Hamilton Lane Incorporated - Investor Presentation Spring 2017
A Compelling Growth Story Value Drivers Our Franchise Established and leading market position Continued growth Proven record of growth over many years Scalable Strong industry tailwinds Industry leader Signifjcant locked-in and recurring revenue Predictable Strong and steady margins Profjtable Signifjcant employee ownership Aligned Our strengths and unique market positioning translate into a successful growth company operating in a fast-growing industry with meaningful barriers to entry Page 2
Leading, Global Private Markets Solutions Provider y o B u u t G r o w t i t d h e E r r y F a u n q C m d r i s u P i t y e ~$40B r R u t e c a u Private Markets Funds l Investors/Limited r E t of AUM 1 s s a t a Partners (LPs) r f s t n e C n Private Companies ~$292B I o o i - t I c n a v s V e s n s e e a t n of AUA 1 m c r t T r u e u y r n o r e t a s s d C e n R a o p c e . i S t t a a N l C o y - r I a n d v e n s o t c m e e S n t • Founded in 1991, we are one of the largest allocators of capital to private markets worldwide with over $330B of AUM / AUA • ~300 professionals dedicated to the private markets (nearly all are shareholders) • 12 offjces in key markets globally • ~350 sophisticated clients globally (in 35 countries) • Signifjcant proprietary databases and suite of analytical tools • $41B of discretionary commitments since 2000 We operate at the epicenter of a large, fast-growing and highly desirable asset class, helping a wide array of investors around the world navigate, access and succeed in the private markets 1 As of 12/31/2016 Page 3
What We Do for Our Clients Our value proposition Distribution Customized Specialized Funds Management Separate Accounts Primaries, secondaries, Active portfolio Tailored solutions through direct/co-investments, fund- management of private managed investment of-funds and white-label markets distribution accounts products 42% of 42% of 2% of Revenue 1 Revenue 1 Revenue 1 Reporting, Advisory Services Monitoring, Data and Analytics Partnering with large institutions with in-house Customized, technology- resources to assist across driven reporting, monitoring the complex landscape & analytics services 14% of Revenue 1 1 Based on FYTD 3Q17 revenue Page 4
Who We Work For Our global client base includes institutional investors of all sizes and with different needs... Sample clients include... Public Sovereign Endowment Funds Pensions Wealth Funds Wide range of colleges, universities and Some of the largest Some of the world’s foundations pension funds in the U.S. largest SWFs and globally Taft Financial Corporate Hartley Pension Funds Institutions A leading provider to U.S. Recognizable brands Banks, insurance labor union pension plans across a variety of companies and other industries fjnancial fjrms that are global in nature Page 5
Highly Diversifjed Client Mix Diversifjed revenue stream with no single client representing more than approximately 4% of management and advisory fee revenues 2016 Clients & Investors by Type Sticky Client Base HNW/ Public Pension • ~12 year average term for specialized products Family Office 15% 14% • 7 year average age of separate account client Endowment/ relationship Corporate/ Foundation Private Pension 10% • No customized separate account clients lost in the last 12% four fjscal years • 80% re-up rate for clients whose fjrst investment period Labor Union Financial/ has expired Pension Plans Insurance 26% 21% • 60% of new customized separate account management Sovereign Wealth Fund fees over the last three fjscal years have come from our 2% existing client base 2016 Management & Advisory Fees by Client Top 10 Clients 28% Multiple Layers of Diversifjcation Other • 40% of our clients have multiple products and/or services 58% with us Clients 11-20 • 90% of our top 20 clients have multiple products and/or 14% serivces with us Top 20 clients contributed 42% to FY2016 net revenue Page 6
Where We Fit in the Asset Management Ecosystem We are not a one size fjts all provider Private markets allocator Partners Group Traditional asset managers Federated Cohen & Steers Artisan Partners Eaton Vance BlackRock Invesco Legg Mason OM Asset Management T. Rowe Price Waddell & Reed Franklin Templeton Janus Capital Group Alternative asset managers Ares The Carlyle Group Blackstone Oaktree Apollo KKR Financial solutions / Investor & business services MSCI Thomson Reuters SS&C Markit McGraw Hill Financial SEI Factset Morningstar Envestnet Moody’s Financial Engines Global consultants AON Willis Towers Watson Marsh & McLennan Companies Page 7
Industry Tailwinds and Preferred Business Model Hamilton Lane is a market leader in a growing asset class with a model that lends itself to stability and predictability 20% Blackstone Partners Group 15% Eaton Vance KKR Apollo Ares Old Mutual 10% T. Rowe 4 Year AUM CAGR BlackRock Artisan Partners Alternative Managers Asset Growth Oaktree Janus Capital 5% Invesco Cohen & Steers Legg Mason 0% Franklin Federated Carlyle Traditional Managers -5% Waddell & Reed -10% 30% 40% 50% 60% 70% 80% 90% 100% Management & Advisory Fees as a % of Revenue (LFY) Stability & Predictability Note: Represents peers identifjed by research analysts where the relevant information is available; based on the most recent fjscal year data (most as of 12/31/16) Source: Capital IQ and public fjlings Page 8
Growing Asset Footprint & Infmuence Total Assets Under Management/Advisement ($B) 1 $333B AUM & AUA $350 $300 $40 $250 $35 CAGR: 21% $32 $200 $30 $24 $150 $292 $22 $16 $19 $13 $205 $100 $11 $189 $7 $147 $147 $129 $6 $50 $95 $79 $81 $77 $51 $36 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total AUA Total AUM Note: Data as of calendar year end 12/31. Numbers may not tie due to rounding Page 9
Fee-Earning AUM Driving Revenue Fee-earning AUM drives the bulk of our revenue Total-Fee Earning Assets Under Management ($B) 1 $40 Total Management Fee Revenue as a % of Average FEAUM $35 0.58% 0.55% 0.56% 0.57% $30 % 1 4 : G R A $26 C $24 $25 $8 $22 $7 $19 $6 $20 $16 $5 $18 $17 $15 $5 $16 $14 $10 $11 $5 $0 Mar-13 Mar-14 Mar-15 Mar-16 Dec-16 Customized Separate Accounts Specialized Funds 1 Data as of fiscal year end 3/31 unless noted otherwise ...and fee rates are stable Page 10
Growing and Stable Revenue and Earnings Profjle Data as of fjscal year ending March 31 unless noted otherwise 1 Total Revenue Total Expenses ($M) $150 $240 % 1 4 R : A G C USD in Millions $125 USD in Millions $200 $181 $119 $155 $23 $100 $160 $140 $133 $10 $9 $87 $7 $75 $120 $81 $76 $80 $50 $158 $146 $130 $126 $40 $25 $0 $0 2014 2015 2016 FYTD 3Q17 2014 2015 2016 FYTD 3Q17 Adjusted EBITDA ($M) Adjusted EBITDA Margin (%) 1 $140 75% $120 USD in Millions $100 50% $80 47% 47% 46% $74 $60 37% $68 $64 $62 25% $40 $20 0% $0 2014 2015 2016 FYTD 3Q17 2014 2015 2016 FYTD 3Q17 2016 Adjusted EBITDA includes $20.3M of compensation expenses related to incentive fee revenue that was not recognized in 2016 but is expected to be recognized in future periods Note: Numbers may not tie due to rounding. Data as of fjscal year end 3/31 1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP fjnancial measures. For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to Comparable GAAP measure of Net Income, please see Appendix, page 18. Page 11
Signifjcant Growth Visibility Investor Re-Ups and Maintaining Allocations + Addressable Market + New Products + New Distribution Channels + Client Base Diversifjcation + Global Expansion + Defjned Contribution Opportunity + Data Advantage = Multiple Avenues of Profjtable Growth Ahead Page 12
Robust Data Advantage Informs Our Investment Decisions Hamilton Lane Proprietary Advantages for Our Clients 40 Benchmarks Vintage Years Aggregation of Industry & Market Intelligence Fund-Level Data Creates ~$3T Our Wealth of Proprietary Manager Selection Total Fund Commitments Information + Industry Insights 3,200+ Hamilton Lane Analytical & Research Capabilities Funds Asset Level Insights ~50,000 Attribution Analysis Portfolio Companies Partnerships with leading-edge technology providers Data collection Investment Allocation software Benchmarking and and reporting workfmow management analytics Page 13
Deep Bench of Talent and Award-Winning Culture Executive Management (7) Investment Business Product Finance Team Development Management (20) (95) (20) (20) Client Legal & IT HR / Admin Services Compliance (20) (15) (80) (20) Key Stats Awards • ~300 employees globally • ~70% of the team is less than 40 years of age • Women compose ~40% of the employee base and ~30% of all senior roles Beyond the Business • HL in Action – Volunteerism and Matching Gifts Program • HL Wellness Committee • Hamilton Lane matching gifts program • HL Women’s Exchange • HL Diversity & Inclusion Council Widespread employee ownership Source: Company data. Employee fjgures as of 1/31/2017 Page 14
Recommend
More recommend
