Hamilton Lane Incorporated (HLNE) Bundle
A Brief History of Hamilton Lane Incorporated
Company Overview
Hamilton Lane Incorporated, a leading private markets investment management firm, has been pivotal in shaping the landscape of private equity. As of September 30, 2024, the company has total assets under management (AUM) of $67.7 billion, comprising specialized funds and customized separate accounts.
Financial Performance
Hamilton Lane's financial performance for the six months ended September 30, 2024, reflects significant growth. The company generated total revenues of $346.7 million, a substantial increase from $251.9 million in the same period in 2023. This growth is primarily driven by management and advisory fees, which amounted to $259.7 million, compared to $214.6 million in the previous year.
| Financial Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenues | $346.7 million | $251.9 million | +37.5% |
| Management and Advisory Fees | $259.7 million | $214.6 million | +20.9% |
| Net Income | $163.0 million | $115.9 million | +40.5% |
| Basic EPS | $2.87 | $1.94 | +48.4% |
Shareholder Equity
As of September 30, 2024, total equity was reported at $801.9 million, an increase from $675.9 million at the end of March 2024. The growth in equity is attributed to retained earnings and capital contributions from non-controlling interests.
| Equity Component | Amount (in thousands) |
|---|---|
| Class A Common Stock | $41 |
| Class B Common Stock | $14 |
| Additional Paid-in Capital | $214.8 million |
| Retained Earnings | $391.7 million |
| Total Equity | $801.9 million |
Debt and Financing
Hamilton Lane has managed its debt effectively, with total liabilities amounting to $622.4 million as of September 30, 2024. The firm has utilized various financing strategies, including a 2020 Multi-Draw Term Loan Agreement, under which it has an outstanding balance of $100 million as of the latest reporting date.
| Debt Instrument | Outstanding Balance (in thousands) |
|---|---|
| Term Loan Agreement | $100,000 |
| Revolving Loan Agreement | $0 |
| Multi-Draw Term Loan Agreement | $96,000 |
| Total Debt | $195,625 |
Recent Developments
In addition to its financial growth, Hamilton Lane has made strategic investments in technology-driven solutions for private markets, enhancing its capabilities in data management and analytics. The company's focus on innovation is expected to drive future growth and maintain its competitive edge in the investment management sector.
A Who Owns Hamilton Lane Incorporated (HLNE)
Major Shareholders
As of 2024, the ownership structure of Hamilton Lane Incorporated (HLNE) includes a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Stake (%) | Number of Shares | Type of Shares |
|---|---|---|---|
| BlackRock, Inc. | 10.2% | 4,250,000 | Class A Common Stock |
| Vanguard Group, Inc. | 9.5% | 3,900,000 | Class A Common Stock |
| State Street Corporation | 7.8% | 3,200,000 | Class A Common Stock |
| Goldman Sachs Group, Inc. | 5.1% | 2,100,000 | Class A Common Stock |
| Company Executives and Directors | 4.0% | 1,650,000 | Class A Common Stock |
| Other Institutional Investors | 12.4% | 5,100,000 | Class A Common Stock |
| Public Float | 51.0% | 21,000,000 | Class A Common Stock |
Class A and Class B Shares
Hamilton Lane has two classes of common stock: Class A and Class B. As of September 30, 2024, the distribution of shares is as follows:
| Share Class | Issued Shares | Outstanding Shares |
|---|---|---|
| Class A Common Stock | 41,770,189 | 41,770,189 |
| Class B Common Stock | 13,664,635 | 13,664,635 |
Equity and Non-Controlling Interests
The total equity structure of Hamilton Lane, including non-controlling interests, is detailed in the table below:
| Equity Component | Amount ($ in thousands) |
|---|---|
| Class A Common Stock | 41 |
| Class B Common Stock | 14 |
| Additional Paid-in Capital | 214,788 |
| Retained Earnings | 391,737 |
| Non-Controlling Interests in General Partnerships | 5,875 |
| Non-Controlling Interests in Hamilton Lane Advisors, L.L.C. | 178,633 |
| Non-Controlling Interests in Consolidated Funds | 10,834 |
| Total Equity | 801,922 |
Recent Financial Performance
For the six months ending September 30, 2024, Hamilton Lane reported the following financial metrics:
| Metric | Amount ($ in thousands) |
|---|---|
| Net Income | 163,008 |
| Basic Earnings Per Share (EPS) | 2.87 |
| Diluted Earnings Per Share (EPS) | 2.85 |
| Dividends Declared | 38,905 |
| Total Revenue | 346,730 |
Hamilton Lane Incorporated (HLNE) Mission Statement
Company Overview
Hamilton Lane Incorporated (HLNE) operates as a private markets investment management firm, providing a range of investment solutions across private equity, private credit, and other private market strategies. As of September 30, 2024, the company had total assets of $1.424 billion and equity of $801.9 million.
Mission Statement
While the specific wording of Hamilton Lane's mission statement is not publicly disclosed, the company emphasizes its commitment to delivering innovative investment solutions and exceptional client service in the private markets sector. The overarching goal is to provide clients with access to the best investment opportunities while managing risk and enhancing returns.
Investment Performance and Strategy
As of September 30, 2024, Hamilton Lane managed approximately $95.1 billion in Customized Separate Accounts and $36.2 billion in Specialized Funds, reflecting its broad capabilities in managing various investment vehicles.
Financial Performance
For the three months ended September 30, 2024, Hamilton Lane reported total revenues of $149.999 million, a 23.1% increase compared to $126.876 million for the same period in 2023. The revenue breakdown is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Management and Advisory Fees | $119,783 | $109,184 | $10,599 |
| Incentive Fees | $30,216 | $17,692 | $12,524 |
| Total Revenues | $149,999 | $126,876 | $23,123 |
Expenses and Net Income
Total expenses for Q3 2024 were reported at $82.807 million, compared to $71.279 million in Q3 2023, resulting in a net income of $75.922 million, up from $64.503 million in the prior year.
Management Fees and Assets Under Management (AUM)
As of September 30, 2024, Hamilton Lane's assets under management (AUM) stood at approximately $131.3 billion, with fee-earning AUM as follows:
| Type | Amount (in millions) |
|---|---|
| Customized Separate Accounts | $67,710 |
| Specialized Funds | $29,487 |
| Total Fee-Earning AUM | $97,197 |
Debt and Capital Structure
The company had outstanding debt of $195.6 million as of September 30, 2024, with a mix of term loans and revolving credit facilities. The capital structure is as follows:
| Capital Component | Amount (in thousands) |
|---|---|
| Class A Common Stock | $41 |
| Class B Common Stock | $14 |
| Additional Paid-in Capital | $214,788 |
| Retained Earnings | $391,737 |
| Total Equity | $801,922 |
Conclusion of Financial Metrics
Hamilton Lane's financial metrics demonstrate strong performance and growth in both revenue and net income, reflecting the effectiveness of its investment strategies and commitment to client service. The company continues to position itself as a leader in the private markets investment management industry.
How Hamilton Lane Incorporated (HLNE) Works
Business Model
Hamilton Lane Incorporated (HLNE) is a private markets investment management firm that specializes in providing advisory services and investment solutions across various asset classes in private equity, credit, and real assets. The firm operates primarily through two main segments: management and advisory services, and investment funds.
Financial Performance
For the six months ended September 30, 2024, Hamilton Lane reported total revenues of $346.73 million, a significant increase from $251.91 million for the same period in 2023. The breakdown of revenues is as follows:
| Revenue Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Management and advisory fees | $259,745 | $214,592 | $45,153 |
| Incentive fees | $86,985 | $37,322 | $49,663 |
| Total Revenues | $346,730 | $251,914 | $94,816 |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, the net income attributable to Hamilton Lane was $54.98 million, compared to $41.99 million for the same period in 2023. The earnings per share (EPS) figures are detailed below:
| Type | 2024 | 2023 |
|---|---|---|
| Basic EPS | $1.38 | $1.11 |
| Diluted EPS | $1.37 | $1.11 |
Assets Under Management (AUM)
As of September 30, 2024, Hamilton Lane reported fee-earning AUM of $67.71 billion. The details of contributions and distributions for the six months are as follows:
| Type | Customized Separate Accounts (in millions) | Specialized Funds (in millions) | Total (in millions) |
|---|---|---|---|
| Balance, beginning of period | $38,223 | $29,487 | $67,710 |
| Contributions | $3,320 | $3,989 | $7,309 |
| Distributions | ($1,517) | ($2,111) | ($3,628) |
| Balance, end of period | $40,026 | $31,365 | $71,391 |
Debt and Liquidity
As of September 30, 2024, Hamilton Lane's total debt amounted to $195.63 million. The company has various loan agreements with specific terms:
| Loan Type | Outstanding Balance (in millions) | Maturity Date | Interest Rate |
|---|---|---|---|
| 2020 Multi-Draw Term Loan | $100.00 | April 1, 2030 | 3.50% |
| 2022 Multi-Draw Term Loan | $0.00 | October 1, 2029 | Prime - 1.50% (floor 3.00%) |
| Revolving Loan Agreement | $0.00 | October 7, 2027 | Prime - 1.50% (floor 2.25%) |
Cash and cash equivalents as of September 30, 2024, were reported at $193.8 million, up from $114.6 million at the end of the previous fiscal period.
Compensation and Expenses
The total compensation and benefits expense for the six months ended September 30, 2024, was $133.50 million, compared to $90.03 million for the same period in 2023. The breakdown is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Base compensation and benefits | $103,862 | $74,739 |
| Incentive fee compensation | $21,746 | $9,330 |
| Equity-based compensation | $7,896 | $5,963 |
Future Outlook
Hamilton Lane continues to focus on expanding its investment strategies and enhancing its fund offerings to meet the evolving needs of its clients in the private markets landscape.
How Hamilton Lane Incorporated (HLNE) Makes Money
Revenue Streams
Hamilton Lane Incorporated generates revenue primarily from management and advisory fees, as well as incentive fees. The following table summarizes the revenue breakdown for the three and six months ended September 30, 2024, compared to the same periods in 2023:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Management and Advisory Fees | $119,783 | $109,184 | $259,745 | $214,592 |
| Incentive Fees | $30,216 | $17,692 | $86,985 | $37,322 |
| Total Revenues | $149,999 | $126,876 | $346,730 | $251,914 |
Management and Advisory Fees
The management and advisory fees are a significant component of Hamilton Lane's revenue model. These fees are generated from managing specialized funds and customized separate accounts. For the six months ended September 30, 2024, the revenue from specialized funds amounted to $160,103 thousand, an increase of $40,001 thousand from the prior year.
Incentive Fees
Incentive fees are contingent on the performance of the funds under management. For the three months ended September 30, 2024, incentive fees rose to $30,216 thousand, compared to $17,692 thousand in the same period of the previous year. This significant increase was largely due to higher carried interest distributions resulting from better fund performance.
Assets Under Management (AUM)
Hamilton Lane's fee-earning AUM has also seen substantial growth. As of September 30, 2024, the fee-earning AUM for specialized funds was $29,487 million, with total contributions of $1,380 million during the three-month period. The following table illustrates the changes in fee-earning AUM:
| Period | Customized Separate Accounts (in millions) | Specialized Funds (in millions) | Total Fee-Earning AUM (in millions) |
|---|---|---|---|
| Balance, Beginning of Period | $38,223 | $29,487 | $67,710 |
| Contributions | $1,673 | $1,380 | $3,053 |
| Distributions | ($548) | ($788) | ($1,336) |
| Balance, End of Period | $39,348 | $30,079 | $69,427 |
Operating Expenses
Hamilton Lane's operating expenses include compensation and benefits, as well as general and administrative costs. For the six months ended September 30, 2024, total expenses reached $189,927 thousand, reflecting an increase of $48,991 thousand compared to the previous year. The breakdown of these expenses is as follows:
| Expense Type | Six Months Ended September 30, 2024 (in thousands) | Six Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Compensation and Benefits | $133,504 | $90,032 |
| General, Administrative and Other | $56,274 | $50,755 |
| Total Expenses | $189,927 | $141,375 |
Net Income and Earnings Per Share
For the six months ended September 30, 2024, Hamilton Lane reported a net income of $163,008 thousand, compared to $115,850 thousand in the previous year. The diluted earnings per share (EPS) for the same period were $2.85, up from $1.92 in the prior year.
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|
| Net Income (in thousands) | $163,008 | $115,850 |
| Diluted EPS | $2.85 | $1.92 |
Conclusion
Hamilton Lane Incorporated's business model is heavily reliant on its management and advisory fees, alongside performance-based incentive fees. The company's ability to grow its AUM and manage expenses effectively positions it for continued financial success in the evolving private markets landscape.
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Resources:
- Hamilton Lane Incorporated (HLNE) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Hamilton Lane Incorporated (HLNE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hamilton Lane Incorporated (HLNE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.