Latest news with #HamiltonLaneInc
Yahoo
5 days ago
- Business
- Yahoo
Hamilton Lane Inc (HLNE) Q4 2025 Earnings Call Highlights: Strong Growth in AUM and Fee-Related ...
Total Asset Footprint: $958 billion, a 4% increase year over year. Assets Under Management (AUM): $138 billion, up $14 billion or 11% from the prior year. Assets Under Advisement (AUA): $819 billion, increased by $23 billion or 3% year over year. Total Management and Advisory Fees: $514 million, a 14% increase year over year. Fee-Related Earnings: $276 million, a 34% increase from the prior year. GAAP EPS: $5.41 based on $217 million of GAAP net income. Non-GAAP EPS: $5.04 based on $274 million of adjusted net income. Annual Fiscal Dividend: Increased by 10% to $2.16 per share. Total Fee-Earning AUM: $72 billion, up $6 billion or 10% from the prior year. Specialized Fund Fee-Earning AUM: $33 billion, a 16% increase. Incentive Fees: $199 million, up 95% year over year. Unrealized Carry Balance: $1.3 billion, up 3% from the prior year. Total Expenses: Increased by $88 million compared to the prior year. Fee-Related Earnings (FRE) Margin: 48%, compared to 45% in the prior year. Warning! GuruFocus has detected 2 Warning Sign with HLNE. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hamilton Lane Inc (NASDAQ:HLNE) reported a 4% increase in total asset footprint year over year, reaching $958 billion. AUM grew by $14 billion or 11% compared to the prior year, driven by specialized funds and customized separate accounts. Total management and advisory fees increased by 14% year over year, reaching $514 million. The company approved a 10% increase in its annual fiscal dividend, marking the eighth consecutive annual double-digit percentage increase since 2017. Hamilton Lane Inc (NASDAQ:HLNE) saw record deal flow across secondaries and direct investing in 2024, indicating strong market positioning. Exit activity remains relatively muted, impacting overall deal doing in the market. Both contributions and distributions from LPs are below historical averages, indicating a challenging fundraising environment. Holding periods are extending due to a relatively depressed exit environment, affecting capital return to investors. The separate account business has been impacted by macroeconomic conditions, with fee-paying AUM remaining range-bound for several quarters. Institutional fundraising is tricky due to slow capital return, causing exposure issues and reducing the need for redeployment. Q: How does the margin outlook under the new reporting regime look relative to history? Is it still stable, or do we see changes based on the reporting changes that you've made? A: Erik Hirsch, Co-Chief Executive Officer, explained that the margin compared to the prior margin is up due to moving certain items below the line. However, the macro view on margin remains unchanged, and they expect it to stay stable. The company continues to invest in the business for future growth, including creating new evergreen products and expanding the team. Q: Are the fees to intermediaries on new products changing versus the fees on pre-existing products? Are you seeing demands change by distribution? A: Erik Hirsch noted that distribution fees are predominantly in the wires, which are largely US-centric. Most non-US flows are outside of wires and thus outside of distribution fees. The fees are typically upfront, with no significant changes observed. Q: What are your expectations for fee-related earnings (FRE) margin under the new methodology? A: Jeffrey Armbrister, Chief Financial Officer, stated that the FRE margin is expected to be in the high 40% range. The margin for the recent quarter was about 43%, and they expect it to remain stable annually, despite quarterly fluctuations. Q: What factors will drive growth in the fee-paying AUM within separate accounts, which has been range-bound for several quarters? A: Erik Hirsch explained that the separate account business has been impacted by macroeconomic factors, with investors waiting for market normalization. The company has a strong pipeline and contracted capital that hasn't yet flowed in, which they believe will drive growth as markets stabilize. Q: How do you view the institutional interest in evergreen funds, and could this lead to fee compression over time? A: Erik Hirsch mentioned that institutional interest in evergreen funds is still in the early stages, with no current signs of fee compression. Institutions are attracted to the cost efficiency and performance benefits of evergreen funds, and the company sees this as a positive trend. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
5 days ago
- Business
- San Francisco Chronicle
Hamilton Lane: Fiscal Q4 Earnings Snapshot
CONSHOHOCKEN, Pa. (AP) — CONSHOHOCKEN, Pa. (AP) — Hamilton Lane Inc. (HLNE) on Thursday reported fiscal fourth-quarter profit of $50.5 million. The Conshohocken, Pennsylvania-based company said it had profit of $1.23 per share. Earnings, adjusted for one-time items, came to $1.21 per share. The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.20 per share. The private-market investment firm posted revenue of $198 million in the period, which also topped Street forecasts. Three analysts surveyed by Zacks expected $173.6 million. _____
Washington Post
6 days ago
- Business
- Washington Post
Hamilton Lane: Fiscal Q4 Earnings Snapshot
CONSHOHOCKEN, Pa. — CONSHOHOCKEN, Pa. — Hamilton Lane Inc. (HLNE) on Thursday reported fiscal fourth-quarter profit of $50.5 million. The Conshohocken, Pennsylvania-based company said it had profit of $1.23 per share. Earnings, adjusted for one-time items, came to $1.21 per share. The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.20 per share.
Yahoo
05-02-2025
- Business
- Yahoo
Hamilton Lane Inc (HLNE) Q3 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...
Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hamilton Lane Inc (NASDAQ:HLNE) reported an 18% growth in management and advisory fee revenue and a 21% increase in fee-related earnings year-over-year. The company declared a dividend of $0.49 per share, maintaining a trajectory for a 10% increase over the last fiscal year. Hamilton Lane Inc (NASDAQ:HLNE) was recognized as a best place to work in money management for the 13th consecutive year, highlighting its strong corporate culture. The firm's total asset footprint increased by 6% year-over-year, with specialized funds and customized separate accounts contributing to this growth. The company's evergreen platform saw significant growth, with assets under management increasing by 66% in calendar year 2024. Hamilton Lane Inc (NASDAQ:HLNE) faces increased competition in the evergreen fund space, with more firms entering the market. The company anticipates potential fee compression in the evergreen space as the sector matures. Equity-based compensation expenses have increased, impacting financial results and expected to continue for the next five years. The firm is experiencing rising commission fees related to its US evergreen product offerings on wirehouses. There is variability in monthly net flows for retail evergreen funds, influenced by market forces and portfolio rebalancing. Warning! GuruFocus has detected 2 Warning Sign with HLNE. Q: What is driving the greater adoption of Fund and Evergreen products by SMA customers, and are clients willing to pay higher fees for these funds? A: Eric Hirsch, Co-CEO, explained that the increased awareness of the benefits of secondaries and co-investing is driving SMA customers to adopt specialized fund exposure. Clients are willing to pay higher fees for these benefits, although fee compression is expected over time. The focus is on offering more choice to both retail and institutional customers as the sector matures. Q: Can you break down the trends in gross sales and redemptions for Evergreen funds, and how do you see the competitive landscape evolving? A: Eric Hirsch noted that while the market is becoming more competitive, Hamilton Lane's scale, brand, and technology partnerships position them well. The focus is on net inflows, and while there have been minor redemptions, these are expected due to strong performance. The company is prepared to compete in a growing market, emphasizing the importance of strategic partnerships and technology. Q: How is Hamilton Lane managing expense efficiency to drive margin expansion despite third-party commission costs? A: Eric Hirsch highlighted that the company is benefiting from technology investments that improve efficiency and reduce costs. Additionally, they are re-examining vendor relationships and insurance to gain cost efficiencies. These efforts have helped offset rising commission fees, maintaining stable margins. Q: Can you clarify the impact of equity-based compensation on financials and how it affects shares outstanding? A: Jeff Armbrister, CFO, explained that equity-based compensation is expected to run at about $30 million per year, with the current quarter reflecting the full impact. Eric Hirsch added that the compensation aligns with aggressive stock targets set by the board, aiming to increase shareholder value. The shares are not yet in employees' hands due to service requirements. Q: How should we think about the total operating income margin versus FRE margin, considering equity-based comp and incentive compensation? A: Eric Hirsch suggested focusing on the stability of the total operating income margin. While current dynamics like equity-based comp and commission expenses impact margins, the company expects these to change over time, allowing for potential margin expansion as the business scales and matures. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
