What has Hamilton Lane learned from tokenization, where is its utility, and could it be as important to private markets as ETFs were to public markets?

Tokenization is seen as better, faster, cheaper, but adoption is muted by confusion with cryptocurrency. The public listing of Securitize helps education and shows stability. It widens the addressable market and can drive down operating costs. “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 better, faster, cheaper.”

Can the firm quantify how much capital is switching from the Global Private Assets Fund to other Hamilton Lane products, and which funds are seeing the most demand from this?

The firm views this as capital moving from one Hamilton Lane pocket to another, often from Evergreen to SMAs, which is a positive client experience. It's part of a broader asset allocation decision by clients. “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.”

What are the insights on U.S. Evergreen channel flows from platforms and advisors, and what are the expectations for flows with expanded distribution?

Early phases are a 'grind' to reach scale ($1 billion mark). Expansion of the sales team with senior talent is expected to accelerate growth, leading to quicker ramping once products reach critical size. “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 much quicker space, and that's what we expect.”

HLNE

Hamilton Lane (HLNE) Q1 FY27 earnings call: guidance and Q&A

Q: 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.”

Earnings call· Jun 2026 (Q1 FY27)· Financials· Aug 4, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Dividend per share	$2.40 per share medium materiality	FY27	High
Russell Investments transaction closing	first quarter of calendar year 2027 medium materiality	Q1 · CY27	Medium
Canoe acquisition gain recognition	upon the transaction's closing low materiality	near-term	High
Key strategies in market	5 key strategies high materiality	FY27 and early FY28 · FY27, FY28	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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	—	—	—

HLNE operating KPIs by quarter

HLNE operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q4 FY26	This call Jun 2026 Q1 FY27	Change vs prior quarter
Assets under management (AUM)	$142B AUM stood at $142 billion at year-end and grew $4 billion or 3% compared to the prior year. Source: earnings call transcript	$146B AUM stood at $146 billion and grew $5 billion or 4% compared to the prior year period. Source: earnings call transcript	+2.8%
Assets under management (AUM) Evergreen platform	$17.5B+ In addition, total Evergreen AUM ended the quarter at over $17.5 billion which represents a 64% growth year-over-year. Source: earnings call transcript	$19B+ 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. Source: earnings call transcript	—
Net new assets Evergreen platform	$1B+ For the quarter, our Evergreen suite generated over $1 billion of net inflows in aggregate and no individual fund finished the quarter in a net outflow position. Source: earnings call transcript	<$640M 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. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

B Capital and CalPERS consortium Acquisition 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 II Securitize 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.

Bloomberg Bloomberg'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

Redemptions in non-U.S. multi-strategy equity fund Q1 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 products Q1 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 space current

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

Global Private Asset Fund net inflows

next quarter

Current net outflow for the quarter

Target return 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?

Find out whether HLNE delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.