Slide 1: Fiscal Year 2025 Second Quarter Results
Fiscal Year 2025 Second Quarter Results November 6, 2024
Slide 2: Today's Speakers
Today's Speakers Erik Hirsch Jeff Armbrister John Oh Co-CEO Chief Financial Officer Head of Shareholder Relations Hamilton Lane | Global Leader in the Private Markets 2
Slide 3: Period Highlights
Period Highlights Business Performance • Assets under management and fee-earning assets under management were $131 billion and $70 billion, respectively, as of September 30, 2024, increases of 10% and 14%, respectively, compared to September 30, 2023 • Management and advisory fees increased 21% comp
Slide 4: Growing Asset Footprint & Influence
Growing Asset Footprint & Influence $947B AUM & AUA Total Assets Under Management/Advisement ($B)1 $1,000 $131 $120 $98 $108 Y-o-Y Growth $800 AUM: 10 % $816 AUA: 11 % $783 % $724 : 18 $76 GR CA $753 $600 $66 $581 $59 $50 $400 $410 $422 $40 $374 $32 $35 $292 $30 $200 $24 $205 $22 $189 $13 $16 $19 $1
Slide 5: Fee-Earning AUM Driving Revenues
Fee-Earning AUM Driving Revenues Fee-Earning AUM growth continues and annual fee rates are stable Total Fee-Earning Assets Under Management ($B) $80 .60% .56% .59% .63% .62%1 .67%2 $70 $70 $66 : 14% $61 $60 CAGR $57 $30 $49 $28 $50 $25 $42 $23 $39 $40 $18 $16 $14 $30 $20 $38 $39 $35 $36 $31 $25 $26
Slide 6: AUM & AUA Drivers
AUM & AUA Drivers AUM AUA Customized Specialized Advisory Separate Accounts Funds Services Diverse mix of existing and Select funds in market: Typically larger clients with prospective clients seeking to • Direct equity fund wide-ranging mandates which further or establish • Credit-oriented fund inc
Slide 7: Financial Highlights
Financial Highlights
Slide 8: Consolidated Revenue
Consolidated Revenue Strong growth across management and advisory fees Management and Advisory Fees YTD Long-Term Growth Y-o-Y Change: 21% CAGR: 16% • Recurring management and advisory fees represented an average of over 80% of total $260 $452 revenues over the past five fiscal years USD in Millions
Slide 9: Unrealized Carried Interest
Unrealized Carried Interest Unrealized Carried Interest Unrealized Carry by Age 120 109 $1,500 98 > 12 years 100 90 $1,250 5% < 5 years 80 $1,000 25% USD in Millions 8-12 years Vehicles 21% 60 $750 $1,253 $1,151 40 $985 $500 20 $250 0 $0 Sep-22 Sep-23 Sep-24 Period Ending 5-8 years 49% Unrealized Ca
Slide 10: Consolidated Earnings
Consolidated Earnings Stable long-term growth Net Income Attributable to HLI YTD Long-Term Growth Y-o-Y Change: 56% CAGR: 32% $114 $141 USD in Millions USD in Millions • $55M in net income attributable to HLI for the $73 quarter $34 Q2 FY24 Q2 FY25 FY19 FY24 Adjusted EBITDA1 YTD Long-Term Growth Y-o
Slide 11: Other Key Items
Other Key Items Strong balance sheet with investments in our own products and a modest amount of leverage... Investments $700 $600 $669 $632 $588 • For September 30, 2024, the total investment USD in Millions $500 $514 balance consisted primarily of: $400 $300 $374 ◦ ~$420M in investments in our fun
Slide 12: Appendix
Appendix
Slide 13: Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited) Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands except share and per share amounts) 2023 2024 % Change 2023 2024 % Change Management and advisory fees $109,184 $119,783 10 % $214,592 $259,745 21 % Incentive
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands except share and per share amounts) 2023 2024 % Change 2023 2024 % Change 1 Adjusted EBITDA Management and advisory fees $109,184 $119,783 10 % $214,592 $259,745 21 % Revenue related to
Slide 15: Management and Advisory Fees
Management and Advisory Fees Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2023 2024 % Change 2023 2024 % Change Management and advisory fees Specialized funds $62,386 $70,312 13 % $120,102 $160,103 33 % Customized separate accounts 32,040 34,757 8 % 63,759 6
Slide 16: Incentive Fees
Incentive Fees Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2023 2024 % Change 2023 2024 % Change Incentive fees Direct equity funds $1,113 $6,949 524 % $3,444 $10,897 216 % Secondary funds 3,969 13,511 240 % 12,046 23,392 94 % Direct credit funds (42) 9 N/A
Slide 17: Assets Under Management
Assets Under Management (Dollars in millions) September 30, 2023 June 30, 2024 September 30, 2024 YoY % Change QoQ % Change Assets under management / advisement Assets under management $119,182 $129,724 $131,373 10 % 1 % Assets under advisement 734,804 810,414 816,057 11 % 1 % Total assets under man
Slide 18: Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2024 September 30, 2024 Assets Cash and cash equivalents $114,634 $193,771 Restricted cash 4,985 5,858 Fees receivable 108,291 95,509 Prepaid expenses 11,073 16,750 Due from related parties 8,150 16,467 Furniture, fix
Slide 19: Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended September 30, (Dollars in thousands) 2023 2024 Operating activities Net income $115,850 $163,008 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,736 4,680 Ch
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended March 31, Three Months Ended Six Months Ended Reconciliation from Net Income September 30, September 30, (Dollars in thousands except share and per share amounts) 2019 2024 2023 2024 2023 2024 Net income attributable to Hamilton Lane Incorporated $33,573 $140,858 $
Slide 21: Terms
Terms Adjusted EBITDA is an 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 represents net income excluding (a) interest expense on our outst
Slide 22: Disclosures
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 Litigation Reform Act of 1995. Words such as "will", "exp