Hamilton Lane Inc (HLNE) Reports Robust Growth in Management & Advisory Fees and AUM in Q2 ...
Hamilton Lane Inc (NASDAQ:HLNE) sees an 18% year-over-year increase in management and advisory fees, reaching $109.2 million in Q2 Fiscal 2024.
Total assets under management (AUM) grow by 11% year-over-year to $119.2 billion.
GAAP net income for the quarter stands at $42.0 million, translating to a GAAP EPS of $1.11.
The company declares a quarterly dividend of $0.445 per share, an 11% increase from the previous fiscal year.
On November 7, 2023, Hamilton Lane Inc (NASDAQ:HLNE) released its earnings report for the second fiscal quarter ended September 30, 2023. The company, a global leader in private markets asset management, demonstrated significant growth in key financial metrics despite the challenging market conditions.
Fiscal Performance Overview
Hamilton Lane Inc (NASDAQ:HLNE) reported a robust increase in management and advisory fees, which rose by 18% to $109.2 million compared to the same period last year. The company's AUM experienced an 11% year-over-year growth, reaching $119.2 billion. Fee-earning AUM also saw a notable increase of 17%, amounting to $61.4 billion. Despite a challenging market environment, the company's GAAP net income for the quarter was $42.0 million, resulting in a GAAP EPS of $1.11. Reflecting confidence in its financial health, HLNE declared a quarterly dividend of $0.445 per share, targeting a full-year dividend of $1.78, marking an 11% increase from the prior fiscal year's dividend.
Management Commentary
CEO Mario Giannini commented on the results, highlighting the resilience of the business and its ability to execute well across the platform.
Our results this quarter continue to demonstrate the resiliency of our business and our ability to execute well across the entirety of the platform, despite the continued challenging market we find ourselves in. We remain steadfast in our approach to navigating these volatile times and take comfort in our scale and longevity as leaders in private markets,
said Giannini.
Financial Highlights
The company's financial statements reveal a solid performance. Management and advisory fees showed a year-over-year increase of 20% for the six months ended September 30, 2023. GAAP net income for the same period was $73.0 million, a 7% increase, with GAAP EPS growing by 2% to $1.92. However, adjusted net income and non-GAAP EPS saw a decrease of 6%, with fee-related earnings increasing by 20% and adjusted EBITDA decreasing by 13%.
Investment and Leverage
Hamilton Lane Inc (NASDAQ:HLNE) maintains a strong balance sheet with significant investments in its own products and a modest amount of leverage. As of September 30, 2023, the total investment balance primarily consisted of approximately $396 million in investments in funds and roughly $209 million in technology-related and other investments. The company reported $197 million of debt as of the same date.
Forward-Looking Statements
The earnings report includes forward-looking statements, which involve known and unknown risks, uncertainties, and other important factors that may cause actual results to differ materially. These factors include the company's ability to manage growth, fund performance, competition, regulatory changes, market conditions, and more.
For a detailed presentation of Hamilton Lane Inc (NASDAQ:HLNE)'s second quarter fiscal 2024 results, including full financial statements and non-GAAP reconciliations, please visit the company's website or access the earnings presentation directly here.
Hamilton Lane Inc (NASDAQ:HLNE) will discuss the second quarter fiscal 2024 results in a webcast and conference call, providing an opportunity for investors to gain further insights into the company's performance and future outlook.
Explore the complete 8-K earnings release (here) from Hamilton Lane Inc for further details.
This article first appeared on GuruFocus.
