Hamilton Lane Inc

Invesco reported second-quarter revenues of $1.33 billion, up 20.3% year on year and in line with analysts' expectations, as the 16 custody bank stocks tracked by the roundup collectively beat consensus revenue estimates by 3.2%. Invesco beat analysts' EBITDA estimates while assets under management came in line, and its stock is up 1% since reporting, trading at $30.43. Hamilton Lane posted the group's biggest estimate beat, with revenues of $275.3 million, up 56.5% year on year and 21% above expectations, though its shares are down 6.6% at $88.65. StepStone Group delivered the weakest performance against estimates, with revenues of $300.6 million, up 26.6% year on year but 3.9% below expectations, and its stock is down 11.1% at $44.72. SEI Investments reported revenues of $641.6 million, up 14.7% and 0.7% above expectations, with its stock up 5.7% at $104.35, while Ridgepost Capital posted revenues of $81.28 million, up 11.5% and 3.6% above expectations, though its shares are down 16.9% at $7.51. On average, custody bank share prices are down 3.8% since the latest earnings results.

Hamilton Lane reported first-quarter fiscal 2026 revenue of US$275.33 million and net income of US$80.46 million, with both basic and diluted earnings per share rising from the prior year. Alongside the earnings beat, the company affirmed a higher full-year dividend target of US$2.40 per share, an 11% increase, signaling management's confidence in returning more cash to shareholders. The results reinforce the firm's ability to generate resilient fee income from private markets, though the investment narrative remains tied to sustained client demand and the challenge of managing rising compliance and operational complexity as the business expands.

Hamilton Lane reported second-quarter fiscal 2026 revenue of $275.3 million, a 56.5% year-on-year increase that exceeded analyst estimates of $227.5 million by 21%. Adjusted earnings per share came in at $1.94, 22.2% above the consensus estimate of $1.59. Management fees totaled $161.4 million, and assets under management reached $146 billion, up 3.6% from the same quarter last year. Pre-tax profit was $150 million, representing a 54.5% margin. The stock was unchanged at $95.84 in immediate after-hours trading.

Revolut has introduced private market funds on its platform for eligible customers in Europe through collaboration with Apollo, Ares, Hamilton Lane and Partners Group. The offering gives individual investors access to assets across private equity, private credit and private infrastructure through fund structures intended for non-institutional investors. The funds are set up under the EU's ELTIF 2.0 regime and are evergreen with periodic liquidity windows. Revolut, which has 75 million customers globally, said the new product is aimed at experienced investors with a long-term investment horizon. Fund management and performance fees apply.

StockStory identifies Hamilton Lane and Ameriprise Financial as two financials stocks for long-term investors while recommending selling Credit Acceptance. Hamilton Lane, an investment management firm specializing in private markets, posted annual revenue growth of 17.3% over the last five years and earnings per share growth of 22.6% annually over the last two years. Ameriprise Financial, a provider of financial planning and wealth management, achieved annual earnings per share growth of 20.8% over five years and a return on equity of 65.2%. Credit Acceptance, an auto financing company for consumers with limited credit histories, saw flat earnings per share over the last two years despite revenue growth, and its 2.7% annual revenue growth over five years lagged the typical financials company.

Hamilton Lane, based in Conshohocken, currently pays a dividend of $0.60 per share, yielding 2.85%, which is above the S&P 500's 1.35% and slightly above the Financial - Investment Management industry average of 2.8%. The company's annualized dividend of $2.40 represents an 11.1% increase from last year, and over the past five years it has raised its dividend five times for an average annual increase of 11.96%. Its payout ratio stands at 37% of trailing twelve-month earnings per share. The Zacks Consensus Estimate for fiscal 2026 is $6.33 per share, implying year-over-year earnings growth of 7.29%. Shares have declined 37.25% year-to-date, and the stock carries a Zacks Rank of #2 (Buy).

Hamilton Lane announced the final close of its sixth direct equity fund, raising $3.8 billion in total commitments in and alongside the Hamilton Lane Equity Opportunities Fund VI. The fund, which surpassed the $2.1 billion raised by its predecessor, attracted a diverse group of global investors including public pensions, sovereign wealth funds, and family offices. EO VI targets diversified exposure to middle-market buyout opportunities through the firm's global Direct Equity platform, which manages over $22.2 billion in assets. The broader platform has generated more than $6 billion in distributions over the past two years and completed 787 discretionary direct equity investments since inception.

Hamilton Lane shares rose 4.4% after the alternative investment manager announced an expanded partnership with fintech firm iCapital to make its investment strategies more accessible to wealth managers globally. Several of Hamilton Lane's investment funds, spanning private equity, secondaries, infrastructure, and venture capital, will be available on the iCapital Marketplace. The move builds on an existing U.S. collaboration and supports Hamilton Lane's global wealth strategy by broadening its reach. The shares were trading at $78.29, up from the previous close.

St. Cloud Capital has made a growth capital investment in RCX Sports, the leading professional-league-backed youth sports platform in North America, as part of Brand Velocity Group's acquisition of the company. The investment comes from St. Cloud's fourth fund, which has committed capital of $236 million, and includes participation from Hamilton Lane's Impact platform. RCX Sports manages official licenses for the NFL Flag, MLS GO, Jr. NBA & Jr. WNBA Leagues, MLB Pitch, Hit & Run, and NHL STREET, among others. The company aims to use the capital to expand youth sports participation and keep programs affordable and accessible for families.

Gridline has announced a strategic partnership and technology integration with Hamilton Lane, enhancing its AI-powered diligence solution AltComply with a new benchmarking engine. Drawing on Hamilton Lane's extensive proprietary private markets data, the integration allows wealth managers, investment teams, and compliance organizations to benchmark fund managers against relevant peer groups and vintage-year cohorts, gain historical performance context, and support more informed due diligence decisions. The new capabilities are available to existing AltComply users, and firms interested in exploring the platform can request trial access. Gridline states that the integration saves firms an average of 10 hours per fund evaluated with AltComply.

StockStory identifies two cash-heavy stocks with exciting potential and one it finds risky. Hamilton Lane, with a net cash position of $24.69 million, is highlighted for its outstanding 17.3% annual revenue growth over five years and 22.6% annual earnings per share growth over the last two years. Nicolet Bankshares, holding a net cash position of $523.9 million, is noted for exceptional 21.9% annual net interest income growth over five years and a 65-basis-point increase in net interest margin over two years. In contrast, Lattice Semiconductor, despite a net cash position of $105.9 million, is flagged for a 9% annual revenue decline over two years and a 16.2-percentage-point drop in operating margin over five years.