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1. Company Snapshot

1.a. Company Description

Hamilton 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.

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1.b. Last Insights on HLNE

Hamilton Lane Incorporated's recent performance was negatively impacted by concerns over its growth prospects. Despite beating Q2 earnings and revenue estimates with $1.54 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, investors remain cautious. The company's growing foothold in the retail wealth channel and stronger fee growth prospects are positives, but valuation concerns linger. Recent appointments to its North American client solutions team and the launch of private market indices on Bloomberg may bolster growth. Envestnet Portfolio Solutions Inc. also raised its holdings in HLNE by 116.7%.

1.c. Company Highlights

2. Hamilton Lane's Strong Q2 Fiscal 2026 Earnings: A Closer Look

Hamilton Lane's financial performance in Q2 Fiscal 2026 was impressive, with total fee-related revenue increasing by 23% year-over-year to $321.6 million, driven by a 6% growth in management and advisory fees. The company's fee-related earnings stood at $160.7 million, representing a 34% growth year-over-year. GAAP EPS came in at $2.98, while non-GAAP EPS was $2.86, beating analyst estimates. The actual EPS for the quarter was $1.54, surpassing the estimated $1.08.

Publication Date: Nov -15

📋 Highlights
  • Total Assets Under Management:: AUM reached $145 billion, reflecting an 11% annual growth ($14 billion increase) and a 6% rise in total asset footprint to $1 trillion.
  • Fee-Related Revenue Growth:: Year-to-date fee-related revenue surged 23% to $321.6 million, driven by a 34% increase in fee-related earnings to $160.7 million.
  • Evergreen Product Expansion:: Evergreen AUM nearly doubled to $14 billion, with 11 funds (up from 3), and $1 billion in AUM pending fee generation due to subscriptions and holidays.
  • Strategic Partnerships:: New deals with Guardian Life (private equity management) and Bloomberg (indices on Bloomberg Terminal) added growth avenues, while the Securitize partnership targets a 2x pre-money valuation return.
  • Fee Rate and Specialized Funds:: Blended fee rate rose 14% to 65 basis points since 2017, with specialized funds AUM growing $5.3 billion (17% YoY) and revenue up 8%.

Revenue Growth and Diversification

The company's revenue growth was driven by a diverse range of sources, including specialized funds, customized separate accounts, and reporting, monitoring, data, and analytics offerings. Specialized funds revenue grew 8%, driven by the Evergreen platform, while customized separate accounts revenue increased 3%. Revenue from reporting, monitoring, data, and analytics offerings grew 21%. As Erik Hirsch mentioned, "We extended our product offerings, including the launch of additional Evergreen products," which contributed to the revenue growth.

Valuation Metrics

To understand what's priced into Hamilton Lane's stock, we can look at various valuation metrics. The company's P/E Ratio stands at 23.88, indicating a relatively high valuation. The P/B Ratio is 6.6, and the P/S Ratio is 9.99. The EV/EBITDA ratio is 22.54, suggesting a premium valuation. The Dividend Yield is 1.57%, and the Free Cash Flow Yield is 4.76%. With an ROE of 30.92% and an ROIC of 93.1%, the company is generating strong returns. Analysts estimate next year's revenue growth at 8.8%, which may impact the stock's valuation.

Strategic Partnerships and Growth Opportunities

Hamilton Lane has been actively forming strategic partnerships to drive growth, including the partnership with Guardian Life Insurance Company of America and the collaboration with Bloomberg to provide private market indices and benchmarks. The company has also deepened its partnership with Securitize, a leader in tokenizing real-world assets. These partnerships are expected to contribute to the company's revenue growth and expand its offerings.

Expense Management and Profitability

Total expenses increased 11%, driven by a 10% rise in total compensation and benefits due to an increase in headcount and equity-based compensation. However, the company's fee-related earnings margin remains healthy, indicating effective expense management. The company's profitability is expected to be driven by its growing revenue streams and strategic partnerships.

3. NewsRoom

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Hamilton Lane Strengthens North America Client Solutions Team, Appointing Seven Senior Members

Nov -10

Source: prnewswire.com

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Goldman Sachs Sees Hamilton Lane As A Winner In Booming Alternative Investments Market

Nov -07

Source: benzinga.com

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Hamilton Lane Incorporated (HLNE) Q2 2026 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Hamilton Lane (HLNE) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Nov -04

Source: zacks.com

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Hamilton Lane (HLNE) Tops Q2 Earnings and Revenue Estimates

Nov -04

Source: zacks.com

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HAMILTON LANE INCORPORATED REPORTS SECOND QUARTER FISCAL 2026 RESULTS

Nov -04

Source: prnewswire.com

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Hamilton Lane and Guardian Announce Long-Term Strategic Partnership

Nov -03

Source: prnewswire.com

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Top Growth Stocks To Follow Now – October 28th

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.35%)

6. Segments

Management and Advisory Fees - Specialized Funds

Expected Growth: 10%

Hamilton Lane's Management and Advisory Fees - Specialized Funds growth is driven by increasing demand for alternative investments, expansion into new markets, and a growing need for customized investment solutions. The company's expertise in private equity, real assets, and credit strategies also contributes to its growth, as well as its ability to attract and retain large institutional clients.

Incentive Fees - Specialized Funds

Expected Growth: 12%

Hamilton Lane's Incentive Fees from Specialized Funds are driven by strong investment performance, increasing AUM, and a growing demand for alternative investments. The 12% growth is attributed to the firm's expertise in private equity, real assets, and credit, as well as its ability to attract and retain institutional clients seeking diversified portfolios.

Management and Advisory Fees - Customized Separate Accounts

Expected Growth: 9%

Hamilton Lane's customized separate accounts growth is driven by increasing demand for alternative investments, expansion into new markets, and strategic partnerships. The company's expertise in private markets and ability to offer tailored solutions attract institutional investors seeking diversification and yield. Additionally, the rise of impact investing and ESG considerations contribute to the growth of this segment.

Incentive Fees - Customized Separate Accounts

Expected Growth: 11%

Hamilton Lane's customized separate accounts' 11% growth is driven by increasing demand for alternative investments, expansion into new markets, and a strong track record of performance. Additionally, the company's ability to offer bespoke solutions, its expertise in private markets, and the growing need for institutional investors to diversify their portfolios are also contributing to this growth.

Management and Advisory Fees - Reporting and Other

Expected Growth: 8%

Hamilton Lane's 8% growth in Management and Advisory Fees - Reporting and Other is driven by increasing assets under management, expansion into new markets, and a growing demand for alternative investment solutions. Additionally, the company's strategic acquisitions and partnerships have enhanced its service offerings, leading to higher revenue from reporting and other services.

Management and Advisory Fees - Advisory

Expected Growth: 13%

Hamilton Lane's 13% growth in Management and Advisory Fees is driven by increasing demand for alternative investment solutions, expansion into new markets, and a growing client base. The company's expertise in private equity and real assets, as well as its ability to provide customized advisory services, have contributed to its success.

Management and Advisory Fees - Fund Reimbursement

Expected Growth: 10%

Hamilton Lane's 10% growth in Management and Advisory Fees - Fund Reimbursement is driven by increasing assets under management, expansion into new markets, and a growing demand for alternative investment solutions. Additionally, the company's strategic partnerships, strong brand reputation, and ability to attract and retain top talent also contribute to its growth.

Management and Advisory Fees - Distribution Management

Expected Growth: 9%

Hamilton Lane's 9% growth in Management and Advisory Fees - Distribution Management is driven by increasing demand for alternative investment solutions, expansion into new markets, and strategic partnerships. The company's expertise in private markets and ability to provide customized solutions to clients have contributed to its growth. Additionally, the rise of digital distribution channels and the need for efficient portfolio management have also fueled growth in this segment.

7. Detailed Products

Customized Investment Solutions

Hamilton Lane offers customized investment solutions tailored to meet the specific needs of its clients, including separate accounts, co-investments, and fund-of-funds.

Fund Investment Services

Hamilton Lane's fund investment services provide clients with access to a diversified portfolio of private equity funds, including buyout, venture capital, and real assets.

Direct Investment Services

Hamilton Lane's direct investment services provide clients with the opportunity to co-invest alongside experienced private equity firms in specific companies or assets.

Secondary Investment Services

Hamilton Lane's secondary investment services provide clients with the opportunity to buy and sell private equity interests on the secondary market.

Consulting Services

Hamilton Lane's consulting services provide clients with expert advice on private equity investment strategies, portfolio construction, and risk management.

8. Hamilton Lane Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Hamilton Lane Incorporated has a moderate threat of substitutes due to the presence of alternative investment management firms and financial institutions that offer similar services.

Bargaining Power Of Customers

Hamilton Lane Incorporated has a low bargaining power of customers due to its strong brand reputation and diversified client base, making it less dependent on individual clients.

Bargaining Power Of Suppliers

Hamilton Lane Incorporated has a moderate bargaining power of suppliers due to its reliance on a few key suppliers for investment research and data analytics, but has some flexibility to negotiate prices.

Threat Of New Entrants

Hamilton Lane Incorporated has a low threat of new entrants due to the high barriers to entry in the investment management industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

Hamilton Lane Incorporated operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among firms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.30%
Debt Cost 3.95%
Equity Weight 64.70%
Equity Cost 9.78%
WACC 7.72%
Leverage 54.56%

11. Quality Control: Hamilton Lane Incorporated passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Yield: 4.0

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Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

123.28$

Current Price

123.28$

Potential

-0.00%

Expected Cash-Flows