Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Q4 FY2021 Earnings Presentation
24 slides from Hamilton Lane's earnings presentation, May 27, 2021
Slide 1: Fiscal Year 2021 Fourth Quarter and Full Year Results
1Hamilton Lane l Global Leader in the Private Markets Fiscal Year 2021 Fourth Quarter and Full Year Results Earnings Presentation - May 27, 2021
Slide 2: Today's Speakers
2Hamilton Lane l Global Leader in the Private Markets Today's Speakers Erik Hirsch Vice Chairman Mario Giannini Chief Executive Officer Atul Varma Chief Financial Officer John Oh Investor Relations Manager
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 $88 billion and $42 billion, respectively, as of March 31, 2021, increases of 28% and 9%, respe
Slide 4: Total Assets Under Management/Advisement
4Hamilton Lane l Global Leader in the Private Markets Total Assets Under Management/Advisement ($B) $51 $77 $79 $95 $81 $129 $147 $147 $189 $205 $292 $374 $410 $422 $581 Total AUA Total AUM 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3/31/21 $0 $100 $200 $300 $400
Slide 5: Total Fee-Earning Assets Under Management
5Hamilton Lane l Global Leader in the Private Markets $18 $21 $22 $25 $26 $9 $10 $11 $14 $16 Customized Separate Accounts Specialized Funds Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 $0 $10 $20 $30 $40 $50 Total Fee-Earning Assets Under Management ($B) Fee-Earning AUM growth continues and annual fee rates a
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: • Direct equity fund • Cre
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 U SD in M ill io ns $158 $289 FY16 FY21 U SD in M ill io ns $245 $289 FY20 FY21 Consolidated Revenue Strong revenue growth across management and advisory fees Management and Advisory Fees Incentive Fees Total Revenues YTD Long-Term Growth U SD in
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 $326 $441 $649 56 65 78 Unrealized Carried Interest Vehicles in Unrealized Carry Position Mar-19 Mar-20 Mar-21 0 15 30 45 60 75 90 $0 $100 $200 $
Slide 10: Consolidated Earnings
10Hamilton Lane l Global Leader in the Private Markets U SD in M ill io ns $101 $130 FY20 FY21 U SD in M ill io ns $127 $168 FY20 FY21 Net Income Attributable to HLI U SD in M ill io ns $61 $98 FY20 FY21 Adjusted EBITDA2 Consolidated Earnings Profitability stable and growing U SD in M ill io ns $98
Slide 11: SPAC Accounting
11Hamilton Lane l Global Leader in the Private Markets SPAC Accounting Hamilton Lane Alliance Holdings I ("HLAH") IPO - Completed De-SPAC Monetization HLNE Financials Impact: • Balance Sheet • Income Statement • Largest asset on HLAH's balance sheet is the $276M of gross proceeds raised in IPO (inve
Slide 12: Other Key Items
12Hamilton 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 $374 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 $0 $50 $100 $150 $200 $250 $300
Slide 13: Fiscal Year 2021 Fourth Quarter and Full Year Results
13Hamilton Lane l Global Leader in the Private Markets Fiscal Year 2021 Fourth Quarter and Full Year Results Earnings Presentation - May 27, 2021
Slide 14: Appendix
14Hamilton Lane l Global Leader in the Private Markets Appendix
Slide 15: Condensed Consolidated Statements of Income (Unaudited)
15Hamilton Lane l Global Leader in the Private Markets Condensed Consolidated Statements of Income (Unaudited) Three Months Ended March 31, Year Ended March 31, (Dollars in thousands except share and per share amounts) 2020 2021 % Change 2020 2021 % Change Revenues Management and advisory fees $65,3
Slide 16: Adjusted income statement footnotes
16Hamilton 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 22. 2 Incentive fee related compensat
Slide 17: Management and Advisory Fees
17Hamilton Lane l Global Leader in the Private Markets Management and Advisory Fees Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2020 2021 % Change 2020 2021 % Change Management and advisory fees Specialized funds $30,070 $45,920 53 % $111,803 $148,023 32 % Customized sep
Slide 18: Incentive Fees
18Hamilton Lane l Global Leader in the Private Markets Incentive Fees Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2020 2021 % Change 2020 2021 % Change Incentive fees Secondary Fund II $120 $264 (59) % $832 $1,183 42 % Co-investment Fund II 1,438 20 (97) % 7,691 17,354 1
Slide 19: Assets Under Management
19Hamilton Lane l Global Leader in the Private Markets Assets Under Management (Dollars in millions) March 31, 2020 December 31, 2020 March 31, 2021 YoY % Change QoQ % Change Assets under management / advisement Assets under management $68,571 $75,777 $87,816 28 % 16 % Assets under advisement 434,25
Slide 20: Condensed Consolidated Balance Sheets (Unaudited)
20Hamilton Lane l Global Leader in the Private Markets Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2020 March 31, 2021 Assets Cash and cash equivalents $50,124 $87,025 Restricted cash 3,086 3,041 Fees receivable 30,384 29,202 Prepaid expenses 6,988 6,143 Due fr
Slide 21: Condensed Consolidated Statements of Cash Flows (Unaudited)
21Hamilton Lane l Global Leader in the Private Markets Condensed Consolidated Statements of Cash Flows (Unaudited) Year Ended March 31, (Dollars in thousands) 2019 2020 2021 Operating activities Net income $98,997 $126,776 $168,785 Adjustments to reconcile net income to net cash provided by operatin
Slide 22: Non-GAAP Reconciliation
22Hamilton Lane l Global Leader in the Private Markets Non-GAAP Reconciliation Reconciliation from Net Income Year Ended March 31, Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2016 2021 2020 2021 2020 2021 Net income attributable to Hamilton Lane Incorporated $0 $98,022 $
Slide 23: Terms
23Hamilton 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 24: Disclosures
24Hamilton 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