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Hamilton Lane Inc (HLNE)
NASDAQ:HLNE
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Hamilton Lane
(NASDAQ:HLNE)
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Rating:73Outperform
Price Target:
$152.00
â–²(7.78% Upside)
Overall score is driven primarily by strong financial profitability/cash generation and a positive earnings-call outlook tied to fee-earning AUM growth, Evergreen/specialized-fund momentum, and the Guardian partnership. This is offset by weak technicals (oversold readings and price below key moving averages) and a relatively full valuation (P/E ~25.6 with a modest ~1.55% yield).
Positive Factors
Strong profitability and cash conversion
Hamilton Lane's very high margins and near-parity free cash flow to net income indicate durable cash generation. This supports recurring dividend capacity, reinvestment into product and tech, and resilience through cycles, underpinning long-term capital allocation and shareholder returns.
Robust fee‑earning AUM and product momentum
Sustained AUM and strong inflows into specialized funds and Evergreen products drive recurring management fees and higher blended fee rates. Product mix shift toward higher‑fee specialized strategies and Evergreen increases structural fee revenue and reduces reliance on one‑off performance fees.
Strategic multi‑year Guardian partnership
A multi‑year mandate with Guardian secures predictable, incremental fee‑earning AUM and long‑dated commitments, enhancing revenue visibility and scaling distribution. The low expected dilution preserves economics while creating durable capital sourcing and cross‑sell opportunities.
Negative Factors
Rising operating expenses
Sustained expense growth, especially comp and G&A, can compress fee‑related earnings margins if revenue growth lags. Over a multi‑quarter horizon, higher fixed costs reduce operating leverage from AUM growth and pressure free cash flow conversion in weaker fee cycles.
Uneven historical growth and cash‑flow volatility
Periodic swings in fundraising, realizations and incentive fees lead to variable cash flow and revenue recognition. That volatility makes planning, dividend sustainability, and buyback pacing harder, and means earnings and FCF may diverge materially quarter to quarter.
Industry and sector concentration risks
Concentrated exposures within private credit and certain sectors can amplify mark‑to‑market swings, impair incentive fee timing and unrealized carry, and increase downside in stressed markets. Persistent sector volatility could reduce long‑term fee and performance income.
Hamilton Lane (HLNE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.87B
Dividend Yield1.52%
Average Volume (3M)438.55K
Price to Earnings (P/E)25.3
Beta (1Y)1.07
Revenue Growth13.01%
EPS Growth21.96%
CountryUS
Employees700
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.55
Shares Outstanding43,938,663
10 Day Avg. Volume525,848
30 Day Avg. Volume438,554
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)8.32
Price to Sales (P/S)8.37
P/FCF Ratio19.17
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue9.91
Enterprise Value/Gross Profit13.55
Enterprise Value/Ebitda17.35
Forecast
1Y Price Target
$182.67Price Target Upside29.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)5.66
Revenue Forecast (FY)$756.11M
Hamilton Lane Business Overview & Revenue Model
Company DescriptionHamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. It provides following services: separate accounts (customized to each individual client and structured as single client vehicles); specialized strategies (fund-of-funds, secondaries, co-investments, taft-hartley, distribution management); advisory relationships (including due diligence, strategic portfolio planning, monitoring and reporting services); and reporting and analytics solutions. For direct investments, the firm invests in early, mid and late venture, mature companies, growth equity, emerging growth, distressed debt, later stage, turnarounds, bridge financing, mezzanine financing, and buyouts in middle market companies. For fund of fund investments, it invests in mezzanine, venture capital, private equity, turnaround, secondary investments, real estate, and special situation funds. The firm invests in real estate investments. It also invest in technology, healthcare, education, natural resources, energy and essential consumer goods sectors, cleantech, and environment, community development, and financial empowerment. It invests in private equity markets in North America, Latin America, United States, Western Europe, Middle East, Africa, United Kingdom, Asia, Japan, and Australia. The firm prefer to invest $1 million to $100 million in companies. It prefers to have majority stake in companies. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, and Asia.
How the Company Makes MoneyHamilton Lane generates revenue primarily through management fees and performance fees from its investment products. The management fees are typically calculated as a percentage of assets under management (AUM), providing a steady income stream as the firm manages capital on behalf of its clients. Performance fees, on the other hand, are contingent on the successful performance of the funds, allowing the company to earn additional revenue when investments exceed certain return thresholds. Additionally, Hamilton Lane has established strategic partnerships with various financial institutions and investors, which can enhance its ability to attract capital and expand its investment offerings, further contributing to its earnings.
Hamilton Lane Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call highlighted robust asset growth, strong fundraising momentum (particularly in Evergreen and specialized funds), rising fee-related revenues and FRE, successful fund closes, a strategic long-term partnership with Guardian, and active product and technology initiatives. These positives were partially offset by higher expenses, comparability noise from retro fees, more modest growth in separate accounts, and the timing of Guardian-related financial recognition. On balance, the call emphasized execution, momentum, and several high-growth drivers.Q3-2026 Updates
Positive Updates
Total Asset Footprint Exceeds $1 Trillion
Total asset footprint stood at over $1 trillion at quarter end, representing a 6% increase year over year.
AUM and AUA Growth
Assets under management (AUM) were $146 billion, up $11 billion or 8% YoY; assets under advisement (AUA) were $871 billion, up $50 billion or 6% YoY.
Fee-Earning AUM and Blended Fee Rate Expansion
Total fee-earning AUM was $79.1 billion, up $8.1 billion or 11% YoY (net QoQ growth $2.7 billion or 4%). Blended fee rate increased to 67 basis points (10 bps higher vs 2017, ~18% improvement from IPO mix).
Specialized Funds and Evergreen Momentum
Specialized funds fee-earning AUM reached $38.1 billion, up $6.9 billion or 22% YoY (QoQ +$2.4 billion or 7%). Evergreen platform generated over $1.2 billion of net inflows in the quarter and Evergreen AUM exceeded $16 billion, representing >70% YoY growth.
Strong Fundraising and Fund Closes
Multiple fund successes: direct equity fund now >$2.3 billion (≈15% larger than prior fund), second infrastructure fund final close nearly $2 billion (3x inaugural), sixth secondary fund prior vintage raised $5.6 billion, and strategic opportunities series 9 raised $527 million in final close.
Fee-Related Revenue, FRE and Earnings Growth
Total fee-related revenue for the period was $57 million (+31% YoY). Fee-related earnings were $254.6 million YTD (+37% YoY). FRE came in at $255 million YTD (+37% YoY) with an FRE margin of 50% (vs 48% prior).
GAAP and Non-GAAP EPS, Dividend Increase
Fiscal year-to-date GAAP EPS of $4.35 (GAAP net income $183 million) and non-GAAP EPS of $4.41 (adjusted net income $240.1 million). Declared quarterly dividend of $0.54, maintaining a path to a targeted $2.16 for FY2026 (10% increase YoY).
Unrealized Carry and Incentive Fees
Unrealized carry balance rose to approximately $1.5 billion (+15% YoY). Incentive fees totaled $136 million for the period, with fee-related performance revenues contributing materially to growth.
Strategic Partnership with Guardian
Partnership with Guardian closed: Hamilton Lane will oversee nearly $5 billion of Guardian's private equity portfolio, expects ~$500 million of additional annual commitments for at least 10 years, at least $250 million into HL Evergreen, and a warrant package expected to result in <1% dilution.
Product Innovation and Technology Investment
Expanded product set (Evergreen, secondaries, venture access) and announced investment in Pluto Financial Technologies to expand liquidity offerings and technology-enabled solutions for private markets.
International Credit Evergreen Performance
International credit Evergreen AUM surpassed $2 billion, with since-inception net annualized return >9.5% and averaged >$90 million of monthly net inflows in calendar 2025; December was the fourth-highest net inflow month since launch.
Negative Updates
Expense Growth
Fiscal YTD total expenses increased $40 million or 14% YoY. Total compensation and benefits rose $29 million or 15%, and G&A increased $11 million. Revenue-related expenses (e.g., third-party commissions) also increased.
Retro Fee Comparison and Seasonal/Timing Effects
Comparability impacted by retro fees: prior-year included nearly $21 million of retro fees (from previous final close) vs $2 million in the current period, creating variability in year-over-year management fee comparisons.
Slower Growth in Customized Separate Accounts
Customized separate account fee-earning AUM was $41.1 billion, up $1.3 billion or 3% YoY (QoQ +$280 million or 1%), showing more modest growth versus specialized funds and subject to timing variability from step-downs and returns of capital.
Timing of Guardian Financial Impact
Financial benefits from the Guardian partnership were not reflected in the quarter and will begin to be recognized next quarter, adding near-term uncertainty to YTD comparatives.
Industry & Market Risks Highlighted
Management acknowledged industry headlines and volatility in parts of private credit and noted continued monitoring of software/AI and sector-specific risks; while credit and software exposures were characterized as diversified, these remain potential sources of volatility.
Company Guidance
Management guided that initial financial impacts from the Guardian partnership will be recognized next quarter (Hamilton Lane to oversee nearly $5.0 billion of Guardian’s PE portfolio, expect ~ $500 million of additional annual commitments for ≥10 years with at least $250 million into HL&E, and associated warrants expected to dilute <1% on a fully diluted basis), and reiterated targets and current operating metrics: total asset footprint >$1.0 trillion (+6% YoY); AUM $146.0 billion (+$11.0 billion, +8% YoY); AUA $871.0 billion (+$50.0 billion, +6%); total fee‑earning AUM $79.1 billion (+$8.1 billion, +11% YoY; +$2.7 billion, +4% QoQ) with a blended fee rate of 67 bps (up 10 bps vs. 2017) and a separate‑accounts/specialized‑funds mix of 52%/48%; specialized funds fee‑earning AUM $38.1 billion (+$6.9 billion, +22% YoY; +$2.4 billion, +7% QoQ); Evergreen AUM >$16.0 billion (+70% YoY) with >$1.2 billion of Q3 net inflows, core multi‑strategy $11.7 billion, credit Evergreen >$2.0 billion (since‑inception net annualized return >9.5%, avg. >$90 million monthly inflows in 2025); customized separate accounts fee‑earning AUM $41.1 billion (+$1.3 billion, +3% YoY; +$280 million, +1% QoQ) and >$2.0 billion of SMA closings in December. Financial guidance/recap included YTD management & advisory fees +11%; total fee‑related revenue $57 million (+31% YoY); fee‑related earnings $254.6 million (+37%); incentive fees $136 million; unrealized carry ≈ $1.5 billion (+15% YoY); FRE YTD $255 million (+37%) with a 50% FRE margin; GAAP EPS YTD $4.35 (GAAP net income $183 million) and non‑GAAP EPS $4.41 (adjusted net income $240.1 million); declared quarterly dividend $0.54, on track for a $2.16 FY2026 target (~10% increase).Hamilton Lane Financial Statement Overview
Summary
Strong profitability and cash conversion for an asset manager (TTM gross margin ~73%, net margin ~33%, EBIT margin ~58%; FCF ~97% of net income). Balance sheet leverage appears moderate and improving (debt-to-equity ~0.5). Score is tempered by uneven historical growth/cash flow and a noted TTM debt data inconsistency that warrants caution.Income Statement
HLNE shows strong profitability for an asset manager, with TTM (Trailing-Twelve-Months) gross margin ~73% and net margin ~33%, alongside very healthy operating profitability (TTM EBIT margin ~58%). Revenue growth is positive in TTM (~4.3%) but has been uneven over the last several years, and margins have also fluctuated (notably an unusually high net margin in 2022), which tempers the score despite the currently strong earnings profile.86
Very Positive
Balance Sheet
The balance sheet looks solid with equity building over time (from ~$238M in 2021 to ~$877M in TTM) and strong returns on equity (~31% TTM). Leverage appears moderate based on the debt-to-equity ratio sitting around ~0.5 recently (improving from ~1.0 in 2021). A key watch item is data consistency: TTM shows total debt at 0 while the debt-to-equity ratio remains ~0.53, suggesting debt may not be fully reflected in that specific TTM data point.78
Positive
Cash Flow
Cash generation is strong and well-converted: TTM operating cash flow (~$367M) and free cash flow (~$364M) are close to net income, with free cash flow running at ~97% of net income. Free cash flow growth is positive in TTM (~4.45%) and cash flow has improved meaningfully versus 2024, though historical volatility (including a sharp free cash flow decline in 2024) and an unusually high TTM operating cash flow coverage figure indicate results can swing period to period.82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 712.96M | 553.84M | 528.75M | 367.92M | 341.63M |
| Gross Profit | 504.74M | 387.45M | 379.44M | 259.52M | 205.32M |
| EBITDA | 384.89M | 301.02M | 258.67M | 323.81M | 159.86M |
| Net Income | 217.42M | 140.86M | 109.12M | 145.99M | 98.02M |
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
Negative
141.03
Price Trends
137.40
Negative
132.50
Negative
142.09
Negative
Market Momentum
-0.42
Positive
36.91
Neutral
16.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLNE, the sentiment is Negative. The current price of 141.03 is below the 20-day moving average (MA) of 146.43, above the 50-day MA of 137.40, and below the 200-day MA of 142.09, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 36.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.50B | 10.18 | 19.07% | 7.17% | 11.60% | 9.38% | |
76 Outperform | $10.52B | 15.26 | 29.38% | 1.18% | 9.33% | 33.17% | |
74 Outperform | $8.75B | 19.00 | 15.95% | 0.01% | 1.08% | 8.24% | |
73 Outperform | $7.87B | 25.30 | 30.59% | 1.52% | 13.01% | 21.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $3.72B | 13.54 | 4.24% | 18.52% | -13.67% | -48.49% | |
45 Neutral | $7.56B | -7.39 | -750.11% | 2.17% | 92.02% | -1386.34% |
* Financial Sector Average
HLNE
Hamilton Lane
131.72
-32.61
-19.84%
AMG
Affiliated Managers
301.55
118.85
65.05%
MAIN
Main Street Capital
59.90
2.99
5.26%
SEIC
SEI Investments Company
84.41
-0.81
-0.95%
FSK
FS KKR Capital
12.75
-7.07
-35.67%
STEP
StepStone Group
59.17
-3.24
-5.19%
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.