HAMILTON LANE INCORPORATED REPORTS FIRST QUARTER FISCAL 2025 RESULTS, WITH MANAGEMENT & ADVISORY FEES GROWING BY 33% AND ASSETS UNDER MANAGEMENT GROWING BY 11% YEAR-OVER-YEAR

Rhea-AI Summary

Hamilton Lane Incorporated (Nasdaq: HLNE) reported strong first quarter fiscal 2025 results, with significant growth across key metrics. Total assets under management increased 11% year-over-year to $129.7 billion, while fee-earning assets grew 13% to $67.7 billion. Management and advisory fees surged 33% to $140.0 million compared to the prior year period.

The company's unrealized carried interest balance rose 12% to approximately $1.2 billion. GAAP earnings per share stood at $1.47, with GAAP net income of $59.0 million for the quarter. Hamilton Lane declared a quarterly dividend of $0.49 per share, targeting a full-year dividend of $1.96, representing a 10% increase from the previous fiscal year.

Positive

• Total assets under management grew 11% year-over-year to $129.7 billion
• Fee-earning assets under management increased 13% to $67.7 billion
• Management and advisory fees surged 33% to $140.0 million
• Unrealized carried interest balance rose 12% to approximately $1.2 billion
• Declared a quarterly dividend of $0.49 per share, with a target full-year dividend increase of 10%

Negative

• None.

Financial Analyst

Hamilton Lane's Q1 FY2025 results demonstrate robust growth across key metrics. The 33% increase in management and advisory fees to $140.0 million is particularly impressive, indicating strong client demand and effective fee generation. Assets under management grew 11% year-over-year to $129.7 billion, while fee-earning AUM rose 13% to $67.7 billion, showcasing the firm's ability to attract and retain capital.

The 12% growth in unrealized carried interest to $1.2 billion suggests potential for future revenue realization. With GAAP EPS of $1.47 and a 10% increase in the target full-year dividend, the company is delivering value to shareholders while maintaining growth. These results position Hamilton Lane favorably in the competitive private markets asset management sector.

Market Research Analyst

Hamilton Lane's Q1 performance reflects broader trends in the private markets industry. The significant growth in AUM and management fees suggests continued investor appetite for alternative assets, despite macroeconomic uncertainties. The firm's expansion to $940.1 billion in assets under management and supervision underscores its strong market position.

The 13% increase in fee-earning AUM is particularly noteworthy, as it directly impacts revenue generation. The company's ability to grow both discretionary ($129.7 billion) and non-discretionary ($810.4 billion) assets indicates diverse client engagement strategies. With approximately 700 professionals across global offices, Hamilton Lane appears well-positioned to capitalize on the growing demand for private market investments among institutional and private wealth investors.

CONSHOHOCKEN, Pa., Aug. 6, 2024 /PRNewswire/ -- Leading private markets asset management firm Hamilton Lane Incorporated (Nasdaq: HLNE) today reported its results for the first fiscal quarter ended June 30, 2024.

FIRST QUARTER FISCAL 2025 HIGHLIGHTS

• Assets under management – Total assets under management of $129.7 billion grew 11% year-over-year. Fee-earning assets under management increased 13% to $67.7 billion over the same period.
    
• Revenue – Management and advisory fees of $140.0 million for the quarter represent growth of 33% versus the prior year period.
    
• Carried Interest – Unrealized carried interest balance of approximately $1.2 billion was up 12% versus the prior year period.
    
• Earnings per share – GAAP EPS of $1.47 on $59.0 million of GAAP net income for the quarter.
    
• Dividend – Declared a quarterly dividend of $0.49 per share of Class A common stock to record holders at the close of business on September 16, 2024 that will be paid on October 4, 2024. The target full-year dividend of $1.96 represents a 10% increase from the prior fiscal year dividend.

Hamilton Lane issued a full detailed presentation of its first quarter fiscal 2025 results, which can be accessed on the Company's Shareholders website at https://shareholders.hamiltonlane.com/.

Hamilton Lane Co-CEO Erik Hirsch commented: "After a successful fiscal 2024, we have opened up fiscal 2025 with a strong quarter. Our team remains focused on executing and delivering consistent results for our clients and this has resulted in strong growth across the entirety of our business." 

Conference Call
Hamilton Lane will discuss first quarter fiscal 2025 results in a webcast and conference call today, Tuesday, August 6, 2024, at 11:00 a.m. Eastern Time.

For access to the live event via the webcast, visit Hamilton Lane's Shareholders website (https://shareholders.hamiltonlane.com/) at least 15 minutes prior to the start of the call. This feature will be in listen-only mode.

A replay of the webcast will be available approximately two hours after the live broadcast for a period of one year and can be accessed in the same manner as the live webcast at the Shareholders page of Hamilton Lane's website.

About Hamilton Lane
Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 700 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $940.1 billion in assets under management and supervision, composed of $129.7 billion in discretionary assets and $810.4 billion in non-discretionary assets, as of June 30, 2024. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit http://www.hamiltonlane.com or follow Hamilton Lane on LinkedIn: https://www.linkedin.com/company/hamilton-lane/.

Forward-Looking Statements
Some of the statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as "will," "expect," "believe," "estimate," "continue," "anticipate," "intend," "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management's current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. All forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different, including risks relating to: our ability to manage growth, fund performance, competition in our industry, changes in our regulatory environment and tax status; market conditions generally; our ability to access suitable investment opportunities for our clients; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; defaults by clients and third-party investors on their obligations to fund commitments; our exposure and that of our clients and investors to the credit risks of financial institutions at which we and they hold accounts; our ability to comply with investment guidelines set by our clients; our ability to successfully integrate acquired businesses with ours; our ability to manage risks associated with introducing new types of investment structures, products or services or entering into strategic partnerships; our ability to manage redemption or repurchase rights in certain of our funds; our ability to manage, identify and anticipate risks we face; our ability to manage the effects of events outside of our control; and our ability to receive distributions from Hamilton Lane Advisors, L.L.C. to fund our payment of dividends, taxes and other expenses.

The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks we face, you should refer to the "Risk Factors" detailed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and in our subsequent reports filed from time to time with the Securities and Exchange Commission. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.

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SOURCE Hamilton Lane

FAQ

What were Hamilton Lane's (HLNE) key financial results for Q1 fiscal 2025?

Hamilton Lane reported total assets under management of $129.7 billion (up 11% YoY), fee-earning assets of $67.7 billion (up 13% YoY), management and advisory fees of $140.0 million (up 33% YoY), and GAAP EPS of $1.47 on $59.0 million of GAAP net income.

How much did Hamilton Lane's (HLNE) carried interest balance grow in Q1 fiscal 2025?

Hamilton Lane's unrealized carried interest balance grew by 12% year-over-year to approximately $1.2 billion in the first quarter of fiscal 2025.

What is Hamilton Lane's (HLNE) dividend policy for fiscal 2025?

Hamilton Lane declared a quarterly dividend of $0.49 per share for Q1 fiscal 2025, with a target full-year dividend of $1.96, representing a 10% increase from the previous fiscal year.

How many professionals does Hamilton Lane (HLNE) employ as of June 30, 2024?

As of June 30, 2024, Hamilton Lane employs approximately 700 professionals operating in offices throughout North America, Europe, Asia Pacific, and the Middle East.