Hamilton Lane Incorporated

Thank you. Thank you. Thank you. Ed Sheeran is the co-founder and co-founder and co-founder and co-founder. Thank you for watching. Good morning ladies and gentlemen and welcome to the Hamilton Lane Fiscal Second Quarter 2027 Earnings Call. At this time, our lines are in lesson-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, November 3, 2026. I would like to turn the conference over to John Oh, Head of Shareholder Relations. Please go ahead.

Thank you, Wina. Good morning and welcome to the Hamilton Lane Q2 fiscal year 2027 earnings call. Today, I am joined by Hartley Rogers, Co-Chief Executive Officer and Chairman of the Board, Erik Hirsch, Executive Co-Chairman, and Jeff Armbrister, Chief Financial Officer. Earlier this morning, we issued a press release and a slide presentation, which are available on our website. Before we discuss the quarter's results, we want to remind you that we will be making forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. These forward-looking statements do not guarantee future events or performance and are subject to risks and uncertainties that may cause our actual results to differ materially from those projected. For discussion of these risks, please review the cautionary statements and risk factors included in the Hamilton Lane Fiscal 2026-10-K and subsequent reports we file with the SEC. These forward-looking statements are made only as of today and, except as required, we undertake no obligation to update or revise any of them. 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 shareholder 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 solicitation of an offer to purchase interest in any of Hamilton Lane's products. Let's begin with the highlights and I'll start with our total asset footprint. At quarter end, our total asset footprint stood at approximately $1.1 trillion and represents a 7% increase to our footprint year over year. AUM stood at $151 billion and grew $5 billion or 4% compared to the prior year period. AUA came in at $929 billion and grew $69 billion or 8% relative to the prior year period. This stemmed primarily from market value growth and the addition of a variety of technology solutions and back office mandates. Year-to-date through the second quarter of fiscal year 2027, total management and advisory fees were $325 million and were up 18% year-over-year. Total year-to-date fee-related revenue was $414 million and represents 29% growth year-over-year. Year-to-date fee-related earnings were $215 million and represents 34% growth year-over-year. We generated fiscal year to date GAAP EPS of $3.80 based on $158 million of GAAP net income and non-GAAP EPS of $3.91 based on $211 million of adjusted net income. We have also declared a dividend of $0.60 per share this quarter. which keeps us on track for the 11% increase over last fiscal year, equating to the targeted $2.40 per share for fiscal year 2027. And with that, I'll now turn the call over to Hartley.

Thank you, John, and good morning, everyone. Before Erik turns to the quarter's results, let me address a few leadership developments here at Hamilton Lane. These changes are very much evolutionary in nature and reflect what remains our focus, delivering outstanding results for our clients, our shareholders, and our employees. Juan, Erik, and I, together with our board and our broader leadership team, are aligned and focused on exactly that. These changes put each of us in the optimal place today to add value. Before I say more about that, let me pause here and recognize the person who has been such a core part of this firm for so long, Mario Giannini. A few weeks ago, we announced that Mario will retire from the firm effective March 31st of next year. Mario joined Hamilton Lane shortly after its founding and immediately became the driving force of the business. Over more than three decades, he has relentlessly advocated for our clients, have been a sober voice and lover of data in a world too often driven by stories and anecdotes. And for us, he has been a leader, a mentor, and a trusted friend. He built a culture grounded in candor, directness, and genuine care for each other, and that culture thrives and continues. We thank Mario for his endless contributions, and we wish him much joy in his retirement. Alongside Mario's news, as you've also seen, I've been named co-chief executive officer alongside Juan. At the same time, Erik has moved into the executive co-chairman role where he'll lead strategic initiatives that drive our long-term growth. Let me start with Erik. Erik joined Hamilton Lane in the late 1990s when he was 26. Over his more than 27 years with the firm, Erik has been asked to wear many hats and he has done so successfully. Today, we see rapid evolution coming in our industry, an evolving market landscape, changing technology, and expanding customer base. The advent of AI is a truly revolutionary force. Remaining a market leader means dedicating real focus to navigating these changes, investing our firm capital strategically, and creating partnerships that unlock new opportunities. Recent announcements, like our new partnership with Columbia Threadneedle, or our ongoing strategic relationship with Novata, or our numerous balance sheet investments, many of which are focused on technology and data, are examples of these initiatives and are all things which Erik has led. In his new role, he will focus on those strategic initiatives and continue to speak on behalf of the firm with the media. He will continue to lead HLNE earnings calls alongside John and Jeff. He will also remain on the firm's board of directors. For me, I've been with Hamilton Lane since 2004 and the chairman since 2005. Over those years, I've been closely involved in our investing and client relationship activities, as well as in the firm's strategic and organizational development. I've spent more than 45 years in the private markets, and I am genuinely excited to take on this new challenge. Hamilton Lane has built a truly differentiated platform in scale, in the breadth of our product lines, In our geographic reach, in our client base, and in our highly aligned structure and philosophy. I have enormous conviction in our people, our culture, and the trajectory we're on. Juan and I will now work side by side from Hong Kong and the U.S. to build on the foundation we've established with clients around the world. We are a market leader in the most exciting and rapidly growing of the asset management area of the asset management universe. and we aim to capitalize on that position to drive continued success. As co-CEO, my focus has three parts. First and above all, keeping clients at the center of everything we do. That client-first approach is the foundation for everything else and nothing changes in how we serve them. The same teams, the same strategy and the same investment approach they've always counted on. Second, accelerating our growth. Building on the strong trajectory this firm has sustained for years and finding ways to further that. And third, investing in and developing our incredible group of talented employees. We have amazing people and high potential people at every level and part of my job is making sure we're positioning the next generation of leaders to bring this firm to its fullest potential over the coming years. With that, I'll turn it over to Erik.