Hamilton Lane Soars Past Expectations with Q4 Earnings, Expects Private Equity to Outperform Public Equities Amid Market Volatility
Hamilton Lane, a leading global private equity investment firm, has reported impressive fourth-quarter and full-year 2025 earnings, exceeding market expectations. The company's total asset footprint grew by 4% year-over-year, reaching $958 billion at the end of fiscal year 2025.
The company's assets under management (AUM) rose to $138 billion, a significant increase of 11% compared to the previous year. This growth was driven primarily by the performance of specialized funds and customized separate accounts. Assets under administration (AUA) also saw a substantial jump, increasing by over 3% relative to the prior year.
The company's fee-related earnings experienced a remarkable surge, rising by 34% versus the previous year, resulting in GAAP EPS of $5.41 based on $217 million of GAAP net income and non-GAAP EPS of $5.04 based on $274 million of adjusted net income. The Board has approved a 10% increase to its annual fiscal dividend, marking the eighth consecutive annual double-digit percentage increase since 2017.
Commenting on the market volatility, Erik Hirsch, Co-Chief Executive Officer at Hamilton Lane, noted that while it may seem uncertain and uneventful out there, the management team has effectively navigated these challenges. He emphasized that private equity will likely fall less and recover faster from any downturn compared to public equities.
Hamilton Lane's confidence in its ability to deliver results for shareholders and clients is evident in their latest earnings report. The company's commitment to growth and strength is further underscored by its consistent increase in dividend distribution every year since going public.
The private equity firm's performance during periods of heightened volatility provides valuable insight into the resilience of this asset class. In comparison, the MSCI World Index was down nearly 50% at its lowest point during the dotcom collapse and global financial crisis. In contrast, private equity valuations recovered within 2 years in both instances.
Hamilton Lane's forward-looking statements highlight their optimism about the future of private equity investments. Their ability to capitalize on opportunities created by market uncertainty has positioned them well for continued success. The company's dedication to navigating the challenges of the ever-changing investment landscape is a testament to its commitment to delivering exceptional results for its shareholders and clients.
