So I think our takeaway would simply be that, because of good performance, weve gotten a variety of our sort of flagship specialized funds to the point where theyre in the catch up. It's the nature of the business. I think you're right. Our investment teams remain active, though, cautious. 361 Capital was founded in 2001 with the focus on bringing actively managed alternative products to the retail space, through their strong relationships with RIAs and investment platforms around the country. What can I tell you for the quarter is coming, were going to still be working through the catch up with some of these products. Total compensation and benefits increased by $52.5 million, driven primarily by compensation associated with the increased amount of incentive fee in the period. As for this series, as many of you know, we are constantly raising and deploying capital here and weve already begun work on raising our eighth installment. I think the European waterfall is kind of akin to you spend years sort of pushing the boulder up the hill and when you finally get to the top, it begins to kind of quickly roll down the other side. Market uncertainty can also cause paralysis or delay for some investors as they opt to wait to see how things sort out. One, as you've heard us say and we just noted on the call, there continues to be a surprising, I think, to many people, not surprising to us, but a surprising number of entities that have still not yet entered the asset class, whether that's because they're simply newer or whether that's been for regulatory reasons or whatever the driver of that has been, I think we continue to be -- we continue to benefit from, frankly, finding entities that are yet to come into the asset class, and we're now helping them do that. Therefore, you typically see a spike in management fee related to that fund in the quarter in which subsequent closings occur. I don't think any of this is magical. Growth in these two segments continue to be driven by four key components: one, reups from our existing clients; two, winning and adding new clients; three, growing our existing fund platforms; and four, raising new specialized funds. That is where our mindset is. These are I think one of the other appeals to the clients here is that, they're doing deals that are the same deals that are being done across the entirety of the Hamilton Lane platform. Presentation Operator MessageOperator Thank you all for standing by, and welcome to the Hamilton Lane Incorporated First Quarter Fiscal Year 2022 Earnings Conference Call. We are executing well across our product suite and demand remains robust, coming like the rest of our business, from the diversified set of investors around the globe. And we have a number of people inside the US, not the least of which is the 361 crew, in addition to some of the existing Hamilton Lane resources that are sort of focused on selling this inside the US. Taken separately, over $1.7 billion of net fee earning AUM came from our customized separate accounts and over the same time period, $1.6 billion came from our specialized funds. I think what you saw this quarter, that was a little bit of an analogy -- an aberration was that you sort of saw that we had some meaningful amount of separate account capital going into specialized funds. Inflation is high and interest rates continue to rise. So our belief is that over time and others no way of knowing what time means today, will this transition be two years, 20 years or 200 years. So, I think that will continue for some time. Hamilton Lane Alliance Holdings One, which trades on the NASDAQ under the symbol HLAHU. Trusted News Discovery . The Motley Fool->, Hamilton Lane Incorporated (NASDAQ: HLNE)Q1 2022 Earnings CallAug 3, 2021, 11:00 a.m. And that provides a little bit better return, its generally a floating rate return part of the market and very attractive risk and reward characteristics compared to the public credit markets. Thank you for standing by, and welcome to the Hamilton Lane Incorporated Second Quarter Fiscal Year 2022 Earnings Conference Call. So we'll continue to keep an eye on that as we sit here today. Hamilton Lane Incorporated (HLNE) Q2 2023 Earnings Call Transcript Markets One News Page: Tuesday, 1 November 2022. Moving on to Slide 5, we highlight our fee-earning AUM. Similar to our secondary fund, we had previously said, we had until the end of January 2021 to complete raising capital, but again to accommodate those final investors coming into the series, we will actually hold the final close in the coming weeks. That's what happened for us in the credit space, the secondary space, the co-investment space, it's now what's happening for us in the impact space and the infrastructure space. Can you talk, I guess, a little bit about the channels that you're looking to distribute through the kind of opportunities that you see there. Is this happening to you frequently? The final component of our revenue is incentive fee. I think you mentioned $1.3 billion of capital there now. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Obviously, it's been tough at the [Indecipherable] for a couple of quarters in the space for this earnings season and prior one, maybe as well. Maybe first on FRE margins. I think I saw in HLAHU's registration that there are something like 12.5 million warrants. I think the point we would simply make is that we do see -- we are in and we are continuing to see a rising wage environment. Thanks again. So I think that's going to be a topic that we will likely address in the coming call. The round valued iCapital at approximately $4 billion. Great. In regard to liabilities, we continue to be modestly levered even with the increase in our debt balance used to fund the Russell Investments last quarter. We remain a very diversified carry story with now 70 vehicles in an unrealized carry position that are ultimately backed by a thousands of underlying companies. Finian, do you have follow-on. Unrealized carry balance now stands at $990 million and just to remind everyone, we don't control these positions and thus don't control the timing of [Technical Issues]. We continue to invest in resources. But we don't really see the acquisitions as being all that noteworthy or impactful to the business. That's very helpful. We're having a bit of a microphone issue in our conference room. I think the big growth in addressable market is what we're experiencing right now on, frankly, the Evergreen product kind of getting into that wealth management channel. Before we. Just curious your views broadly on sort of the shift from funds into SMAs across the landscape, how you see that playing out? It is something that is occurring out there and we're all kind of keeping an eye on it. I think the separate accounts are coming from different geographies, different institution types and across the institutional type, different sizes. On January 28th, we announced that we plan to acquire 361 Capital with a closing expected this calendar quarter. Our largest asset in the balance sheet is investments, alongside our clients in our customized separate account and specialized funds. Your line is open. Beginning on Slide 4, here we highlight our total asset footprint, which we define as the sum of our AUM, assets under management and AUA, assets under advisement. And it sounds like you've got several platforms kind of in the pipeline as well. I think all of that is designed to continue the sort of the reach of the firm, whether that's distribution reach, investment reach and, of course, making sure that we're there to sort of service those customers. We think all of that is very strong and bodes well for the future. Based on the valuation of this round, our original $10 million investment in iCapital is now valued at $40 million, generating a return of 4 times in less than 18 months. G&A increased $6 million, which included the rent expense associated with our new headquarters, along with expenses from 361 Capital. The credit space is growing, is offering increasingly interesting opportunities and is an area where we bring deep, strong and tenured experience. Therefore, you typically see a spike in management fees related to that fund for the quarter in which subsequent closes occur. Lastly, the final component for our revenue is incentive fees. I guess, in the past, you talked about the need to invest in the business, but at some of these initiatives, on specialized funds and evergreen, it really start to scale, should we be thinking about sort of more normalized FRE margin for Hamilton Lane in the mid to high-40%s or should we think about that migrating back to low-40%s? I will dive in there. Thanks, Ken. We will continue to emphasize that this is the most significant driver of our business as it makes up 80% of our management and advisory fees. I'll stick with that. Let me now turn it over to Erik. I wanted to flush out your comments on the SPAC. What do you see in terms of reupping from newer and more mature clients? I think the second driver of the margin is really around the mix in the business. I think in the past, you had mentioned that the estimate growth has been impacted by the pandemic laying on new clients coming to door. Retro fees for the year were approximately $1.2 million, stemming primarily from our direct equity fund versus a minimal amount in the prior year period. They want to see track record viability in the fact that you can prove that you can scale with more dollars and do that successfully. We believe these thresholds keep us focused on our commitment to growth and driving value for our shareholders. Fee earning AUM from our specialized funds stood at $20.4 billion at quarter end. Overall, unrealized markets are down but nowhere in line with what we are seeing in the public sector. We are also focused on broadening out our product offering within the channel. Today, our investment minimums are 125,000 for our international fleet and 50,000 for the U.S. fleet. Good morning. Please go ahead. Can you speak to competitive advantage? I think there's a couple of factors. That's helpful context. The way we do some of our bonus accrual, it's not always linear and you saw that this year. Sure. Yeah. We continue to be pleased with the momentum we've generated thus far and look forward to expanding even further. Good morning. Central banks around the world have signaled that in order to fight rising inflation rates will need to go higher and the reality is economic growth is slowing. I think what you're sort of seeing is increasingly a model where it is a what do you own and where a lot of the businesses are fragmented and you sort of see partial ownership across their employee bases. And then are you thinking about any change either by sector style or other characteristics for your SPAC business? Hi. Good morning. If you look out sort of the growth in the business and other areas where we are picking up carry generating dollars, it's really two places. So, while we have a US sleeve and we have a non-US sleeve, I think from the firm's orientation as we had said in the past, the investment strategies and even the specific investment portfolios are very, very similar across the two vehicles. Thank you and good morning. We wake up in the morning as a management team thinking about how can we continue to sustain strong double-digit growth across a diversified set of client base across diversified geographies and how can we do that in a sustainable scalable market leading way? We had invested $3 million in Intapp and based on last week's closing price of $33.90, that investment is now worth approximately $8.5 million or 2.8 times our investment. So when you do that, I think that puts you in a compensation number that is more like sort of that $26 million range. It is to expand products that we've already had past success with as we've done with our secondary franchise as an example. Your line is open. Our specialized funds revenue increased $20.4 million or 25% compared to the prior-year period, driven by $1.7 billion in fee earning AUM added from our latest secondary fund between periods. This article is reserved for subscribers So, when you look at sort of the country count, 18 countries, the 20 distribution partners, the fact that we sort of view that getting over $1 billion is a very, very meaningful place to be. It's about providing a great work experience. It's Erik again. From our perspective, however, we've got deep domain expertise across all of those categories and all of those channels. | October 27, 2022 So I think on some level, there's a rising tide element. And control of data and the customer, anything there or is that far fetch? And good morning, everyone. This portfolio will have slightly different characteristics than the equity-oriented portfolios that we have today. Its been slower. Okay, fair enough. Technology valuations are down based on public market comparables, but rising rates are generally aiding credit portfolios. So we're going to pre-empt that process and work directly based on the relationship we have with these partners to source and engage with them on these opportunities. The unrealized gain that we recorded for this quarter is approximately $23 million. So if you tell us that -- I mean, right now, our credit team who is adept of doing both performing and nonperforming credit. Thanks for that. So I think over time that pie mix is going to change, where you will see a growing proportion of our carry coming in more of that deal by deal and American style waterfall. Alexander Blostein -- Goldman Sachs -- Analyst. I guess, how should we think about that for Hamilton Lane as a whole? With that, I will turn it over to Brian to cover fee earning AUM fund flows. With that, Ill now turn the call over to Mario. So beyond the resources that Hamilton Lane had two years ago, we've added to that obviously the 361 acquisition has further added to that. We have also declared a dividend of $31.25 per share this quarter, which keeps us on track for the 13.6% increase over last fiscal year, equating to the targeted $1.25 per share for fiscal year 2021. And so, I think, you're going to see the contribution to those vehicles occurring in the future, that is not where we're sitting today. I guess, on the slower side of thing, the separate accounts -- the customized separate account growth has been a bit more muted kind of in the low single digit range here over the last three quarters on a year-over-year basis. You've seen that we've structured this product to be around qualified purchasers. And so today, we don't see a dramatic need to kind of change our comp philosophy. Any thoughts you could give us just so our numbers arent all over the place? If the relationship is with private market investing firms. Thank you, John and good morning. So maybe we could start there. Share this transcript. There are no further questions. Our largest asset continues to be our investments alongside our clients in our customized separate account and specialized funds. Thanks for taking the question. How much more should we expect, I guess, over the coming quarters? I think one, it continues to be really, really good Hamilton Lane investment selection. Moving to our specialized funds. We have set the bar high for ourselves with the final price threshold representing an 80% compounded annual growth rate from the grant date price. Reconciliation of those non-GAAP measures to GAAP can be found in the earnings presentation materials made available on the Shareholders section of the Hamilton Lane website. Is this the new normal as the fund business continues to grow? And while this quarter saw an increase in AUA dollars relative to the previous quarter, we will continue to emphasize that no direct correlation exist between the scale of AUA dollars and revenue generation. The flip side is that sort of mix of asset flow as we continue to see real strength in the specialized funds. Revenue from our customized separate accounts increased approximately $3.6 million compared to the prior year period, due to reups from existing clients and the addition of several new accounts. Mario Giannini -- Chief Executive Officer. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. *Stock Advisor returns as of June 7, 2021, John Oh -- Vice President, Investor Relations. For the benefit of those less familiar with this series, it is a relatively unique structure, whereby we are continually raising and deploying dollars simultaneously. Having a world-class data and analytics firm such as FactSet, see the value in Cobalt GP, further validates our original thesis around the need for analytically driven software in the private markets. Great. Next question, we have Rob Lee from KBW. I think we've done a good job of supporting all of those with this kind of data and technology. Got it. Now after the Cobalt LP transaction closed, we remained a key shareholder and partner of Bison who continued on with growing and selling the Cobalt GP software. Hey, guys. So I think what we've sort of said to folks is that, we would really suggest that people look at kind of comp ratios and comp expenses on an annualized basis. These symbols will be available throughout the site during your session. ET, Thank you all for standing by and welcome to the Hamilton Lane Incorporated First Quarter Fiscal Year 2022 Earnings Conference Call. But more importantly, given we remain a key customer, we believe this transaction best positions PMC to continuing to deliver best-in-class service at an attractive economic level. And just a follow-up on competitive advantage. We are just showing you what the future retro fees are going to be from the Jan 31. Before I move on, Id like to take a moment and acknowledge an award that our direct equity platform has recently won. Revenue from our reporting and other offerings increased $2.4 million compared to the prior-year period, driven by the revenue associated with the pre-existing fund managed by the 361 Capital team that we acquired in April of 2021. [Technical Issues] With a very small number of managers who have a platform that exceeds $1 billion in size with a solid and established track record and the ability to continue to grow and scale efficiently and effectively. This presentation is not an offer to sell or solicitation of an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. I'm extremely proud of all that we've accomplished over the past 30 years and we look forward to continuing our leadership position in the future. Presenters, please continue. This transaction represents a full exit of our Bison investment. I appreciate that. But I think, more importantly, you start to more rapidly enter into a point-and-click environment, where simply making acquisitions and investments in our industry begins to look much more similar to what you experienced today in the public markets, where we can all sort of pull out our phone, as were walking down the sidewalk and go into whatever app we favor and buy a stock. Sir, you may now begin. Any concerns around kind of the potential credit cycle that we might be heading into? That makes sense. Your next question is from the line of Adam Beatty with UBS. My name is Patricia, and I will be your conference operator today. And then, lastly, to what extent do you retain either greater control over the client or the client data from a relationship when you utilize sort of the blockchain technology, I know theres little fishing in there, but you could comment? Stock Market Sell-Off: Is Amazon Stock a Buy? The acquisition of 361 included to existing long-short products, which while not core to our strategy, were generating revenue to cover the full cost of the 361 team. We are excited about this new investment and partnership and believe it serves as another example that we remain the partner of choice in the private markets around building successful data and technology offerings. So on August 29th, S&P announced that they have acquired our 50% ownership stake in the PMC joint venture. During this quarter, we have started to expense the rent associated with the new headquarters. Your line is now open. Yeah. Its Erik. As a result, they provided Hamilton Lane opportunity to invest directly in Intapp following the acquisition of DealCloud. We are having a little technical difficulty in the conference. Hamilton Lane Incorporated (NASDAQ: HLNE) Q1 2022 Earnings Call Aug 3, 2021, 11:00 a.m. And total compensation benefits decreased $5.4 million. One, reups from our existing clients; two, winning and adding new clients; three, growing our existing fund platforms; and four, raising new specialized funds. Welcome to the Hamilton Lane Q3 earnings call. We appreciate everyone's time. Could you -- to the extent you can discuss where -- in the process right now in terms of developing an initial list of targets or starting to have conversations or meeting with GPs or kind of more further along than that? And I think even in the last sort of year-and-a-half despite being in a pandemic, we've now created two brand new verticals with impact and with infrastructure. So we're hoping to hear more of your comments about the pace of accrued carry realization. But the retro fees are at the 7 level and so then it's an addition to that what's coming from the January 31 closing that will result in additional retro fees. These statements are subject to risks and uncertainties that may cause the actual results to differ materially. Great. 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