Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Q3 FY2021 Earnings Presentation
23 slides from Hamilton Lane's earnings presentation, Feb 2, 2021
Slide 1: Fiscal Year 2021 Third Quarter Results
1Hamilton Lane l Global Leader in the Private Markets Fiscal Year 2021 Third Quarter Results Earnings Presentation - February 2, 2021
Slide 2: Today's Speakers
2Hamilton Lane l Global Leader in the Private Markets Today's Speakers Erik Hirsch Vice Chairman Atul Varma Chief Financial Officer John Oh Investor Relations Manager Andrea Kramer Hamilton Lane Alliance CEO
Slide 3: Period Highlights
3Hamilton Lane l Global Leader in the Private Markets Period Highlights Business Performance Financial Results Dividend • Assets under management and fee-earning assets under management were approximately $76 billion and $40 billion, respectively, as of December 31, 2020, increases of 14% and 9%, re
Slide 4: Total Assets Under Management/Advisement
4Hamilton Lane l Global Leader in the Private Markets Total Assets Under Management/Advisement ($B) Total AUA Total AUM 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $0 $100 $200 $300 $400 $500 $600 $700 CAG R: 2 0% Y-o-Y Growth AUM: 14 % AUA: 38 % $657B AUM & AUA G
Slide 5: Total Fee-Earning Assets Under Management
5Hamilton Lane l Global Leader in the Private Markets Total Fee-Earning Assets Under Management ($B) $17 $18 $21 $22 $25 $23 $25 $7 $9 $10 $11 $14 $14 $15 Customized Separate Accounts Specialized Funds Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-19 Dec-20 $0 $10 $20 $30 $40 $50 Fee-Earning AUM growth con
Slide 6: AUM & AUA Drivers
6Hamilton Lane l Global Leader in the Private Markets AUM & AUA Drivers Customized Separate Accounts Specialized Funds Advisory Services Diverse mix of existing and prospective clients seeking to further or establish relationships with Hamilton Lane Select funds in market: • Secondary fund • Credit-
Slide 7: Financial Highlights
7Hamilton Lane l Global Leader in the Private Markets Financial Highlights
Slide 8: Consolidated Revenue
8Hamilton Lane l Global Leader in the Private Markets Consolidated Revenue Strong revenue growth across management and advisory fees Management and Advisory Fees Incentive Fees Total Revenues U SD in M ill io ns $180 $209 Q3 FY20 Q3 FY21 U SD in M ill io ns $146 $245 FY15 FY20 YTD Long-Term Growth U
Slide 9: Unrealized Carried Interest
9Hamilton Lane l Global Leader in the Private Markets Unrealized Carried Interest Period Ending V eh ic le s U SD in M illions Unrealized Carried Interest $355 $409 $497 53 63 70 Unrealized Carried Interest Vehicles in Unrealized Carry Position Dec-18 Dec-19 Dec-20 0 25 50 75 $0 $100 $200 $300 $400
Slide 10: Consolidated Earnings
10Hamilton Lane l Global Leader in the Private Markets U SD in M ill io ns $91 $118 Q3 FY20 Q3 FY21 U SD in M ill io ns $73 $94 Q3 FY20 Q3 FY21 Net Income Attributable to HLI U SD in M ill io ns $40 $58 Q3 FY20 Q3 FY21 Adjusted EBITDA2 Consolidated Earnings Profitability stable and growing U SD in M
Slide 11: Other Key Items
11Hamilton Lane l Global Leader in the Private Markets Other Key Items Strong balance sheet with investments in our own products and a modest amount of leverage... U SD in M ill io ns Investments $103 $120 $137 $154 $208 $265 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-20 $0 $50 $100 $150 $200 $250 • For
Slide 12: Fiscal Year 2021 Third Quarter Results
12Hamilton Lane l Global Leader in the Private Markets Fiscal Year 2021 Third Quarter Results Earnings Presentation - February 2, 2021
Slide 13: Appendix
13Hamilton Lane l Global Leader in the Private Markets Appendix
Slide 14: Condensed Consolidated Statements of Income
14Hamilton Lane l Global Leader in the Private Markets Condensed Consolidated Statements of Income (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands except share and per share amounts) 2019 2020 % Change 2019 2020 % Change Management and advisory fees $
Slide 15: Non-GAAP financial measures notes
15Hamilton Lane l Global Leader in the Private Markets 1 Adjusted EBITDA and Non-GAAP earnings per share are non-GAAP financial measures. For the reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures, see page 21. 2 Incentive fee related compensat
Slide 16: Management and Advisory Fees
16Hamilton Lane l Global Leader in the Private Markets Management and Advisory Fees Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands) 2019 2020 % Change 2019 2020 % Change Management and advisory fees Specialized funds $27,789 $38,155 37 % $81,733 $102,103 25 % Cu
Slide 17: Incentive Fees
17Hamilton Lane l Global Leader in the Private Markets Incentive Fees Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands) 2019 2020 % Change 2019 2020 % Change Incentive fees Secondary Fund II $159 $638 301 % $711 $919 29 % Co-investment Fund II 2,500 625 (75) % 6,2
Slide 18: Assets Under Management
18Hamilton Lane l Global Leader in the Private Markets Assets Under Management (Dollars in millions) December 31, 2019 September 30, 2020 December 31, 2020 YoY Change % QoQ Change % Assets under management / advisement Assets under management $66,271 $72,855 $75,777 14 % 4 % Assets under advisement
Slide 19: Condensed Consolidated Balance Sheets
19Hamilton Lane l Global Leader in the Private Markets Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands except share and per share amounts) March 31, 2020 December 31, 2020 Assets Cash and cash equivalents $50,124 $92,895 Restricted cash 3,086 3,042 Fees receivable 30,384 26,6
Slide 20: Condensed Consolidated Statements of Cash Flows
20Hamilton Lane l Global Leader in the Private Markets Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended (Dollars in thousands) December 31, 2019 December 31, 2020 Operating activities Net income $88,163 $104,200 Adjustments to reconcile net income to net cash provided by
Slide 21: Non-GAAP Reconciliation
21Hamilton Lane l Global Leader in the Private Markets Non-GAAP Reconciliation Reconciliation from Net Income Year Ended March 31, Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands except share and per share amounts) 2015 2020 2019 2020 2019 2020 Net income attribu
Slide 22: Terms
22Hamilton Lane l Global Leader in the Private Markets Terms Adjusted EBITDA is our primary internal measure of profitability. We believe Adjusted EBITDA is useful to investors because it enables them to better evaluate the performance of our core business across reporting periods. Adjusted EBITDA r
Slide 23: Disclosures
23Hamilton Lane l Global Leader in the Private Markets Disclosures Some of the statements in this presentation 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 Li