Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Q3 2025 Earnings Presentation
22 slides from Hamilton Lane's earnings presentation, Feb 4, 2025
Slide 1: Fiscal Year 2025 Third Quarter Results
Fiscal Year 2025 Third Quarter Results February 4, 2025
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 $135 billion and $71 billion, respectively, as of December 31, 2024, increases of 12% and 13%, respectively, compared to December 31, 2023 • Management and advisory fees increased 18% compar
Slide 4: Growing Asset Footprint & Influence
Growing Asset Footprint & Influence $956B AUM & AUA Total Assets Under Management/Advisement ($B)1 $1,000 $135 $120 $98 $108 Y-o-Y Growth $800 AUM: 12 % $821 AUA: 5% $783 % $724 : 18 $76 GR CA $753 $600 $66 $581 $59 $50 $400 $410 $422 $40 $374 $32 $35 $292 $30 $200 $24 $205 $22 $189 $13 $16 $19 $147
Slide 5: Fee-Earning AUM Driving Revenues
Fee-Earning AUM Driving Revenues Fee-Earning AUM growth continues and annual fee rates are stable Total Fee-Earning Assets Under Management ($B) $80 .60% .56% .59% .63% .62%1 .66%2 $71 $70 $66 $63 : 14% $60 CAGR $57 $31 $49 $28 $50 $26 $42 $23 $39 $40 $18 $16 $14 $30 $20 $38 $40 $35 $37 $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 • Recurring management and advisory fees Y-o-Y Change: 18% CAGR: 16% represented an average of over 80% of total revenues over the past five fiscal years $386 $452 • Y-o-Y increas
Slide 9: Unrealized Carried Interest
Unrealized Carried Interest Unrealized Carried Interest Unrealized Carry by Age 120 113 $1,500 99 100 91 $1,250 > 12 years 4% < 5 years 80 $1,000 8-12 years 26% USD in Millions 18% Vehicles 60 $750 $1,293 $1,126 40 $952 $500 20 $250 0 $0 Dec-22 Dec-23 Dec-24 Period Ending 5-8 years 52% Unrealized Ca
Slide 10: Consolidated Earnings
Consolidated Earnings Stable long-term growth Net Income Attributable to HLI YTD Long-Term Growth Y-o-Y Change: 80% CAGR: 32% $167 $141 USD in Millions USD in Millions • $53M in net income attributable to HLI for the quarter $92 $34 Q3 FY24 Q3 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 $800 $716 $600 • For December 31, 2024, the total investment USD in Millions $632 $588 balance consisted primarily of: $514 $400 $374 ◦ ~$459M in investments in our funds $200 $20
Slide 12: Appendix
Appendix
Slide 13: Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands except share and per share amounts) 2023 2024 % Change 2023 2024 % Change Management and advisory fees $113,641 $126,282 11 % $328,232 $386,027 18 % Incentive
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands except share and per share amounts) 2023 2024 % Change 2023 2024 % Change 1 Adjusted EBITDA Management and advisory fees $113,641 $126,282 11 % $328,232 $386,027 18 % Revenue related to c
Slide 15: Management and Advisory Fees
Management and Advisory Fees Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands) 2023 2024 % Change 2023 2024 % Change Management and advisory fees Specialized funds $64,871 $75,764 17 % $184,972 $235,866 28 % Customized separate accounts 32,943 33,926 3 % 96,702 10
Slide 16: Incentive Fees
Incentive Fees Three Months Ended December 31, Nine Months Ended December 31, (Dollars in thousands) 2023 2024 % Change 2023 2024 % Change Incentive fees Direct equity funds $— $803 N/A $3,444 $11,699 240 % Secondary funds — 21,179 N/A 12,046 44,572 270 % Direct credit funds — 2,217 N/A 4,725 13,274
Slide 17: Assets Under Management
Assets Under Management December 31, September 30, December 31, (Dollars in millions) 2023 2024 2024 YoY % Change QoQ % Change Assets under management / advisement Assets under management $119,953 $131,373 $134,743 12 % 3 % Assets under advisement 782,892 816,057 821,236 5 % 1 % Total assets under m
Slide 18: Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2024 December 31, 2024 Assets Cash and cash equivalents $114,634 $285,553 Restricted cash 4,985 5,858 Fees receivable 108,291 135,622 Prepaid expenses 11,073 9,446 Due from related parties 8,150 21,339 Furniture, fixt
Slide 19: Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended December 31, (Dollars in thousands) 2023 2024 Operating activities Net income $150,382 $240,463 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,774 7,065 Ch
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended March 31, Three Months Ended Nine Months Ended Reconciliation from Net Income December 31, December 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 $1
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