Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — FY2022 Earnings Presentation
22 slides from Hamilton Lane's earnings presentation, May 26, 2022
Slide 1: Fiscal Year 2022 Fourth Quarter and Full Year Results
Fiscal Year 2022 Fourth Quarter and Full Year Results Earnings Presentation - May 26, 2022 Hamilton Lane l Global Leader in the Private Markets 1
Slide 2: Today's Speakers
Today's Speakers Mario Giannini Erik Hirsch Atul Varma John Oh Chief Executive Officer Vice Chairman Chief Financial Officer Investor Relations Manager Hamilton Lane l 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 approximately $106 billion and $49 billion, respectively, as of March 31, 2022, increases of 21% and 17%, respectively, compared to March 31, 2021 • Management and advisory fees increased 9%
Slide 4: Growing Asset Footprint & Influence
Growing Asset Footprint & Influence $901B AUM & AUA Total Assets Under Management/Advisement ($B) 1 $1,000 $106 $98 Y-o-Y Growth $800 AUM: 21% AUA: 26% $795 % $76 G R: 21 $753 $600 C A $66 $59 $581 $50 $400 $422 $40 $410 $374 $35 $32 $292 $200 $24 $30 $22 $205 $16 $189 $11 $13 $19 $147 $147 $6 $7 $1
Slide 5: Fee-Earning AUM Driving Revenues
Fee-Earning AUM Driving Revenues Fee-Earning AUM growth continues and annual fee rates are stable Total Fee-Earning Assets Under Management ($B) $60 .55% .56% .60% .56% $49 $50 2% CAGR: 1 $42 $39 $40 $18 $34 $31 $16 $14 $30 $11 $10 $20 $31 $25 $26 $10 $21 $22 $0 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Cu
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 wide- prospective clients seeking • Direct equity fund ranging mandates which include technology-driven reporting, to further o
Slide 7: Financial Highlights
Financial Highlights Hamilton Lane l Global Leader in the Private Markets 7
Slide 8: Consolidated Revenue
Consolidated Revenue Strong revenue growth across management and advisory fees Management and Advisory Fees YTD Long-Term Growth Y-o-Y Growth: 9% CAGR: 13% • Recurring management and advisory fees represented an average of 85% of total revenues over the past five fiscal years USD in Millions USD in
Slide 9: Unrealized Carried Interest
Unrealized Carried Interest Unrealized Carried Interest Unrealized Carry by Age 100 92 $1,500 > 12 years 78 $1,250 3% 80 65 $1,000 8-12 years USD in Millions 60 20% Vehicles $750 40 $1,191 < 5 years $500 48% 20 $649 $250 $441 5-8 years 29% 0 $0 Mar-20 Mar-21 Mar-22 Period Ending Unrealized Carried I
Slide 10: Consolidated Earnings
Consolidated Earnings Profitability stable and growing Net Income Attributable to HLI YTD Y-o-Y Growth: 49% Long-Term Growth • $146M in net income attributable to HLI for FY22 • $14M in net income attributable to HLI for the quarter USD in Millions USD in Millions $146 $146 $98 1 $1 FY21 FY22 FY17 F
Slide 11: Other Key Items
Other Key Items Strong balance sheet with investments in our own products and a modest amount of leverage... Investments $600 • For 3/31/22, the total investment balance consisted of: $450 $514 ◦ ~$336M in equity method investments in our USD in Millions funds $374 $300 ◦ ~$178M in technology relate
Slide 12: Appendix
Appendix Hamilton Lane l Global Leader in the Private Markets 12
Slide 13: Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited) Three Months Ended March 31, Year Ended March 31, (Dollars in thousands except share and per share amounts) 2021 2022 % Change 2021 2022 % Change Revenues Management and advisory fees $80,531 $84,575 5% $289,444 $314,228 9% Incentive fees 18,62
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended March 31, Year Ended March 31, (Dollars in thousands except share and per share amounts) 2021 2022 % Change 2021 2022 % Change Adjusted EBITDA1 Management and advisory fees $80,531 $84,575 5% $289,444 $314,228 9% Total expenses 57,015 54,633 (4)% 185,90
Slide 15: Management and Advisory Fees
Management and Advisory Fees Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2021 2022 % Change 2021 2022 % Change Management and advisory fees Specialized funds $45,920 $42,144 (8)% $148,023 $150,079 1% Customized separate accounts 23,363 27,813 19 % 93,963 103,229 10 % Adv
Slide 16: Incentive Fees
Incentive Fees Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2021 2022 % Change 2021 2022 % Change Incentive fees Secondary Fund II $264 $0 (100)% $1,183 $239 (80)% Co-investment Fund II 20 2,410 11,950 % 17,354 5,558 (68)% Other specialized funds 9,088 6,428 (29)% 15,761
Slide 17: Assets Under Management
Assets Under Management YoY % QoQ % (Dollars in millions) March 31, 2021 December 31, 2021 March 31, 2022 Change Change Assets under management / advisement Assets under management $87,816 $98,131 $106,382 21 % 8% Assets under advisement 630,740 752,917 794,732 26 % 6% Total assets under management
Slide 18: Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2021 March 31, 2022 Assets Cash and cash equivalents $87,025 $72,138 Restricted cash 3,041 4,023 Fees receivable 29,202 51,869 Prepaid expenses 6,143 6,858 Due from related parties 2,495 1,872 Furniture, fixtures and
Slide 19: Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited) Year Ended March 31, (Dollars in thousands) 2020 2021 2022 Operating activities Net income $126,776 $168,785 $247,253 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,291 4,13
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended Three Months Ended Year Ended Reconciliation from Net Income March 31, March 31, March 31, (Dollars in thousands) 2017 2022 2021 2022 2021 2022 Net income attributable to Hamilton Lane Incorporated $612 $145,986 $39,760 $13,825 $98,022 $145,986 Income (loss) attrib
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