Hamilton Lane Secures $5B Guardian Partnership as UBS Cuts Price Target
UBS cut Hamilton Lane’s price target to $150 from $184 while maintaining a Buy rating, attributing the move to sector multiple compression. The firm reported FYTD GAAP EPS of $4.35, declared a $0.54 quarterly dividend, targeting $2.16 annually, and secured a partnership to oversee nearly $5 billion in private equity assets.
1. UBS Lowers Price Target
On February 20, UBS lowered Hamilton Lane’s price target to $150 from $184, maintaining a Buy rating and attributing the change to broad multiple compression across alternative asset managers rather than firm-specific issues.
2. Strong Fiscal Performance and Dividend
On February 3, Hamilton Lane reported fiscal year-to-date GAAP EPS of $4.35 and non-GAAP EPS of $4.41, and declared a $0.54 quarterly dividend, aiming for $2.16 annually, marking a 10% year-over-year dividend increase.
3. Guardian Partnership Expansion
The firm closed a partnership to oversee nearly $5 billion of Guardian’s private equity portfolio, securing approximately $500 million in annual commitments for at least a decade, including a minimum of $250 million directed to its Evergreen platform.
4. Enhanced Fee-Related Earnings Visibility
The partnership and durable dividend policy strengthen fee-related earnings visibility and position Hamilton Lane for long-term assets under management growth despite sector-wide valuation pressures.