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HLNE Hamilton Lane

Hamilton Lane (NASDAQ: HLNE) is a leading private markets investment management firm providing innovative solutions to sophisticated investors around the world. Dedicated exclusively to private markets investing for 29 years, the firm currently employs more than 400 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has approximately $547 billion in assets under management and supervision, composed of approximately $73 billion in discretionary assets and over $474 billion in advisory assets, as of September 30, 2020. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies.

Company profile

Ticker
HLNE
Exchange
CEO
Mario Giannini
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
2020 Tactical Market Fund LP • 2020 Tactical Market GP LLC • Alpha Z GP LLC • Alpha Z II GP LLC • Alpha Z III GP LLC • Alpha Z IV GP LLC • Alpha Z Private Equity Fund III L.P. • Alpha Z Private Equity Fund II, LP • Alpha Z Private Equity Fund IV L.P. • Alpha Z Private Equity Fund, LP ...
IRS number
262482738

HLNE stock data

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Calendar

3 Aug 21
28 Oct 21
31 Mar 22
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Mar 21 Mar 20 Mar 19 Mar 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 76.25M 76.25M 76.25M 76.25M 76.25M 76.25M
Cash burn (monthly) 4.71M (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 18.57M n/a n/a n/a n/a n/a
Cash remaining 57.68M n/a n/a n/a n/a n/a
Runway (months of cash) 12.2 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Sep 21 Varon Leslie F Class A Common Stock Grant Acquire A No No 0 1,022 0 5,593
16 Sep 21 Sexton O Griffith Class A Common Stock Grant Acquire A No No 0 2,044 0 14,902
16 Sep 21 Reynoldo Vann Graves Class A Common Stock Grant Acquire A No No 0 511 0 511
10 Sep 21 Sexton Barbara Class B Common Stock Other Dispose J No No 0.001 50,000 50 366,233
10 Sep 21 Sexton Barbara Class B Common Stock Other Dispose J No No 0.001 50,000 50 366,233
10 Sep 21 Sexton Barbara Class B Units Class A Common Stock Other Dispose J Yes No 84.15 50,000 4.21M 366,233
10 Sep 21 Sexton Barbara Class B Units Class A Common Stock Other Dispose J Yes No 84.15 50,000 4.21M 366,233
10 Sep 21 Rogers Hartley R. Class A Common Stock Sell Dispose S No No 84.15 11,487 966.63K 14,772
10 Sep 21 Rogers Hartley R. Class B Common Stock Other Dispose J Yes No 0.001 238,400 238.4 7,300,667
10 Sep 21 Rogers Hartley R. Class B Units Class A Common Stock Other Dispose J Yes No 84.15 238,400 20.06M 7,300,667

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 181 166 +9.0%
Opened positions 32 32
Closed positions 17 17
Increased positions 81 62 +30.6%
Reduced positions 42 57 -26.3%
13F shares
Current Prev Q Change
Total value 4.66B 5.01B -6.9%
Total shares 52.69M 53.2M -1.0%
Total puts 0 0
Total calls 0 8.9K EXIT
Total put/call ratio
Largest owners
Shares Value Change
Hla Investments 19.39M $1.63B 0.0%
Wellington Management 3.8M $346.28M -8.1%
BLK Blackrock 3.12M $284.1M -7.9%
Vanguard 2.94M $267.59M +1.1%
Wasatch Advisors 2.62M $239.17M +1.3%
FHI Federated Hermes 1.8M $163.7M 0.0%
AMP Ameriprise Financial 1.35M $123.46M -24.5%
Fred Alger Management 1.11M $101.31M +8.8%
MCQEF Macquarie 1.01M $92.43M +52.9%
Loomis Sayles & Co L P 904.84K $82.45M -0.2%
Largest transactions
Shares Bought/sold Change
FMR 675.22K -480.42K -41.6%
AMP Ameriprise Financial 1.35M -439.75K -24.5%
WDR Waddell & Reed Financial 0 -359.45K EXIT
MCQEF Macquarie 1.01M +350.87K +52.9%
Wellington Management 3.8M -335.6K -8.1%
PFG Principal Financial Group Inc - Registered Shares 311.84K +304.99K +4455.0%
BLK Blackrock 3.12M -266.44K -7.9%
Copeland Capital Management 348.11K +207.02K +146.7%
Capital International Investors 188.76K +188.76K NEW
Clearbridge Advisors 861.51K +129.02K +17.6%

Financial report summary

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Risks
  • The historical performance of our investments should not be considered as indicative of the future results of our investments or our operations or any returns expected on an investment in our Class A common stock.
  • The success of our business depends on the identification and availability of suitable investment opportunities for our clients.
  • Competition for access to investment funds and other investments we make for our clients is intense.
  • Customized separate account and advisory account fee revenue is not a long-term contracted source of revenue and is subject to intense competition.
  • Our failure to deal appropriately with conflicts of interest could damage our reputation and materially and adversely affect our business.
  • Our ability to retain our senior management team and attract additional qualified investment professionals is critical to our success.
  • We intend to expand our business and may enter into new lines of business, geographic markets or strategic partnerships, which may result in additional risks and uncertainties in our business.
  • A decline in the pace or size of fundraising or investments made by us on behalf of our specialized funds or customized separate accounts may adversely affect our revenues.
  • Our indebtedness may expose us to substantial risks.
  • We may be unable to remain in compliance with the financial or other covenants contained in the Loan Agreements.
  • Dependence on leverage by certain funds and portfolio companies subjects us to volatility and contractions in the debt financing markets and could adversely affect the ability of our specialized funds and customized separate accounts to achieve attractive rates of return on those investments.
  • Defaults by clients and third-party investors in certain of our specialized funds and customized separate accounts could adversely affect that fund’s operations and performance.
  • Our failure to comply with investment guidelines set by our clients could result in damage awards against us or a reduction in AUM, either of which would cause our earnings to decline and adversely affect our business.
  • Misconduct by our employees, advisors or third-party service providers could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm.
  • If the investments we make on behalf of our specialized funds or customized separate accounts perform poorly, we may suffer a decline in our investment management revenue and earnings, and our ability to raise capital for future specialized funds and customized separate accounts may be materially and adversely affected.
  • The timing at which we receive distributions of carried interest, an element of our revenues, can be sporadic and unpredictable, which may make it difficult for us to achieve steady earnings growth on a quarterly basis and may cause the price of our Class A common stock to decline.
  • The exercise of redemption or repurchase rights by investors in our evergreen funds may adversely affect our revenues.
  • Valuation methodologies for certain assets in our specialized funds and customized separate accounts can be significantly subjective, and the values of assets established pursuant to such methodologies may never be realized, which could result in significant losses for our specialized funds and customized separate accounts.
  • Our investment management activities may involve investments in relatively high-risk, illiquid assets, and we and our clients may lose some or all of the amounts invested in these activities or fail to realize any profits from these activities for a considerable period of time.
  • We may pursue investment opportunities that involve business, regulatory, legal or other complexities.
  • Our specialized funds and customized separate accounts may face risks relating to undiversified investments.
  • Our specialized funds and customized separate accounts make investments in funds and companies that we do not control.
  • Investments by our specialized funds, customized separate accounts and advisory accounts may in many cases rank junior to investments made by other investors.
  • The substantial growth of our business in recent years may be difficult to sustain, as it may place significant demands on our resources and employees and may increase our expenses.
  • We may not be able to maintain our desired fee structure as a result of industry pressure from private markets investors to reduce fees, which could have a material adverse effect on our profit margins and results of operations.
  • Our risk management strategies and procedures may leave us exposed to unidentified or unanticipated risks.
  • The due diligence process that we undertake in connection with investments may not reveal all facts that may be relevant in connection with an investment.
  • Restrictions on our ability to collect and analyze data regarding our clients’ investments could adversely affect our business.
  • Operational risks and data security breaches may disrupt our business, damage our reputation, result in financial losses or limit our growth.
  • Rapidly developing and changing privacy laws and regulations could increase compliance costs and subject us to enforcement risks and reputational damage.
  • We may face damage to our professional reputation and legal liability if our services are not regarded as satisfactory or for other reasons.
  • We are subject to increasing scrutiny from clients, investors and regulators with respect to ESG costs of investments made by our specialized funds, which may constrain investment opportunities for our specialized funds and adversely affect our ability to raise capital from such clients and investors.
  • Our international operations are subject to certain risks, which may affect our revenue.
  • The investment management business is intensely competitive.
  • Difficult or volatile market and geopolitical conditions can adversely affect our business and the investments made by our specialized funds, customized separate accounts and advisory accounts in many ways.
  • The COVID-19 pandemic has caused severe disruptions in the U.S. and global economies and may adversely impact our financial condition and results of operations.
  • Extensive government regulation, compliance failures and changes in law or regulation could adversely affect us.
  • Federal, state and foreign anti-corruption and sanctions laws create the potential for significant liabilities and penalties and reputational harm.
  • Regulation of investment advisors outside the United States could adversely affect our ability to operate our business.
  • Failure to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price.
  • We are a “controlled company” within the meaning of the Nasdaq listing standards and, as a result, qualify for, and intend to continue to rely on, exemptions from certain corporate governance requirements. You will not have the same protections afforded to stockholders of companies that are subject to such requirements.
  • Our only material asset is our interest in HLA, and we are accordingly dependent upon distributions from HLA to pay dividends, taxes and other expenses.
  • The IRS might challenge the tax basis step-up we received in connection with our IPO and the related transactions and in connection with subsequent acquisitions of membership units in HLA.
  • We are required to pay over to legacy direct or indirect members of HLA most of the tax benefits we receive from tax basis step-ups attributable to our acquisition of membership units of HLA, and the amount of those payments could be substantial.
  • In certain circumstances, payments under the tax receivable agreement may be accelerated and/or significantly exceed the actual tax benefits we realize.
  • In certain circumstances, HLA is required to make distributions to us and the direct and indirect owners of HLA, and the distributions that HLA will be required to make may be substantial.
  • If Hamilton Lane Incorporated were deemed an “investment company” under the Investment Company Act as a result of its ownership of HLA, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.
  • Because most members of our senior management team hold most of their economic interest in HLA through other entities, conflicts of interest may arise between them and holders of shares of our Class A common stock or us.
  • The disparity in the voting rights among the classes of our common stock and inability of the holders of our Class A common stock to influence decisions submitted to a vote of our stockholders may have an adverse effect on the price of our Class A common stock.
  • Our share price may decline due to the large number of shares eligible for future sale and for exchange.
  • We expect to continue to pay dividends to our stockholders, but our ability to do so is subject to the discretion of our board of directors and may be limited by our holding company structure and applicable provisions of Delaware and Pennsylvania law.
  • Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and may negatively affect the market price of our Class A common stock.
Management Discussion
  • Total revenues increased $67.6 million, or 25%, to $341.6 million, for fiscal 2021 compared to fiscal 2020, due to increases in management and advisory fees and incentive fees.
  • Management and advisory fees increased $44.5 million, or 18%, to $289.4 million for fiscal 2021 compared to fiscal 2020. Specialized funds revenue increased by $36.2 million compared to the prior year, due primarily to a $37.7 million increase in revenue from our latest secondary fund, which added $2.2 billion in fee-earning AUM in fiscal 2021. Management fees for our latest secondary fund included $18.2 million in retroactive fees for fiscal 2021 compared to $2.8 million for our latest co-investment fund in fiscal 2020. Retroactive fees are management fees earned in the current period from investors that commit to a specialized fund towards the end of the fundraising period and are required to pay a catch-up management fee as if they had committed to the fund at the first closing in a prior period. Customized separate accounts revenue increased $3.2 million in fiscal 2021 due to a $1.1 billion increase in fee-earning AUM from the addition of several new accounts and additional allocations from existing accounts during the fiscal year. Advisory and reporting fees increased $4.3 million in fiscal 2021 due to the addition of new accounts. Distribution management revenue increased $1.8 million in fiscal 2021, due primarily to higher performance fees.
  • Incentive fees increased $23.1 million to $52.2 million for fiscal 2021 compared to fiscal 2020, due to a $9.7 million increase in incentive fees from one of our specialized funds and increases across our other specialized funds and customized separate accounts.
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