Slide 1: Fiscal Year 2024 Fourth Quarter and Full Year Results
Fiscal Year 2024 Fourth Quarter and Full Year Results May 23, 2024
Slide 2: Today's Speakers
Today's Speakers Erik Hirsch Jeff Armbrister John Oh Co-CEO 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 $124 billion and $66 billion, respectively, as of March 31, 2024, increases of 11% and 15%, respectively, compared to March 31, 2023 • Management and advisory fees increased 22% compared to
Slide 4: Growing Asset Footprint & Influence
Growing Asset Footprint & Influence $921B AUM & AUA 1 Total Assets Under Management/Advisement ($B) $1,000 $124 $120 $98 $108 Y-o-Y Growth $800 AUM: 11 % $796 AUA: 7% $783 8 % G R: 1 $76 $753 $724 CA $600 $66 $59 $581 $50 $400 $422 $410 $40 $374 $35 $32 $292 $24 $30 $200 $22 $205 $189 $13 $16 $19 $1
Slide 5: Fee-Earning AUM Driving Revenues
Fee-Earning AUM Driving Revenues Fee-Earning AUM growth continues and annual fee rates are stable Total Fee-Earning Assets Under Management ($B) $80 .60% .56% .59% .63% $70 $66 14% CAGR: $57 $60 $49 $50 $28 $42 $23 $39 $40 $18 $16 $14 $30 $20 $38 $35 $31 $25 $26 $10 $0 Mar-20 Mar-21 Mar-22 Mar-23 Ma
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 • Secondary fund wide-ranging mandates which further or establish • Credit-oriented fund include
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: 22% CAGR: 16% • Recurring management and advisory fees represented an average of over 80% of total revenues over the past five fiscal years $452 $452 USD in Millions
Slide 9: Unrealized Carried Interest
Unrealized Carried Interest Unrealized Carried Interest Unrealized Carry by Age 120 $1,500 100 > 12 years 100 92 90 $1,250 4% 80 $1,000 USD in Millions 8-12 years Vehicles 23% 60 $750 $1,191 $1,221 < 5 years 40 $1,022 $500 46% 20 $250 0 $0 5-8 years Mar-22 Mar-23 Mar-24 27% 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: 29% CAGR: 32% USD in Millions USD in Millions $141 $141 • $48M in net income attributable to HLI for the $109 quarter $34 FY23 FY24 FY19 FY24 Adjusted EBITDA1 YTD Long-Term Growth Y-o-Y Ch
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 • For 3/31/2024, the total investment balance USD in Millions $500 $588 $514 consisted primarily of: $400 $300 $374 ◦ ~$408M in investments in our funds $200 $208 ◦
Slide 12: Appendix
Appendix
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) 2023 2024 % Change 2023 2024 % Change Management and advisory fees $95,692 $123,704 29 % $371,874 $451,936 22 % Incentive fees 17,096 52
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) 2023 2024 % Change 2023 2024 % Change 1 Adjusted EBITDA Management and advisory fees $95,692 $123,704 29 % $371,874 $451,936 22 % Revenue related to consolidated fu
Slide 15: Management and Advisory Fees
Management and Advisory Fees Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2023 2024 % Change 2023 2024 % Change Management and advisory fees Specialized funds $52,169 $76,039 46 % $196,268 $261,012 33 % Customized separate accounts 30,434 32,124 6 % 117,763 128,826 9 % Ad
Slide 16: Incentive Fees
Incentive Fees Three Months Ended March 31, Year Ended March 31, (Dollars in thousands) 2023 2024 % Change 2023 2024 % Change Incentive fees Direct equity funds $2,368 $3,943 67 % $60,472 $7,387 (88) % Secondary funds 8,933 29,419 229 % 36,326 41,464 14 % Direct credit funds 1,497 3,147 110 % 9,135
Slide 17: Assets Under Management
Assets Under Management March 31, December 31, March 31, (Dollars in millions) 2023 2023 2024 YoY % Change QoQ % Change Assets under management / advisement Assets under management $111,901 $119,953 $124,406 11 % 4 % Assets under advisement 744,770 782,892 796,173 7 % 2 % Total assets under manageme
Slide 18: Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2023 March 31, 2024 Assets Cash and cash equivalents $99,686 $114,634 Restricted cash 4,804 4,985 Fees receivable 47,140 108,291 Prepaid expenses 9,817 11,073 Due from related parties 7,186 8,150 Furniture, fixtures a
Slide 19: Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited) Year Ended March 31, (Dollars in thousands) 2022 2023 2024 Operating activities Net income $247,253 $187,185 $227,207 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,495 7,44
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 except share and per share amounts) 2019 2024 2023 2024 2023 2024 Net income attributable to Hamilton Lane Incorporated $33,573 $140,858 $31,086 $48,360
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