick that. Mike. Sure,

So I a think as it's combination, noted. you

are in we're class. new investors We are SMA to to see asset continuing talking brand institutional And that business, again, investors. the both the

we who are them. ready to and are and equity continue globe, their geographically we journey, have as assist embark around as on institutional we absolutely kind there able of we expand, So investors the yet meeting and seeing and private travel to to with

The away that from taking competitors. XX% other clients of us source is

alternative, provider here So taking their a provider. service another away current of of we as an there's versus are aspect sort clients also ourselves then better us and service positioning from

those X of that's pieces that combination XX%. the it's So fueling really really

Operator

from question next comes Worthington Ken JPMorgan. from The

Kenneth Worthington

margin. on first So

margin FRE So in declined XQ.

margins XX% suggests has I year, to pull equal putting I XQ correctly? guiding for which these have pieces up, levels. suggests way this is of Do going right? back, comp all pick together being XX%, third way margins to FRE all else still to that from quarter the You're Am all sort

Erik Hirsch

Erik. Ken. Sure,

I And steady compensation, did ultimate as result is because to the pushed significant some fact compensation earnings and retro the the of which opted quarter, amount what said next they've are what obviously, the again, the quarter, think to what posted around. been sort to we that what due we're in is you're into So view historically of year. what expectations do we see ratios compensation this is the ratios. Once we which of to that first talking get in quarters retro with visibility, line we call, of setting lower margin, in variable what on line we've basis margins we our have quarter. fees and of a subsequent and year. the historically, the on been remain of going accrued less like an Managing with we fees, sort artificially to closings we through about last compensation, inflated the today, resulted X in out That's done with the we for to looks line going throughout have

Kenneth Worthington

Okay. Great. dig the guess, SMA love And in distributions would business. then I I to next, into

way mentioned pace. and of of 'XX, And 'XX in distributions some recycling of XXXX 'XX, distributions think and that the time you down. jumped, in I SMA there So really at impacted piece came that which capital, then the was pace

pace distributions? what of realizations. forward, here and assume So going the into go think I this part are from maybe contract timing, it's about that factors as first, really we part

fitting deal market There's kind And bunch don't of this pieces how whole calendar Does know. as activity? And kind does it up I is better there's pieces. stay a know, of those at pace see year, because and more we levels? don't moving realizations the to of I of do the go we -- these together? look

you could about if help Just quarters. X think us the next

Erik Hirsch

Ken. Erik. Sure,

out, investment environment COVID. of environment So now dramatically down. what couple One, distributions ago a things. then, increased distribution a hold activity had years market the is market and of are extending coming a it pacing you where changed in saw we periods couple That impact and of as was things increased really discussed did X occurred. significantly, And significantly. We're

happening variety activity what's of the across different So no what's you've other a in periods exit the really SMA in large. kind And somewhat is seen of the are extending, it Hold is market muted. than fund managers. happening at

specialized the to safe extent, that here. To back that's the so in of and overall or what markets activity And is continue it's we seeing that whether and will and funds investors the distribution see go that's our sort of the public SMAs, expectation believing see economy you that in stabilizing, increase. kind water, to you're

across will that funds, also so across come it SMA specialized come line. carried will interest And and the

Operator

Blostein The Goldman next Sachs. question from comes from Alex

Alexander Blostein

margin little maybe bit margin the Just question. FRE out a on question, zooming the

You some And makes in retail all in the guys business, kind the masked with has really channel. the are clearly embedded sense. dynamic of lot the wirehouse profitability investing that of that a of

a As now, from business the to couple XXXX? up as you of how out likely the for a trajectory years end you're of to fiscal look should for margins about where FRE your kind of think whole we relative

Erik Hirsch

Sure, Alex. Erik.

as know, future. the are think clearly you investing for I we

all geographic occurring side we price which variety sales, said, higher you're shift partnerships, the expansion, to and by of because that So these with margin that, doing contributing see back not today. That are retail in the continue expand at firm time, double-digit to to posting to the that of fee we of margin our product all. higher-margin among and substantially lot than on you're and around put also, I we've way, to We the if capital a opportunity continued seeing technology growth. resources look fundraising been the invest institutional footprint into lines. we're continue And think results over set, seeing think most, way peer a continue to larger already a the both to is

letting bit out, a make relative have firm going standpoint, further management in continued with we margins those versus margin out. up the back from for so few years of rise what to want And do and little investment strategic we'll to the growth around sort to decisions forward, a you a mentioned

several we I is over view next the our do both. think can years

Alexander Blostein

I of And a flagship around got you. helpful. That's the couple maybe clarifications then funds.

I So number on don't I if infrastructure. them. a on know heard an got of we the update details

maybe us quarter, are sense the up that and next the beyond a out. shaking on market of quarter as fund, specialized you secondaries guys give fund look as else is expecting you of to So what wrap sort the be And things? side where this of you in with

Erik Hirsch

Sure. Alex. Erik.

get from as in having have So infrastructure, expect days. us closes -- updates that quarters early We'll get have we'll multiple the we'll started, coming over start reporting I you'll raise on. on that we start fund and

big mover The process close. be marketing eventually now started direct report but have because to again, But officially fund, in equity other the investors, we've yet the with will yet not a which we is had nothing existing market.

Operator

Beatty from UBS. comes Adam question from next The

Adam Beatty

In of opportunity credit think you prepared, lot currently the a XX%, mentioned there, said, Erik I and business AUM. of

have existing looking growth growing growing total just also AUM thoughts future And with of whether business, where new shake you're would given proportion that more maybe or I around wanted expect what So to to out as a some other detail products, and that to in get you. products areas? vintages some you

Erik Hirsch

Erik. Adam. Sure,

So today a multitude has is remarks, growing as for the which credit can it grow. piece I in avenues because it the prepared of mentioned

and in our the So product. in funds today, for we have strategic that's dedicated Evergreen non-U.S. retail, institution, credit-only is opportunities, both which credit, specialized

have already U.S. specialized we the covered So outside the piece fund of

to U.S. product. Evergreen certainly look have we'll time, credit I a think over

the a aspects Funds, variety we On I of to we multi-strat and of the meaningful a have fund both lot again, have to which them. portion. as dedicated sort noted, flagship of X co-investment and institutional is both And specialized of SMAs credit also in non-U.S., U.S. credit Evergreen a retail so have addition side, that, our SMAs,

of in So that different and the are at XX%, meaningful it's invest we we environment all be the see consolidation growth opportunities a those private continuing resources. we rate the banks, client with portion because there. of kind to impact absorbing attractiveness have of of of today. high And you good expand portfolios. lots team We're lending and with regional U.S. of been sort in to performer believe the that, relatively inside resources a the been has in as It's AUM. continuing see very credit of of globe, of kind But diminishing occurring kind already buckets that of the particularly credit a very around

we we we continue lean And to of to see continue and lots see view so opportunities, in, our is continue growth. to

Adam Beatty

And good. on follow-up tokenization. Sounds one just

you wondering into some or do days. sort of tokenization management? of an interacting in more actually early with management and you avenue productively introduce your to see feel accounts? existing you whether Just though expand see how see that kind obviously, TAM as you do retail But channel, it, could now, wealth Or you existing wealth it as the

Erik Hirsch

Erik. Adam. Yes,

both. it's think I

on our of to up are all easy one I don't stored pull The private markets to location. need the When portfolio, we about can that I asset is is think us and have believe going there. accounts, phone, up trade ease on investor what in use. just this our think views sort have demand of to we and we and the for class, we if can equities how on easy very transact, it going is to investors private public meet wildly you the of they're get transact public X tied research, at different look of the what is the and receive retail side. it what of funding the world, versus market they investor equity receive side going of get easily expectations they to apps in kind pull to eventually

is and tokens, aspects again, experience. of a single single trading source, much of move wallets laundering more So Single that and our around with are digital And point kind know funding construction. real of use towards your view a public customer equity tokenization more that ease positions. replicating portfolio anti-money management

change, is while of the opposite. see investor it's and places it's belief we as to all retail We the that going behind who actually drives kind that, in so follow will one think is that our attractive. And we be institutional investors a institutional them. investor of going here, the lot that the And the be to of change, very drives think

it's it's clients an can't think and, frankly, the opportunities existing into we world. some We of getting if digital in tying want and. to think otherwise channels do they don't who invest both the So and it

Operator

next at Brown comes Mike The from question KBW.

Michael Brown

space. to story. a a it of crowded you have bit on speak is into hand, some But the products field wealth of will I seeing? a larger. funds coming kind you're almost market. envision stand the alluded lifts continue to, dynamics little pie tide the a been talking evergreen maybe just greater guess strong competitive a strong you hand, for on I all that I there's dynamic to comfort these Can one tough channel as make competitive a The more the as it's for brands can with to the just But guess like to, becoming grow out rising were that boats there's you other tremendously in maybe

you're I'd about So maybe the hear to how pull love thinking and those just dynamics. push X between

Erik Hirsch

Sure, Mike. Erik.

exposure zero. similar they're is that space question investor. in an and, comment Adam, this high I among there's And with starting the which probably again, that an is it's interest very think cases to retail is basically my no probably, to most in the

either capital, large So or of not dramatically you U.S. this class have both the pool outside in is that all. to at the and U.S. a underexposed tremendously exposed asset

the allocation single levels well not near if nowhere exceeding, to so doing, digits. We're investors is trend institutional going then see digits. today. you're most what into the see for digits you investor double that single retail Again, and low more mirroring, that are investor And today if

available sheer amount capital is and the of is that So present massive.

huge a So about you're talking market.

one don't also We winner. a this see as

world, managers the today, not if we public asset you I very again, it capital. a single compare trillions, dollars of a think equity large of of have controlling large, successful of very billions, sort firm group It's to, winner. a not or if single

so this asset what is like And think going well. this as for over we that class to that's look time

product huge room massively market, So, of offerings. for addressable lots underpenetrated, successful

that our that's to we're out, and continue of we kind continue to finding of again, to we're to see is investors of playing is product invest one various how the great way And not stand with are unique well we those onto reasons and is service. success the flows again, partners we this think all And customer which, ways brand, doing. additive channels great And having experience the that so unique that's time. make we think think, these great because doing, things. over getting to X that various you across the are others And that everyone have will out technology these and of in sort what having results, doing out, the we're why stand sure and we're we look offerings

Michael Brown

think just these how about of what and gears baseball. Okay. be? how investments, you? could maybe And you are? strategies do maybe framework this Great. investments And maybe to for to of then of growth translate the of part then if you're you -- to growth us Can could look Lane. some I potential expectations much give culture an some your what and terms basis? change And bit of important investments. an into deploy what is tech the some the annual capital does I of know a how these like some growth expand just partnerships on the Hamilton little your on in your of Like strategic considering of When inside fabric recent the

Erik Hirsch

The buckets. different a of Erik. variety investments across tech are Mike. Sure,

a one the Lane technology and provider So that to bucket our bucket frankly, we most efficient tools better around done both started number with have make our and Hamilton and, service the more customers.

as think cases. angles, single-purpose of simply those ingestion, reporting, majority terms or use or strategic again, back-office analysis, bucket analytics, think So that client, different unique The preferential vast as a data we oftentimes one. use with about of about sort

sort look clients Hamilton and, frankly, of result I as would firm, at is as that So bucket Lane of delivering bucket. efficiently to a better that results more better higher-margin a

a you remember, with have we over those as Now monetized of time variety great success. also

significant large multiple. very So, cash

sheet not gotten capital. we've So but only our benefit, balance we've the on good gotten internal return

I of put would sort around number Bucket distribution. two

the think on platforms. the that So product space, only adviser also plugging and with offering their are about that token into but not servicing firms

been beneficial be reach, a that So to in more to way reach we customer is or way that not access a a us a able might otherwise has customer for them. try to to that

and Lane more the also than, brand our visible that those, our value-added say, Hamilton putting us baseball We efficient great think that with uniform. we for associated they're see more to of brand because more a ways in way enhance much is some on are a them, and logo

And think we're earlier. I significant Bucket results. where so already that's seen is a operational side, little meaningful been the benefit there. Bucket one, two the we've

because again, a to about always are -- or have looking been We have of around going going think occurring deploying, has buckets been a meaningful use very to But we budget way or go a at we it. firms have see good to in opportunistic strategic we sheet, think what we're and be don't this to as we're these and to at looking doing kind balance we and they so where set spending think forward benefits. have effective both we're And date. that we're

Operator

comes The Fargo. next question from Finian from Wells O'Shea

Finian O'Shea

the wealth describe Another Or lands perhaps for finding in in market? Are with they BDCs would to of product? you context, it potential? wealth multi-manager that question tend in how flow Evergreen. nontraded that kind different with And a the all do credit on group you the of specifically addressable as newer advisers,

Erik Hirsch

Yes, Finian. Erik.

manager multi-industry, one that standing that do. multi-manager we big a of that a in that's out And in multi-geography to harder think differentiating we're the of co-investment I secret providing vehicle way exposure, we've advantages multi-manager, way the is for products no It's multi-size, Evergreen that are and approach. think single the fact single of oriented. been is because a our

our that of is so is we sort that where and are differentiation And targeting.

experience, come them then credit credit. one look additional good the Funds, were were to at you a decided number have add If have a already liked of flagship have from to that exposure in the folks service, had returns and via us strong, of Evergreen the flows, thought the

Finian O'Shea

be at likely market. it me. that's in follow-up distribution for flow up products Is few Okay. in as seem some to That's the market described meaningfully there, required invest a leaders to, of say, to And the one the given it of does more pace show? the to just monthly all all pick that on in table the

Erik Hirsch

up kind I is we're that to goal you of increase flows look our Finian. period. noted Thanks, calendar XX%. at over if mean calendar, Yes. Evergreen flows I

job So I But doing laurels. been resting we're terrific on think we that. our of have a not stopping or

for other of continue you brand look for of distribution. this if team, future a flows, And plans and clearly market to maintain, the sales increase so is has all that space to that designed at And to us, very expansion to mechanisms in leader. additional adds it sort build as

I think, XX%, keep is going. So calendar and let's view impressive, over calendar our

Operator

no comments. are Thank Erik now to you. the will further I back call closing Hirsch turn There over for questions.

Erik Hirsch

the With you thank And everyone questions. you support. for the that, Wishing thank for we We the well. thanks time. for

Operator

call Ladies conference please for gentlemen, today. your and this participating, concludes ask We we that you and lines. you disconnect your for thank

Hamilton Lane (HLNE) 6 Feb 242024 Q3 Earnings call transcript