Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Q3 FY2024 Earnings Presentation
22 slides from Hamilton Lane's earnings presentation, Feb 6, 2024
Slide 1: Fiscal Year 2024 Third Quarter Results
Fiscal Year 2024 Third Quarter Results February 6, 2024
Slide 2: Today's Speakers
2Hamilton Lane | Global Leader in the Private Markets Juan Delgado-Moreira Co-CEO Today's Speakers Erik Hirsch Co-CEO Jeff Armbrister Chief Financial Officer John Oh Head of Shareholder Relations
Slide 3: Period Highlights
3Hamilton Lane | Global Leader in the Private Markets Business Performance Financial Results Dividend • Assets under management and fee-earning assets under management were $120 billion and $63 billion, respectively, as of December 31, 2023, increases of 12% and 15%, respectively, compared to Decemb
Slide 4: Total Assets Under Management/Advisement
4Hamilton Lane | Global Leader in the Private Markets Total Assets Under Management/Advisement ($B) Total AUA Total AUM 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $0 $200 $400 $600 $800 $1,000 Y-o-Y Growth AUM: 12 % AUA: 8 % $903B AUM & AUA 1 CAGR:
Slide 5: Y-o-Y Drivers of Growth: Fee-Earning AUM
5Hamilton Lane | Global Leader in the Private Markets Y-o-Y Drivers of Growth Total Fee-Earning Assets Under Management ($B) $22 $25 $26 $31 $35 $33 $37 $11 $14 $16 $18 $23 $22 $26 Customized Separate Accounts Specialized Funds Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 $0 $10 $20 $30 $40 $50
Slide 6: AUM & AUA Drivers
6Hamilton Lane | Global Leader in the Private Markets Customized Separate Accounts Specialized Funds Advisory Services Diverse mix of existing and prospective clients seeking to further or establish relationships with Hamilton Lane • $3.8B year-over-year increase in FEAUM • +80% of our gross contrib
Slide 7: Financial Highlights
Financial Highlights
Slide 8: Revenues: Management and Advisory Fees, Incentive Fees
8Hamilton Lane | Global Leader in the Private Markets U S D in M ill io ns $416 $377 Q3 FY23 Q3 FY24 U S D in M ill io ns $140 $49 Q3 FY23 Q3 FY24 U S D in M ill io ns $276 $328 Q3 FY23 Q3 FY24 Management and Advisory Fees Incentive Fees Total Revenues YTD YTD Y-o-Y Change: 19% YTD Y-o-Y Change: (9)
Slide 9: Unrealized Carried Interest
9Hamilton Lane | Global Leader in the Private Markets Period Ending V eh ic le s U S D in M illions Unrealized Carried Interest $1,064 $952 $1,126 88 91 99 Unrealized Carried Interest Vehicles in Unrealized Carry Position Dec-21 Dec-22 Dec-23 0 20 40 60 80 100 $0 $250 $500 $750 $1,000 $1,250 $1,500
Slide 10: Consolidated Earnings
10Hamilton Lane | Global Leader in the Private Markets U S D in M ill io ns $17 $109 FY18 FY23 Net Income Attributable to HLI Adjusted EBITDA1 Fee Related Earnings1 U S D in M ill io ns $205 $181 Q3 FY23 Q3 FY24 U S D in M ill io ns $78 $92 Q3 FY23 Q3 FY24 U S D in M ill io ns $133 $260 FY18 FY23 U
Slide 11: Investments and Leverage
11Hamilton Lane | Global Leader in the Private Markets U S D in M ill io ns Investments $154 $208 $374 $514 $588 $604 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 $0 $100 $200 $300 $400 $500 $600 $700 • For 12/31/23, the total investment balance consisted primarily of: ◦ ~$392M in investments in our fu
Slide 12: Appendix
Appendix
Slide 13: Consolidated Statements of Income
13Hamilton Lane | Global Leader in the Private Markets Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands except share and per share amounts) 2022 2023 % Change 2022 2023 % Change Management and advisory fees $97,355 $113,641 17 % $276,182 $328,232 19 % Incentive fe
Slide 14: Adjusted Net Income and Non-GAAP EPS
14Hamilton Lane | 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 20. 2 Incentive fee related compensat
Slide 15: Management and Advisory Fees Breakdown
15Hamilton Lane | Global Leader in the Private Markets Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands) 2022 2023 % Change 2022 2023 % Change Management and advisory fees Specialized funds $53,299 $64,871 22 % $144,099 $184,972 28 % Customized separate accounts 2
Slide 16: Incentive Fees and Allocated Carried Interest
16Hamilton Lane | Global Leader in the Private Markets Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands) 2022 2023 % Change 2022 2023 % Change Incentive fees Direct equity funds $5,644 $— (100) % $58,104 $3,444 (94) % Secondary funds 447 — (100) % 27,393 12,046 (5
Slide 17: AUM, AUA and Fee-Earning AUM Rollforward
17Hamilton Lane | Global Leader in the Private Markets (Dollars in millions) December 31, 2022 September 30, 2023 December 31, 2023 YoY % Change QoQ % Change Assets under management / advisement Assets under management $107,530 $119,182 $119,953 12 % 1 % Assets under advisement 724,364 734,804 782,8
Slide 18: Consolidated Balance Sheets
18Hamilton Lane | Global Leader in the Private Markets (Dollars in thousands) March 31, 2023 December 31, 2023 Assets Cash and cash equivalents $99,686 $164,450 Restricted cash 4,804 4,985 Fees receivable 47,140 67,751 Prepaid expenses 9,817 9,418 Due from related parties 7,186 9,969 Furniture, fixt
Slide 19: Consolidated Cash Flows
19Hamilton Lane | Global Leader in the Private Markets Nine Months Ended December 31, (Dollars in thousands) 2022 2023 Operating activities Net income $135,750 $150,382 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,600 5,774 Change
Slide 20: Reconciliation from Net Income
20Hamilton Lane | Global Leader in the Private Markets 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) 2018 2023 2022 2023 2022 2023 Net income attributable to Hamilton Lane I
Slide 21: Non-GAAP Measure Definitions
21Hamilton Lane | Global Leader in the Private Markets 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 i
Slide 22: Forward-Looking Statements
22Hamilton Lane | Global Leader in the Private Markets 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 Ref