HAMILTON LANE INCORPORATED REPORTS STRONG FOURTH FISCAL QUARTER AND FISCAL YEAR 2024 RESULTS, WITH MANAGEMENT AND ADVISORY FEES GROWING BY 22% AND ASSETS UNDER MANAGEMENT GROWING BY 11% YEAR-OVER-YEAR

Rhea-AI Summary

Hamilton Lane (Nasdaq: HLNE) reported strong financial results for fiscal year 2024, ending March 31, 2024. Assets under management (AUM) grew by 11% to $124 billion, while fee-earning AUM increased by 15% to $66 billion. Revenue from management and advisory fees surged 22% to $451.9 million. The unrealized carried interest balance rose 19% to $1.2 billion. The company achieved a GAAP EPS of $3.69 with a net income of $140.9 million. Additionally, Hamilton Lane declared a quarterly dividend of $0.49 per share, aiming for a full-year dividend increase of 10% to $1.96 per share. Co-CEO Erik Hirsch highlighted robust growth and strategic focus on delivering value to clients and shareholders.

Positive

• Assets under management increased by 11% year-over-year to $124 billion.
• Fee-earning assets under management grew by 15% to $66 billion.
• Revenue from management and advisory fees rose by 22% to $451.9 million.
• Unrealized carried interest balance increased by 19% to $1.2 billion.
• GAAP earnings per share (EPS) stood at $3.69.
• Net income reached $140.9 million for fiscal 2024.
• Declared a quarterly dividend of $0.49 per share, with a target full-year dividend of $1.96, representing a 10% increase compared to the previous year.

Negative

• None.

Financial Analyst

Hamilton Lane's financial results for fiscal 2024 exhibit robust growth, with several key metrics indicating positive performance. The $124 billion in assets under management (AUM) represents an 11% increase year-over-year, with fee-earning AUM growing by 15% to $66 billion. This underscores the firm's ability to attract and manage significant capital, reflecting investor confidence and effective fund management.

The 22% increase in management and advisory fees to $451.9 million is a noteworthy achievement, indicating improved revenue streams and potentially higher profitability margins. Given the fee-based revenue model in asset management, this metric is important for long-term sustainability and growth. The $1.2 billion in unrealized carried interest, up by 19%, also highlights future potential gains, contingent upon successful exits and realized returns of underlying investments.

GAAP EPS of $3.69 and net income of $140.9 million reflect strong profitability. The 10% increase in the full-year dividend to $1.96 per share demonstrates the firm's commitment to returning value to shareholders and indicates a healthy balance sheet capable of supporting such distributions. This could be attractive to income-focused investors seeking reliable dividend payouts.

From a short-term perspective, the company's solid financial metrics and continued growth in key areas suggest a favorable outlook. Long-term, the consistent increase in AUM and fee-based revenues, coupled with a growing carried interest balance, signal sustained growth potential. Investors should monitor how the firm continues to capitalize on opportunities within the private markets sector.

Market Research Analyst

Analyzing Hamilton Lane's performance in the context of the broader private markets investment sector offers valuable insights. The 11% growth in AUM to $124 billion and the 15% increase in fee-earning AUM to $66 billion appear to be aligned with industry trends, where institutional and private wealth investors increasingly allocate capital towards private markets in search of better returns and diversification. Hamilton Lane's ability to grow AUM at these rates suggests effective marketing and client retention strategies.

The 19% rise in unrealized carried interest to $1.2 billion is significant. Carried interest is a performance fee that represents a share of the profits generated by asset managers. This increase indicates that many of Hamilton Lane’s investments are performing well, positioning the firm for substantial future realizations if these investments reach successful exits. Investors should be cognizant of the cyclical nature of carried interest, which can be volatile and dependent on market conditions and investment performance.

Hamilton Lane's strategic positioning within the private markets sector is strong, driven by a diversified investment approach and global reach. The firm's ability to deliver an expanded dividend signals strong cash flows and prudent capital management. This is reassuring for investors who prioritize income and capital appreciation.

In the short term, investors might see positive impacts on the stock price due to strong financial performance and dividend increases. Long-term prospects appear solid, provided the firm continues to manage risks effectively and capitalize on growth opportunities within the private markets.

CONSHOHOCKEN, Pa., May 23, 2024 /PRNewswire/ -- Leading private markets asset management firm Hamilton Lane Incorporated (Nasdaq: HLNE) today reported its results for the fourth fiscal quarter and full fiscal year ended March 31, 2024.

FISCAL YEAR 2024 HIGHLIGHTS

• Assets under management – Total assets under management of $124 billion grew 11% year-over-year. Fee-earning assets under management increased 15% to $66 billion over the same period.
• Revenue – Management and advisory fees increased 22% to $451.9 million for fiscal 2024.
• Carried Interest – Unrealized carried interest balance of $1.2 billion was up 19% year-over-year.
• Earnings per share – GAAP EPS of $3.69 on $140.9 million of GAAP net income for fiscal 2024.
• Dividend – Declared a quarterly dividend of $0.49 per share of Class A common stock to record holders at the close of business on June 14, 2024 that will be paid on July 5, 2024. The target full-year dividend of $1.96 represents a 10% increase from the prior fiscal year dividend.

Hamilton Lane issued a full detailed presentation of its fourth quarter and full fiscal year 2024 results, which can be accessed by clicking here.

Hamilton Lane Co-CEO Erik Hirsch commented: "Fiscal year 2024 was another strong year for Hamilton Lane. We continue to execute well across the entirety of the business and our growth remains robust. Our market continues to offer significant opportunity and we remain intensely focused on delivering for our clients and shareholders."

Conference Call
Hamilton Lane will discuss fourth quarter and full fiscal year 2024 results in a webcast and conference call today, Thursday, May 23, 2024, at 11:00 a.m. Eastern Time.

For access to the live event via the webcast, visit Hamilton Lane's Shareholders website by clicking here at least 15 minutes prior to the start of the call. This feature will be in listen-only mode.

A replay of the webcast will be available approximately two hours after the live broadcast for a period of one year and can be accessed in the same manner as the live webcast at the Shareholders page of Hamilton Lane's website.

About Hamilton Lane
Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 700 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $920.6 billion in assets under management and supervision, composed of $124.4 billion in discretionary assets and $796.2 billion in non-discretionary assets, as of March 31, 2024. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit www.hamiltonlane.com or follow Hamilton Lane on LinkedIn: https://www.linkedin.com/company/hamilton-lane/.

Forward-Looking Statements
Some of the statements in this release 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," "expect," "believe," "estimate," "continue," "anticipate," "intend," "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management's current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. All forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different, including risks relating to: our ability to manage growth, fund performance, competition in our industry, changes in our regulatory environment and tax status; market conditions generally; our ability to access suitable investment opportunities for our clients; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; defaults by clients and third-party investors on their obligations to fund commitments; our exposure and that of our clients and investors to the credit risks of financial institutions at which we and they hold accounts; our ability to comply with investment guidelines set by our clients; our ability to successfully integrate acquired businesses with ours; our ability to manage risks associated with introducing new types of investment structures, products or services or entering into strategic partnerships; our ability to manage redemption or repurchase rights in certain of our funds; our ability to manage, identify and anticipate risks we face; our ability to manage the effects of events outside of our control; and our ability to receive distributions from Hamilton Lane Advisors, L.L.C. to fund our payment of dividends, taxes and other expenses.

The foregoing list of factors is not exhaustive.  For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the "Risk Factors" detailed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and in our subsequent reports filed from time to time with the Securities and Exchange Commission, including our upcoming Form 10-K for fiscal 2024. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.

 

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SOURCE Hamilton Lane

FAQ

What were Hamilton Lane's assets under management growth in fiscal year 2024?

Hamilton Lane's assets under management grew by 11% to $124 billion in fiscal year 2024.

How much did Hamilton Lane's fee-earning assets under management increase?

Hamilton Lane's fee-earning assets under management increased by 15% to $66 billion.

What was Hamilton Lane's revenue from management and advisory fees for fiscal 2024?

Hamilton Lane's revenue from management and advisory fees was $451.9 million for fiscal 2024, a 22% increase year-over-year.

How much did Hamilton Lane's unrealized carried interest balance grow?

Hamilton Lane's unrealized carried interest balance grew by 19% to $1.2 billion.

What was Hamilton Lane's GAAP EPS for fiscal year 2024?

Hamilton Lane reported a GAAP EPS of $3.69 for fiscal year 2024.

What is the target full-year dividend for Hamilton Lane in 2024?

Hamilton Lane's target full-year dividend for 2024 is $1.96 per share, a 10% increase from the previous year.