Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Investor Day (June 2024)
100 slides from Hamilton Lane's investor day presentation, Jun 5, 2024
Slide 1: HLNE Shareholder Day
HLNE Shareholder Day June 5, 2024
Slide 2: Disclaimer
Disclaimer 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", "expe
Slide 3: Welcome | Agenda
Welcome | Agenda John Oh Managing Director – Head of Shareholder Relations
Slide 4: Agenda and Speakers
Agenda and Speakers 1. Welcome Remarks 5. HL Innovations and Technology John Oh Griff Norville Managing Director - Head of Shareholder Relations Managing Director – Head of Technology Solutions 2. Hamilton Lane and the Private Markets 6. Financials and KPIs Erik Hirsch Jeff Armbrister Co-Chief Execu
Slide 5: Hamilton Lane Organizational Chart
Hamilton Lane Organizational Chart Leslie F. Varon R. Vann Graves David J. Berkman O. Griffith Sexton Previously CFO Xerox Corp. Exec. Director Brandcenter at Managing Partner, Advisory Director at Virginia Commonwealth University Associated Partners, LP Morgan Stanley Hartley Rogers Mario Giannini
Slide 6: Hamilton Lane and the Private Markets
Hamilton Lane and the Private Markets Erik Hirsch Co-Chief Executive Officer
Slide 7: The Journey Since IPO
The Journey Since IPO IPO Today Growth People 290 ~700 2.4x Offices 12 22 1.8x AUM $42B $124B 3.0x FEAUM $27B $66B 2.5x Clients & Investors +350 +1,800 5.1x IPO as of 3/31/17, Today as of 3/31/24 7
Slide 8: Footprint Growth
Footprint Growth $921B AUM & AUA Total Assets Under Management/Advisement ($B)1 March 2017 $1,000 HLNE IPO $124 $120 $900 $98 $108 $800 $76 $796 $700 CAGR $783 $753 $724 18% $600 $66 $500 $59 $581 $50 $400 $40 $422 $410 $300 $374 $35 $32 $30 $292 $200 $24 $22 $16 $205 $11 $13 $19 $189 $100 $6 $7 $14
Slide 9: Where We are Going
Where We are Going Grow existing product Introduce new Hamilton Expand our Widen our technology suite Lane products global footprint advantage 9
Slide 10: Investing exclusively in the private markets for 32 years
Investing exclusively in the OUR MISSION & VALUES private markets for 32 years We enrich lives & safeguard futures ~$921B ~$32B * 1 Do the right thing Assets under management Capital deployed & advisement in 2023 Integrity, candor and collaboration 1,800+ $728M A spirit of competition that inspires
Slide 11: Global Footprint
Global Footprint Stockholm Opened 2022 Toronto Opened 2019 Shanghai Opened 2023 Zug/Zurich Milan Opened 2021 Opened 2022 Mexico City Singapore Opened 2023 Opened 2020 11
Slide 12: Full-Service Solutions Provider
Full-Service Solutions Provider SERVICES & SOLUTIONS Customized Commingled Managed Product Solutions STRATEGIES Solutions Secondary/ Natural Debt Resources Distressed TOOLS TO ACCESS Venture Buyout Capital Technology- Reporting Private enabled & Analytics Secondaries Primaries Markets Investment Sol
Slide 13: Transforming private markets data into insight and action
Transforming private markets data into insight and action Informed decision-making. Cutting edge technology. Expert investing. Innovative partnerships. We leverage our accurate, comprehensive dataset, coupled with We're committed to advancing the industry's adoption of technology. our proprietary te
Slide 14: What are Private Markets?
What are Private Markets?
Slide 15: How It Works
How It Works INVESTMENT FUNDRAISE PERIOD FULLY LIQUIDATED 12-18 1-5 6-12+ MONTHS YEARS YEARS LP Diligence FINAL Cash-In Cash-Out CLOSE The Process The Terms 1. Capital Commitment Capital Committed Investor makes a capital commitment to a fund manager in year 1. An investor’s financial obligation to
Slide 16: Understanding Private Equity Exposure and Cash Flows
Understanding Private Equity Exposure and Cash Flows Commitment ≠ Exposure Commitment Pacing Requires Careful Planning • $10M commitment never fully exposed As cash goes out, cash also comes back in While PE is illiquid, cash returns can be generated as early as 2-3 years and the entire commitment i
Slide 17: Illustrative Institutional Portfolio
Illustrative Institutional Portfolio Direct Investments 5-10% Bonds 25% TARGET PRIVATE MARKETS Primaries Stocks Secondaries 70-80% 15-20% DIVERSIFICATION 50% Direct Private TOTAL CLIENT Markets Investments ROW PORTFOLIO 10% 5-10% Buyout 10-20% North 35-45% America Secondaries 60-70% 15-20% Hedge Fun
Slide 18: Who Invests in Private Equity?
Who Invests Taft-Hartley (Union) Pension Funds in Private Equity? Sovereign Wealth Funds 2.0% Other 5.3% 3.2% Public Pension GP Contribution Funds An increasingly diversified 4.1% 25.6% investor base Discretionary Advisors 4.2% • A longer-term asset class, private equity may be suitable Bank/Financi
Slide 19: Challenges Faced by Investors Seeking Private Market Exposure
Challenges Faced by Investors Seeking Private Market Exposure Time and complexity of investing in the private markets space is more challenging than ever Proper Heightened Maintaining Diversification Pacing Regulation Allocation Accurate Valuation Fees Benchmarking Changes Adjusting to Emergence Bal
Slide 20: Changes in the Return Landscape
Changes in the Return Investor Allocation Seeking to Earn 7.0% Landscape 100% 90% 3% 19% 11% 9% 80% 5% Return expectations have changed 70% 17% Cash 60% 29% 5% Private Equity • A study by Callan Associates Real Estate concludes that in order to achieve a 50% 97% 25% Non-U.S. Equity 7% nominal return
Slide 21: Private Markets – Early Days (2000 Vintage)
Private Markets – Early Days (2000 Vintage) Trailing 5Y Fundraising: $0.7T Real Assets 19% Secondaries Credit 9% CI Equity 72% Total Fundraising: $0.7 trillion Source: Hamilton Lane Data (March 2024), Secondary, Co-investment, and semi-liquid components are for illustrative purposes and may not corr
Slide 22: Private Markets Today
Private Markets Today Trailing 5Y Fundraising: $5.2T Real Assets LP Portfolios LP Single Fund 17% GP Led Single Direct Asset Secondaries Semi-Liquid Private Equity GP Led Multi- Complex Asset Restructuring Staples Credit Equity CI Credit CI 24% Equity 59% Equity Co-Lead Credit Co- Lead RE Infra Tota
Slide 23: This Asset Class is Complex
This Asset Class is Complex 20 years ago, the private markets were small and concentrated...today, they are not Private Markets Industry – 20 Years Ago Private Markets Industry – Today Managers with Funds Raised in the Trailing 10 Vintage Years Managers with Funds Raised Since 2000 1,551 Funds | 1,0
Slide 24: Setting the Record Straight
Setting the Record Straight
Slide 25: What the Markets Have Done Over the Last Five Years
What the Markets Have Done Over the Last Five Years Growth of $1 $2.70 $2.50 $2.41 Private Equity $2.30 • Over this five-year period, private equity has had greater upside and $2.10 less downside across all the cycles experienced in the last five years $1.90 • Private markets, generally, have $1.67
Slide 26: 15-Year Asset Class Performance
15-Year Asset Class Performance Annualized Time-Weighted Return as of 12/31/2023 Private Markets Outperforming Private Markets Outperforming Public Markets Outperforming by 300+ bps by 0–300 bps Equity Credit Real Assets • Private equity and private credit 16% outperform over intermediate and 14% lo
Slide 27: Median Exit Markups During the Year Prior to Exit
Median Exit Markups During the Year Prior to Exit Deals Exited from Q2 2021 – Q2 2023 30% 27% • Private companies, on average, are 25% exited at a premium to holding value 20% • If private companies were generally 17% overvalued, why would exits, even during this period of poor capital 15% markets,
Slide 28: Leverage vs. IRR
Leverage vs. IRR Deal Leverage vs. Gross IRR 200% 150% • There has not been significant correlation between acquisition 100% leverage multiple and performance • The data runs counter to the 50% popularly held belief that high Gross IRR leverage levels mean increased risk 0% and lower returns -50% -1
Slide 29: Global Private Markets Fundraising
Global Private Markets Fundraising Global Private Markets Fundraising All Private Markets Fundraising % of MSCI World Market Cap $1,800 3.5% $1,600 3.0% % of MSCI World Market Cap Global Fundraising (USD in Billions) $1,400 2.5% $1,200 • Fundraising has slipped in 2023, though, in an absolute sense,
Slide 30: Private Markets Fundraising
Private Markets Fundraising Trailing Three-Year Private Markets Fundraising By Strategy Buyout VC/Growth Credit Infrastructure Natural Resources Real Estate 100% 90% 80% • In recent years, equity-focused 70% strategies increased their share of fundraising, seemingly reversing a 60% 15-year trend 50%
Slide 31: Net Asset Value (NAV) by Strategy
Net Asset Value (NAV) by Strategy USD in Trillions $10 $10,000 $9 $9,000 $8 Mega/Large $8,000 Buyout $7 $7,000 SMID Buyout • After an NAV decline in 2022, $6 $6,000 market NAV has steadily surpassed 2021 peaks $5 $5,000 • Buyout funds are driving the 2023 VC/Growth $4 $4,000 NAV “recovery” $3 $3,000
Slide 32: Distributions as a % of NAV
Distributions Annual Private Markets Distributions All Private Markets Distributions All Private Markets Rate of Distribution $2,000 60% $1,800 • Private markets distribution activity 50% continued to decline in 2023 $1,600 relative to a record-smashing 2021 Distributions as a % of NAV $1,400 40% •
Slide 33: Years To Liquidate NAV
Years To Liquidate NAV Private Equity & Private Credit Private Real Assets Buyout Credit VC/Growth Real Estate Infrastructure Natural Resources • The time it will take to liquidate 28 existing portfolios at current rates 20 has increased substantially for All PM 24 All PM Venture Capital, Buyout and
Slide 34: Holding Periods
Holding Periods Holding Period of Exited Holding Period of Exited Buyout Deals Growth Equity Deals % of Deal Count by Year of Exit % of Deal Count by Year of Exit <3 Years 3-5 Years >5 Years <3 Years 3-5 Years >5 Years 100% 100% 90% 90% 80% 80% • Buyout experienced an uptick from 70% 70% 2022 in dea
Slide 35: How We Work With Clients
How We Work With Clients Andrea Kramer Jackie Rantanen Chief Operating Officer Head of Investor Solutions
Slide 36: Who We Work For
Who We Work For Financial Public Sovereign Retail Institutions/ Taft-Hartley Pension Plans Wealth Funds Insurance ERISA Corporate Endowments & Corporate Wealth Family Pension Plans Foundations Pension Plans Managers Offices 36
Slide 37: How We Work With Clients
How We Work With Clients Specialized Fund Solutions Custom Solutions Direct Credit Funds Infrastructure Funds Asset Management Solutions – Customized Separate Accounts (CSA) Direct Equity Funds Secondary Funds Service Solutions – Advisory Evergreen Funds Venture Funds Impact Funds Technology Solut
Slide 38: Scaled Investment Platform
Scaled Investment Platform Our specialized investment teams are connected through industry-leading technology platforms that allow for meaningful communication and real- time information sharing on our global and diversified opportunity set. Fund Investment & 40 Managed Solutions Team Dedicated team
Slide 39: Scaled Investment Platform
Scaled Investment Platform Primaries Secondaries Direct Equity Private Credit Infrastructure Real Estate Venture Impact Platform Size1 $728B $17B $14B $64B* $67B* $106B* $118B* $3B* (AUM/AUA) 1,080+ 2023 Deal Flow $238B $43B $13B $42B $21B $35B $6B Funds 2023 80 $3.0B $1.9B2 $1.3B $721M $707M $898M
Slide 40: Portfolio Management Group
Portfolio Management Group Portfolio Management Portfolio Strategic Group Overlay Assessment Allocations 18 Person Team • Thoughtful portfolio construction provides a foundation for a successful Why Portfolio Portfolio private markets portfolio Construction Matters: Management • Dedicated Portfolio
Slide 41: Customized Separate Accounts
Customized Separate Accounts A collaborative partnership with Hamilton Lane Approach & Implementation • Hamilton Lane and client collaborate on a custom-tailored • Establish portfolio objectives: strategic plan and guidelines to meet investment needs, - Identify a portfolio that aims to meet risk/re
Slide 42: Re-Up Cycle of CSA
Re-Up Cycle of CSA Maintaining or growing allocation Long-term nature of customized Long-term relationships Expanding relationships requires continued commitments separate accounts (CSA) from investors • ~10-year average age of • High retention rate with CSA • Several of our clients have • Vast majo
Slide 43: Illustrative Composition of a CSA
Illustrative Composition of a CSA Customized Separate Accounts • CSA portfolio construction anchored Direct Investments around primary investing 5-10% • Increasingly, CSAs are including transaction components TRANSACTION Primaries Secondaries TYPE 70-80% 15-20% • J-Curve mitigation • Tactical direct
Slide 44: Diversified CSA Platform
Diversified CSA Platform • HL’s CSA FEAUM base is diversified by client type, size and location • Investment mandates span the entirety of the private markets – primaries, secondaries, direct equity, direct credit • Includes all sub-asset classes – private equity, venture, growth, private credit, re
Slide 45: Long History of CSAs
Long History of CSAs $16,000 • Certain CSA relationships date back $14,627 to the 1990s $14,000 • Average age of Hamilton Lane relationship – 8 years $12,000 • FEAUM Weighted Average – 10 $10,000 $9,187 In $USD M years $8,000 $7,289 $6,470 $6,000 $4,000 $2,000 $0 Less than 5 5 - 10 10-15 15+ Years C
Slide 46: Specialized Funds
Specialized Funds What Are Specialized Funds? Advantages for HL Investors • Generally anchored in a particular transaction type (ie secondaries, • Tactical allocation to particular transaction types or strategies direct equity or direct credit) or a particular strategy, generally through transaction
Slide 47: Specialized Funds - Flagships
Specialized Funds - Flagships Secondary Funds Direct Equity Funds Strategic Opportunities Funds Diversified pool of mature private Diversified pool of direct equity Shorter duration, yield-oriented markets assets investments alongside leading GPs private markets instruments • Identify transactions w
Slide 48: Specialized Funds – New Strategies
Specialized Funds – New Strategies Impact Funds Infrastructure Opportunities Fund Venture Funds Environmental/social impact Diversified infrastructure exposure Access to leading venture investments seeking attractive through highly selective transactions opportunities returns • Focus on direct inves
Slide 49: Scaling Our Established Closed End Offerings
Scaling Our Established Closed End Offerings Dedicated platforms offering strategy focused exposure through traditional commingled funds Secondary Funds SF I SF II SF III SF IV SF V SF VI* 2005 2008 2012 2016 2019 2022 $0.4B $0.6B $0.9B $1.9B $3.9B +$5.0B Equity Opportunities Funds (Direct Equity) E
Slide 50: Advisory
Advisory The Partnership Relationship Management Senior Executive Client Staff & Trustees Relationship Manager • Relationship Management Team is a partner and an extension of staff The Platform • Client decides how they want to leverage our resources Other Fund Investment & Monitoring & Legal & Mana
Slide 51: Monitoring and Reporting
Monitoring and Reporting We monitor more than $18.9 trillion in private markets fund level commitments1 • End-to-end back-office solution, allowing the client to focus on investment activities • Unique system automating the collection, storage, analysis and reporting of data to LPs Data Collection +
Slide 52: Technology Solutions
Technology Solutions Our proprietary data and analytics platform delivers unique insight • Internal SaaS business with growing user base • Technology Solutions differentiates HL in fundraising, and can be leveraged to win competitive processes Asset Allocation + Portfolio Planning + Track Record Ana
Slide 53: Distribution Management
Distribution Management Characteristics Dedicated team with an expertise in Enhance the realized value of distributions of publicly-traded stock, seeking • research, trading and operations since to enhance overall returns 1991 • Understand investment goals: Time Horizon1 • Risk tolerance/investment
Slide 54: Private Wealth Solutions
Private Wealth Solutions Steve Brennan Managing Director – Head of Private Wealth Solutions
Slide 55: Private Wealth
Private Wealth Hamilton Lane Private Wealth Survey: Allocation to Private Markets What % of your clients’ portfolios do you Compared to 2023, this allocation Global Wealth by Investor Type, 2022 anticipate allocating to private markets amount is an: in 2024? Mass Affluent ($0.1M-$1M) None Decrease f
Slide 56: Evergreen Approach
Evergreen Approach A solution to traditional fund problems Traditional Private Equity Funds Evergreen Funds Capital Deployment Multi-year commitment period Fully deployed Involves processing capital calls and distributions No capital calls Administration Often greater than $5M USD Lower minimum inve
Slide 57: Accessing Private Equity Through Evergreen Funds
Accessing Private Equity Through Evergreen Funds Traditional PE Fund - Percent Invested by Year1 Evergreen Fund Growth vs. Closed-End Fund3 100% 40% Max net drawn is 80% Distributions below committed amount 35% lower an 60% Most capital is investor's 40% undrawn early allocation 30% Net Invested 20%
Slide 58: Hamilton Lane Evergreen Platform
Hamilton Lane Evergreen Platform A successful, sustained and growing fund offering Private Equity Focused Strategies Private Assets Fund (PAF) Senior Credit Opportunities Fund Global Private Assets Fund (GPA) Potential Future Evergreen Offerings Tender Offer Fund (SCOPE) (shown in $M) (shown in $M)
Slide 59: Hamilton Lane Evergreen Platform
Hamilton Lane Evergreen Platform GPA PAF SCOPE Direct Credit Direct Credit First Lien Senior Secured 12% 10% 100% Secondary 49% Secondary Investment Type Direct Equity 56% Direct Equity 34% 39% ROW ROW 3% 1% APAC APAC North America 3% Western Europe 6% 70% North America Western Europe 13% 79% Geogra
Slide 60: Continued Expansion of Evergreen Platform
Continued Expansion of Evergreen Platform Evergreen AUM $7,000 GPA PAF SCOPE Nov. 2022 447% SCOPE Inception CAGR $6,000 Date $5,000 Jan. 2021 148% PAF Inception Date CAGR In $USD M $4,000 $3,000 May 2019 162% $2,000 GPA Inception Date CAGR $1,000 $0 Strategic Partnerships and Investment Performance
Slide 61: Continued Growth in Net Flows
Continued Growth in Net Flows1 Quarterly net flows across the entirety of the evergreen complex – Since inception $300 $300 Apr. 2023 Onboarded on to $250 $250 Wirehouses In $USD M $200 $200 May 2019 Jan. 2021 GPA Inception Date PAF Inception Date $150 $150 Nov. 2022 SCOPE Inception Date $100 $100 $
Slide 62: HL Innovations in Action
HL Innovations in Action Griff Norville Managing Director – Head of Technology Solutions
Slide 63: Hamilton Lane’s Data Advantage
Hamilton Lane’s Data Advantage Managers with Funds Raised Since 2000 18,500+ Funds | 9,500+ Fund Families* It has become increasingly challenging to identify the “winners” of the asset class. Source: Hamilton Lane Data (May 2024) Each circle represents a manager and is categorized by strategy as def
Slide 64: Hamilton Lane’s Data Advantage
Hamilton Lane’s Data Advantage Managers with Funds Raised Since 2000 18,500+ Funds | 9,500+ Fund Families* 58,600+ 157,600+ 53 Funds Across Portfolio Companies Vintage All Private Markets Monitored Years Source: Hamilton Lane Data (May 2024) Each circle represents a manager and is categorized by str
Slide 65: Hamilton Lane’s Data Advantage
Hamilton Lane’s Data Advantage Impact of Top & Bottom-Quartile Funds All Private Markets, Net IRR by Vintage Year Pooled IRR without Return Added by Selecting Return Added by Avoiding Top-Quartile Funds Top-Quartile Funds Bottom-Quartile Funds 25% Manager selection and portfolio construction are 20%
Slide 66: Hamilton Lane’s Strategic Technology Drivers
Hamilton Lane’s Strategic Technology Drivers Simplify the Complex We use our industry knowledge and experience to make private markets investing as easy and efficient as possible. 66
Slide 67: Hamilton Lane’s Strategic Technology Drivers
Hamilton Lane’s Strategic Technology Drivers Simplify the Complex Solve for Pain Points We use our industry We are willing to invest the knowledge and experience time and effort to understand to make private our clients' priority needs markets investing as easy and pain points. and efficient as poss
Slide 68: Hamilton Lane’s Strategic Technology Drivers
Hamilton Lane’s Strategic Technology Drivers Simplify the Complex Solve for Pain Points Embody Tech & Innovation We use our industry We are willing to invest the We build tools and partner knowledge and experience time and effort to understand with other market leaders to to make private our clients
Slide 69: Hamilton Lane’s Strategic Technology Drivers
Hamilton Lane’s Strategic Technology Drivers Simplify the Complex Solve for Pain Points Embody Tech & Innovation Think Boldly We use our industry We are willing to invest the We build tools and partner We listen to the market, knowledge and experience time and effort to understand with other market
Slide 70: HL Innovations’ Differentiators
HL Innovations’ Differentiators Private Markets & Innovation– it’s what we do. 70
Slide 71: HL Innovations’ Differentiators
HL Innovations’ Differentiators Private Markets & Superior access to Innovation– it’s what information enabling we do. superior results. 71
Slide 72: HL Innovations’ Differentiators
HL Innovations’ Differentiators Private Markets & Superior access to Shared purpose and Innovation– it’s what information enabling objectives with our we do. superior results. clients. 72
Slide 73: HL Innovations
HL Innovations 10+ year track record investing in cutting-edge, purpose-built technology for the private markets. Enhancing Data & Analytics Supporting Private Wealth Channel Driving Operational Efficiency 73
Slide 74: Innovations in Action, the Journey of a Deal
Innovations in Action, the Journey of a Deal How data and technology drive our workflows and decisions
Slide 75: HL Diligence
HL Diligence Data Diligence Allocation Subscription HL Data Fabric 75
Slide 76: Investment Monitoring and Deal Team Advantage
Investment Monitoring and Deal Team Advantage HL Real Assets HL Direct Credit HL Secondaries HL Financial Institutions HL Direct Equity Team HL Data Fabric Portfolio Management Group HL Evergreen HL Fund Investments 76
Slide 77: Hamilton Lane – Financials & KPIs
Hamilton Lane – Financials & KPIs Jeff Armbrister Chief Financial Officer
Slide 78: Financial Story
Financial Story USD in $M IPO Today Growth Management Fees $172.7 $451.9 2.6x Incentive Fees $7.1 $101.9 14.3x Fee Related Earnings1 $72.3 $193.3 2.7x Adjusted EBITDA1 $83.0 $272.5 3.3x Adjusted Net Income1 $47.1 $211.5 4.5x Non-GAAP EPS1 $0.89 $3.92 4.4x 1 Fee Related Earnings, Adjusted EBITDA, Adj
Slide 79: Revenue Base
Revenue Base Customized Separate Accounts Specialized Funds Advisory • Generally basis point fee • Generally basis point fee on • Generally fixed • Performance fees or carried committed and/or invested Fees interest available on selected capital accounts • Carried interest possible on selected funds
Slide 80: Fee-Earning Assets Under Management (FEAUM)
Fee-Earning Assets Under Management (FEAUM) Other Funds 11% Secondary $70 Funds 65.7 11% Direct Credit Funds $60 57.3 1% IPO Direct Equity Customized Funds 49.1 10% Separate $50 Accounts 67% 42.0 In $USD B $40 38.7 33.6 30.7 $30 26.8 Evergreen Funds 9% Other Funds $20 8% $10 Secondary Funds TODAY Cu
Slide 81: FEAUM – How To Interpret The Flows
FEAUM – How To Interpret The Flows Fiscal Year Ending, (in $USD B) 2017 2018 2019 2020 2021 2022 2023 2024 Starting $24.0 $26.8 $30.7 $33.6 $38.7 $42.0 $49.1 $57.3 Contributions 5.2 7.4 7.2 8.3 9.2 13.2 12.9 13.9 Distributions (2.1) (4.2) (4.2) (3.3) (6.2) (6.8) (5.0) (6.1) F/X, M/V, Other (0.2) 0.7
Slide 82: Fee Rates
Fee Rates 0.66% Key Drivers: 0.64% FEAUM mix shift from lower rate CSA to higher rate 0.62% Specialized Funds 0.60% Evergreen – The highest individual fee rate product 0.58% and growing share 0.56% Offset by larger CSAs coming on with lower fee rates 0.54% 0.52% 0.50% FY17 Evergreen Product Mi
Slide 83: Advisory, Reporting & Other
Advisory, Reporting & Other Advisory Reporting & Other Distribution Management • Flat fee business • Reporting, back-office • Liquidation of in-kind stock mandates distributions • Advisory management fees • Can fluctuate based on health of essentially flat over the • Tech Solutions business the IPO
Slide 84: Management Fees
Management Fees Advisory, Reporting and Other (Dist. Man. + Fund Reimb) 16% $500.0 $451.9 $450.0 IPO 62.1 Specialized $400.0 $371.9 funds Customized 43% separate $350.0 57.8 accounts $314.2 128.8 41% $289.4 $300.0 $USD M 60.9 $244.9 47.4 $250.0 117.8 $217.8 $195.0 42.4 $200.0 $172.7 39.5 94.0 103.2
Slide 85: Management and Advisory Fees
Management and Advisory Fees FY 2018 Corporate/ Private Middle East Taft- Asia Pension 12% Hartley 11% 13% Latin America 19% Other 1% Endowment/ 64% Top 10 Australia Sovereign Foundation 23% 4% Wealth Fund 7% 5% By Client Europe By Client By Region 12% HNW/ Family Type Financial/ Clients 11-20 Insur
Slide 86: Fee-Related Earnings
Fee-Related Earnings 100% Key Takeaways: 90% 18.3% 19.6% 17.0% 23.1% 21.6% 24.1% 22.9% 24.1% Consistent approach to 80% compensation and G&A with demonstrated track record of 70% execution 38.1% 32.4% 60% 39.9% 38.8% 35.6% 34.6% 33.3% 34.4% Actual dollar growth generally in 50% line with managem
Slide 87: Incentive Fees & Unrealized Carried Interest
Incentive Fees & Unrealized Carried Interest Unrealized Carried Interest Key Takeaways: $1,400 Incentive fees have averaged ~15% of $1,200 annual total revenue but can vary in any $1,000 given fiscal year $USD M $800 Highly diversified, backed by thousands of $600 underlying companies $400 $200
Slide 88: Below The Line
Below The Line Equity in Income of Investees Other Income Net Interest • Aggregate change in value of GP • Primarily related to our balance sheet • Interest expense on debt investment balance across our investments discretionary vehicles from quarter to • ~$100mm: Fixed 3.5% quarter • Changes in val
Slide 89: Why HLNE?
Why HLNE? Erik Hirsch Co-Chief Executive Officer
Slide 90: Why HLNE?
Why HLNE? Market Long-term leading growing footprint asset base Global, Deep, Non- Expanding blue-chip client OUR APPROACH talented, aligned + institutional channel INDUSTRY TAILWINDS private markets base team growth allocations Increasingly Solution complex focused offering set Anticipated FEAUM Gr
Slide 91: The Equation is Simple
The Equation is Simple Anticipated FEAUM Growth Increasing Fee Rates Management Fee Growth ~14% ~60 bps 15% CAGR (IPO to Today) Evergreen effect CAGR (IPO to Today) Separate Accounts ~11% ($38 B) Specialized Funds ~18% ($28 B) Steady FRE Margins1 Unrealized Carry + GP Commit Anticipated Non-GAAP EPS
Slide 92: Strategic Approach To Capital Management
Strategic Approach To Capital Management Dividend Strategic Balance Sheet Deals Consistent growth approach in line with growth in business Operational enhancements that differentiate the platform 16% CAGR $1.96 $1.78 $1.60 $1.40 $1.25 $1.10 $0.85 $0.70 FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 202
Slide 93: Delivering Value for Shareholders
Delivering Value for Shareholders $125.49 35.4% Per Share HLNE Annualized Total Return* (Since IPO) 13.7% S&P 500 $16 Annualized Total Return* (Since HLNE IPO) Per Share 7.1% March 1, 2017 May 31, 2024 Russell 2000 HLNE IPO on Nasdaq Annualized Total Return* (Since HLNE IPO) *Total Return calculatio
Slide 94: Appendix
Appendix
Slide 95: Disclosures
Disclosures The information contained in this presentation may include forward-looking statements regarding returns, performance, opinions, the Any investment in Hamilton Lane Products entail a risk of loss. Investors can lose their investment in whole or in part. For further fund presented or its p
Slide 96: Terms and Definitions
Terms and Definitions Strategy Definitions Index Definitions All Private Markets – Hamilton Lane’s definition of “All Private Markets” includes all private commingled funds excluding fund-of- Barclays U.S. Corporate Aggregate Index – Tracks the performance of U.S. fixed rate corporate debt rated as
Slide 97: Terms and Definitions (continued)
Terms and Definitions (continued) 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) i
Slide 98: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation from Net Income Year Ended March 31, (Dollars in thousands except share and per share amounts) 2017 2018 2019 2020 2021 2022 2023 2024 Net income attributable to Hamilton Lane Incorporated $ 612 $ 17,341 $ 33,573 $ 60,825 $ 98,022 $ 145,986 $ 109,120 $ 140,858
Slide 99: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fee Related Earnings Margin reconciliation Year Ended March 31, (Dollars in thousands) 2017 2018 2019 2020 2021 2022 2023 2024 Management and advisory fees $ 172,674 $ 195,030 $ 217,773 $ 244,920 $ 289,444 $ 314,228 $ 371,874 $ 451,936 Revenue related to consolidated funds -
Slide 100: Contact Information
Contact Information Philadelphia (Headquarters) Mexico City San Diego Singapore Toronto Seven Tower Bridge Av. Paseo de la Reforma 333 7817 Ivanhoe Avenue 12 Marina View 40 King Street W 110 Washington Street Espacio de oficina 417 Suite 310 Asia Square Tower 2 Suite 3603 Suite 1300 Cuauhtémoc, 0650