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01/10 16:12
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings report highlights strong financial performance, with significant growth in management and advisory fees, fee-related earnings, and AUM. The dividend increase and stable FRE margin are positive indicators. Although market volatility and competition pose risks, management's focus on capitalizing on opportunities and maintaining margins is reassuring. The Q&A section did not reveal major concerns, and the market cap suggests a moderate reaction. Overall, the positive financial results, dividend increase, and stable outlook support a positive stock price movement prediction of 2% to 8% over the next two weeks.
Total Asset Footprint $958 billion, a 4% increase year-over-year.
AUM (Assets Under Management) $138 billion, grew $14 billion or 11% year-over-year, driven by growth from specialized funds and customized separate accounts.
AUA (Assets Under Administration) $819 billion, grew over $23 billion or 3% year-over-year, primarily due to market value growth and new technology solutions.
Total Management and Advisory Fees $514 million, grew 14% year-over-year.
Fee Related Earnings $276 million, grew by 34% year-over-year.
GAAP EPS $5.41, based on $217 million of GAAP net income.
Non-GAAP EPS $5.04, based on $274 million of adjusted net income.
Annual Dividend $2.16 per share, a 10% increase year-over-year, marking the eighth consecutive annual double-digit percentage increase since 2017.
Total Fee-Earning AUM $72 billion, grew $6 billion or 10% year-over-year.
Customized Separate Accounts $39 billion, grew by $1.8 billion or 5% year-over-year.
Specialized Fund Fee-Earning AUM $33 billion, grew $4.5 billion or 16% year-over-year.
Incentive Fees $199 million, up 95% year-over-year, primarily due to fee-related performance revenues.
Unrealized Carry Balance $1.3 billion, up 3% year-over-year.
Total Expenses Increased by $88 million compared to the prior year.
Total Compensation and Benefits Increased by $70 million relative to the prior year.
FRE (Fee-Related Earnings) Up $70 million relative to the prior year, with a FRE margin of 48% compared to 45% for the prior year.
New Product Launches: Since calendar Q4 of 2024, Hamilton Lane has launched Evergreen infrastructure funds for U.S. and non-U.S. investors, a dedicated secondaries product for U.S. investors, a multi-manager, multi-strategy European long-term investment fund, and a dedicated venture and growth product for U.S. investors.
Market Positioning: Hamilton Lane is positioned as a partner of choice in the private equity market, capitalizing on opportunities created by market volatility. The firm has seen record deal flow across secondaries and direct investing.
Operational Efficiency: Total management and advisory fees increased by 14% year-over-year to $514 million, with fee-related earnings growing by 34% to $276 million.
AUM Growth: Total AUM grew by $14 billion or 11% year-over-year to $138 billion, with fee-earning AUM at $72 billion, up 10%.
Strategic Shift: The firm has restructured its U.S. private assets fund to a high watermark methodology for performance fees, reducing management fees from 1.5% to 1.4% and incentive fees from 12.5% to 10%.
Market Volatility: The management team is dealing with market volatility and uncertainty, which may impact investment performance and client confidence.
Investment Environment: Overall exit activity remains muted, leading to extended holding periods and potential challenges in capital returns for clients.
Regulatory Changes: Changes in fee structures and performance fee recognition may affect revenue streams and client perceptions.
Competition: Increased competition in the private equity space may pressure margins and client acquisition.
Economic Factors: Economic downturns could lead to reduced deal activity and lower asset valuations, impacting overall performance.
Supply Chain Challenges: The company may face challenges in sourcing capital partners due to a relatively less capital environment for general partners.
Total Asset Footprint: At fiscal year-end 2025, total asset footprint stood at $958 billion, a 4% increase year-over-year.
AUM Growth: AUM stood at $138 billion at year-end, growing $14 billion or 11% compared to the prior year.
Fee-Related Earnings: Fee related earnings came in at $276 million, growing by 34% versus the prior year.
Dividend Increase: Board approved a 10% increase to the annual fiscal dividend to $2.16 per share.
Evergreen Funds: Continued strong momentum with specialized fund fee earning AUM at $33 billion, growing $4.5 billion or 16%.
New Product Launches: Launched Evergreen infrastructure funds and a dedicated secondaries product for U.S. investors.
Technology Investment: Invested in 73 Strings, an AI-powered platform for data extraction and valuation solutions.
Future Fundraising: Pipeline of new clients and re-ups remains robust, expected to flow through at a faster rate as markets normalize.
Fee-Earning AUM: Total fee-earning AUM stood at $72 billion, growing $6 billion or 10% relative to the prior year.
Incentive Fees: Incentive fees totaled $199 million, up 95% relative to the prior year, driven by fee-related performance revenues.
FRE Margin: FRE margin for the year came in at 48%, compared to 45% for the prior year.
Future Growth Strategy: Focus on long-term results for clients and capitalize on market volatility to identify opportunities.
Annual Dividend Increase: The Board approved a 10% increase to the annual fiscal dividend to $2.16 per share, or $0.54 per share per quarter.
Consecutive Annual Increases: This marks the eighth consecutive annual double-digit percentage increase since 2017.
Share Repurchase Program: None
The company reported strong financial performance with 23% growth in fee-related revenue and a 34% increase in fee-related earnings. The Evergreen AUM nearly doubled, and the dividend was increased by 10%. The Q&A section did not reveal significant concerns, and the Guardian and Bloomberg partnerships are expected to contribute positively. Given the market cap of approximately $4.9 billion, these factors suggest a positive stock price movement of 2% to 8% over the next two weeks.
The earnings call presents a mixed picture: strong AUM growth, a dividend increase, and a stable FRE margin outlook are positive, but declining management fees and specialized funds revenue raise concerns. The Q&A section lacks clarity, adding uncertainty. Overall, the positive and negative factors balance out, leading to a neutral sentiment. Given the market cap of approximately $4.9 billion, the stock is likely to experience minimal movement, falling in the neutral range of -2% to 2%.
The earnings call highlights strong growth in fee-related earnings, AUM, and dividend increases, which are positive indicators. Despite some revenue declines due to retro fees, the company shows robust performance in specialized funds and evergreen platforms. The Q&A reveals confidence in strategic partnerships and potential growth in incentive fees with a favorable macro environment. The market cap suggests moderate sensitivity to these factors, leading to a positive stock price prediction.
The earnings report highlights strong financial performance, with significant growth in management and advisory fees, fee-related earnings, and AUM. The dividend increase and stable FRE margin are positive indicators. Although market volatility and competition pose risks, management's focus on capitalizing on opportunities and maintaining margins is reassuring. The Q&A section did not reveal major concerns, and the market cap suggests a moderate reaction. Overall, the positive financial results, dividend increase, and stable outlook support a positive stock price movement prediction of 2% to 8% over the next two weeks.
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