IPO of the Week: Hamilton Lane

Josef Schuster
Dr. Josef Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. The IPOX methodology is implemented in an IPO and spin-off strategy at Catalyst Funds. Before founding IPOX, Dr. Schuster pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.

Company Description

Hamilton Lane, Inc.

Incorporated in 2007, Hamilton Lane Inc. is an affiliate of Hamilton Lane Advisors (HLA), an independent alternative investment management firm specializes in the private markets investing founded in Philadelphia in 1991. The company has approximately $64 billion of asset under management (AUM) and $409 billion of asset under advisement (AUA) as of date.

Business Model

Hamilton Lane generates revenues primary from a) management fees from specialized funds and customized separate account based on a contractual rate applied to AUM, b) advisory fees from services such as advisory, monitoring and reporting provided on investment portfolios and c) incentive fees such as carried interest earned and performance fees earned.

IPO History

On 03/01/2017, Hamilton Lane listed on NASDAQ led by J.P. Morgan and Morgan Stanley. The IPO was priced at $16.00 per share, the mid-range. With a full subscription of 11 ,875,000 Class A common stocks offered and an additional 15% over-allotment option fully exercised, Hamilton Lane was valued at approximately $750 million at offer. The stock opened at $17.85/share and closed the first day higher at $18.02.

Historical Performance

Growth Outlook

Industry Comparison

Company

Stock

Symbol

IPO/Spin-off

Date

Initial
Return

Offer to Date

2019

YTD

Beta to S&P

EPS

2018

Revenue

(in million)

 Cash Dividend per share

P/E ratio

Hamilton Lane

HLNE US

3/1/2017

12.63%

268.14%

52.85%

0.80

$1.41

252.43

0.85

26.5x

KKR

KKR US

7/15/2010

-2.86%

286.97%

28.98%

1.38

$2.14

5,222.35

0.59

9.5x

APOLLO

APO US

3/30/2011

-4.21%

291.98%

48.93%

1.18

-$0.30

1,025.09

1.93

27.2x