Hamilton Lane surges after beating earnings, raising dividend
Private markets manager reaches $1 trillion in assets under management as institutional demand accelerates
Hamilton Lane shares climbed after the private markets investment manager reported stronger-than-expected fiscal third-quarter earnings and raised its dividend, underscoring accelerating institutional demand for alternative assets.
The Philadelphia-based company reported earnings per share of $1.55 for the quarter ended December 31, 2025, beating analyst estimates of $1.31 by nearly 18%. Revenue came in at $198.6 million, surpassing the consensus forecast of $195.5 million.
The standout performance came from fee-related earnings, which surged 42% year-over-year, while management fees increased 11% year-to-date. The growth reflects Hamilton Lane's success in converting client interest in private markets into recurring revenue streams.
"We are pleased to report another strong quarter, highlighted by robust growth in fee-related earnings and continued expansion across our business," the company said in its earnings announcement.
Hamilton Lane declared a quarterly dividend of $0.54 per share, payable April 6, representing a 10% increase in the full-year payout to $2.16. The dividend hike marks the company's continued commitment to returning capital to shareholders amid growing profitability.
A milestone achievement came in assets under management and supervision, which reached approximately $1 trillion as of December 31, 2025. Fee-earning assets under management grew 11% year-over-year to $79 billion, providing a more stable and predictable revenue base that investors increasingly value in the alternatives space.
The results arrive amid a broader shift in institutional allocation strategies. According to Hamilton Lane's 2026 Global Private Wealth Survey, 86% of private wealth professionals plan to increase their investments in private markets this year, driven by portfolio optimization objectives. The survey identified venture capital and growth, along with infrastructure, as the primary strategies attracting increased capital.
Hamilton Lane's performance reflects its positioning at the intersection of this institutional movement. The company's ability to scale its fee-earning platform while maintaining access to deal flow across private equity, credit, and real assets has become increasingly valuable as institutions seek to diversify beyond traditional public markets.
Analysts have responded positively to the company's trajectory, with Consensus price targets around $177.57, suggesting significant upside from current levels. Of the seven analysts covering the stock, five rate it a buy while two recommend holding, according to recent data.
The company's operating margins remain robust at 41.8% over the trailing twelve months, with return on equity of 33.8%. These metrics highlight Hamilton Lane's efficiency in generating profits from its asset management franchise, even as it invests in growth initiatives.
Looking ahead, Hamilton Lane faces both opportunities and challenges. The private markets boom that has fueled its growth shows signs of maturing, with some industry observers warning of increased competition and potential pressure on returns. However, the structural shift toward alternative allocations appears durable, particularly as large institutions seek yield in an environment where traditional fixed income offers limited returns.
The company's next catalyst will likely come from its ability to continue converting its $1 trillion in supervised assets into higher-margin fee-earning accounts. Management has previously indicated confidence in converting over half of its Evergreen assets into fee-earning status, which would provide additional revenue visibility.
Hamilton Lane's fiscal third-quarter results demonstrate the company's momentum in capturing the institutional flight to private markets. With dividend growth accelerating, fee-related earnings expanding at a double-digit pace, and assets under management crossing the trillion-dollar threshold, the alternatives manager appears well-positioned to benefit from one of the most significant shifts in institutional asset allocation in decades.