HLNE

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the custody bank industry, including Hamilton Lane (NASDAQ:HLNE) and its peers. Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space. The 16 custody bank stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2%. In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results. With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ:HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors. Hamilton Lane reported revenues of $275.3 million, up 56.5% year on year. This print exceeded analysts’ expectations by 21%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and AUM estimates. Hamilton Lane scored the biggest analyst estimate beat in the group. Unsurprisingly, the stock is up 6.2% since reporting and currently trades at $100.84. Read why we think that Hamilton Lane is one of the best custody bank stocks, our full report is free. Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors. WisdomTree reported revenues of $177.2 million, up 57.3% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. WisdomTree achieved the fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 23% since reporting. It currently trades at $23.13. Is now the time to buy WisdomTree? Access our full analysis of the earnings results here, it’s free. Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure. StepStone Group reported revenues of $300.6 million, up 26.6% year on year, falling short of analysts’ expectations by 3.9%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ AUM estimates. StepStone Group delivered the weakest performance against analyst estimates among its peers. As expected, the stock is down 4.1% since the results and currently trades at $48.28. Read our full analysis of StepStone Group’s results here. Operating as a bridge between institutional investors and hard-to-access private market opportunities, Ridgepost Capital (NYSE:RPC) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets. Ridgepost Capital reported revenues of $81.28 million, up 11.5% year on year. This print topped analysts’ expectations by 3.6%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates. The stock is down 5.5% since reporting and currently trades at $8.55. Read our full, actionable report on Ridgepost Capital here, it’s free. Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE:VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products. Voya Financial reported revenues of $1.88 billion, flat year on year. This number met analysts’ expectations. More broadly, it was a softer quarter as it logged a significant miss of analysts’ EPS estimates. Voya Financial had the slowest revenue growth in the group. The stock is flat since reporting and currently trades at $100.17. Read our full, actionable report on Voya Financial here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Hamilton Lane’s second quarter saw a significant positive market reaction, driven by the firm’s strong expansion in specialized funds and resilient fee-earning asset growth. Management attributed the quarter’s outperformance to robust net inflows across the Evergreen product suite and continued success in attracting new mandates from both existing and new clients. CEO Erik Hirsch emphasized that “performance across the vehicles remain strong,” particularly in multi-strategy equity and credit offerings, while highlighting the addition of experienced sales professionals to support further distribution expansion. Is now the time to buy HLNE? Find out in our full research report (it’s free). Revenue: $275.3 million vs analyst estimates of $227.5 million (56.5% year-on-year growth, 21% beat) Adjusted EPS: $1.94 vs analyst estimates of $1.59 (22.2% beat) Adjusted EBITDA: $154.2 million vs analyst estimates of $120.1 million (56% margin, 28.3% beat) Operating Margin: 45.9%, up from 43.7% in the same quarter last year Market Capitalization: $4.30 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Cyprys (Morgan Stanley) asked about the return to net inflows for the Global Private Asset Fund and distribution expansion. CEO Erik Hirsch responded that new client relationships and improving relative performance are expected to drive positive flows as investor sentiment stabilizes. Anthony Corbin (Goldman Sachs) questioned the impact of redemptions in the international Evergreen fund on flows to other products. Hirsch explained that much of the redeemed capital is reinvested in other Hamilton Lane vehicles, enhancing client retention. Corbin (Goldman Sachs) followed up on tokenization, asking about its potential to transform private markets. Hirsch answered that adoption is rising, especially as education improves and digital-native investors gain wealth, but noted that confusion with cryptocurrencies still slows uptake. Alexander Bond (KBW) inquired about U.S. versus international Evergreen growth trajectories. Hirsch stated that both regions are developing in parallel, with the U.S. catching up as product maturity and education levels increase. Unknown Analyst (BMO) asked about the sustainability of fee-related earnings margins. Hirsch indicated that continued performance revenues, favorable asset mix, and expense discipline will be key to sustaining margin expansion. In the coming quarters, our team will watch (1) the pace of net inflows and client retention in the Evergreen platform, especially as new sales hires reach full productivity; (2) the launch and fundraising progress of new specialized funds in venture, secondary, and infrastructure strategies; and (3) the adoption rate of digital investment solutions, including tokenization and data automation. Execution in these areas will be critical for sustaining asset growth and margin improvement. Hamilton Lane currently trades at $101.03, up from $94.91 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Hamilton Lane reported past first-quarter 2026 results showing revenue of US$275.33 million and net income of US$80.46 million, with both basic and diluted earnings per share rising from the prior year. Alongside this earnings strength, the company affirmed a higher full-year dividend target of US$2.40 per share, an 11% increase, underlining management’s willingness to return more cash to shareholders. Now, we'll examine how this combination of stronger earnings and an 11% higher dividend target reshapes Hamilton Lane's investment narrative. Find 51 companies with promising cash flow potential yet trading below their fair value. To own Hamilton Lane, you need to believe in the long term appeal of private markets and the firm’s ability to earn resilient fee income from them. The latest quarter’s stronger revenue and earnings support that picture, but the most important near term catalyst remains whether client demand for private market strategies holds up. The biggest risk is still rising compliance and operational complexity as the business expands, and this update does not materially change that. Among recent announcements, the 11% uplift in the full year dividend target to US$2.40 per share stands out. Coming alongside higher earnings, this dividend signal ties directly into the near term catalyst of how confidently Hamilton Lane converts fee revenue into cash distributions. It also sharpens the risk that, if margins are later pressured by regulation or fee competition, sustaining this higher payout could become more challenging. Yet behind the higher dividend, investors should also be aware that growing regulatory and operational demands could... Read the full narrative on Hamilton Lane (it's free!) Hamilton Lane's narrative projects $1.1 billion revenue and $496.8 million earnings by 2029. This requires 13.9% yearly revenue growth and roughly a $247.6 million earnings increase from $249.2 million today. Uncover how Hamilton Lane's forecasts yield a $129.57 fair value, a 29% upside to its current price. While consensus focuses on steady growth, the most optimistic analysts were already penciling in about US$1.2 billion of revenue and US$521 million of earnings by 2029, so this earnings beat could either reinforce or challenge their Evergreen focused thesis depending on how you view the resilience of those fee streams. Explore 10 other fair value estimates on Hamilton Lane - why the stock might be worth 40% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Hamilton Lane research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free Hamilton Lane research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hamilton Lane's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HLNE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 11 a.m. ET Head of Shareholder Relations - John Oh Co-Chief Executive Officer - Erik Hirsch Chief Financial Officer - Jeff Armbrister Operator: Good morning, ladies and gentlemen, and welcome to the Hamilton Lane First Quarter Fiscal Year 2027 Earnings Call. [Operator Instructions] This call is being recorded on Tuesday, August 4, 2026. I would now like to turn the conference over to John Oh, Head of Shareholder Relations. Please go ahead. John Oh: Thank you, Joanna. Good morning, and welcome to the Hamilton Lane Q1 Fiscal Year 2027 Earnings Call. Today, I will be joined by Erik Hirsch, Co-Chief Executive Officer; and Jeff Armbrister, Chief Financial Officer. Earlier this morning, we issued a press release and a slide presentation, which are available on our website. Before we discuss the quarter's results, we want to remind you that we will be making forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. These forward-looking statements do not guarantee future events or performance and are subject to risks and uncertainties that may cause our actual results to differ materially from those projected. For a discussion of these risks, please review the cautionary statements and risk factors included in the Hamilton Lane fiscal 2026 10-K and subsequent reports we file with the SEC. These forward-looking statements are made only as of today, and except as required, we undertake no obligation to update or revise any of them. We will also be referring to non-GAAP measures that we view as important in assessing the performance of our business. Reconciliation of those non-GAAP measures to GAAP can be found in the earnings presentation materials made available on the Shareholders section of the Hamilton Lane website. Our detailed financial results will be made available when our 10-Q is filed. Please note that nothing on this call represents an offer to sell or a solicitation of an offer to purchase interest in any of Hamilton Lane's products. Let's begin with the highlights, and I'll start with our total asset footprint. At quarter end, our total asset footprint stood at over $1 trillion and represents an 8% increase to our footprint year-over-year. AUM stood at $146 billion and grew $5 billion or 4% compared to the prior year period. AUA came in at $914 billion and grew $69 billion or 8% relative to the prior year period. This stemmed primarily from market value growth and the addition of a variety of technology solutions and back office mandates. For this first quarter of fiscal year 2027, total management and advisory fees were $161 million and were up 21% year-over-year. Total fee-related revenue was $236 million and represents 44% growth year-over-year. Fee-related earnings were $124 million and represents 49% growth year-over-year. We generated GAAP EPS -- we generated quarterly GAAP EPS of $1.93 based on $80 million of GAAP net income and non-GAAP EPS of $1.94 based on $105 million of adjusted net income. We have also declared a dividend of $0.60 per share this quarter, which keeps us on track for the 11% increase over last fiscal year, equating to the targeted $2.40 per share for fiscal year 2027. With that, I'll now turn the call over to Erik. Erik Hirsch: Thank you, John, and good morning, everyone. In May, we celebrated Hamilton Lane's 35th anniversary. A simple AI query will tell you that few companies founded ever reached this milestone. To me, while the longevity is noteworthy, the more important point is what that milestone represents. It represents evolution, a desire to never stand still. As the world and markets have changed around us, Hamilton Lane has built and adapted and innovated, all with a focus on best serving our clients. And while I'm proud of the growth and how many new investors continue to entrust us with capital, I am exceptionally proud that clients who have been with us from the beginning of this journey continue to entrust us with capital today. But at the end of the day, what makes Hamilton Lane are our people. We are looking forward to continuing to evolve, continuing to grow and continuing to successfully serve our clients. Let me turn now to fee-earning AUM. At quarter end, total fee-earning AUM stood at $83.7 billion and grew $9.3 billion or 12% year-over-year. Net quarter-over-quarter growth was [ $2.0 billion ] or 3%. Our blended fee rate continues to benefit as our fee-earning AUM mix shifts towards the specialized funds part of our business. Our blended fee rate now stands at 69 basis points. Total fee-earning AUM growth continues to be driven largely by our specialized fund platform. Overall, specialized fund fee-earning AUM ended this quarter at $42.6 billion, having grown $8.5 billion over the last 12 months. This represents an increase of 25%. Quarter-over-quarter growth was $2 billion or 5%. We produced $2.4 billion of gross contributions in the quarter that stemmed primarily from new subscriptions to our evergreen products, along with healthy contributions from our drawdown products, namely our sixth equity opportunities fund, our second venture fund and our second infrastructure fund. This was offset with redemptions coming primarily from 2 of our largest non-U.S. evergreen products, along with exit activity in drawdown funds. Our Evergreen platform continues to demonstrate resilience. For the quarter that ended in June, we generated nearly $640 million of net inflows across all strategies and ended the period with over $19 billion of AUM. Importantly, we did not enact gates on any of our funds, and we saw positive net inflow across 10 out of 12 funds with our non-U.S. credit offering essentially being flat for the quarter and our non-U.S. multi-strategy equity fund showing elevated redemptions and finishing in net outflow for the quarter. The redemptions in this fund came largely from 2 categories of investors. The first being long-standing investors who have seen their exposure grow due to strong performance. Had you invested $1 in the institutional USD share class of our non-U.S. multi-strat equity platform at inception, as of June 30 of this year, that dollar would be worth $2.32. Not surprisingly, we see clients harvesting some gains and rebalancing with some of those funds flowing back into other Hamilton Lane products. The second category is a bit more unique. Clients housing capital in the Evergreen fund while awaiting deployment in a separately managed account. They are redeeming to then fund the SMA. In prior times, we saw clients often just leave future private dollars in passive public equity accounts. But with the advent of Evergreens, we are seeing more institutional clients avail themselves of this alternative to temporarily house capital for future use in drawdown funds. While this inevitably results in redemptions, it still means the capital is retained by Hamilton Lane. As Evergreen market dynamics continue to evolve and mature, we expect over time that redemptions will be driven by different motivators and will need to be examined in context. All that said, we have seen a slowdown on flows on certain products and the general hesitancy with investors given the constant negative headlines. We strongly believe this is temporary and have already begun to see the swing back. For us, we continue to operate with a long-term mindset. Our Evergreen platform has been purposely built to reach investors around the world and to offer a wide variety of strategies. Today, we are one of only a small number of Evergreen managers with both a scaled U.S. platform and a scaled non-U.S. platform. Outside the U.S., we offer 7 vehicles with our multi-strategy equity, credit and infrastructure funds each having more than $1 billion of AUM, and our secondaries and venture offerings are fast approaching the $1 billion AUM mark. Performance across the vehicles remain strong. That same breadth is evident in the U.S. as well. We now offer 5 vehicles across multi-strategy equity, infrastructure, venture, secondaries and most recently, credit, which we discussed on our last call. Today, the multi-strategy equity fund represents the majority of our U.S. Evergreen AUM, driven by strong performance since inception and continued traction in the wirehouse channels. The fund has just been added to another wirehouse, bringing distribution for that strategy to now 3 wirehouses. We have achieved all of this while at the same time, leveling up and expanding our U.S. distribution team. This may beg a logical question. If things are going well, why would we do this? It's simple, and it's where I started earlier, a constant desire to evolve and to be better. Sales professionals are realizing that not all platforms are built the same and with an increasing amount of data available on brands, product lineups, deal flow and performance, professionals are choosing who they believe will be the winning franchises for the next many years. Over the last 12 months, we have added 6 highly experienced Evergreen sales professionals to our senior ranks. They have joined from outstanding firms, JPMorgan, Fidelity, Morgan Stanley, BlackRock, PIMCO and Monroe Capital. So while we are pleased with the success we've had so far, we are far more excited with what lies ahead as this team comes together. Let me turn to performance. We are now entering the phase of the Evergreen journey where track records are getting longer and are getting more scrutiny. Investors are realizing that investment approach and risk-taking are not the same across platforms. For Hamilton Lane, we are not trying to build an index nor are we building concentrated portfolios. We are building portfolios with purposeful diversification across managers, strategies, geographies and underlying assets and are doing so with the benefit of deep sourcing, disciplined pacing, active cash management and rigorous portfolio construction. That matters because in private markets, manager selection and asset selection still drive outcomes in a very meaningful way and the dispersion between top and bottom performers remains wide. And when you combine that discipline with the advantages of a multi-manager platform, differentiated deal flow, access to high-quality middle market opportunities, flexibility across market environments and the ability to lean into specialized expertise, you give yourself a far stronger foundation for consistency over time. That is what we believe is showing up in our results, which continue to be strong. As of June 2026, when looking at institutional USD share class and excluding the most recently launched U.S. private credit fund given its nascency, each of our funds has generated positive double-digit performance, both year-to-date and since inception, with the exception being our non-U.S. private credit platform, which targets a high single-digit return and has delivered just that. In addition, for every single one of those funds, we have also produced positive performance in every single calendar year since inception. I will also note that our 3 largest and most seasoned individual products, those being our U.S. and non-U.S. multi-strategy equity product and non-U.S. credit product have generated over $3.6 billion of total cash realizations from their underlying portfolios. So when we step back and look at the platform in its entirety, what we see is a business that remains healthy, diversified and well positioned for long-term growth. We have strong performance, growing global reach, expanding distribution and a client base that continues to engage with the platform in different ways across products and structures. There will be periods where flows move around, and there will certainly be noise around the category, but none of that changes our conviction. We believe the Evergreen platform we have built is differentiated, durable and still very early in its growth trajectory. Let me turn now to our closed-end franchise. We continue to execute well across our fundraising activities and are seeing strong momentum build across several strategies approaching their initial closes. Through the balance of fiscal 2027 and into early fiscal 2028, we expect to be in market with 5 key strategies: core secondaries, our inaugural GP-led secondary strategy, venture, credit and infrastructure. But let me begin with our most recently closed fund. I'm pleased to announce that our direct equity platform finished its raise, collecting $3.8 billion in and alongside the fund. That broke down to $3.3 billion in the fund and $500 million in separate accounts investing alongside. The fund portion alone represents an over 57% growth versus the prior fund. We believe our team, our differentiated deal flow and our near 30-year track record in this space resonated with investors across the globe. We attracted public and private pension funds, sovereign wealth funds, Taft-Hartley plans, endowments and foundations and individuals, and we are deeply grateful for their trust in us. That fund is off to a strong start with nearly 30% of the capital committed across a variety of small and mid-market businesses. And while early, performance is strong. This fundraise is yet another prime example of how we are continuing to scale both our closed-end franchise and our business overall. We are proud of what we've been able to accomplish with this fundraise, and we look forward to continuing to build on this momentum. Turning to our seventh secondary fund. Fundraising is off to a good start as we held the first close just last week on nearly $1.3 billion of investor commitments. This will be followed by another close in this calendar year on which we already have good visibility. Like before, we have 18 months from the timing of the initial close to complete the fundraise. We remain encouraged by the level of support we have already received, and we are looking forward to continuing to grow and expand this franchise. Turning now to venture. I'm pleased to share that during the quarter, we successfully held the first close for our second venture fund, securing more than $370 million of investor commitments. For context, our first venture fund raised a total of $615 million, which means this initial close already represents more than 60% of the size of the first fund. We believe that is a strong early proof point for the strategy and a clear reflection of the confidence our investors have in the team, the platform and the opportunity set we see in this market. Wrapping up here with customized separate accounts. At quarter end, customized separate account fee-earning AUM stood at $41.1 billion and grew $818 million or 2% over the last 12 months and was up slightly quarter-over-quarter. We continue to see gross contributions coming from a mix of new client wins plus re-up activity from existing clients plus contributions for investment activity and then being offset by fee basis step-downs, which is largely a timing-related impact as well as capital distributions stemming from exit activity. During the quarter, we continued to execute well across our separate account business, converting both our back book and active pipeline into closed mandates from existing clients and new relationships alike. From our existing client base, we closed on more than $2.3 billion of total mandate value, driven primarily by re-ups while also expanding one relationship into a new service line. We also closed on more than $1.3 billion of total mandate value from clients that are new to Hamilton Lane. These wins came from both domestic and international institutions, further reinforcing the global relevance for our platform and the continued demand we are seeing across the market for private market solutions delivered at scale. Lastly, our team continues to make very good progress replenishing the pipeline of re-up opportunities, which today totals multiple [Audio Gap]. As we have said before, these mandates do not always convert immediately into fee-earning AUM, particularly where the underlying portfolio construction is more heavily oriented towards primary investing or where there are commitments being made to our transaction products, either drawdown or evergreen. There is often a natural pacing element to deployment for the primary element, and that timing should be expected. But what matters most to us is that the capital has been awarded, the client relationships have been established and the foundation for future fee-earning growth is in place. Turning now to our balance sheet updates, and let me highlight some recent exciting events regarding several investments in our strategic investment portfolio, and then Jeff will provide more details in his section. I'll start with Russell Investments. On July 9, Russell announced that a consortium led by B Capital and CalPERS agreed to acquire the firm. As a reminder, in March of 2021, we entered into a strategic partnership with Russell because we saw a compelling opportunity to combine Russell's global outsourced solutions franchise and client reach with Hamilton Lane's private market platform, research portfolio construction capabilities and technology. Over the past 5 years, that partnership has created differentiated access points and tailored solutions for Russell's global clients. And it stands as a strong example of how we can use our platform to help sophisticated partners expand private market access in a way that is strategic, scalable and aligned with client demand. During our period of ownership, the investment delivered both strategic and financial benefits. And while this transaction marks the end of our economic ownership in Russell, it does not mark the end of the relationship. We remain excited to continue advancing the partnership and our shared goal for delivering best-in-class private market solutions. Next, back in fall of 2025, Securitize announced that it had entered into a definitive business combination agreement with Cantor Equity Partners II, a special purpose acquisition company, and they would transition to a publicly traded company. That transaction has now been completed and Securitize is now a publicly listed company on the New York Stock Exchange. We originally invested $5 million from our balance sheet and now hold approximately 1.1 million shares of Securitize, which as of yesterday's closing price traded at $6.94 per share. Our relationship with Securitize began in 2022 when we partnered with them to tokenize several Hamilton Lane offerings and expand access to private markets through digital-first token-based technology. In May 2024, Hamilton Lane built on our commercial relationship and participated in Securitize's strategic funding round led by BlackRock. We made that investment because we believe Securitize was building important infrastructure for the next evolution of capital markets. Trusted regulated technology that can bring traditional financial assets on chain and make private markets more accessible to a broader set of investors. Securitize has moved towards becoming a public company is an important validation of that thesis. It reflects the increasing institutional adoption of tokenization and highlights the role that regulated infrastructure can play in modernizing how financial assets are issued, managed, traded and serviced. Next up is Canoe. Canoe is an AI-driven platform that automates the collection, extraction and validation of alternative investment data, taking the large volume of fund documents, capital account statements and cash flow that underpin the private markets and turning them into clean, actionable information. Our relationship began in 2019 with pilots on Hamilton Lane's own documents, which was then followed by our initial investment in Canoe's Series A in 2020 and then continuing to support the business through subsequent rounds. We invested because Canoe was addressing a need we experienced ourselves and saw across the broader market, that being reducing operational friction and enhancing data quality across the asset class. Bloomberg's agreement to acquire Canoe is a strong validation of that thesis. For Hamilton Lane, it is another example of us using our balance sheet in a targeted way to support technology partners that we believe are helping shape the future of the private markets. And with that, I'll now pass the call to Jeff, who will cover both our financials and the impact stemming from these transactions. Jeffrey Armbrister: Thank you, Erik, and good morning, everyone. For this first quarter of fiscal 2027, we continue to generate solid growth in our business. Management and advisory fees were up 21% from the prior year period, while total fee-related revenue was up 44%, driven by strong growth in our fee-related performance revenues. Specialized fund management fees increased by $26 million or 32% compared to the prior year period. This was driven primarily by a $6.7 billion increase to fee-earning AUM in our Evergreen platform and over a $930 million increase from our latest direct equity fund over the last 12 months. Moving on to customized separate accounts. Revenue increased slightly compared with the prior year period, driven by steady re-ups from existing clients, continued investment activity and the addition of new accounts, partially offset by older accounts reaching the end of their fund term and fee basis step-downs. Revenue from our operating, monitoring, data and analytics offerings increased by $1.5 million or 18% compared to the prior year period as we continue to produce strong growth in our technology solutions offering. Lastly, the final component of our revenue is incentive fees, which totaled $114 million for the period. This amount includes fee-related performance revenues stemming primarily from the quarterly crystallization of performance fees from our U.S. private assets Evergreen fund with additional contributions coming from our more recently launched Evergreen funds. Let's turn now to our unrealized carry balance. The balance is up 11% from the prior year period, even while having recognized $113 million of incentive fees, excluding fee-related performance revenues during the last 12 months. The unrealized carry balance now stands at approximately $1.5 billion. Moving on to expenses. Fiscal year-to-date total expenses increased $50 million or 50% compared with the prior year period. Total compensation and benefits increased $38 million or 55% due primarily to increases in operating performance and headcount. G&A increased by $12 million, primarily driven by revenue-related expenses and onetime benefits in the prior year period. Revenue-related expenses include the third-party commissions related to our U.S. Evergreen funds, along with other evergreen fund platform fees, closed-end fund placement agent fees and fund reimbursement expenses, which are expected to lead to corresponding revenue over time. The increase in these expenses is a good thing and can be an indicator of growth to come. We continue to successfully offset this with cost savings and expense discipline in other parts of the business where we have discretion. Moving to FRE. FRE for the quarter was $124 million and was up 49% relative to the prior year period, with FRE margin year-to-date came in at 53% compared to 51% for the prior year period. Both FRE and FRE margin benefited from strong fee-related performance revenues in the period. Let me now move to our share repurchase activity during the quarter. We repurchased approximately 559,000 shares at a weighted average price of $89.51 per share, resulting in roughly $50 million spent under the program during the quarter. Throughout the life of the program, we have spent $70 million on share repurchases. Before I wrap up with balance sheet commentary, I want to take a moment to outline our expectations on how the recent events that Erik mentioned regarding our investments in Russell, Securitize and Canoe will come through our income statement. With respect to Russell, we expect to realize just under $50 million based on our share of the proposed transaction value. The company has indicated that the transaction is expected to close in the first quarter of calendar year 2027, subject to regulatory approvals and other customary closing conditions. Assuming the transaction closes as expected, we would anticipate recording a gain of approximately $18 million at that time. With respect to Securitize, as Erik mentioned, following the close of the business combination, we now hold approximately [ 1.5 million ] shares of Securitize, which trades under the ticker, SECZ. Because the transaction closed after the end of the reporting period, we will begin making this position to -- we will begin marking this position to the publicly traded share price next quarter and at the end of each quarter going forward. Our shares remain subject to a 180-day lockup period, after which we will continue to evaluate the position. With respect to Canoe, based on our ownership stake in the proposed transaction, we expect to receive proceeds of approximately $30 million. This represents an estimated gain of over $15 million versus our current carrying value, which is based on the valuation from Canoe's most recent funding round. We expect to recognize this gain upon the transaction's closing. Let's wrap up now with some commentary on our balance sheet. Our largest asset continues to be our investments alongside our clients in our customized separate accounts and specialized funds. Over the long term, we view these investments as an important component of our continued growth, and we'll continue to invest our balance sheet capital alongside our clients. In regard to our liabilities, we continue to be modestly levered. Lastly, I'd like to reiterate that we will continue to evaluate opportunities to strategically utilize the strength of our balance sheet in support of future growth initiatives. These activities have generally taken the form of Seed Capital to help stand up new product launches and have also come with having to consolidate these products onto our balance sheet during the ramp and scaling up phases. While this can introduce noise into our financials, this is generally a short-term phenomenon with the goal of deconsolidation once our initial contribution is diluted down as the products grow. And with that, we'd like to thank everyone for listening in, and we'll now open up the call for questions. Operator: [Operator Instructions] Michael Cyprys with Morgan Stanley. Michael Cyprys: Just wanted to circle back on the private wealth commentary regarding the redemptions in the international vehicle, the Global Private Asset Fund. Just curious what your expectation is around the path for that fund to return to net inflows on a more consistent basis? And maybe you could also talk about how you are expanding distribution reach of that vehicle to capture new customers and new platforms. Erik Hirsch: Sure, Mike. It's Erik. I think we're doing all of the above. So the team continues to expand. The number of relationships continues to expand. And I think increasingly, we're starting to see rotation out of some competitive products, and we believe we'll start to see that rotation back into our products on a relative performance basis. So I think that's sort of the tailwind and the headwind right now is what I mentioned on the call, the sort of the rebalancing due to kind of being at that sort of 5-plus year mark with good performance and just all of the noise around the sector that is just causing people to either pause or to sort of act a little spooked. Michael Cyprys: Got you. And then just more broadly the Evergreen fund lineup continues to expand and bring in assets. But also just given some of the experiments you've had with tokenization that you alluded to in some of your commentary, just curious what learnings you've had around tokenization so far? Where are you seeing greatest utility? And ultimately, just curious, could tokenization prove as important to private markets as maybe ETFs were to public markets? Just curious how you're thinking about that and how you're thinking about some of the next generation of evergreen and semi-liquid product structures. Erik Hirsch: Sure. I think the tokenization is -- still remains kind of when is this going to start to become the norm as opposed to the exception in terms of utilization. I think our early belief in this is it's one of the few things that we've seen where all parties benefit. It is truly a better, faster, cheaper. The adoption, I think, has been muted due to continued confusion in the market that somehow people are equating tokens to cryptocurrency. They share nothing in common other than a blockchain backbone, but I think there is confusion around that linkage, which just does not exist. So education continues to be important. Having companies like Securitize become publicly traded, I think that's enormously helpful because, again, that helps the education. It sort of shows stability. It shows future growth. And what we're seeing is some very, very large asset management firms tokenizing, I would say, very mundane product. Think about that like tokenizing cash funds. And that's been good because I think it's sort of showing people that this does not need to be exotic assets that this is just a better way to operate. I think the other reality is that we're going through -- we're about to undertake a huge generational wealth transition, particularly in this country. And as that sort of younger generation who is much more comfortable operating in a fully digital environment starts to become the holders of wealth, I think that's going to be another big push. So for us, I think it sort of widens out the addressable market. It allows us to capture customers who are looking to operate in a digitally native environment. And as tokenization utilization increases, we believe that, that will drive down some operating costs for us. Operator: Alex Blostein with Goldman Sachs. Anthony Corbin: This is Anthony on for Alex. You spoke to clients redeeming out of your global private assets fund and switching into other Hamilton Lane products. Could you quantify how much inflows is driven to other products? And like what other funds are seeing kind of the biggest demand from this like switching aspect? Erik Hirsch: Yes, Anthony, it's Erik. So one, when we're selling, we're doing this all as a package. So this is not a surprise to us because when we are pitching that client, one of the reasons why we're being selected is that they want that sort of fully invested aspect for their portfolio. And so the way they achieve that is they make an asset allocation decision and they decide that they're going to put x amount of dollars with us. Those dollars in this case are starting in the Evergreen and then they're migrating the biggest -- the second biggest movement of client capital out was because of large client moving into SMAs. And so that's for us known. So while it is a redemption, it's just moving from one pocket of Hamilton Lane capital to another pocket and again, a much better experience for the client. So that, we think, is a positive. Again, in a prior world prior to Evergreens, that capital was largely kept in a passive public equity index, obviously, that we were not managing. And so we think the advent of this and the evolution of this continues to be a positive thing. Anthony Corbin: Got it. That's helpful. And then maybe switching over to the U.S. Evergreen channel. Flows in some of the newer products have been relatively slow. I guess what are you hearing on the ground from platforms and advisers? And what are your expectations on flows as you guys kind of expand the distribution and sales efforts? Erik Hirsch: Sure. It's Erik. So as I said, I mean, we've done a big overhaul of the sales team, a lot of them sort of not fully productive today because they're literally just joining the firm. But I also think that a lot of these products are in sort of their infancy, and so they're not sitting at that kind of magical $1 billion mark, which we see as a big stepping stone to getting on to larger platforms and picking up larger flows. So I think we expect that the early phases of this are always a bit of a grind as you're kind of getting to scale. I think with the expansion of the team and bringing in more senior seasoned talent, we think that all will help accelerate this. And then I think you got to get to that magical size and then you start to see a ramping occurring at a much quicker pace, and that's what we expect. Operator: Alex Bond with KBW. Alexander Bond: Maybe I just wanted to ask around the Evergreen suite to start. Maybe just following the $640 million of net inflows in the quarter, wondering if you can share any July trends as it relates to the Evergreen suite. And then secondly, more of a bigger picture question. Wondering how you would juxtapose the trajectory of the growth in terms of the U.S. funds versus the international funds here. You mentioned that the international funds are a bit more mature and have had strong performance to date. But maybe any color there that you could share around the long-term growth potential for both the international suite in and of itself and then maybe relative to the U.S. suite would be helpful as well. Erik Hirsch: Sure, Alex, it's Erik. I would say I'll take the latter part first. I mean I think what we're seeing is education levels are rising across geographies. And that really is I think, the most important piece here. You've seen over the last few months that the market is simply not mature when it comes to this space. So headlines, largely not driven by good data, caused investor behavior. And to me, that is an example of a lack of maturity and confidence in an industry and in a sub-asset class that I think is not surprising given how young it is and how little experience investors have with the space. So to me, this is a combination of the industry needs more education. The industry needs time for them to start to kind of normalize so that, again, carry headlines don't cause investors to actually take action. We're not seeing material differences on the ground between non-U.S. and U.S. We're seeing those markets kind of continuing to develop hand in hand. We just started outside the U.S. first. And so our presence there had well over a full year head start versus U.S. activities. And so you see a little bit of sort of a playing catch-up in the U.S. But from a flow perspective, as I look into July and sort of into the future, we're seeing some of the noise subsiding. And so we're generally just seeing this more positive sentiment across the product offerings and across the geographies. Alexander Bond: Got it. Okay. That's helpful. And then maybe one for Jeff, just on the accrued carried interest balance. It looks like the sequential decline there was around $90 million, whereas the non-Evergreen incentive fee realizations in the quarter were closer to $30 million. So just wondering if you could share maybe what drove that delta here in the quarter. Jeffrey Armbrister: Yes. We're continuing to see strong activity in terms of realizations, and that's impacting the unrealized carried interest balance. So we're optimistic and hopeful that will continue, but it's hard to predict what's going to happen in the future, especially in this environment, but that's what we're largely seeing is just strong performance and the realizations carrying through. Operator: Ken Worthington with JPMorgan. Madeline Daleiden: This is Madeline Daleiden on for Ken. So Evergreen questions, all pretty much asked and answered. But just digging into your earlier comments on the products coming back to market. Any other details or time lines you can provide on what we should expect to be back in market over the next 2 to 3 quarters? Erik Hirsch: So Madeline, it's Erik. Thanks for the question. I think it's sort of what we sort of touched on. So direct equity is now out of market, that flagship secondary, the GP-led secondary. We're a few more quarters away from infrastructure, but venture is in market. So we've got a full suite of offerings. So it's going to be a busy year for us on the specialized fund front. Madeline, did you have a follow-up? Madeline Daleiden: No, thank you. Operator: [Operator Instructions] Brennan Hawken with BMO. Unknown Analyst: It's [ Mark ] on for Brennan. Just wanted to ask on FRE margin. It was strong in the quarter, 53% benefiting from FRPR. As we think through the remainder of the fiscal year, how should we kind of think about a sustainable margin? And would incremental margin expansion come from continued top line growth and mix shift or from expense discipline? Erik Hirsch: Yes, it's Erik. Thanks for the question, Mark. I think it's going to be a combination of those things. As we've said before, when we're generating meaningful amounts of FRPR as we did this quarter, that is a natural margin enhancer. And so to the extent that we continue to see that along with the sort of the shifting that we've been seeing across the asset mix, all of that is margin lifting. And the team here continues to, I think, execute very well on expense discipline. Comp ratios remain consistent and expenses that we can control, I think we've continued to do a good job controlling. Unknown Analyst: Okay. And then within customized separate accounts, you highlighted a strong pipeline of awarded mandates in the billions of dollars. Can you provide more color on the timing of converting that pipeline into fee-paying AUM? And additionally, when existing clients re-up with you, are you generally seeing larger mandate sizes? Erik Hirsch: So it's Erik. On the latter, that really varies by the client, how mature their portfolio is. So for the client who is newer in their private market journey and who's sort of grossly underallocated still, yes, you tend to see re-ups at larger levels because they're still trying to hit and achieve target. For clients that are much more mature and are kind of at allocation and are looking to just sort of steady state maintain, those mandates tend to be more similarly sized. So it does vary by client. On the first part of your question around the timing of conversion, again, it varies depending on what is the mandate. If the mandate is a separate account that is full of just primary funds, those often take years to continue to move in as you're continuing to find managers, have that capital drawn down and begin to charge fees on that. So a primary-only mandate is a much slower process to fee conversion. If the SMA is much more transactionally oriented, then that is obviously much, much quicker as those -- as that capital tends to get deployed over a 1- or 2-year timetable. And for the SMA portion that's moving into specialized funds, well, that depends on whether the funds on committed capital or invested capital and how quickly that sort of moves over and how quickly that capital turns into fee-earning AUM. Operator: We have no further questions. I will turn the call back over to Erik Hirsch, Co-Chief Executive Officer, for closing comments. Erik Hirsch: Let me just say thank you for taking the time to join us today. Hopefully, your takeaway is that we remain very excited about the opportunity that lies ahead, and we are firmly committed to continuing to deliver for our clients and our shareholders. Thank you very much. Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Before you buy stock in Hamilton Lane, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hamilton Lane wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hamilton Lane (HLNE) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Investors might want to bet on Hamilton Lane (HLNE), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this private-market investment firm, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Hamilton Lane, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $1.79 per share, which is a change of +16.2% from the year-ago reported number. The Zacks Consensus Estimate for Hamilton Lane has increased 13.15% over the last 30 days, as three estimates have gone higher compared to no negative revisions. For the full year, the earnings estimate of $6.95 per share represents a change of +17.8% from the year-ago number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Hamilton Lane versus no negative revisions. This has pushed the consensus estimate 9.67% higher. Thanks to promising estimate revisions, Hamilton Lane currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Hamilton Lane because of its solid estimate revisions, as evident from the stock's 24.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hamilton Lane Inc. (HLNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Asset Footprint: Over $1 trillion, an 8% increase year-over-year. AUM: $146 billion, up $5 billion or 4% year-over-year. AUA: $914 billion, up $69 billion or 8% year-over-year. Management and Advisory Fees: $161 million, up 21% year-over-year. Total Fee-Related Revenue: $236 million, up 44% year-over-year. Fee-Related Earnings (FRE): $124 million, up 49% year-over-year. GAAP EPS: $1.93, based on $80 million of GAAP net income. Non-GAAP EPS: $1.94, based on $105 million of adjusted net income. Dividend: Declared $0.60 per share, on track for an 11% increase to $2.40 per share for fiscal year 2027. Fee-Earning AUM: $83.7 billion, up $9.3 billion or 12% year-over-year. Specialized Fund Fee-Earning AUM: $42.6 billion, up $8.5 billion or 25% year-over-year. Blended Fee Rate: 69 basis points. Evergreen Platform Net Inflows: Nearly $640 million for the quarter ended June 2026. Evergreen Platform AUM: Over $19 billion. Customized Separate Account Fee-Earning AUM: $41.1 billion, up $818 million or 2% year-over-year. Incentive Fees: $114 million for the period. Unrealized Carry Balance: Approximately $1.5 billion, up 11% year-over-year. Total Expenses: Increased $50 million or 50% year-over-year. Compensation and Benefits: Increased $38 million or 55% year-over-year. G&A: Increased by $12 million. FRE Margin: 53% year-to-date, compared to 51% in the prior year period. Share Repurchases: Approximately 559,000 shares at a weighted average price of $89.51 per share, totaling roughly $50 million. Warning! GuruFocus has detected 2 Warning Sign with HLNE. Is HLNE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total fee-related revenue grew 44% year-over-year, driven by strong growth in fee-related performance revenues. Fee-earning AUM increased 12% year-over-year to $83.7 billion, with specialized fund fee-earning AUM up 25%. Evergreen platform demonstrated resilience with nearly $640 million of net inflows in the quarter, and positive net inflows across 10 out of 12 funds. Closed-end franchise momentum: Direct equity fund raised $3.8 billion (57% growth vs. prior fund), and secondary fund held first close at $1.3 billion. Strategic investments delivered gains: Russell Investments, Securitize, and Canoe transactions are expected to generate significant realized gains. FRE margin improved to 53% from 51% year-over-year, benefiting from strong fee-related performance revenues. Strong performance across Evergreen funds: All funds (except non-U.S. credit) delivered positive double-digit returns since inception, with positive performance in every calendar year. Expanded distribution: Added 6 senior Evergreen sales professionals from top firms, and U.S. multi-strategy equity fund added to a third wirehouse. Customized separate accounts closed over $3.6 billion in new mandates, including $1.3 billion from new clients. Balance sheet investments in technology partners (Securitize, Canoe) are validating the firm's strategic thesis and providing financial upside. Evergreen platform saw elevated redemptions in the non-U.S. multi-strategy equity fund, leading to net outflows for that fund. Redemptions were driven by long-standing investors harvesting gains and clients redeeming to fund separately managed accounts, which may create short-term flow volatility. Management noted a slowdown in flows on certain products due to negative headlines and investor hesitancy, which they believe is temporary but could persist. Newer U.S. Evergreen products have experienced relatively slow flows, as they are still in early stages and not yet at the $1 billion scale needed for broader platform adoption. Total expenses increased 50% year-over-year, driven by higher compensation and revenue-related expenses, which could pressure margins if revenue growth slows. Customized separate account fee-earning AUM growth was modest at 2% year-over-year, with fee basis step-downs and capital distributions offsetting new contributions. The unrealized carry balance declined sequentially by $90 million, reflecting strong realizations but also reducing potential future incentive fees. The firm expects to be in market with multiple funds (secondary, GP-led, venture, credit, infrastructure) over the next year, which could strain resources and increase competition for capital. Tokenization adoption remains muted due to market confusion with cryptocurrency, limiting the near-term impact of this initiative. The firm's strategic investments, while profitable, are subject to market volatility and lockup periods, as seen with Securitize shares. Q: What is your expectation for the path for the non-U.S. Global Private Assets Fund to return to net inflows, and how are you expanding distribution reach for that vehicle? A: Erik Hirsch, Co-CEO, stated that the team continues to expand relationships and expects to see rotation back into their products based on relative performance. He noted that current headwinds are driven by clients rebalancing after strong performance (a $1 investment at inception is now worth $2.32) and general market noise, which he believes is temporary. Q: Can you quantify how much of the redemptions from the Global Private Assets Fund are being switched into other Hamilton Lane products, and which funds are seeing the biggest demand from this switching? A: Erik Hirsch explained that the capital is being retained by Hamilton Lane as clients move from Evergreen funds into separately managed accounts (SMAs). He noted that in a prior world, this capital would have been kept in passive public equity indexes, so the evolution to Evergreens is a positive for the firm, even though it results in redemptions in one product. Q: What are you hearing on the ground from platforms and advisers regarding the slower flows in some of the newer U.S. Evergreen products, and what are your expectations as you expand distribution? A: Erik Hirsch stated that many of the newer products are in their infancy and have not yet reached the "$1 billion mark," which he sees as a key stepping stone for larger platforms and flows. He highlighted the recent addition of six senior Evergreen sales professionals from firms like JPMorgan, Fidelity, and BlackRock, and expects the expansion of the team to accelerate growth. Q: Can you share any July trends for the Evergreen suite, and how would you juxtapose the growth trajectory of U.S. funds versus international funds? A: Erik Hirsch noted that education levels are rising across geographies and that the market is still immature, with headlines causing investor behavior. He said they are not seeing material differences between non-U.S. and U.S. markets, but the U.S. is playing catch-up since the international platform had a head start. He added that July trends show noise subsiding and more positive sentiment across products and geographies. Q: The accrued carried interest balance declined sequentially by around $90 million, while non-Evergreen incentive fee realizations were closer to $30 million. What drove that delta? A: Jeff Armbrister, CFO, explained that the decline is due to continued strong activity in realizations, which is impacting the unrealized carried interest balance. He expressed optimism that this will continue, though it is hard to predict future activity in the current environment. Q: Can you provide more details and timelines on the products coming back to market over the next 2 to 3 quarters? A: Erik Hirsch confirmed that direct equity is now out of market, the flagship secondary and GP-led secondary strategies are in market, and infrastructure is a few quarters away. Venture is also in market, making for a busy year on the specialized fund front. Q: How should we think about a sustainable FRE margin for the remainder of the fiscal year, and would incremental margin expansion come from top-line growth or expense discipline? A: Erik Hirsch stated that margin expansion will come from a combination of factors, including strong fee-related performance revenues (FRPR), which are a natural margin enhancer, and the ongoing shift in asset mix. He also noted that the team continues to execute well on expense discipline, with comp ratios remaining consistent. Q: Can you provide more color on the timing of converting the strong pipeline of awarded mandates into fee-paying AUM, and are existing clients generally seeing larger mandate sizes on re-ups? A: Erik Hirsch explained that conversion timing varies by mandate type. Primary-only mandates take years to convert to fee-earning AUM, while transactionally oriented SMAs deploy capital over a one-to-two-year timetable. On re-ups, he noted that newer clients still underallocated to private markets tend to re-up at larger levels, while more mature clients at their target allocation tend to maintain similar mandate sizes. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Hamilton Lane (HLNE) came out with quarterly earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.63%. A quarter ago, it was expected that this private-market investment firm would post earnings of $1.43 per share when it actually produced earnings of $1.49, delivering a surprise of +4.2%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hamilton Lane, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $275.33 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 25.88%. This compares to year-ago revenues of $175.96 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hamilton Lane shares have lost about 29.3% since the beginning of the year versus the S&P 500's gain of 11%. While Hamilton Lane has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hamilton Lane was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.59 on $221.57 million in revenues for the coming quarter and $6.45 on $900.04 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Eagle Point Credit (ECC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This management investment company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -21.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Eagle Point Credit's revenues are expected to be $40.28 million, down 16.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hamilton Lane Inc. (HLNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 44% year-over-year growth in total fee-related revenue, driven by strong performance in specialized funds and the crystallization of fee-related performance revenues. Blended fee rates expanded to 69 basis points as the asset mix continues to shift toward higher-margin specialized fund platforms. Management attributes recent Evergreen redemptions to 'harvesting gains' after strong performance and institutional clients rebalancing capital into separately managed accounts (SMAs). The Evergreen platform is being positioned as a liquidity management tool for institutional investors, allowing them to house capital while awaiting deployment into drawdown funds. Strategic investments in technology partners like Canoe and Securitize are validating the firm's thesis on reducing operational friction and modernizing capital markets through tokenization. The direct equity platform successfully closed at $3.8 billion, representing a 57% increase over the prior fund, reflecting strong global demand for mid-market exposure. Management expects to be in market with five key strategies through fiscal 2028, including core secondaries, GP-led secondaries, venture, credit, and infrastructure. The firm is aggressively expanding its U.S. distribution team, adding six senior professionals from major competitors to accelerate Evergreen adoption in wirehouse channels. Guidance assumes that current investor hesitancy in the Evergreen space is temporary and driven by 'noise' rather than fundamental performance issues. Anticipated gains of approximately $33 million are expected from the divestiture of Russell Investments and the acquisition of Canoe by Bloomberg in upcoming quarters. Future margin expansion is expected to be driven by a combination of top-line growth, continued mix shift toward specialized funds, and rigorous expense discipline. The exit from Russell Investments marks the end of economic ownership but maintains a strategic partnership for private market solutions. Securitize's transition to a publicly traded company (SECZ) provides a liquid valuation for the firm's $5 million initial investment, subject to a 180-day lockup. The firm repurchased approximately 559,000 shares during the quarter at an average price of $89.51, totaling $50 million in capital return. Management noted that consolidating new products onto the balance sheet during 'seed' phases may introduce short-term financial noise before eventual deconsolidation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a return to consistent inflows as 'rotation' out of competitive products occurs on a relative performance basis. Current outflows are characterized as a maturity milestone where long-term investors are rebalancing after seeing their initial investments more than double. Erik Hirsch views tokenization as 'better, faster, cheaper' infrastructure that will eventually become the industry norm as education overcomes confusion with cryptocurrency. The firm believes tokenization will widen the addressable market by appealing to a younger, digitally native generation of wealth holders. Conversion to fee-earning AUM depends on mandate type: primary-only mandates take years to deploy, while transaction-oriented SMAs convert within 1-2 years. Re-up sizes vary based on client maturity; newer clients tend to increase mandate sizes to reach target allocations, while mature clients focus on steady-state maintenance.

CONSHOHOCKEN, Pa., Aug. 4, 2026 /PRNewswire/ -- Leading private markets asset management firm Hamilton Lane Incorporated (Nasdaq: HLNE) today reported its results for the first fiscal quarter ended June 30, 2026. The Company issued a full detailed presentation of its first quarter fiscal 2027 results, which can be accessed on the Company's Shareholders website at https://shareholders.hamiltonlane.com/. DividendHamilton Lane has declared a quarterly dividend of $0.60 per share of Class A common stock to record holders at the close of business on September 21, 2026 that will be paid on October 6, 2026. The target full-year dividend of $2.40 represents a 11% increase from the prior fiscal year dividend. Conference CallHamilton Lane will discuss first quarter fiscal 2027 results in a webcast and conference call today, Tuesday, August 4, 2026, at 11:00 a.m. Eastern Time. For access to the live event via the webcast, visit Hamilton Lane's Shareholders website (https://shareholders.hamiltonlane.com/) 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 LaneHamilton 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 800 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $1.1 trillion in assets under management and supervision, composed of $146.3 billion in discretionary assets and $914.1 billion in non-discretionary assets, as of June 30, 2026. 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 StatementsSome 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, or the negative version of these words or other comparable words, 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: the historical performance of our investments may not be indicative of future results or future returns on our Class A common stock; our ability to identify available and suitable investment opportunities for our clients; the impact of any poorly performing investments on our investment management revenue and earnings as well as our ability to raise capital; intense competition in our industry, including competition for access to investments and for customized separate account and advisory clients; customized separate account and advisory account fee revenue not being a long-term contracted source of revenue; our ability to appropriately deal with conflicts of interest; our ability to retain our senior management team and attract additional qualified investment professionals; our ability to expand our business and formulate new business strategies; the impact of declines in the pace or size of fundraising or investments made by us on behalf of our specialized funds or customized separate accounts; our ability to manage our obligations under our debt agreements and the dependence on leverage by certain funds, customized separate accounts and portfolio companies; our ability to comply with the investment guidelines set by our clients; the impact of misconduct by our employees, advisors or third-party service providers; the unpredictable and sporadic timing at which we receive carried interest distributions; the exercise of redemption or repurchase rights by investors in certain of our funds; the subjectivity of valuation methodologies; our investments may be in relatively high-risk, illiquid assets; extensive government regulation, compliance failures and changes in law or regulation could adversely affect us; our ability to maintain our desired fee structure; failure to maintain the security of our information technology networks, or those of our third-party service providers, or data security breaches; volatile market, economic and geopolitical conditions or catastrophic events, which can adversely affect our fundraising, our business and the investments made by our funds or accounts; and our only material asset is our interest in Hamilton Lane Advisors, L.L.C., and we are accordingly dependent upon distributions from such entity to pay dividends, taxes and other expenses. The foregoing list of factors is not exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the Securities and Exchange Commission (the "SEC"). For more information regarding these risks and uncertainties as well as additional risks 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, 2026 and in our subsequent reports filed from time to time with the SEC, which are accessible on the SEC's website at www.sec.gov. 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. View original content:https://www.prnewswire.com/news-releases/hamilton-lane-incorporated-reports-first-quarter-fiscal-2027-results-302842207.html

Interested in Hamilton Lane Inc.? Here are five stocks we like better. Strong financial performance: Hamilton Lane’s management and advisory fees rose 21% year over year to $161 million, while fee-related earnings increased 49% to $124 million. Adjusted earnings were $1.94 per share, and the company raised its fiscal 2027 dividend pace by 11% to $2.40 per share. Assets and fundraising continued to grow: The firm’s total asset footprint surpassed $1 trillion, including $146 billion in assets under management and $914 billion under advisement. Evergreen products generated nearly $640 million in quarterly net inflows, while major fundraising included a $3.8 billion direct equity effort and initial closes for secondary and venture funds. Strategic investments may add gains: Hamilton Lane expects roughly $50 million from Russell Investments’ proposed acquisition and about $30 million from Bloomberg’s purchase of Canoe, with estimated gains of approximately $18 million and more than $15 million, respectively, subject to closing conditions. Stock Rotation is Underway: Here are the Winners Moving Forward Hamilton Lane (NASDAQ:HLNE) reported higher first-quarter fiscal 2027 management fees, fee-related earnings and earnings per share, while highlighting continued growth in its evergreen products, closed-end fundraising activity and technology-related investments. The private-markets investment firm said its total asset footprint exceeded $1 trillion at quarter-end, up 8% from a year earlier. Assets under management were $146 billion, up $5 billion, or 4%, while assets under advisement rose 8% to $914 billion, driven primarily by market-value gains and additions of technology solutions and back-office mandates. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Management and advisory fees increased 21% year over year to $161 million. Total fee-related revenue rose 44% to $236 million, and fee-related earnings increased 49% to $124 million. Hamilton Lane reported GAAP net income of $80 million, or $1.93 per share, and adjusted net income of $105 million, or $1.94 per share. The company also declared a quarterly dividend of $0.60 per share, keeping it on pace to pay $2.40 per share for fiscal 2027, representing an 11% increase from the prior fiscal year. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Fee-earning AUM reached $83.7 billion, increasing $9.3 billion, or 12%, from the prior-year period and $2 billion sequentially. The company’s blended fee rate rose to 69 basis points as its fee-earning AUM mix shifted toward specialized funds. Specialized-fund fee-earning AUM totaled $42.6 billion, up 25% year over year. Gross contributions were $2.4 billion during the quarter, primarily from evergreen product subscriptions as well as drawdown products including Hamilton Lane’s sixth equity opportunities fund, second venture fund and second infrastructure fund. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Hamilton Lane’s evergreen platform generated nearly $640 million in net inflows for the quarter ended in June and finished the period with more than $19 billion in AUM. Co-Chief Executive Officer Erik Hirsch said the company did not impose gates on any funds and recorded positive net flows in 10 of its 12 evergreen funds. Its non-U.S. multi-strategy equity fund posted net outflows amid elevated redemptions, while the non-U.S. credit offering was roughly flat. Hirsch said redemptions in the multi-strategy fund largely reflected investors harvesting gains and rebalancing after strong performance, as well as clients moving capital from the evergreen vehicle into separately managed accounts. “While it is a redemption, it’s just moving from one pocket of Hamilton Lane capital to another pocket,” Hirsch said in response to an analyst question, referring to clients funding separate accounts. Hirsch also said the company had seen slower flows in certain products and investor hesitancy amid negative headlines surrounding private markets, but said management views that pressure as temporary and had begun to see sentiment improve in July. Hamilton Lane said its direct equity platform completed a $3.8 billion fundraising effort, including $3.3 billion in the fund and $500 million in separate accounts investing alongside it. The fund portion represented more than 57% growth from its predecessor fund. Nearly 30% of its capital had been committed across small- and mid-market businesses, according to Hirsch. The company’s seventh secondary fund held an initial close of nearly $1.3 billion in investor commitments during the quarter, with another close expected later in calendar 2026. Its second venture fund also held a first close exceeding $370 million, more than 60% of the $615 million raised by the first venture fund. Hamilton Lane expects to be in market with five key strategies through the balance of fiscal 2027 and early fiscal 2028: core secondaries, an inaugural GP-led secondary strategy, venture, credit and infrastructure. Customized separate-account fee-earning AUM stood at $41.1 billion, up 2% year over year. The company closed more than $2.3 billion of mandate value from existing clients, largely through re-ups, and more than $1.3 billion from new clients. Hirsch noted that awarded mandates may take time to become fee-earning AUM, particularly when portfolios are focused on primary investments that are deployed over several years. CFO Jeff Armbrister said incentive fees totaled $114 million in the quarter, including fee-related performance revenue primarily tied to the quarterly crystallization of performance fees from the U.S. Private Assets Evergreen Fund. Hamilton Lane’s unrealized carry balance was approximately $1.5 billion, up 11% year over year despite recognition of $113 million of incentive fees, excluding fee-related performance revenue, over the last 12 months. Total expenses increased $50 million, or 50%, from the prior-year period. Compensation and benefits rose $38 million, largely due to operating performance and higher headcount. General and administrative expenses increased $12 million, reflecting revenue-related costs, including third-party commissions for U.S. evergreen funds, platform fees, placement-agent fees and fund reimbursement expenses. Fee-related earnings margin was 53%, compared with 51% a year earlier. Armbrister said the result benefited from fee-related performance revenue, while Hirsch said future margin performance could also benefit from asset-mix shifts, revenue growth and expense discipline. During the quarter, Hamilton Lane repurchased about 559,000 shares at a weighted-average price of $89.51, spending roughly $50 million. Total repurchases under the program have reached $70 million. Management also discussed several developments involving strategic investments. Russell Investments announced an agreement to be acquired by a consortium led by B Capital and CalPERS. Hamilton Lane expects to realize just under $50 million based on its share of the proposed transaction value and anticipates recognizing a gain of about $18 million if the transaction closes, which Russell has indicated is expected in the first quarter of calendar 2027, subject to approvals and customary conditions. Hamilton Lane also said Securitize has become publicly traded on the New York Stock Exchange under the ticker SECZ. Armbrister said Hamilton Lane holds approximately 1.5 million shares that will begin being marked to the public share price in the next quarter, subject to a 180-day lock-up period. Separately, Bloomberg agreed to acquire alternative-investment data platform Canoe. Hamilton Lane expects proceeds of approximately $30 million from the transaction and an estimated gain of more than $15 million over Canoe’s current carrying value when the deal closes. Hamilton Lane is a global private markets investment management firm specializing in the full spectrum of private equity and credit strategies. The company partners with institutional investors and wealth managers to design, implement and manage customized portfolios in primary fund investing, secondary market transactions and direct co-investment opportunities. By combining investment selection, portfolio construction and ongoing monitoring, Hamilton Lane seeks to optimize risk-adjusted returns across diverse private markets exposures. Founded in 1991, Hamilton Lane has developed a track record of investment and advisory services in private markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hamilton Lane Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.