CONSHOHOCKEN, PA — Hamilton Lane Incorporated (Nasdaq: HLNE) reported a 9% increase in quarterly profit and a 15% rise in management and advisory fees as the private markets investment manager expanded its fee-generating asset base, strengthening recurring revenue despite lower incentive fees.
The company reported net income attributable to Hamilton Lane Incorporated of $77.5 million, or $1.87 per diluted Class A share, for its second fiscal quarter ended Sept. 30, 2026, compared with $70.9 million, or $1.69 per share, a year earlier.
Total quarterly revenue increased 7% to $204.4 million from $190.9 million, according to financial results released Nov. 3. Management and advisory fees rose to $164 million from $142.1 million, reflecting growth in the firm’s investment management business.
Incentive fees declined to $40.4 million from $48.8 million a year earlier, including fees attributable to consolidated funds and partnerships. The decline partially offset higher management and advisory revenue.
Adjusted net income rose 26% to $106.1 million, while non-GAAP earnings per share increased 29% to $1.98. Fee-related earnings, a measure of profitability from investment management operations, climbed 18% to $90.8 million, with the fee-related earnings margin widening to 51% from 49%.
The results underscore the growing contribution of management fees to Hamilton Lane’s earnings as the company expands its private markets investment platform.
As of Sept. 30, Hamilton Lane managed $150.8 billion in discretionary assets, up 4% from a year earlier, and advised on another $929.1 billion, an 8% increase. Combined assets under management and advisement reached approximately $1.08 trillion, up 7%.
Fee-earning assets under management increased 12% to $85.9 billion, driven primarily by specialized investment funds. Those funds accounted for $44.5 billion, compared with $41.5 billion in customized separate accounts.
During the quarter, fee-earning assets received $3.7 billion in contributions and recorded $1.9 billion in distributions. Specialized funds accounted for approximately $2.3 billion of contributions, while customized accounts contributed $1.4 billion.
The firm also reported a $1.3 billion closing for its secondary investment fund during the quarter. Growth in specialized funds reflected continued fundraising across private markets strategies, including secondary investments, infrastructure and evergreen funds.
Investment-related gains contributed substantially to reported profitability. Net gains on investments held by consolidated funds and partnerships increased to $50 million from $17.9 million a year earlier, while the company recorded a $16.3 million nonoperating gain.
Those gains helped lift consolidated net income to $148.9 million from $103.6 million, although a significant portion was attributable to noncontrolling investors in consolidated funds and Hamilton Lane Advisors.
For the first six months of fiscal 2027, total revenue increased 31% to $479.8 million, supported by an 18% increase in management and advisory fees and higher incentive fees.
Net income attributable to Hamilton Lane Incorporated rose 27% to $157.9 million during the six-month period, while diluted earnings per share increased 28% to $3.80. Adjusted net income climbed 35% to $210.7 million.
The company also continued returning capital to shareholders. During the six months ended Sept. 30, Hamilton Lane repurchased and retired 558,591 Class A shares for approximately $50 million, leaving $30 million available under its stock repurchase authorization.
No shares were repurchased under the program during the September quarter.
Separately, Hamilton Lane declared a quarterly dividend of 60 cents per Class A share, payable Jan. 7, 2027, to shareholders of record at the close of business Dec. 21. Its targeted annual dividend of $2.40 per share represents an 11% increase from the previous fiscal year.
The company’s balance sheet showed $336.2 million in cash and cash equivalents as of Sept. 30, compared with $361 million at the end of March. Outstanding debt declined to $268.7 million from $278.4 million over the same period.
Hamilton Lane also reported approximately $1.6 billion in unrealized carried interest across more than 3,000 underlying investments and over 120 funds. The potential future earnings depend on investment realizations, whose timing can vary.
The firm provides private equity, private credit, infrastructure, real estate and other private markets investment services to institutional and private wealth clients. It employs approximately 820 professionals across North America, Europe, Asia Pacific and the Middle East.
Additional financial statements and the company’s fiscal second-quarter presentation are available at https://shareholders.hamiltonlane.com/.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.