Hamilton Lane (HLNE) Shareholder Day 2024 summary

Strategic growth initiatives 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, and employee count rose from 290 to ~700, with plans to add approximately 60 more in the current year.

• Strategic focus includes expanding the product suite, scaling specialized and evergreen funds, launching new products, and entering underrepresented geographies and strategies.

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

• Significant investment in technology, leveraging proprietary platforms like Cobalt and strategic partnerships to drive efficiency and differentiation.

Business model and client solutions

• Offers a full-service, global platform with customized separate accounts, specialized funds, evergreen funds, and advisory services for a diverse client base.

• Customized Separate Accounts and Specialized Funds are key drivers of management fee growth, with long-tenured, sticky client relationships and over 80% of gross contributions from existing clients.

• Advisory, reporting, and monitoring services, along with technology-enabled solutions like Cobalt, provide additional revenue streams and reinforce client retention.

• Distribution management and integration of acquired capabilities optimize client outcomes, especially for stock distributions.

• Client base is diversified by type and geography, with increasing allocations from private wealth channels.

Evergreen and private wealth platform

• Evergreen funds address the growing private wealth market, offering lower minimums, immediate diversification, and periodic liquidity, with AUM in flagship evergreen products growing rapidly.

• Evergreen AUM has surpassed $6 billion, with strong net inflows and no quarters of net redemptions since inception.

• Product development pipeline includes infrastructure, U.S. credit, secondaries, and venture/growth evergreen strategies.

• Multi-manager approach in evergreen funds provides broad diversification and access to hundreds of sponsors.

• Distribution is expanding through both internal teams and partnerships with major wirehouses.