Hamilton Lane Reports 34% Revenue Growth to $168.3 Million in Latest Quarter

Hamilton Lane Incorporated reported significant financial growth in its latest quarterly filing, with total revenues reaching $168.3 million for the three months ended December 31, 2024, a 34% increase from $125.3 million in the same period last year. For the nine months ended December 31, 2024, revenues totaled $515.0 million, up 36% from $377.2 million in the prior year. The increase was driven primarily by a rise in management and advisory fees, which grew to $126.3 million from $113.6 million year-over-year, and a substantial increase in incentive fees, which surged to $41.2 million from $11.6 million.

The company's net income for the quarter was $77.5 million, compared to $34.5 million in the previous year, while net income attributable to Hamilton Lane Incorporated was $53.0 million, up from $19.5 million. For the nine-month period, net income attributable to the company was $166.9 million, a significant increase from $92.5 million in the prior year. Basic earnings per share for Class A common stock rose to $1.33 from $0.52, reflecting the company's strong profitability.

In terms of operational developments, Hamilton Lane's assets under management (AUM) reached $134.7 billion as of December 31, 2024, with customized separate accounts comprising $96.4 billion and specialized funds accounting for $38.3 billion. The company also reported an increase in fee-earning AUM, which rose to $71.0 billion, driven by new client allocations and continued investment activity. The firm’s employee headcount increased to 400, reflecting its growth strategy and expansion efforts.

Strategically, Hamilton Lane amended its existing loan agreements in October 2024, allowing for additional indebtedness and updating maturity dates. The company also issued $100 million in senior notes with a 5.28% interest rate, maturing in 2029. These financial maneuvers are part of Hamilton Lane's ongoing efforts to enhance its capital structure and support future growth initiatives.

Looking ahead, Hamilton Lane anticipates continued growth in its management and advisory fees, driven by increased client demand for private market investment solutions. The company remains focused on expanding its product offerings and geographic reach while managing its operational costs effectively. Hamilton Lane's management expressed confidence in its ability to navigate market conditions and capitalize on investment opportunities, positioning the firm for sustained success in the private markets sector.