Hamilton Lane (HLNE) Shareholder Day 2024 summary

Strategic Growth and Direction

• Assets under management and advisement grew from $42B at IPO (2017) to $124B in 2024, with total AUM/AUA reaching $921B, reflecting an 18% CAGR since IPO.

• Client base expanded from 350 to over 1,800 across 50 countries, with employee count rising from 290 to ~700.

• Strategic focus includes scaling current funds, launching new products, expanding globally, and investing in technology and innovation.

• Geographic expansion includes new offices in Mexico City, Shanghai, Stockholm, Milan, and others since 2019 to enhance client proximity and deal flow.

• Emphasis on proprietary technology, data, and analytics platforms to differentiate offerings and improve client experience.

Product and Client Solutions

• Offers a global, full-service platform: customized separate accounts, specialized funds (secondaries, direct equity, credit, impact, infrastructure, venture), evergreen funds, and advisory services.

• Evergreen funds provide lower minimums, ongoing liquidity, and rapid AUM growth, with flagship products (GPA, PAF, SCOPE) and new offerings in development.

• Technology solutions, including proprietary platforms and partnerships, support portfolio management, reporting, and client engagement.

• Diversified client base by type and geography, with high retention and over 80% of gross contributions from existing clients.

• Advisory and reporting businesses provide stable, contractual revenue and serve as entry points for new clients.

Financial Performance and Guidance

• Management fees grew from $172.7M at IPO to $451.9M in 2024 (2.6x), with fee-related earnings up 2.7x and adjusted EBITDA up 3.3x.

• Fee-earning AUM reached $65.7B in 2024, with a 14% CAGR since IPO; specialized funds and evergreen products are driving higher fee rates.

• Non-GAAP EPS increased from $0.89 to $3.92 (4.4x) since IPO, with anticipated EPS growth of 24% CAGR.

• FRE margins maintained in the low 40% range despite heavy investment in talent, technology, and expansion.

• Dividend growth has tracked business growth (16% CAGR), and total shareholder return since IPO is 35.4% annualized.