Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Q1 2025 Earnings Presentation
22 slides from Hamilton Lane's earnings presentation, Aug 6, 2024
Slide 1: Fiscal Year 2025 First Quarter Results
Fiscal Year 2025 First Quarter Results August 6, 2024
Slide 2: Today's Speakers
Today's Speakers Erik Hirsch Griff Norville Jeff Armbrister John Oh Co-CEO Head of Technology Solutions 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 $130 billion and $68 billion, respectively, as of June 30, 2024, increases of 11% and 13%, respectively, compared to June 30, 2023 • Management and advisory fees increased 33% compared to th
Slide 4: Growing Asset Footprint & Influence
Growing Asset Footprint & Influence $940B AUM & AUA 1 Total Assets Under Management/Advisement ($B) $1,000 $130 $120 $98 $108 Y-o-Y Growth $800 AUM: 11 % $810 AUA: 16 % $783 % $724 : 18 GR $76 $753 CA $600 $66 $581 $59 $50 $400 $410 $422 $40 $374 $35 $32 $292 $200 $24 $30 $22 $205 $189 $13 $16 $19 $
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% .61%1 .74%2 $70 $68 $66 : 14% CAGR $60 $60 $57 $49 $28 $29 $50 $24 $42 $23 $39 $40 $18 $16 $14 $30 $20 $38 $38 $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: 33% CAGR: 16% • Recurring management and advisory fees represented an average of over 80% of total $140 $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 $1,500 106 > 12 years 96 100 90 $1,250 4% 80 $1,000 USD in Millions Vehicles 60 $750 8-12 years 22% $1,238 $1,102 $1,101 < 5 years 40 $500 46% 20 $250 0 $0 5-8 years Jun-22 Jun-23 Jun-24 28% Period Ending Unrealized
Slide 10: Consolidated Earnings
Consolidated Earnings Stable long-term growth Net Income Attributable to HLI YTD Long-Term Growth Y-o-Y Change: 90% CAGR: 32% $59 USD in Millions • $59M in net income attributable to HLI for the USD in Millions $141 quarter $31 $34 Q1 FY24 Q1 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 $632 $649 $588 • For June 30, 2024, the total investment balance USD in Millions $500 $514 consisted primarily of: $400 $300 $374 ◦ ~$411M in investments in our funds $2
Slide 12: Appendix
Appendix
Slide 13: Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Dollars in thousands except share and per share amounts) June 30, 2023 March 31, 2024 June 30, 2024 YoY % Change QoQ % Change Management and advisory fees $105,407 $123,704 $139,962 33 % 13 % Incentive fees 19,630 52,961 56,
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in thousands except share and per share amounts) June 30, 2023 March 31, 2024 June 30, 2024 YoY % Change QoQ % Change 1 Adjusted EBITDA Management and advisory fees $105,407 $123,704 $139,962 33 % 13 % Revenue related to consolidated funds 147
Slide 15: Management and Advisory Fees
Management and Advisory Fees Three Months Ended (Dollars in thousands) June 30, 2023 March 31, 2024 June 30, 2024 YoY % Change QoQ % Change Management and advisory fees Specialized funds $57,716 $76,039 $89,792 56 % 18 % Customized separate accounts 31,719 32,124 33,453 5 % 4 % Advisory 6,293 5,838
Slide 16: Incentive Fees
Incentive Fees Three Months Ended (Dollars in thousands) June 30, 2023 March 31, 2024 June 30, 2024 YoY % Change QoQ % Change Incentive fees Direct equity funds $2,331 $3,943 $3,947 69 % 0 % Secondary funds 8,077 29,419 9,881 22 % (66) % Direct credit funds 4,767 3,147 11,049 132 % 251 % Evergreen f
Slide 17: Assets Under Management
Assets Under Management (Dollars in millions) June 30, 2023 March 31, 2024 June 30, 2024 YoY % Change QoQ % Change Assets under management / advisement Assets under management $117,064 $124,406 $129,724 11 % 4 % Assets under advisement 700,651 796,173 810,414 16 % 2 % Total assets under management /
Slide 18: Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2024 June 30, 2024 Assets Cash and cash equivalents $114,634 $151,663 Restricted cash 4,985 4,799 Fees receivable 108,291 141,099 Prepaid expenses 11,073 7,494 Due from related parties 8,150 14,199 Furniture, fixtures
Slide 19: Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended June 30, (Dollars in thousands) 2023 2024 Operating activities Net income $51,344 $87,087 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,873 2,313 Change
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended March 31, Three Months Ended Reconciliation from Net Income (Dollars in thousands except share and per share amounts) 2019 2024 June 30, 2023 March 31, 2024 June 30, 2024 Net income attributable to Hamilton Lane Incorporated $33,573 $140,858 $30,998 $48,360 $58,964
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