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    HLNE
    Earnings call· Jun 2026(Q1 FY27)

    Hamilton Lane Q1 FY27 earnings call HLNE

    Aug 4, 2026 Source

    Executive summary

    Hamilton Lane Q1 FY27 — Strong Fee-Related Earnings Growth and Strategic Investment Realizations

    Hamilton Lane reported strong Q1 FY27 results, marked by significant growth in fee-related revenue and earnings, driven by its specialized fund platform and Evergreen products. The firm successfully closed a direct equity fundraise and saw strategic exits from balance sheet investments. While some Evergreen products experienced temporary outflows due to market sentiment and rebalancing, management expressed confidence in the platform's long-term growth trajectory and expanding distribution.

    Highlights

    5
    • Total asset footprint exceeded $1 trillion, an 8% increase year-over-year.

    • Total fee-related revenue grew 44% year-over-year to $236 million.

    • Fee-related earnings (FRE) increased 49% year-over-year to $124 million, with an FRE margin of 53%.

    • Fee-earning AUM grew 12% year-over-year to $83.7 billion.

    • Successfully closed direct equity fundraise at $3.8 billion (fund + separate accounts), representing 57% growth over the prior fund.

    Concerns

    3
    • Non-U.S. multi-strategy equity fund experienced net outflow for the quarter due to redemptions.

    • Slowdown in flows for certain Evergreen products attributed to general investor hesitancy and negative headlines.

    • Total expenses increased 50% year-over-year, driven by compensation and G&A.

    Guidance & targets

    4
    CategoryTargetConfidence
    Dividend per share
    $2.40 per share
    medium materiality
    High
    Russell Investments transaction closing
    first quarter of calendar year 2027
    medium materiality
    Medium
    Canoe acquisition gain recognition
    upon the transaction's closing
    low materiality
    High
    Key strategies in market
    5 key strategies
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Specialized Funds
    Management fees increased by $26 million or 32% compared to the prior year, driven primarily by a $6.7 billion increase of fee-earning AUM in the Evergreen platform and over $930 million increase from the latest direct equity fund over the last 12 months.
    Management fees increase: $26 millionManagement fees growth YoY: 32%Fee-earning AUM: $42.6 billionFee-earning AUM growth YoY: $8.5 billionFee-earning AUM growth YoY %: 25%Fee-earning AUM growth QoQ: $2 billionFee-earning AUM growth QoQ %: 5%
    Customized Separate Accounts
    Revenue increased slightly compared with the prior year, driven by steady re-ups from existing clients, continued investment activity, and new accounts, partially offset by older accounts reaching the end of their fund term and fee-based step-downs. Closed on over $2.3 billion of total mandate value from existing clients and over $1.3 billion from new clients.
    Fee-earning AUM: $41.1 billionFee-earning AUM growth YoY: $818 millionFee-earning AUM growth YoY %: 2%
    increased slightly

    Operational metrics

    45
    Total asset footprint
    $1 trillion8% increase year-over-year
    Q1 FY27

    Represents total assets at quarter end.

    AUM
    $146 billion$5 billion or 4% compared to the prior year period
    Q1 FY27

    Assets Under Management.

    AUA
    $914 billion$69 billion or 8% relative to the prior year period
    Q1 FY27

    Assets Under Advisement, primarily from market value growth and technology solutions/back office mandates.

    Total management and advisory fees
    $161 millionup 21% year-over-year
    Q1 FY27

    Total fees for the quarter.

    Total fee-related revenue
    $236 million44% growth year-over-year
    Q1 FY27

    Includes management, advisory, and fee-related performance revenues.

    GAAP EPS
    $1.93
    Q1 FY27

    Based on $80 million of GAAP net income.

    Adjusted Net Income
    $105 million
    Q1 FY27

    Used to calculate non-GAAP EPS.

    Non-GAAP EPS
    $1.94
    Q1 FY27

    Based on $105 million of adjusted net income.

    Dividend per share
    $0.60
    Q1 FY27

    Declared for the quarter, on track for FY27 target.

    Fee-earning AUM
    $83.7 billion$9.3 billion or 12% year-over-year
    Q1 FY27

    Total fee-earning AUM at quarter end.

    Blended fee rate
    69
    Q1 FY27

    Benefiting from mix shift towards specialized funds.

    Gross contributions
    $2.4 billion
    Q1 FY27

    Stemmed primarily from new subscriptions to Evergreen products and drawdown products.

    Evergreen net inflows
    $640 million
    Q1 FY27

    Net inflows across all Evergreen strategies.

    Evergreen AUM
    $19 billion
    Q1 FY27

    Total AUM for the Evergreen platform at period end.

    Evergreen funds with positive net inflow
    10 out of 12
    Q1 FY27

    Number of Evergreen funds experiencing positive net inflows.

    Non-U.S. multi-strategy equity platform inception value
    $2.32
    as of June 30, 2026

    Value of $1 invested in the institutional USD share class at inception.

    Evergreen sales professionals added
    6
    last 12 months

    Highly experienced professionals added to the U.S. distribution team.

    Evergreen fund performance (double-digit)
    positive double-digit performance
    YTD and since inception

    Applies to each fund (excluding U.S. private credit fund) in institutional USD share class.

    Non-U.S. private credit platform return
    high single-digit return
    since inception

    Targets and delivered a high single-digit return.

    Cash realizations (3 largest products)
    $3.6 billion
    since inception

    Total cash realizations from the underlying portfolios of the three largest and most seasoned individual products.

    Direct equity fundraise (fund portion)
    $3.3 billionover 57% growth versus the prior fund
    closed

    Capital raised in the fund portion of the direct equity platform.

    Direct equity fundraise (separate accounts)
    $500 million
    closed

    Capital raised in separate accounts investing alongside the direct equity fund.

    Direct equity fund committed capital
    30
    current

    Percentage of capital committed across small and mid-market businesses.

    Seventh secondary fund first close
    $1.3 billion
    last week

    Investor commitments secured at the first close.

    Second venture fund first close
    $370 millionmore than 60% of the size of the first fund
    Q1 FY27

    Investor commitments secured at the first close.

    First venture fund total raise
    $615 million
    total

    Total capital raised for the first venture fund.

    Customized separate accounts gross contributions (existing clients)
    $2.3 billion
    Q1 FY27

    Total mandate value from re-ups and expansion of existing client relationships.

    Customized separate accounts gross contributions (new clients)
    $1.3 billion
    Q1 FY27

    Total mandate value from new clients, domestic and international.

    Operating, monitoring, data and analytics revenue growth
    $1.5 million18% compared to the prior year period
    Q1 FY27

    Increase in revenue from technology solutions offering.

    Incentive fees
    $114 million
    Q1 FY27

    Includes fee-related performance revenues, primarily from U.S. private assets Evergreen Fund.

    Unrealized carry balance
    $1.5 billionup 11% from the prior year period
    Q1 FY27

    Balance of unrealized carried interest.

    Incentive fees recognized
    $113 million
    last 12 months

    Excluding fee-related performance revenues.

    Total expenses increase
    $50 million50% compared with the prior year period
    Q1 FY27

    Fiscal year-to-date increase.

    Total compensation and benefits increase
    $38 million55%
    Q1 FY27

    Due primarily to increases in operating performance and headcount.

    G&A increase
    $12 million
    Q1 FY27

    Primarily driven by revenue-related expenses and one-time benefits in the prior year period.

    FRE margin
    53compared to 51% for the prior year period
    Q1 FY27

    Benefited from strong fee-related performance revenues.

    Shares repurchased
    559,000
    Q1 FY27

    Shares repurchased during the quarter.

    Share repurchase average price
    $89.51
    Q1 FY27

    Weighted average price per share for repurchases.

    Share repurchase spent (quarter)
    $50 million
    Q1 FY27

    Amount spent on share repurchases during the quarter.

    Share repurchase spent (program life)
    $70 million
    program life

    Total amount spent on share repurchases throughout the life of the program.

    Russell transaction gain (expected)
    $18 million
    expected upon closing

    Anticipated gain from the sale of Russell Investments.

    Securitize shares owned
    1.5 million
    post-transaction

    Shares owned after Securitize became publicly traded.

    Securitize share price
    $6.94
    as of yesterday's closing

    Closing price of Securitize shares.

    Canoe proceeds (expected)
    $30 million
    expected upon closing

    Expected proceeds from the Bloomberg acquisition of Canoe.

    Canoe gain (estimated)
    $15 million
    estimated upon closing

    Estimated gain versus current carrying value from the Bloomberg acquisition of Canoe.

    Industry KPIs

    5
    MetricValueDetails
    Fee rate69bps
    Fundraising inflows$2.4 billionUSD
    Performance revenue$114 millionUSD
    Fee related earnings$124 millionUSD
    Deployment realizations$3.6 billionUSD

    Deals & partnerships

    3
    B Capital and CalPERS consortiumAcquisition of Russell Investments, in which Hamilton Lane held a strategic investment.just under $50 million

    Hamilton Lane entered a strategic partnership with Russell in March 2021. The relationship will continue despite the economic ownership ending.

    Cantor Equity Partners IISecuritize entered into a definitive business combination agreement with a SPAC to become a publicly traded company.

    Hamilton Lane originally invested $5 million and partnered with Securitize in 2022 for tokenization, and participated in a funding round in May 2024. Shares are subject to a 180-day lockup period.

    BloombergBloomberg's agreement to acquire Canoe, in which Hamilton Lane held an investment.approximately $30 million

    Hamilton Lane's relationship began in 2019 with pilots, followed by an initial investment in Canoe's Series A in 2020.

    Risks & headwinds

    3
    Redemptions in non-U.S. multi-strategy equity fundQ1 FY27

    net outflow for the quarter

    Mitigation: Management attributes it to long-standing investors harvesting gains/rebalancing and clients housing capital for future SMA deployment, with some capital flowing back to other HL products.

    Slowdown in flows for certain Evergreen productsQ1 FY27

    slowdown on flows

    Mitigation: Attributed to 'general hesitancy with investors given the constant negative headlines.' Management believes it is temporary and already seeing a 'swing back.'

    Market immaturity and investor behavior in Evergreen spacecurrent

    headlines largely not driven by good data caused investor behavior

    Mitigation: Management believes the industry needs more education and time for normalization to prevent headlines from causing investor action.

    What to watch in Q2 FY27

    5

    Global Private Asset Fund net inflows

    next quarter
    Currentnet outflow for the quarter
    Targetreturn to net inflows

    Why it matters

    Indicates stabilization of a key Evergreen product and investor confidence.

    Just curious, what your expectation is around the path for that fund to return to net inflows on a more consistent basis?

    Q&A highlights

    8

    What is the expectation for the Global Private Asset Fund to return to consistent net inflows, and how is distribution being expanded?

    Management is expanding the team and relationships, and expects noise to subside, leading to rotation into their products. Current headwinds include rebalancing due to strong performance and general market hesitancy.

    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.

    asked by Michael Cyprys · answered by Erik Hirsch

    2 min read6 chapters

    Detailed Narrative

    01

    Evergreen Platform Resilience and Evolution

    The Evergreen platform demonstrated resilience with nearly $640 million of net inflows across all strategies, ending with over $19 billion in AUM. The firm did not enact gates on any funds and saw positive net inflows across 10 out of 12 funds. Management highlighted the platform's purposeful diversification, strong performance, and expanding global reach, with a focus on long-term growth despite temporary market noise.

    02

    Strategic Balance Sheet Investments

    Hamilton Lane realized significant value from its strategic investments. The sale of Russell Investments is expected to yield an $18 million gain, while Securitize became publicly traded, validating the firm's thesis on tokenization. The acquisition of Canoe by Bloomberg is anticipated to generate over $15 million in gain, underscoring Hamilton Lane's strategy of supporting technology partners shaping private markets.

    03

    Closed-End Fund Fundraising Success

    The direct equity platform successfully closed its raise at $3.8 billion, representing a 57% growth over the prior fund. The seventh secondary fund held its first close at $1.3 billion, and the second venture fund secured over $370 million in its initial close, already exceeding 60% of the first fund's total size. These successes demonstrate strong momentum across various strategies.

    04

    Customized Separate Accounts Growth

    Customized separate account fee-earning AUM grew to $41.1 billion, up 2% YoY. The firm closed on over $2.3 billion in re-ups from existing clients and $1.3 billion from new clients, reinforcing global relevance. The pipeline for re-up opportunities remains strong, laying a foundation for future fee-earning growth, though conversion timing varies by mandate type.

    05

    Blended Fee Rate and AUM Mix Shift

    The blended fee rate increased to 69 basis points, benefiting from a mix shift towards specialized funds. Specialized funds fee-earning AUM grew 25% YoY to $42.6 billion, driving overall fee-earning AUM growth. This shift reflects the firm's focus on higher-margin products.

    06

    Sales Team Expansion for Evergreen

    Hamilton Lane expanded its U.S. distribution team for Evergreen products, adding 6 highly experienced sales professionals from leading financial institutions. This strategic investment aims to accelerate growth and leverage the firm's differentiated platform and strong track record in private markets.

    AI-generated summary of the company’s earnings call. Not investment advice.