Hamilton Lane F1Q27 Results Broadly Solid with We View a Stronger Outlook

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Hamilton Lane

F1Q27 Results Broadly Solid with We View a Stronger

Outlook

Overweight

HLNE, HLNE US

Price (04 Aug 26):$101.61

▼Price Target (Dec-26):$148.00

Prior (Dec-26):$150.00

Hamilton Lane (HLNE) reported adj. net income / share of $1.94 in F1Q27 /

C2Q26. Fee-related earnings (FRE) delivered a strong earnings beat at $124mn

(vs. Bloomberg cons $103mn), up 38% q/q and 49% y/y, driven by particularly

strong FRPR ($73mn vs. cons $40mn) from U.S. GPAF. The strong top line

supported slightly higher than modeled expenses, but FRE margin expanded nicely

on the revenue mix. We think the outlook remains positive, primarily due to the

pipeline of specialized funds’ fundraising and incremental upside from a recovery

in Evergreen flows. While separate account fund growth seems unlikely to recover

in the near term, there is more upside in specialized funds and Evergreen growth,

and both seem to be on a positive trajectory. We maintain our Overweight rating

and our Dec-2026 price target moves to $148 from $150.

Evergreen fund sales slow. Evergreen net sales slowed to $640mn in F1Q27

after >$1,000mn in the quarter prior. HLNE’s ~$6.7bn International Global

Private Assets Fund moved to modest redemptions in the quarter as gross sales

slowed (attributed to secondary fund mark-up concerns) and some elevated

redemptions (on some profit taking). Fund performance is solid, albeit trails the

MSCI World. Mgmt shared that it is seeing fewer negative headlines on

solutions and less media concern into July 2026. Conversely, mgmt points to

the ongoing buildout of the sales force (6 new experienced hires in 1Q27, ~90%

turnover in last ~18mo), as a potential driver of resiliency in net flows, if not

a positive inflection in gross flows, in Evergreen products going forward

alongside greater scale and thus enhanced distribution (i.e wirehouses). We

also note that HLNE’s other Evergreen products continue to perform well and

are generally generating solid inflows.

Secondary fund off to strong start. Hamilton Lane reported the first close of

its seventh secondary fund in F1Q27, attracting ~$1.3bn in client

commitments.…