CONSHOHOCKEN, PA — Hamilton Lane Incorporated (Nasdaq: HLNE) posted a 50% increase in fiscal first-quarter profit as incentive fees more than doubled and fee-earning assets expanded, strengthening revenue at the private-markets investment manager during the three months ended June 30.
Net income attributable to Hamilton Lane rose to $80.5 million from $53.7 million a year earlier, according to the company’s quarterly filing with the Securities and Exchange Commission. Diluted earnings per Class A share increased to $1.93 from $1.28.
Total revenue climbed 56% to $275.3 million from $176 million, driven primarily by a $71.7 million increase in incentive fees. Management and advisory fees also increased by $27.7 million.
Incentive fees reached $114 million, up from $42.3 million a year earlier, with the increase primarily tied to higher incentive fees from Hamilton Lane’s evergreen funds. Specialized funds generated $107.6 million of the total, compared with $38.2 million in the prior-year quarter.
Management and advisory fees increased 21% to $161.4 million from $133.7 million. Specialized-fund management fees accounted for most of the growth, rising to $108.8 million from $82.7 million.
Hamilton Lane attributed that increase primarily to $19.6 million of additional revenue from evergreen funds and $3.8 million from its latest direct-equity fund. Those businesses added $6.7 billion and $900 million, respectively, in fee-earning assets under management between the periods.
Fee-earning assets under management totaled $83.7 billion at June 30, up from $74.4 billion a year earlier. The total increased $2.2 billion during the latest quarter, largely because of new contributions.
Specialized-fund fee-earning assets increased by $2 billion during the quarter to $42.6 billion. Contributions included $1.2 billion to evergreen funds, $500 million to the firm’s latest infrastructure fund, $300 million to its latest venture fund and $200 million to its latest direct-equity fund.
Hamilton Lane reported total assets under management of about $146.4 billion at June 30, consisting of $94.5 billion in customized separate accounts and $51.9 billion in specialized funds. It also had $914.1 billion of assets under advisement.
Higher revenue was accompanied by increased costs. Compensation and benefits expense rose $38.1 million to $107.7 million, driven largely by a higher annual bonus accrual tied to operating performance, increased salary costs from additional employees and higher incentive-fee compensation.
General, administrative and other expenses increased $9.3 million to $38.2 million, reflecting higher consulting and professional fees and fund-reimbursement expenses.
Operating cash flow declined to $77.2 million from $128.9 million a year earlier. Hamilton Lane attributed the period’s operating cash flow in part to the timing of bonus payments, including a portion of its fiscal 2026 bonus paid in May.
The company ended June with $337 million in cash and cash equivalents, down from $361 million at March 31.
Hamilton Lane also returned capital through share repurchases, buying back 558,591 Class A shares during the quarter at an average price of $89.51 for about $50 million. Approximately $30 million remained available under its existing repurchase authorization at June 30.
The company declared a quarterly dividend of $0.60 per Class A share, payable Oct. 6 to shareholders of record at the close of business Sept. 21.
Hamilton Lane is targeting $2.40 per share in dividends for the full fiscal year, an increase of about 11% from the prior fiscal year’s dividend.
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