Hamilton Lane Incorporated

Ladies and gentlemen, thank you for standing by and welcome to the Hamilton Lane Incorporated first quarter fiscal year 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, John Oh, Investor Relations Manager. Thank you. Please go ahead, sir.

Thank you, Lisa. Good morning and welcome to the Hamilton Lane Q1 fiscal 2021 earnings call. Today, I will be virtually joined by Mario Giannini, CEO, Erik Hirsch, Vice Chairman, and Atul Varma, CFO, as we continue to work remotely from our Pennsylvania headquarters. Before we discuss the quarter's results, we want to remind you that we will be making forward-looking statements based on our current expectations for the business. These statements are subject to risks and uncertainties that may cause the actual results to differ materially. For a discussion of these risks, please review the risk factors included in the Hamilton Lane Fiscal 2020 10-K and subsequent reports we file with the SEC. We will also be referring to non-GAAP measures that we view as important in assessing the performance of our business. Reconciliation of those non-GAAP measures to GAAP can be found in the earnings presentation materials made available on the public investor relations section of the Hamilton Lane website. Our detailed financial results will be made available when our 10Q is filed. Please note that nothing on this call represents an offer to sell or a solicitation to purchase interest in any of Hamilton Lane's products. Beginning on slide three. For the quarter, our management and advisory fee revenue grew by over 11%, while our fee-related earnings also grew by over 11% versus the prior year period. This translated into non-GAAP EPS of $0.13, based on approximately $6.8 million of adjusted net income, and GAAP EPS of $0.11, based on approximately $3.2 million of GAAP net income. We have also declared a dividend of $31.25 per share this quarter. which keeps us on track for the 13.6% increase over the last fiscal year equating to the targeted $1.25 per share for fiscal year 2021. With that, I'll now turn the call over to Mario.

Thanks, John, and good morning. Let me begin as I did on our last call by simply saying thank you. We are grateful for the sacrifices and extraordinary efforts that all frontline workers and volunteers have put forth during this trying period. Let me also again say thanks to our clients. Many of whose members and families are on those front lines. Lastly, a thank you to the Hamilton Lane team for continuing to step up and deliver their very best for our clients. We had a very solid quarter, and that's directly attributable to their hard work and dedication. A quick update on our various offices. As of today, we have begun to see some positive migration back to the office and back to a more normal operating environment. While all of our offices in the U.S. remain closed, there are a number of our offices outside the U.S. that safely reopened and resumed a limited set of in-person activities. These include Seoul, Tokyo, Hong Kong, and Sydney. And while we are in the early days, and even in these locations, the situation remains fluid, it is nonetheless encouraging. But as this remote world continues for the majority of our clients, we are working hard to find new ways to engage and add value. We've ramped up production of thought pieces centered around our data, and we've begun hosting a series of virtual events. One new series is something we call In the Know where we showcase data and unique perspectives on various topics. The Hamilton Lane innovation and creativity is alive and well and we continue to lean heavily on our technology and data. Let me now turn to some results for the quarter. Beginning on slide four. Here we highlight our total asset footprint, which we define as the sum of our AUM, assets under management, and AUA, assets under advisement. Total asset footprint for the quarter stood at approximately $516 billion U.S. and represents a 9% increase to our footprint year over year, continuing our long-term growth trend. Consistent with prior quarters, AUM growth year over year, which was approximately $4 billion U.S. or 6%, came from both our specialized funds and customized separate accounts and continues to be diversified across client type, size of client, and geographic region. Our focus remains simply growing and winning across both lines of business, and we are pleased with the continued success. As for our AUAs, similar to what was seen with our AUM, growth year over year, which came in at 38 billion U.S., or approximately 9%, was from across client type and geographic region. As we have mentioned on prior earnings call, AUA can fluctuate quarter to quarter for a variety of reasons, but the revenue associated with AUA does not necessarily move in lockstep with those changes. And while this quarter saw an increase in AUA dollars relative to the previous quarter, we will continue to emphasize that no direct correlation exists between the scale of AUA dollars and revenue generation. Let me now turn it over to Erik.