HLNE - Earnings call transcript Q1 2025 | Hamilton Lane Incorporated

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Operator

Good morning, ladies and gentlemen, and welcome to the Hamilton Lane First Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] This call is being recorded on Tuesday, August 6, 2024. I would now like to turn the conference over to John Oh, Head of Shareholder Relations. Please go ahead.

John Oh

Thank you, Julie. to Lane welcome Earnings Fiscal and Call. morning, the QX Hamilton XXXX Good be Hirsch, our Head by Jeffrey I which a joined Today, will slide and Erik this we Financial presentation, and press release Solutions. Earlier available Armbrister, Officer; Co-Chief Griff Technology Norville, on of are morning, issued website. Chief Officer; Executive

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

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

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

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

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

leadership us. to walk IPO see continued XXXX and and results private of depth March growing our Day several and since it, HLNE reminder charted to a and as market may offering. missed markets were held of we breadth our what Hamilton through and the proud on in those show our our front growth channels X, strong Shareholder in through in progress who drivers. We June a as business we our where our for Lane We leaders large discuss continue First, second have

chance replay not the the have you be headquarters at us with who our a found watch who to the had for presentation, of those the those person all section joined along Thank For website. shareholders a our live presentation. in to accompanying slides on can recording,

Let's move now highlights. to some financial

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

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

Erik Hirsch

John, everyone. morning, good Thank you, and

on results grow. experience We proud particularly here continue focus delivering and quarter. our ability to is recorded excellence strong this in momentum Juan to not another in of continue this And and I and and brand their by focus accident, None outstanding are team our customers. That expand market. happens the to to our of what unwavering have

represents and at $XXX to This grew stood at at AUM asset our our stood $XXX increase end, XX%. and now move or total $XX Let's to year-over-year. value billion footprint. our billion of XX% result footprint the $XXX growth billion a our of came and growth from year-over-year and solutions market addition up XX% funds accounts. AUA The customized primarily back-office specialized and was or both technology billion mandates. separate the quarter

Turning now to fee-earning AUM.

that to our more are separate growth increasingly, a worth This AUM seeing specialized account allocation funds, include specialized captured accounts. fund across our would across modest separate specialized is and growth get we mandates strong good separate and thing. funds, not emphasizing meaningful very generate to is continue under accounts. It We platform that our

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

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

Day, evergreen Today, XXXX, As fee where funds, public increasing rate platform we our went detailed fees. most rate impressive. remains rate higher stems mix in steadily notably the our our shift the retro products points. year-over-year. This fee-earning at in been was AUM in basis towards the Shareholder fee has impact blended across XX from from points, XX our blended excluding continuing it specialized When we fee our stands growth the of basis

to separate our now on additional customized Moving detail accounts.

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

account on finding As our separate through is for already some highlighted invested to private this new business markets foray. of their our last which and grow call, in continues first others, have clients, we

flows maintain and customized and balance our continue as case $X.X class. re-up fee-earning remains the asset through exposure of be where X% existing look has over or steady to they to remained months. billion separate grew fiscal -- last bulk This their this by the and AUM at grow XX since The our IPO with this stood us the net of account trend quarter clients driven our first the $XX.X to by who billion

to to at now billion earning AUM here be our $XX.X where stood specialized end. quarter at continues move strong. momentum funds Let's Fee

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

fund specialized the to flows. moving Now of drivers

latest secondary with $XXX relative geopolitical start took fund, last their trust, a and of the we fundraise in choppy $XX held XXXX. This public fund million largest up us. institutional our are mentioned of fund enthused conclusion, the to fulsome placed team determination an close in clients billion an faith was represents and our June funds, the XX% committed, sovereign and that retro of where ended unstable investors expectations. Investment global as over group our XX, us increase generated pension plans, million capped call, crowded include fees. institutions. On close brings fund to and investors of the The and held we billion The of corporate over strive in deals in size marks nearly landscape. we wealth in final XX% generated At our a its of we forth at front work strong remains close by totaling and $X fees. dealt have was fund's pipeline final in economic which proud secondary of result my this activity backdrop The wealth the foundations, positioned platforms who Let's fundraise the to attractive. ever April extremely and nearly fees and This dedication prior Hartley of attractive us. I nearly diverse $X.X across of during funds, sixth front quarter dogged the XXX of other with the our total and support in countries, their exceeded of another the we fund. LP pipeline close will a put And announced for the commitments. and exceed we close million totaled private $XXX portfolio XX endowments, we and XX, $XX a million. field, On we June final and this colleagues the am that expectations direct $X.X how with and financial appreciate our million final in of retro and fund in retro was raise total of and and commitments

some of products. Turning close our to now for announcements first X flagship

First alongside fund in which our transactions. is equity up fund is fund, that opportunities our co-invests managers equity our closed-end

quick Opportunities at fifth billion. December of fund our a reminder, Equity As in approximately $X.X closed XXXX

will Fund for rate. or $XXX of interest a based with arrangements for Equity on with either lower announce capital held capital are We a are XX fund over fund, first our sixth higher management to X close LP have the fees committed prior proud to investors, we on our interest carried June Similar million carried commitments. with this where that invested net rate economic Opportunities

on resulted on raised based in For prior XX% based XX% and of capital. capital funds context, invested mix committed the net the dollars

know invested. net don't the this in capital of in fundraise resulted next XX% the first and breakout end, this until we on close committed raised the XX% While on capital

additional capital hold closes associated and we'll for we this option. provide As committed the split the fund, fees with retro

stepping Now back.

We far. this are pleased raise of with the so start

leading We directly through the fund managers, platform of alongside with to look world's and we progress future updates we providing a as this you forward have fundraise. built strong investing

to is direct LP. now opportunities institutional credit Let's targeting the fund our annual turn which fund, our strategic

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

familiar inevitably of size less For the the current multiyear see in those to the less amount line series about some lead set. raise across more you would dollars with size to traditionally with will about and is deployment as series, ensuring targeting a funds benefit with we period that series. the it variability product a of set to opportunity This from

we ninth held our of this commitments. in $XXX XX, close nearly on latest series series market with currently June the are We first and with million for

accounts Our fund private discretionary platform. platform Evergreen that remains of includes and overall component our credit separate key a strategic our opportunities our

this X program have raised back prior If you funds, for going our to XXXX. total billion nearly $X we

Now on to Evergreen our Funds.

we Shareholder continued launch. Day, front is and us both opportunity believe related yet product new of existing the offerings to funds growth our of to During highlighted Evergreen we in our

million offerings As strong for inflows of across of averaged $XXX $X.X existing the was billion. as from X which we for June second first nearly total million net $XXX over quarter XXXX, calendar up stood XX, at the AUM our quarter. Monthly remained

For over from $X.X channel, inflows thank successful of to an provider. optimistic have and that the establish a we ourselves net of in continued around them piece relationships, for expansion accomplishment, little remain for a confidence we partner of wirehouse continuing as offering having us are billion X our partnership. gives year received we our success our and this that a of impressive We and U.S. this date business, to prospects solution nearly trusted

data the Daphne on management was with a partners. Daphne latest investors API. such interface, their via broker-dealers to investors, and transmitted web-based button. It of in a between HL Innovations channels XXXX a managers investment transform to technology On data RIAs. between channel it or asset to as XX, Management side. Apollo multiple serve will the June This to designed independent data founded Partners consumed the Moving Technologies. and publish Motive asset we managers a transmission to and is addition of portfolio and Daphne announced collaboration Global and digitize and through allow consultants, fund click and can our be institutional

integrated manual we to has a access, what markets can simplifying our data, process enables directly what platform. our Cobalt, straight-through Daphne excited partnership, traditionally with both cumbersome the has their managers and thus continued is investment. and managers Daphne been private partnership with information asset and Cobalt, transparent which markets easier to into this As proprietary for processing our and represents part transmit channel more diligence of data make efforts fund to analytics, partners. Daphne by forecasting private asset and come investors and for new and alternative are

more drive partner to proud provide Lane call I'd we are Motive now Griff outside first to the like around over the offerings. with closely to and be to success. look with my investor Solutions Norville, working forward Apollo Technology you partner, invited We the to in, Hamilton strategic and hand detail and to Daphne's

Griffith Norville

out good you, opportunity including Technology Solutions have offering, of Director Solutions. more technology our several Managing reporting XX Erik, on differentiates to of morning. in-house of take for led our why believe Lane years I'm Griff initiatives Technology business, offering over Hamilton than the and time. I I've and that Head and data build Norville, with and been want the cobalt our it of we combination built this us. technology our to and expand services Thank

Hamilton company private database data. fund and Lane of market portfolio has decades, proprietary amassed a For

and consist is differentiator in portfolio in investments the of along Our key provides of new private advantage, is and clients. Cobalt hundreds unstructured construction use with can analytics, professionals built market our investment attracting and for received to remains positions, data, these front from functions. Client office the expertise market-specific and data how diligence documentation opaque. -- a portfolios benchmarking,

desire we differentiated a through expertise to and solution our data technology. validate gather, and and clients extract Our offer scale, a service

business, reporting under our is As a database advisement, assets of from result AUA, sourced growing our Hamilton or our and AUM. Lane's both

Technology for over or contract institution we from client public clients Notably, documents type. subscribing over of this primary information unverified data these is financials base to in opposed $XX to from as million is derived geography services extracted the and and Solutions source XXX The have surveys. value. Today, by directly fund diverse annual

years our Our average CAGR sales strong scaled renewal pipeline. our above have contracts business revenue the is rate with predictable contracts X The growing on XX% over net consistent has and effectively made XXX%. at it last X and highly over revenue efforts years for this nature a of and a

I'd remaining fee percentage AUM, potential Solutions for direction of partner to in securing solutions new continue these XX% analytics. and that, of transparency grow. key turn, solutions the clients to to to the representing we larger and to With cover markets differentiator Technology over an call in deeper our access Lane clients global AUM this our in look to to business are the continue them. for now half set financials. opportunity believe the expect our as of opportunities. Technology to for like with goals their competitive clients share what with I'll clients. Over over to tied investment private fundraising achieving thank Overall, relationships a package also is earning our access And We Clients and hand technology you retaining deepens processes, with technology greater commitments fee-earning Solutions Hamilton winning us. and existing our move the to of have active exciting our and we Jeff to the

Jeffrey Armbrister

and you, morning, Thank Griff, good everyone.

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

to $X.X our its XX fees our and primarily over funds specialized in from year was from in fund quarter held revenue or our prior latest driven by final billion for year billion million fund the our period. that period. million the Evergreen increased $X.X $X.X $XX.X the compared Our increase included to prior XX% a versus that This months. Retro earning held over secondary million raised by platform AUM fund $XX.X the last in secondary secondary closes closes fee

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

of secondary remainder equity driver For finished be the year, the market primary current retro fiscal will our funded now has the our fundraising. direct fund fees of that

due Moving offerings coming continued investment advisory, X% accounts, increased to million accounts. primarily solutions. technology on clients increased to or data addition to Revenue of new $X.X year to monitoring, the the from customized separate reps compared by in compared from million reporting, prior from analytics existing $X.X revenue and prior the our period due and activity. Revenue to year period, increases

year Lastly, revenue relative $XX.X quarter the final the and of million prior fees. component up for totaled fees XXX% the Incentive is period. to are incentive

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

the and year period growth prior increased result compensation product million some the $X.X the increased XX% $XX.X calls. our related here million, as expenses. increased XX%. that or up we've came with wire Evergreen compared driven commentary at the incentive I'll relative FRE, for higher prior fees amount discussed including with quarter earning by fee Fee on to earlier. FRE earnings, expenses, prior Total management houses year primarily and balance up fee being management U.S. of discussed our with wrap $XX in offered margin to the relative associated AUM compensation and the on quarter benefits were sheet. to on year driven a commissions third-party revenue-related for million, related by prior the period. G&A the primarily period. to increased by expenses of Moving Total

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

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

Operator

from Your JPMorgan. first comes Kenneth Instructions] Worthington [Operator question from

Alexander Bernstein

Bernstein strong This for on quarter. the on is Alex Congrats Ken.

teams point, data double-click there, you acquisition have? perhaps where a what What and you monetization bit And offer? can BlackRock seen the I of wanted currently on around Lane this efforts talk do other the managers about products efforts sales Hamilton see more think the current that may just of with you changing? some some think, sales sort the with data vis-a-vis of that data especially recent we've how and about different Can the out to notably data asset of you a Just completed. the

related finally, centric from Is distracting of done to core Lane this no And those there's can perform? products sales of continues to course, setting growth ensuring Hamilton which, with this be or cobalt and the business, and regarding process other really more to that around what the efforts?

Erik Hirsch

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

So as the indirectly, are and directly from I a we to data. data standpoint, would Griff alluded monetizing say,

So the business. a the is and SaaS that Cobalt direct is business, really

growth over selling numbers Cobalt we on from a is So apart see side. that and continues be the wealth to separate that team strong, has subscriptions we're [indiscernible] private sales there. institutional what the to the double-digit. or dedicated

tying business. a market LPs alluded addressable really we're to, we to is And broader The it Griff pieces Today, is indirect to of so and which only is and was that significant a what see way vast. selling very there. market together win we're large as really

that of crowded one So secondary there in, lot lot out win or to preferred jump fund balls. differentiators for key Cobalt, a us access the lot so formidable management similar selecting is with use us, of gives the a those client ties again, competitors tie space, and secondary take an example, asset of as of again, we a offerings. And to

other is are monetize we're to continually. those data. that that's today. We doing certainly -- what evaluate so There ways And

have of variety we're of that We investing from number of of in, data. our them also businesses Part the strategic a some benefit technology discussions. some

helps, that again, a And us partner. preferred as technology with so also

think one firm we database. that to scale. So tremendously we powerful as in grow It's have the continues continues to a grow

a verified different than direct out is of It's all data, other number sourced very which the databases there.

this And continue more today, it the asset. so ways we we'll do to to monetizing for a is in future. valuable look that and We're think

Operator

comes Goldman question from from Alex next Blostein Sachs. Your

Unknown Analyst

Where This momentum how on new out is balancing, do next the the to on houses color nice come to expect And Anthony growth Evergreen Alex. plan you I from? platform, on rolling appreciate continuing. you and do on getting it's for the leg of versus wire see new products? the

Erik Hirsch

Thanks, Anthony, Erik.

it's been in think you it's noted, as just those well the with we're that direct One, think of a both we've the achieving and continue. happy that's in growth the I relationships as I very so efforts. Both far, of growth sales as our result been combination wirehouse really will factors. growth of

we And add partners to expect our expect to offerings future. more. in We channel up that in more certainly take will distribution to current the X

So about a efforts, we it's a combination distribution saying products. I the direct think going as of keep -- years, over we be the is a channel sort this marathon, to above, more again, more next will that sprint this of not talk coming partners, all of more

Operator

from from Instructions] Stephanie next question Your Stanley. Morgan [Operator comes Ma

Stephanie Ma

for Insurance team. accelerate? your do on this Can recent for one this today? over you allow Mike. time? your what This what And differently aspirations team is you or your does Stephanie on to footprint And us channel insurance just of Solutions of just remind are announcement Maybe the

Erik Hirsch

It's Erik. Stephanie. Thanks,

been some think revolution. for this more is into the quite We've an evolution, I insurance channel not really time. of a selling

in number that of We space. have relationships prominent a

last we really I resources expansion reflecting think was you saw the have. our the week directly of that announcement

structures the requires channel markets. to unique private the As you access know, insurance oftentimes

capability we're and for structuring additional so on just distribution. And bringing

is So simple. our aspiration there

we make good We over footprint better time. have we today a believe that and bigger can

Stephanie Ma

Great. And maybe as a Daphne. just follow-up on

in get time how to work opportunities integrated over are Daphne? what hoping more progress? more to with Just color today. is Cobalt on this Is And do the a

Griffith Norville

the Cobalt Today, is this by is with Griff. thanks Stephanie. fully -- question, Daphne. way, So integrated for today -- is the This

is Daphne them via and do receiving is amount of what are and to Daphne. increase We working we young to partners Daphne. helping story in partners to scale order directly our that them are company Daphne's general are is our systems of into value-add with a data and tell the flowing data GP from working the introduce

Operator

over this are there And I at time. remarks. Hirsch will the Erik for to further no questions back closing turn call

Erik Hirsch

everyone's quarter. appreciate appreciate very we Again, strong questions, much. time. a the We you the very We and partnership. appreciate Thank

Operator

Ladies today's and conference gentlemen, concludes this call.

you. You may now disconnect. Thank

Hamilton Lane (HLNE) 6 Aug 242025 Q1 Earnings call transcript