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Hamilton Lane Inc (HLNE)
NASDAQ:HLNE
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Hamilton Lane
(NASDAQ:HLNE)
Rating:81Outperform
Price Target:
$176.00
▲(15.83%Upside)
Positive Factors
Earnings
The adjusted EPS of $1.21 was ahead of Visible Alpha Consensus Data and Goldman Sachs estimates.
Performance Fees
Fee-related performance fees were higher than anticipated, contributing positively to the quarter's results.
Negative Factors
Fee-related Earnings
The firm's fee-related earnings were significantly below expectations when normalized for changes.
Incentive Fees
The earnings miss was due to lower fee-related earnings and lower than expected incentive fees.
Hamilton Lane (HLNE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.80B
Dividend Yield1.42%
Average Volume (3M)749.36K
Price to Earnings (P/E)26.9
Beta (1Y)1.18
Revenue Growth28.73%
EPS Growth49.47%
CountryUS
Employees700
SectorFinancial
Sector Strength75
IndustryAsset Management
Share Statistics
EPS (TTM)1.21
Shares Outstanding41,374,706
10 Day Avg. Volume370,673
30 Day Avg. Volume749,358
Financial Highlights & Ratios
PEG Ratio29.46
Price to Book (P/B)8.28
Price to Sales (P/S)0.00
P/FCF Ratio20.55
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue2.28
Enterprise Value/Gross Profit10.74
Enterprise Value/Ebitda4.66
Forecast
1Y Price Target
$155.25Price Target Upside2.17% Upside
Rating ConsensusHold
Number of Analyst Covering5
Hamilton Lane Business Overview & Revenue Model
Company DescriptionHamilton Lane (HLNE) is a leading global private markets investment management firm. The company specializes in providing a range of investment solutions, including asset management, advisory services, and customized investment products to institutional investors worldwide. By leveraging its robust platform, Hamilton Lane offers expertise in various sectors such as private equity, venture capital, real estate, infrastructure, and credit.
How the Company Makes MoneyHamilton Lane makes money primarily through management fees, performance fees, and advisory fees associated with its investment products and services. The company charges management fees based on a percentage of the assets under management (AUM), which provide a steady revenue stream. Performance fees, also known as carried interest, are earned when investments exceed predefined return thresholds, aligning the firm's interests with those of its clients. Furthermore, advisory services generate revenue by providing strategic guidance and investment planning to clients. Key partnerships with institutional investors, such as pension funds, insurance companies, and sovereign wealth funds, significantly contribute to Hamilton Lane's earnings by expanding its client base and increasing AUM.
Hamilton Lane Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q4-2025)
| % Change Since: -13.07%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in assets under management, management fees, and the Evergreen platform, alongside strategic investments in technology. However, challenges such as muted exit activity and market volatility pose concerns. Overall, the positive aspects of growth and strategic initiatives outweigh the lowlights.Q4-2025 Updates
Positive Updates
Increased Total Asset Footprint
Total asset footprint reached $958 billion, a 4% year-over-year increase. AUM grew to $138 billion, up $14 billion or 11% from the prior year.
Growth in Management and Advisory Fees
Management and advisory fees rose to $514 million, growing 14% year-over-year. Fee-related earnings increased by 34%.
Dividend Increase
The Board approved a 10% increase to the annual fiscal dividend, marking the eighth consecutive annual double-digit percentage increase.
Record Deal Flow
Record deal flow was observed across secondaries and direct investing, largely due to partnerships with GPs seeking capital.
Strong Evergreen Platform Growth
Evergreen platform AUM reached nearly $10.7 billion. Net inflows for Q1 of 2025 were approximately $1 billion.
Strategic Technology Investment
Investment in 73 Strings, an AI-powered platform, strengthens middle office processes for private markets.
Increased Specialized Fund AUM
Specialized fund fee-earning AUM grew to $33 billion, a 16% increase, driven by Evergreen funds and new product lines.
Negative Updates
Muted Overall Exit Activity
Exit activity remains relatively muted, extending holding periods and affecting capital return to LPs.
Slowdown in Institutional Fundraising
Institutional fundraising market remains slow, impacting capital return and investment redeployment.
Challenges from Market Volatility
Market volatility and political factors contribute to uncertainty and paralysis in decision-making among investors.
Company Guidance
During the Hamilton Lane Fiscal Fourth Quarter and Full Year 2025 Earnings Call, several key metrics and growth indicators were highlighted. At the end of fiscal year 2025, the company's total asset footprint reached $958 billion, reflecting a 4% increase year-over-year. Assets under management (AUM) grew by $14 billion to $138 billion, marking an 11% growth, while assets under advisement (AUA) increased by $23 billion to $819 billion, up 3% from the previous year. Total management and advisory fees amounted to $514 million, representing a 14% increase year-over-year. Fee-related earnings saw a significant rise of 34%, reaching $276 million, which contributed to a GAAP EPS of $5.41 and a non-GAAP EPS of $5.04. The board approved a 10% increase in the annual fiscal dividend, now set at $2.16 per share. The company's success in growing its specialized funds, particularly in the Evergreen platform, and its ability to navigate market volatility were underscored as key factors in its performance.Hamilton Lane Financial Statement Overview
Summary
Hamilton Lane exhibits strong financial health with significant revenue and profit growth, robust profit margins, a stable balance sheet with manageable debt, and strong cash flow generation. These elements indicate a strong position for future growth.Income Statement
Hamilton Lane demonstrates strong revenue growth with a significant increase from $553.8 million in 2024 to $712.9 million in 2025, marking a 28.69% growth. The gross profit margin remains robust at approximately 61.49%, and the net profit margin improved to 30.49%, indicating efficient cost management. EBIT and EBITDA margins are stable and high, reflecting operational efficiency.92
Very Positive
Balance Sheet
The company's balance sheet is solid with an improving equity position, as stockholders' equity rose to $717.3 million. The debt-to-equity ratio is 0.51, showing manageable leverage. The equity ratio improved to 42.44%, indicating a strong equity base relative to total assets, enhancing financial stability.85
Very Positive
Cash Flow
Hamilton Lane's cash flow position is strong, with free cash flow increasing significantly by 183.63% compared to the previous year, reaching $311.4 million. The operating cash flow to net income ratio of 1.49 highlights efficient cash generation relative to net income, while the free cash flow to net income ratio of 1.43 indicates robust free cash flow generation.88
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 712.96M | 553.84M | 528.75M | 367.92M | 341.63M |
| Gross Profit | 438.47M | 352.35M | 340.29M | 246.16M | 205.32M |
| EBITDA | 317.54M | 301.02M | 247.48M | 323.81M | 199.38M |
| Net Income | 217.42M | 140.86M | 187.19M | 247.25M | 168.78M |
Balance Sheet | |||||
| Total Assets | 1.69B | 1.27B | 1.14B | 1.29B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 277.27M | 114.63M | 111.75M | 72.17M | 87.34M |
| Total Debt | 368.32M | 275.19M | 292.35M | 253.57M | 238.46M |
| Total Liabilities | 766.46M | 595.24M | 566.35M | 557.46M | 546.32M |
| Stockholders Equity | 717.28M | 525.15M | 415.44M | 346.88M | 238.13M |
Cash Flow | |||||
| Free Cash Flow | 311.36M | 109.78M | 221.84M | 161.00M | 168.52M |
| Operating Cash Flow | 323.52M | 120.85M | 226.59M | 169.52M | 188.16M |
| Investing Cash Flow | -139.81M | -122.18M | 177.91M | -70.49M | -421.78M |
| Financing Cash Flow | -19.62M | 4.40M | -364.15M | -113.22M | 270.66M |
Hamilton Lane Technical Analysis
Positive
151.95
Price Trends
153.03
Positive
149.52
Positive
159.05
Positive
Market Momentum
1.18
Negative
63.98
Neutral
62.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLNE, the sentiment is Positive. The current price of 151.95 is above the 20-day moving average (MA) of 145.93, below the 50-day MA of 153.03, and below the 200-day MA of 159.05, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 62.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLNE.
Hamilton Lane Risk Analysis
Hamilton Lane disclosed 59 risk factors in its most recent earnings report. Hamilton Lane reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hamilton Lane Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.80B | 26.95 | 35.00% | 1.42% | 28.73% | 49.47% | |
75 Outperform | $938.73M | 6.63 | 17.56% | 13.78% | 46.14% | 34.91% | |
70 Outperform | $21.01B | 20.30 | 20.38% | 2.40% | 81.86% | ― | |
64 Neutral | $2.73B | 72.24 | -22.41% | 4.28% | -1.09% | -120.06% | |
63 Neutral | $6.95B | 103.13 | -71.28% | 4.35% | 118.79% | -285.61% | |
63 Neutral | AU$9.93B | 8.26 | 11.67% | 5.00% | 32.88% | 39.55% | |
62 Neutral | $2.30B | 88.30 | -12.68% | 3.71% | 17.33% | 1.83% |
* Financial Sector Average
Performance Comparison
HLNE
Hamilton Lane
159.10
21.10
15.29%
CG
Carlyle Group
60.11
15.51
34.78%
GCMG
GCM Grosvenor
12.00
1.62
15.61%
STEP
StepStone Group
63.24
15.84
33.42%
TRIN
Trinity Capital
14.97
2.89
23.92%
BRDG
Bridge Investment Group
11.02
2.99
37.24%
Hamilton Lane Corporate Events
Executive/Board ChangesShareholder Meetings
Hamilton Lane’s Mario Giannini to Step Down
Neutral
Jun 24, 2025
On June 18, 2025, Mario L. Giannini, Executive Co-Chairman of Hamilton Lane, announced he will not seek re-election to the Board of Directors at the 2025 Annual Meeting of Stockholders. His decision is not due to any disagreements with the company, and he will continue his role as Executive Co-Chairman, ensuring stability in the company’s leadership and operations.
The most recent analyst rating on (HLNE) stock is a Hold with a $168.00 price target. To see the full list of analyst forecasts on Hamilton Lane stock, see the HLNE Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.