Hamilton Lane INC

Previous wording

•Customized Separate Accounts: We design and build customized portfolios of private markets funds and direct investments to meet our clients’ specific portfolio objectives with regard to return, risk tolerance, diversification and liquidity. We generally have discretionary investment authority over our customized separate accounts, which comprised $101.0 billion of our assets under management (“AUM”) as of September 30, 2025.

Current wording

•Customized Separate Accounts: We design and build customized portfolios of private markets funds and direct investments to meet our clients’ specific portfolio objectives with regard to return, risk tolerance, diversification and liquidity. We generally have discretionary investment authority over our customized separate accounts, which comprised $98.1 billion of our assets under management (“AUM”) as of December 31, 2025.

Previous wording

•Specialized Funds: We organize, invest and manage commingled specialized primary, secondary and direct investment funds. Our specialized funds invest across a variety of private markets and include equity, equity-linked and credit funds offered on standard terms, as well as shorter duration, opportunistically oriented funds. We launched our first specialized fund in 1997. Since then, our product offerings have grown steadily and now include evergreen offerings that primarily invest in secondaries and direct investments in equity and credit and are available to certain high-net-worth individuals. Specialized funds comprised $44.4 billion of our AUM as of September 30, 2025.

Current wording

•Specialized Funds: We organize, invest and manage commingled specialized primary, secondary and direct investment funds. Our specialized funds invest across a variety of private markets and include equity, equity-linked and credit funds offered on standard terms, as well as shorter duration, opportunistically oriented funds. We launched our first specialized fund in 1997. Since then, our product offerings have grown steadily and now include evergreen offerings that primarily invest in secondaries and direct investments in equity and credit and are available to certain high-net-worth individuals. Specialized funds comprised $48.0 billion of our AUM as of December 31, 2025.

Previous wording

•Advisory Services: We offer non-discretionary investment advisory services to assist clients in developing and implementing their private markets investment programs. Our investment advisory services include asset allocation, strategic plan creation, development of investment policies and guidelines, the screening and recommending of investments, the monitoring of and reporting on investments and investment manager review and due diligence. Our advisory clients include some of the largest and most sophisticated private markets investors in the world. We had $859.8 billion of assets under advisement (“AUA”) as of September 30, 2025.

Current wording

•Advisory Services: We offer non-discretionary investment advisory services to assist clients in developing and implementing their private markets investment programs. Our investment advisory services include asset allocation, strategic plan creation, development of investment policies and guidelines, the screening and recommending of investments, the monitoring of and reporting on investments and investment manager review and due diligence. Our advisory clients include some of the largest and most sophisticated private markets investors in the world. We had $871.5 billion of assets under advisement (“AUA”) as of December 31, 2025.

Previous wording

On October 1, 2025, we amended our existing 2022 Multi-Draw Term Loan Agreement. The amendment included a decrease in the aggregate principal amount available to be borrowed, changed dates related to principal and interest payments and changed interest rates for borrowings to the greater of the prime rate minus 1.35% or 3.0%.

Current wording

On October 1, 2025, we amended our existing 2022 Multi-Draw Term Loan Agreement. The amendment included a decrease in the aggregate principal amount available to be borrowed from $75 million to $50 million, changed dates related to principal and interest payments and changed interest rates for borrowings to the greater of the prime rate minus 1.35% or 3.00%.

Previous wording

On November 2, 2025, we entered into into a long-term strategic partnership with The Guardian Life Insurance Company of America (“Guardian”). Through this partnership, we will manage Guardian’s existing nearly $5 billion private equity portfolio. Guardian will also commit to invest approximately $500 million per year in private equity for the next 10 years through us, which Guardian has confirmed would maintain Guardian's typical annual contribution to the asset class and support its general account target allocation goals. This will include $250 million in seed capital for our new evergreen initiatives. To support the partnership’s shared goals, Guardian will be granted, at closing, a warrant related to a maximum of 400,000 shares of our Class A common stock along with additional financial incentives. The warrant is subject to applicable exercise prices and vesting and forfeiture conditions, may be settled in cash or shares at our election, expires approximately 10 years after issuance, and includes customary anti‑dilution adjustments for stock splits, stock dividends and similar events. The transaction is expected to close, and the warrant is expected to be issued, at the end of the fourth calendar quarter of 2025, subject to customary closing conditions. For more information see Part II, Item 5 of this Form 10-Q, our press release dated November 3, 2025 filed as Exhibit 99.1 hereto, and the full text of the warrant filed as Exhibit 4.1 hereto.

Current wording

On November 2, 2025, we entered into a long-term strategic partnership with The Guardian Life Insurance Company of America (“Guardian”). Through this partnership, we will oversee Guardian’s existing nearly $5 billion private equity portfolio, and Guardian has also committed to invest approximately $500 million per year in private equity for the next 10 years through us. To support the partnership’s shared goals, Guardian was granted, at closing, a warrant related to a maximum of 400,000 shares of our Class A common stock (the “Warrant”) along with additional financial incentives. The Warrant is subject to applicable exercise prices and vesting and forfeiture conditions, may be settled in cash or shares at our election, expires approximately 10 years after issuance, and includes customary anti‑dilution adjustments for stock splits, stock dividends and similar events. The transaction closed, and the Warrant was issued, on December 31, 2025.

Previous wording

Revenues from specialized funds are based on a percentage of limited partners’ capital commitments to, net invested capital or net asset value (“NAV”) in, our specialized funds. The management fee during the investment period is often charged on capital commitments and after the investment period (or a defined anniversary of the fund’s initial closing) is typically reduced by a percentage of the management fee for the preceding year or charged on net invested capital or NAV. In the case of certain funds, we charge management fees on capital commitments, with the management fee increasing during the early years of the fund’s term and declining in the later years. Management fees for certain funds are discounted based on the amount of the limited partners’ commitments, whether the limited partners commit early in the offering period or if the limited partners are investors in our other funds.

Current wording

Revenues from specialized funds are based on a percentage of limited partners’ capital commitments to, net invested capital or net asset value (“NAV”) in, our specialized funds. The management fee during the investment period is often charged on capital commitments and after the investment period (or a defined anniversary of the fund’s initial closing) is typically reduced by a percentage of the management fee for the preceding year or charged on net invested capital or NAV. In the case of certain funds, we charge management fees on capital commitments, with the management fee increasing during the early years of the fund’s term and declining in the later years. Management fees for certain funds are discounted based on the amount of the limited partners’ commitments, whether the limited partners commit early in the offering period or if the limited partners are investors in our other funds. Revenues from specialized funds that charge management fees during their fundraising periods include retroactive fees. Retroactive fees are management fees earned from investors that commit to a specialized fund after the first close of the fund and are required to pay a catch-up management fee as if they had committed to the fund at the first closing.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the U.S. The OBBBA contains several provisions revising the U.S. federal corporate income tax by, among other things, extending many expiring provisions from the Tax Cuts and Jobs Act of 2017, modifying the international tax framework, and restoring favorable tax treatment for certain business provisions. The OBBBA legislation did not have a material impact on our consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States. The OBBBA contains several provisions revising the U.S. federal corporate income tax by, among other things, extending many expiring provisions from the Tax Cuts and Jobs Act of 2017, modifying the international tax framework, and restoring favorable tax treatment for certain business provisions. As of December 31, 2025, the OBBBA did not have a material impact on the Company’s income tax expense.

Previous wording

The following is a discussion of our consolidated results of operations for the three and six months ended September 30, 2025 and 2024. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.

Current wording

The following is a discussion of our consolidated results of operations for the three and nine months ended December 31, 2025 and 2024. This information is derived from our accompanying condensed consolidated financial statements prepared in accordance with GAAP.

Previous wording

Total revenues increased $36.7 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due to increases in both management and advisory fees and incentive fees.

Current wording

Total revenues increased $31.1 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due to increases in both management and advisory fees and incentive fees.

Previous wording

Management and advisory fees increased $22.3 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Specialized funds revenue increased $19.5 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due primarily to an increase of $16.4 million in revenue from our evergreen funds and increase of $2.1 million in revenue from our latest direct equity fund, which added $4.8 billion and $0.6 billion, respectively, in fee-earning AUM between periods. Revenue from our specialized funds for the three months ended September 30, 2025 included $0.7 million of retroactive fees from our latest direct equity fund. Retroactive fees are management fees earned from investors that commit to a specialized fund after the first close of the fund and are required to pay a catch-up management fee as if they had committed to the fund at the first closing in a prior period. Customized separate accounts revenue increased $1.0 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the addition of new accounts, additional allocations from existing accounts and continued investment activity. Reporting, monitoring, data and analytics revenue increased $1.5 million, due primarily to increased subscriptions of our technology solutions.

Current wording

Management and advisory fees increased $26.9 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. Specialized funds revenue increased $22.8 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to an increase of $17.9 million in revenue from our evergreen funds and increase of $4.4 million in revenue from our latest direct equity fund, which added $6.2 billion and $0.7 billion, respectively, in fee-earning AUM between periods. Revenue from our specialized funds for the three months ended December 31, 2025 included $2.8 million of retroactive fees from our latest direct equity fund. Customized separate accounts revenue increased $2.2 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 due to the addition of new accounts, additional allocations from existing accounts and continued investment activity. Reporting, monitoring, data and analytics revenue increased $2.2 million, due primarily to increased subscriptions of our technology solutions.

Previous wording

Incentive fees increased $4.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due to increased incentive fees from our specialized funds.

Current wording

Incentive fees increased $4.2 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to an increase in evergreen-related performance fees partially offset by proceeds realized on the sale of underlying investments in one of our specialized funds during the three months ended December 31, 2024.

Previous wording

Management and advisory fees increased $16.1 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024. Specialized funds revenue increased $12.5 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024, due primarily to an increase of $31.0 million in revenue from our evergreen funds and an increase of $3.8 million in revenue from our latest direct equity fund. Revenue from our specialized funds for the six months ended September 30, 2025 included $0.8 million of retroactive fees from our latest direct equity fund compared to $20.7 million from our latest secondary fund recognized during the six months ended September 30, 2024. Customized separate accounts revenue increased $2.1 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024 due to the addition of several new accounts, additional allocations from existing accounts, and continued investment activity. Reporting, monitoring, data and analytics revenue increased $2.9 million, due primarily to increased subscriptions of our technology solutions.

Current wording

Management and advisory fees increased $43.0 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. Specialized funds revenue increased $35.3 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024, due primarily to an increase of $50.0 million in revenue from our evergreen funds and an increase of $8.2 million in revenue from our latest direct equity fund, partially offset by $20.7 million of retroactive fees from our latest secondary fund recognized during the nine months ended December 31, 2024 compared to $2.4 million from our latest direct equity fund during the nine months ended December 31, 2025. Reporting, monitoring, data and analytics revenue increased $5.1 million, due primarily to increased subscriptions of our technology solutions. Customized separate accounts revenue increased $4.3 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024 due to the addition of several new accounts, additional allocations from existing accounts, and continued investment activity.

Previous wording

Total expenses increased $19.3 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024, due to increases in both compensation and benefits and general, administrative and other expenses.

Current wording

Total expenses increased $19.8 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due to increases in both compensation and benefits and general, administrative and other expenses.

Previous wording

Compensation and benefits expenses increased $21.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Base compensation and benefits increased $12.9 million for the three months ended September 30, 2025, due primarily to an increase in salary expense from additional headcount and an increase in our annual bonus plan accrual related to stronger operating performance compared to the prior year period. Equity-based compensation increased $7.7 million driven primarily by awards granted in the prior fiscal year ended March 31, 2025. Incentive fee compensation increased $1.3 million for the three months ended September 30, 2025 due to an increase in carried interest revenue compared to the prior year period.

Current wording

Compensation and benefits expenses increased $16.0 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. Base compensation and benefits increased $21.3 million for the three months ended December 31, 2025, due primarily to an increase in salary expense from additional headcount and an increase in our annual bonus plan accrual related to stronger operating performance compared to the prior year period. Equity-based compensation increased $1.2 million driven primarily by awards granted between December 31, 2024 and December 31, 2025. Incentive fee compensation decreased $6.4 million for the three months ended December 31, 2025 primarily due to a decrease in carried interest revenue compared to the prior year period.

Previous wording

General, administrative and other expenses increased $5.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change consisted primarily of a $1.3 million increase in fund reimbursement expense attributed to the timing of newly created funds, a $1.2 million increase in consulting and professional fees and a $0.8 million increase in third-party commissions primarily attributed to the increase in gross subscriptions to our evergreen funds.

Current wording

General, administrative and other expenses increased $3.7 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to an increase in consulting and professional fees.

Previous wording

Compensation and benefits expenses increased $13.0 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024. Base compensation and benefits increased $5.4 million, due primarily to an increase in salary expense from additional headcount and an increase in our annual bonus plan accrual related to stronger operating performance compared to the prior year period. Equity-based compensation increased $17.3 million for the six months ended September 30, 2025, driven primarily by awards granted in the prior fiscal year ended March 31, 2025. Incentive fee compensation decreased $9.6 million for the six months ended September 30, 2025 due to a decrease in carried interest revenue compared to the prior year period.

Current wording

Compensation and benefits expenses increased $29.1 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. Base compensation and benefits increased $26.6 million, due primarily to an increase in salary expense from additional headcount and an increase in our annual bonus plan accrual related to stronger operating performance compared to the prior year period. Equity-based compensation increased $18.5 million for the nine months ended December 31, 2025, driven primarily by awards granted in the prior fiscal year ended March 31, 2025. Incentive fee compensation decreased $16.1 million for the nine months ended December 31, 2025 due to a decrease in carried interest revenue compared to the prior year period.

Previous wording

General, administrative and other expenses increased $6.2 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024. This change consisted primarily of a $2.2 million increase in third-party commissions primarily attributed to the increase in gross subscriptions to our evergreen funds, a $1.5 million increase in consulting and professional fees and a $0.9 million increase in technology related expenses.

Current wording

General, administrative and other expenses increased $10.0 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. This change consisted primarily of a $5.3 million increase in consulting and professional fees, a $2.8 million increase in third-party commissions primarily attributed to the increase in gross subscriptions to our evergreen funds, and a $1.1 million increase in technology-related expenses.

Previous wording

Other income (expense) increased $12.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due primarily to an increase in equity in income of investees, partially offset by a decrease in non-operating gain, net.

Current wording

Other income (expense) increased $1.9 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to an increase in non-operating gain, net, partially offset by a decrease in equity income of investees.

Previous wording

Equity in income of investees increased $13.7 million due primarily to larger increases in investment valuations during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Current wording

Equity in income of investees decreased $0.3 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 due primarily to smaller increases in investment valuations.

Previous wording

Other income (expense) increased $6.2 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024, due primarily to an increase in equity in income of investees, partially offset by a decrease in non-operating gain, net.

Current wording

Other income (expense) increased $8.1 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024, due primarily to an increase in equity in income of investees, partially offset by a decrease in non-operating gain, net.

Previous wording

Equity in income of investees increased $15.7 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024, due primarily to larger increases in investment valuations during the six months ended September 30, 2025 compared to the six months ended September 30, 2024.

Current wording

Equity in income of investees increased $15.4 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024, due primarily to larger increases in investment valuations.

Previous wording

Non-operating gain, net decreased $10.8 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024, due primarily to the recognition of gains on our technology investment during the six months ended September 30, 2024 that did not recur during the six months ended September 30, 2025.

Current wording

Non-operating gain, net decreased $8.6 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024, due primarily to a decrease in our liability under the tax receivable agreement, offset by gains on our technology investments during the nine months ended December 31, 2024.

Previous wording

Other income (expense) of Consolidated Funds and Partnerships increased $15.6 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due primarily to increased investment activity of Funds consolidated between periods.

Current wording

Other income (expense) of Consolidated Funds and Partnerships increased $17.7 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to increased investment activity of Funds consolidated between periods.

Previous wording

Other income (expense) of Consolidated Funds and Partnerships increased $23.1 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024 due primarily to increased investment activity of Funds consolidated between periods.

Current wording

Other income (expense) of Consolidated Funds and Partnerships increased $40.8 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024, due primarily to increased investment activity of Funds consolidated between periods.

Previous wording

Our effective tax rate was 11.9% and 1.5% for the three months ended September 30, 2025 and 2024, respectively, and 15.2% and 11.3% for the six months ended September 30, 2025 and 2024, respectively. These rates were different from the statutory tax rates due to the portion of income allocated to NCI, a change in valuation allowance recorded against deferred tax assets and discrete tax adjustments to true-up prior fiscal year estimated investment taxable income to actual investment taxable income reported to us after the prior fiscal year end. The effective tax rates for the three and six months ended September 30, 2025 were higher than the effective tax rates for the three and six months ended September 30, 2024 due primarily to less discrete tax adjustments recorded at September 30, 2025.

Current wording

Our effective tax rate was 22.7% and 14.1% for the three months ended December 31, 2025 and 2024, respectively, and 17.9% and 12.3% for the nine months ended December 31, 2025 and 2024, respectively. These rates were different from the statutory tax rates due to the portion of income allocated to NCI, change in valuation allowance recorded against deferred tax assets and discrete tax adjustments to true-up prior fiscal year estimated investment taxable income to actual investment taxable income reported to us after the prior fiscal year end. The effective tax rates for the three and nine months ended December 31, 2025 were higher than the effective tax rates for the three and nine months ended December 31, 2024 due primarily to an increase in valuation allowances against deferred tax assets recorded at December 31, 2025.

Previous wording

Net income attributable to NCI increased by $11.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due primarily to an increase in overall net income.

Current wording

Net income attributable to NCI increased by $9.9 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to an increase in overall net income during the period.

Previous wording

Net income attributable to NCI in consolidated Funds increased $6.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due primarily to gains on investments held by Funds consolidated between periods and increased subscriptions in consolidated Funds by NCI holders.

Current wording

Net income attributable to NCI in consolidated Funds increased $9.6 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The increase was due primarily to gains on investments held by Funds consolidated between periods and increased NCI ownership driven by increased subscriptions in the consolidated Funds by NCI holders.

Previous wording

Net income attributable to NCI in Hamilton Lane Advisors, L.L.C. increased $5.5 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due primarily to an overall increase in net-income, partially offset by a decrease in NCI holders’ economic ownership percentage of Hamilton Lane Advisors, L.L.C. between periods.

Current wording

Net income attributable to NCI in Hamilton Lane Advisors, L.L.C. remained mostly unchanged for the three months ended December 31, 2025 compared to the three months ended December 31, 2024, due primarily to a decrease in NCI holders’ economic ownership percentage of Hamilton Lane Advisors, L.L.C. between periods, partially offset by an overall increase in net income.

Previous wording

Net income attributable to NCI increased by $7.0 million for the six months ended September 30, 2025, compared to the six months ended September 30, 2024, due primarily to an increase in overall net income.

Current wording

Net income attributable to NCI increased by $16.9 million for the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024, due primarily to an increase in overall net income during the period.

Previous wording

Net income attributable to NCI in consolidated Funds increased by $7.8 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024. The increase was due primarily to gains on investments held by Funds consolidated between periods and increased subscriptions in consolidated Funds by NCI holders.

Current wording

Net income attributable to NCI in consolidated Funds increased by $17.4 million for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024. The increase was due primarily to gains on investments held by Funds consolidated between periods and increased NCI ownership driven by increased subscriptions in the consolidated Funds by NCI holders.

Previous wording

Net income attributable to NCI in Hamilton Lane Advisors, L.L.C. decreased by $0.4 million for the six months ended September 30, 2025 compared to the six months ended September 30, 2024 due primarily to a decrease in NCI holders’ economic ownership percentage of Hamilton Lane Advisors, L.L.C. during the period, partially offset by an overall increase in net income.

Current wording

Net income attributable to NCI in Hamilton Lane Advisors, L.L.C. remained mostly unchanged for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024, due primarily to a decrease in NCI holders’ economic ownership percentage of Hamilton Lane Advisors, L.L.C. during the period, partially offset by an overall increase in net income.

Previous wording

Fee-earning AUM increased $2.0 billion during the three months ended September 30, 2025, due primarily to contributions from customized separate accounts and specialized funds.

Current wording

Fee-earning AUM increased $2.7 billion during the three months ended December 31, 2025, due primarily to contributions from customized separate accounts and specialized funds.

Previous wording

Customized separate accounts fee-earning AUM increased $0.5 billion for the three months ended September 30, 2025. Customized separate accounts contributions were $1.1 billion for the three months ended September 30, 2025, due to the addition of new accounts, additional allocations from existing accounts and continued investment activity. Distributions were $0.8 billion for the three months ended September 30, 2025, due primarily to $0.5 billion from returns of capital in accounts earning fees on a net invested capital or NAV fee base and $0.3 billion from accounts reaching the end of their fund term.

Current wording

Customized separate accounts fee-earning AUM increased $0.3 billion for the three months ended December 31, 2025. Customized separate accounts contributions were $1.3 billion for the three months ended December 31, 2025, due to the addition of new accounts, additional allocations from existing accounts and continued investment activity. Distributions were $1.1 billion for the three months ended December 31, 2025, due primarily to $0.6 billion from returns of capital in accounts earning fees on a net invested capital or NAV fee base, $0.3 billion from accounts moving from a committed to net invested capital fee base, and $0.2 billion from accounts reaching the end of their fund term.

Previous wording

Specialized funds fee-earning AUM increased $1.5 billion for the three months ended September 30, 2025. Specialized fund contributions were $1.8 billion for the three months ended September 30, 2025, due primarily to $1.3 billion from our evergreen funds. Distributions were $0.6 billion for the three months ended September 30, 2025, due primarily to $0.4 billion from accounts reaching the end of their fund term and $0.2 billion from returns of capital in accounts earning fees on a net invested capital or NAV fee base.

Current wording

Specialized funds fee-earning AUM increased $2.4 billion for the three months ended December 31, 2025. Specialized fund contributions were $2.7 billion for the three months ended December 31, 2025, due primarily to $2.0 billion from our evergreen funds. Distributions were $0.8 billion for the three months ended December 31, 2025, due primarily to $0.7 billion from returns of capital and redemptions in funds earning fees on a net invested capital or NAV fee base.

Previous wording

Fee-earning AUM increased $4.4 billion during the six months ended September 30, 2025, due primarily to contributions from customized separate accounts and specialized funds.

Current wording

Fee-earning AUM increased $7.1 billion during the nine months ended December 31, 2025, due primarily to contributions from customized separate accounts and specialized funds.

Previous wording

Customized separate accounts fee-earning AUM increased $1.5 billion for the six months ended September 30, 2025. Customized separate accounts contributions were $2.9 billion for the six months ended September 30, 2025, due to the addition of new accounts, additional allocations from existing accounts and continued investment activity. Distributions were $1.8 billion for the six months ended September 30, 2025, due primarily to $0.9 billion from returns of capital in accounts earning fees on a net invested capital or NAV fee base, $0.5 billion from accounts reaching the end of their fund term, and $0.4 billion from accounts moving from a committed to net invested capital fee base.

Current wording

Customized separate accounts fee-earning AUM increased $1.7 billion for the nine months ended December 31, 2025. Customized separate accounts contributions were $4.3 billion for the nine months ended December 31, 2025, due to the addition of new accounts, additional allocations from existing accounts and continued investment activity. Distributions were $2.9 billion for the nine months ended December 31, 2025, due primarily to $1.5 billion from returns of capital in accounts earning fees on a net invested capital or NAV fee base, $0.7 billion from accounts moving from a committed to net invested capital fee base and $0.7 billion from accounts reaching the end of their fund term.

Previous wording

Specialized funds fee-earning AUM increased $2.9 billion for the six months ended September 30, 2025. Specialized fund contributions were $3.4 billion for the six months ended September 30, 2025, due primarily to $2.6 billion from our evergreen funds. Distributions were $1.2 billion for the six months ended September 30, 2025 due primarily to $1.0 billion from returns of capital and redemptions in funds earning fees on a net invested capital or NAV fee base and $0.3 billion from accounts reaching the end of their fund term.

Current wording

Specialized funds fee-earning AUM increased $5.4 billion for the nine months ended December 31, 2025. Specialized fund contributions were $6.1 billion for the nine months ended December 31, 2025, due primarily to $4.6 billion from our evergreen funds. Distributions were $2.0 billion for the nine months ended December 31, 2025 due primarily to $1.6 billion from returns of capital and redemptions in funds earning fees on a net invested capital or NAV fee base and $0.4 billion from accounts reaching the end of their fund term.

Previous wording

The following table shows a reconciliation of net income attributable to Hamilton Lane Incorporated to FRE and Adjusted EBITDA for the three and six months ended September 30, 2025 and 2024:

Current wording

The following table shows a reconciliation of net income attributable to Hamilton Lane Incorporated to FRE and Adjusted EBITDA for the three and nine months ended December 31, 2025 and 2024:

Previous wording

Non-GAAP earnings per share (“EPS”) measures our per-share earnings excluding certain significant items that we believe are not indicative of our core performance and assuming all Class B and Class C units in HLA were exchanged for Class A common stock in HLI. Non-GAAP EPS is calculated as adjusted net income divided by adjusted shares outstanding. Adjusted net income is income before taxes fully taxed at our estimated statutory tax rate and excludes any impact of changes in carrying amount of our redeemable NCI. Adjusted shares outstanding for the three and six months ended September 30, 2025 and 2024 are equal to weighted-average shares of Class A common stock outstanding - diluted. We believe adjusted net income and non-GAAP EPS are useful to investors because they enable them to better evaluate total and per-share operating performance across reporting periods.

Current wording

Non-GAAP earnings per share (“EPS”) measures our per-share earnings excluding certain significant items that we believe are not indicative of our core performance and assuming all Class B and Class C units in HLA were exchanged for Class A common stock in HLI. Non-GAAP EPS is calculated as adjusted net income divided by adjusted shares outstanding. Adjusted net income is income before taxes fully taxed at our estimated statutory tax rate and excludes any impact of changes in carrying amount of our redeemable NCI. Adjusted shares outstanding for the three and nine months ended December 31, 2025 and 2024 are equal to weighted-average shares of Class A common stock outstanding - diluted. We believe adjusted net income and non-GAAP EPS are useful to investors because they enable them to better evaluate total and per-share operating performance across reporting periods.

Previous wording

The following table shows a reconciliation of adjusted net income to net income attributable to Hamilton Lane Incorporated for the three and six months ended September 30, 2025 and 2024:

Current wording

The following table shows a reconciliation of adjusted net income to net income attributable to Hamilton Lane Incorporated for the three and nine months ended December 31, 2025 and 2024: