Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Investor Presentation (September 2021)
19 slides from Hamilton Lane's investor presentation, September 2021
Slide 1: Market Overview
Market Overview September 2021 The information contained herein is based on the latest available information as of 8/23/21 and Hamilton Lane’s opinions as of the date of this presentation and subject to change at the Firm’s discretion.
Slide 2: Fundraising
Fundraising Global Private Markets Fundraising All Private Markets Fundraising % MSCI World Market Cap $1,200 2.5% $1,000 2.0% % of MSCI World Market Cap $800 USD in Billions 1.5% $600 1.0% $400 0.5% $200 $0 0.0% 2000 2003 2006 2009 2012 2015 2018 2021 Estimated • Fundraising accelerated in late 202
Slide 3: Hamilton Lane's Data
Hamilton Lane’s Data $14.0T+ Total Commitments Across 50 Years Hamilton Lane Fund Data Sample Hamilton Lane Portfolio Company Data Sample By Strategy By Sector Origination Consumer Discretionary Distressed Consumer Staples Natural Resources Energy & Utilities Infrastructure Financials Venture Capita
Slide 4: What the Markets Have Done
What the Markets Have Done Growth of $1 $2.10 $1.96 Private Equity $1.90 $1.70 $1.50 $1.42 Public Equities $1.27 Private Real Estate $1.30 $1.22 Private Credit $1.10 $0.90 2018 2019 2020 2021 • Fears over the impact of COVID-19 drove a sharp downturn in Q1 2020, but there has been a strong recovery
Slide 5: Pooled Returns by Vintage Year
Pooled Returns by Vintage Year Buyout IRR vs. PME Private Credit IRR vs. PME Buyout IRR Buyout 1st & 2nd MSCI World PME Private Credit IRR Private Credit 1st & 2nd Credit Suisse Quartile IRR Quartile IRR Leveraged Loan PME 50% 40% 45% 35% 40% 30% 35% 25% 30% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2
Slide 6: Risk-Adjusted Returns
Risk-Adjusted Returns 15-Year Asset Class Risk-Adjusted Performance Annualized Time-Weighted Return as of 3/31/2021 Private Markets Outperforming by 300+ bps Private Markets Outperforming by 0–300 bps Public Markets Outperforming 15% Equity Credit Real Assets 10% S&P Private 5% Global Natural MSCI I
Slide 7: Rolling Performance
Rolling Performance Rolling 10-Year Time-Weighted Returns 25% 20% All Private Equity 15% S&P 500 MSCI USA Small Cap Value 10% MSCI World 5% 0% -5% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2020 • Private equity has bested liquid equities over most 10-year time periods • Will elevated public
Slide 8: Strategy Risk & Return
Strategy Risk & Return 15-Year Strategy Returns & Volatility Bubbles Sized by NAV Private Equity Private Credit Private Real Assets 25% 20% U.S. Mega/Large EU Buyout Annualized Return 15% U.S. & EU U.S. SMID VC/Growth Higher 10% Sharpe Mezzanine ROW Equity Ratio than Real Estate All PM Distressed 5%
Slide 9: Worst Case Performance
Worst Case Performance Lowest 5-Year Annualized Performance 1995–2020 Private Markets Public Markets 10% Equity Credit Real Assets 5% 4.6% 2.6% 0% -0.9% -2.8% -2.1% -5.7% -5% -8.5% -7.9% -8.6% -10% -11.2% -13.0% -15% -17.7% -20% Developed MSCI VC/ Private BofA ML CS Natural MSCI Infra- S&P Private F
Slide 10: Periodic Table of Returns
Periodic Table of Returns Pooled IRR by Vintage Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 Seed/Early VC 33.6% Seed/Early VC Multi-Stage VC Late Stage VC Seed/Early VC Seed/Early VC 31.8% 26.8% 38.2% 35.4% 52.8% Multi-Stage VC US Large/Mega Seed/Early VC Growth Equity Growth Equity Growth Equ
Slide 11: Periodic Table of Distributions
Periodic Table of Distributions Pooled DPI by Vintage Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 Growth Equity Seed/Early VC Growth Equity 1.9x 1.9x 1.5x Seed/Early VC Multi-Stage VC US SMID Multi-Stage VC 3.7x 1.5x 1.3x 1.3x Multi-Stage VC Seed/Early VC EU Buyout Seed/Early VC Real Estate Me
Slide 12: Distributions
Distributions Annual Private Equity and Private Credit Distributions Annual Private Real Assets Distributions Private Equity and Buyout VC/Growth Private Credit Private Real Assets Real Estate Infrastructure Natural Resources Private Credit Rate of Rate of Rate of Distributions Rate of Rate of Rate
Slide 13: Liquidity by Strategy
Liquidity by Strategy Annual Liquidity Ratio Distributions/Contributions 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Buyout Credit VC/Growth Real Estate Infrastructure Natural Resources • Distributions have outpaced contributions thus far in 2021, rendering all strategies cash flow positive through 1H 2
Slide 14: Contributions
Contributions Annual Private Equity and Private Credit Contributions Annual Private Real Assets Contributions Private Equity and Buyout VC/Growth Private Credit Private Real Assets Real Estate Infrastructure Natural Resources Private Credit Rate of Rate of Rate of Contributions Rate of Rate of Rate
Slide 15: What It All Means
What It All Means The Hamilton Lane Worry Index The Hamilton Lane Worry Index is a Composite of Hamilton Lane’s Sentiment Indicators. Higher Numbers = More Worry 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Today Buyout 61 66 27 18 16
Slide 16: Appendix
Appendix
Slide 17: Definitions
Definitions Strategy Definitions Index Definitions All Private Markets – Hamilton Lane’s definition of “All Private Markets” includes all private commingled funds excluding Barclays U.S. Corporate Aggregate Index – Tracks the performance of U.S. fixed rate corporate debt rated as investment fund-of-
Slide 18: Endnotes
Endnotes Page 4: MSCI World used as proxy for public equities. Page 6: Indices used: Hamilton Lane All Private Markets with volatility de-smoothed; Hamilton Lane All Private Equity ex. Credit and Real Assets with volatility de-smoothed; S&P 500 Index; Russell 3000 Index; MSCI World Index; HFRI Compo
Slide 19: Disclosures
Disclosures This presentation has been prepared solely for informational purposes and contains confidential and proprietary information, the disclosure of which could be harmful to Hamilton Lane. Accordingly, the recipients of this presentation are requested to maintain the confidentiality of the in
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