Hamilton Lane Q2 Revenue Rises 7% as Fee-Earning AUM Grows

Hamilton Lane Incorporated reported higher fiscal second-quarter revenue and earnings as growth in management fees and fee-earning assets offset lower quarterly incentive fees. For the three months ended September 30, 2026, total revenue rose 7% year over year to $204.4 million, while net income attributable to Hamilton Lane increased 9% to $77.5 million.

Diluted GAAP earnings per Class A share were $1.87, up 11% from $1.69 a year earlier. Total GAAP net income, including amounts attributable to non-controlling interests, increased 44% to $148.9 million, supported in part by higher investment gains and other income.

Management and advisory fees increased 15% to $164.0 million in the quarter. Specialized funds remained the largest contributor, with related fees rising 22% to $109.7 million. Reporting, monitoring, data and analytics revenue grew 12% to $9.7 million. Those gains were partly offset by a 5% decline in customized separate-account fees to $34.0 million and a 17% decrease in advisory fees to $4.5 million.

Quarterly incentive fees totaled $40.4 million, down 17% on the company’s comparable measure. Incentive fees from direct equity funds, evergreen funds and customized separate accounts declined, while secondary funds generated $4.4 million compared with none in the prior-year quarter. Hamilton Lane said the timing of incentive-fee realizations is unpredictable.

Fee-Earning Assets Support Recurring Revenue

Assets under management reached $150.8 billion at September 30, up 4% from a year earlier, while assets under advisement increased 8% to $929.1 billion. Combined AUM and AUA were approximately $1.08 trillion.

Fee-earning AUM rose 12% to $85.9 billion. Specialized-fund fee-earning assets increased 25% to $44.5 billion, including $1.3 billion of secondaries fund closings during the quarter. Customized separate-account fee-earning assets grew 2% to $41.5 billion. The company said more than 80% of gross contributions to customized separate accounts over the previous 12 months came from existing clients.

Hamilton Lane is fundraising for several products, including its seventh secondary fund, third impact fund, second venture-capital fund and evergreen funds. It also described the opportunity set for advisory services as robust, although growth in assets under advisement generally has limited direct revenue impact because most advisory clients pay fixed annual fees.

Non-GAAP Fee Related Earnings increased 18% to $90.8 million for the quarter, and the Fee Related Earnings margin widened to 51% from 49%. Adjusted net income rose 26% to $106.1 million, non-GAAP earnings per share increased 29% to $1.98, and adjusted EBITDA advanced 11% to $111.7 million.

First-Half Results Benefit From Incentive Fees

For the six months ended September 30, total revenue increased 31% to $479.8 million. Management and advisory fees rose 18% to $325.4 million, while incentive fees increased 70% to $154.4 million, led by $100.2 million from evergreen funds.

First-half net income attributable to Hamilton Lane increased 27% to $157.9 million, and diluted GAAP earnings per share rose 28% to $3.80. Fee Related Earnings grew 34% to $215.2 million, adjusted net income increased 35% to $210.7 million, and adjusted EBITDA rose 35% to $265.9 million.

The company had $1.59 billion of unrealized carried interest at September 30, up 11% year over year and spread across more than 3,000 assets and over 120 funds. This balance does not establish when incentive revenue will be realized, and the company emphasized that realization timing can be sporadic.

Hamilton Lane reported $1.69 billion of investments and $268.7 million of debt at quarter-end. It declared a quarterly dividend of $0.60 per Class A share, payable to holders of record at the close of business on December 21, 2026.

The presentation identified risks including volatile market, economic and geopolitical conditions, slower fundraising or investment activity, competition for clients and investment access, illiquid asset exposure, subjective valuations and the uncertain timing of carried-interest distributions. Poor investment performance could also affect management revenue, earnings and the company’s ability to raise additional capital.