HL stock is undervalued relative to its strong financial performance (incentive fees, inflows), suggesting a disconnect between price and fundamentals.

I'm joined today by Eric Hirs. Eric is the CEO of Hamilton Lane. So, I want to start with uh a chart of Hamilton Lane's AUM.

six $6 billion in assets under management. To say nothing of assets under advisory, which puts you guys over a trillion dollars. But from 2005, you've grown from $6 billion in assets to around $146 billion 20 years later.

for the audience who doesn't know Hamilton Lane, a gigantic publicly traded alternative asset manager, who are you? What are you guys all about?

Hamilton Lane is what we think of as a private market solutions provider. So we are not a fund manager like a Blackstone or a KKR. We're really a provider of capital into firms like that and many many many others.

And so our client base is really any investor who's looking to access the private markets. So think of that as lots of institutional investors, pension funds, endowments, sovereign wealth funds, insurance companies, banks, etc. And then lots of individual investors.

The answer for the Hamilton Lane customers is that most of them are doing far fewer than 10 funds per year. So, one of the reasons why we exist is if we're going to see, you know, 1,500 funds this year that are in market trying to raise capital and we've got a customer that says, "Hey, my portfolio only requires six, the Hamilton Lane team needs to do a whole lot of work to take 1,500 to six."

And that's again back to kind of why we get to exist.

So when people are investing in the Hamilton Lane funds, I would imagine that they're outsourcing their diligence to you and they're getting comfortable with your team.

Correct. So we are the asset manager for them. So we have discretion over the assets and we're doing that work.

So Hamilton Lane's ability because of our size and scale and importance in the industry means that we do get to see all 30 companies and we do see the cap structure and we are able to talk to the other investors and we are able to look at the debt structure.

I mentioned that you have $146 billion of assets under management. There is a non-discretionary piece which takes you guys over a trillion dollars. Correct. What does that mean? What are you doing with those clients?

So for Hamilton Lane, we actually launched a semi-liquid credit product right in the eye of the uh headline hurricane that was seated by a pension fund.

In the last call earnings call, you guys reported that for the quarter ended of June, you generated nearly $640 million of net inflows across all strategies um and ended the period with over $19 billion of of AUM

we did not enact gates on any of our funds and we saw positive net inflow across 10 out of 12 funds. That is very impressive.

Daniel, try 12, you guys are killing it on the incentive fees. Uh, $175 uh million in incentive fees for fiscal year 2026 so far. I mean, it's up and to the right where you guys were in 2022.

It was a fraction of this. It was it was 54. I mean, nothing. And yet, your stock has almost been cut in half.

what are public equity investors missing? because they do not believe that either the story is sustainable, that the outflows will stop, that the alpha is there, whatever it is, they're calling BS. They don't like it.

I agree. So, I assume that you're excited as a somebody that likes to buy something at a at a discount. Yeah.

look, it it pisses me off. And what we're doing is we've been buying back stock. I've been personally buying.