Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| We continue to generate strong growth in both our customized separate accounts and specialized funds |
| Again, I'd like to highlight that our direct credit platform has continued to experience strong growth over the past few years, with this annual institutional series now being complemented with other sleeves of credit-focused capital, including various separate accounts and our Evergreen funds |
| This growth was driven by solid investment performance, which in turn drove NAV growth along with continued strong net inflows |
| We've emerged as a real leader in this channel and we are confident that this is only the beginning of our exciting journey |
| It's been a very good performer inside of client portfolios |
| Our model of having localized teams that embrace the culture and speak their native language has allowed us to deliver best-in-class client service and strong investment results |
| So I think we have been doing a terrific job of that |
| But again, we have a meaningful balance sheet, and we think this has been a very good and effective way to use it |
| The business has tremendous momentum and the employee base is excited about what is to come |
| Part of that excitement stems from our culture, and I am very proud to announce that once again, Hamilton Lane has been named a Best Place to Work in Money Management by Pensions & Investments for the 12th consecutive year |
| Fiscal year-to-date, we achieved strong growth in our business with management and advisory fees up 19% versus the prior-year period |
| We think a great culture aids in creating great results |
| Year-to-date, our management and advisory fee revenue grew by 19%, while our fee-related earnings grew by 16% versus the prior-year period |
| Over the past 12 months, we've achieved positive net inflows of $4.4 billion, representing an increase of 20% relative to the prior-year period |
| This stood at $903 billion and represents a 9% increase to our footprint year-over-year and highlights our continued and steady growth as a firm |
| And so the way you stand out, we think, is great results, unique product offerings and great customer service |
| Hamilton Lane and FINTOP have developed a successful track record of partnering and investing in leading private markets-focused companies, including DealCloud, Hazeltree, and Cobalt |
| And we think one of the reasons why we're having the success that we're having with great flows and kind of getting onto these various channels which, again, everyone is not doing, is because we're doing well across all three of those things |
| The Evergreen Funds have been a tremendously strong story |
| If you look at the credit flows, a number of them have come from folks that were already in one of the flagship Evergreen Funds, have had a good experience, liked the service, thought the returns were strong, and then have decided to add additional exposure to us via credit |
| This stems from the continuing shift in the mix of our fee-earning AUM towards higher fee rate specialized funds, most notably, our Evergreen product, where growth remains strong |
| Now as you remember, we have also monetized a variety of those over time with great success |
| So, we've not only gotten the internal benefit, but we've gotten good return on our balance sheet capital |
| We also think that some of those, because they're much more visible and our brand is associated with them, are great ways for us to enhance the Hamilton Lane brand in a way that we see more value-added and more efficient than, say, putting our logo on a baseball uniform |
| While this clearly speaks to the power of the recurring relationship model, it also tells you that with the remainder of flows, despite a very large installed base, coming from new relationships, that the market continues to offer up plenty of new opportunities |
| Momentum here also continues to be strong |
| For calendar 2023, we averaged net inflows of $160 million per month with our US private market offering making up strong progress with our two wirehouse relationships |
| And so,, we see all of that as very attractive |
| And we've been doing that with continued double-digit growth |
| Create a strong culture of excellence and collaboration, and use that to deliver for your clients and partners |
| Statement |
|---|
| And the retail dynamic with the wirehouse has really masked some of the kind of embedded profitability in that channel |
| Year-to-date, incentive fees totaled $49 million and are down 65% relative to the prior-year period |
| So FRE margin declined in 3Q |
| We're now in a market environment where hold periods are extending out, distribution activity is coming down |
| We also don't see this as a one winner |
| And obviously, the result of less -- lower retro fees, again, because we pushed some of the closings out into the subsequent quarter, resulted in what looks like today, artificially inflated compensation ratios |
| Revenue from our advisory, reporting, and other offerings decreased by $2 million compared to the prior-year period due primarily to the sale of the 361 Capital assets, partially offset by increases in revenue coming from our technology solutions |
| Total compensation and benefits decreased by $18 million, driven primarily by lower compensation associated with the decreased amount of incentive fees |
| Hold periods are extending, exit activity is somewhat muted |
| Can you just speak to the competitive dynamics that you're seeing? I guess on one hand, it's maybe a little tough to stand out in a crowded field with some strong brands coming into the space |
| As we noted on our prior call, FRE margin for the quarter was impacted due to extending the final close for Secondary Fund VI |
| So, in 2020 and '21, the pace of SMA distributions really jumped, I think at the time you mentioned there was some recycling of capital, which impacted that pace |
| That market environment changed dramatically and two things occurred |
| Another question on wealth specifically for the newer credit Evergreen |
| that is either dramatically underexposed to this asset class or not exposed at all |
| What we have experienced so far is flows |
| Recall, that last fiscal year, we generated a large amount of incentive fees due to the catch-up period that several of our carry-eligible vehicles were in |
| But I guess as you alluded to, it is becoming a bit more of a competitive market |
Please consider a small donation if you think this website provides you with relevant information