Hamilton Lane Incorporated · NASDAQ:HLNE
Hamilton Lane — Q2 FY2022 Earnings Presentation
23 slides from Hamilton Lane's earnings presentation, Nov 2, 2021
Slide 1: Fiscal Year 2022 Second Quarter Results
Fiscal Year 2022 Second Quarter Results Earnings Presentation - November 2, 2021 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 $96 billion and $45 billion, respectively, as of September 30, 2021, increases of 32% and 14%, respectively, compared to September 30, 2020 • Management and advisory fees increased 12% compa
Slide 4: Growing Asset Footprint & Influence
Growing Asset Footprint & Influence $805B AUM & AUA Total Assets Under Management/Advisement ($B)1 $800 $96 $700 Y-o-Y Growth AUM: 32 % $76 $ 709 $600 AUA: 50 % $500 R: 21% $66 $581 C AG $59 $50 $400 $422 $410 $40 $374 $300 $35 $32 $292 $200 $24 $30 $205 $22 $189 $16 $147 $19 $147 $11 $13 $100 $129
Slide 5: Fee-Earning AUM Driving Revenues
Fee-Earning AUM Driving Revenues Fee-Earning AUM growth continues and annual fee rates are stable Total Fee-Earning Assets Under Management ($B) .56% .55% .56% .60% .57%1 .55% $50 $45 12% CAGR: $42 $39 $39 $40 $34 $17 $31 $16 $14 $15 $30 $27 $11 $10 $9 $20 $25 $26 $25 $27 $10 $21 $22 $18 $0 Mar-17 M
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 Y-o-Y Growth: 12% Long-Term Growth • Recurring management and advisory fees CAGR: 13% represented an average of just under 90% of total $289 revenues over the past five fiscal years USD in
Slide 9: Unrealized Carried Interest
Unrealized Carried Interest Unrealized Carried Interest Unrealized Carry by Age 100 86 > 12 years 4% $1,000 80 59 61 8-12 years USD in Millions $750 60 Vehicles 11% < 5 years $500 38% 40 $990 20 $250 $382 $410 5-8 years 0 $0 47% Sep-19 Sep-20 Sep-21 Period Ending Unrealized Carried Interest Vehicles
Slide 10: Consolidated Earnings
Consolidated Earnings Profitability stable and growing Net Income Attributable to HLI YTD Y-o-Y Growth: 220% Long-Term Growth • $52M in net income attributable to HLI for the quarter USD in Millions USD in Millions $80 $98 $25 N/A1 Q2 FY21 Q2 FY22 FY16 FY21 Adjusted EBITDA2 YTD Long-Term Growth • Y-
Slide 11: Other Key Items
Other Key Items Strong balance sheet with investments in our own products and a modest amount of leverage... Investments $500 $440 • For 9/30/21, the total investment balance consisted of: $400 ◦ ~$297M in equity method investments in our USD in Millions $374 funds $300 $200 ◦ ~$143M in technology r
Slide 12: Fiscal Year 2022 Second Quarter Results
Fiscal Year 2022 Second Quarter Results Earnings Presentation - November 2, 2021 Hamilton Lane l Global Leader in the Private Markets 12
Slide 13: Appendix
Appendix Hamilton Lane l Global Leader in the Private Markets 13
Slide 14: Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited) Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands except share and per share amounts) 2020 2021 % Change 2020 2021 % Change Management and advisory fees $66,367 $75,934 14 % $133,634 $149,818 12 % Incentive f
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands except share and per share amounts) 2020 2021 % Change 2020 2021 % Change 1 Adjusted EBITDA Management and advisory fees $66,367 $75,934 14 % $133,634 $149,818 12 % Total expenses 46,117
Slide 16: Management and Advisory Fees
Management and Advisory Fees Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2020 2021 % Change 2020 2021 % Change Management and advisory fees Specialized funds $31,717 $36,314 14 % $63,948 $69,702 9% Customized separate accounts 23,800 24,934 5% 47,315 49,434
Slide 17: Incentive Fees
Incentive Fees Three Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2020 2021 % Change 2020 2021 % Change Incentive fees Secondary Fund II $122 $— (100)% $281 $30 (89)% Co-investment Fund II 16,476 (976) (106)% 16,709 1,771 (89)% Other specialized funds 1,122 15,478
Slide 18: Assets Under Management
Assets Under Management (Dollars in millions) September 30, 2020 June 30, 2021 September 30, 2021 YoY Change % QoQ Change % Assets under management / advisement Assets under management $72,855 $91,668 $96,042 32 % 5% Assets under advisement 474,131 665,024 709,129 50 % 7% Total assets under manageme
Slide 19: Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands except share and per share amounts) March 31, 2021 September 30, 2021 Assets Cash and cash equivalents $87,025 $85,962 Restricted cash 3,041 3,315 Fees receivable 29,202 41,711 Prepaid expenses 6,143 4,205 Due from related parti
Slide 20: Condensed Consolidated Statements of Cash Flows (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended September 30, (Dollars in thousands) 2020 2021 Operating activities Net income $49,567 $129,501 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,977 2,452 Cha
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Six Months Ended Reconciliation from Net Income Year Ended March 31, September 30, September 30, (Dollars in thousands except share and per share amounts) 2016 2021 2020 2021 2020 2021 Net income attributable to Hamilton Lane Incorporated $0 $98,022 $21,813
Slide 22: Terms
Terms Adjusted EBITDA is our primary 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
Slide 23: 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