Hamilton Lane Incorporated (NASDAQ:HLNE) Q2 2024 Earnings Call Transcript

That would be a margin enhancer, particularly given the margin on this product. That said, I think management’s focus here continues to be on growth and investing in growth. To Mario’s point, new product expansion, continuing sort of building out of the sales force. So I think our focus today is not on can we increase margins further, it’s how can we continue to invest smartly in the business to make sure that we’re continuing to put up these significant growth numbers.

Evan Holeman: Great. That’s helpful. And then maybe just a quick follow-up on any color or visibility you guys have to additional wirehouses that the Evergreen product may be added to just as we think through kind of that dislocation in revenue and expenses, that would be great.

Erik Hirsch: Sure. I mean our focus — I mean, the team continues to build in the U.S. and outside the U.S. And our focus is just putting the product in as many locations as we think makes sense. We want to make sure you’re doing that in a way that not only are you adding on to those platforms, but in order to be successful, you have to actually support it once it’s there. There’s a tremendous need for education, customer support and the like. So I think we view this as really a marathon and the race is just getting started. So while we’re thrilled with the success that we’ve had and we’re thrilled that we’re already on some wirehouses, as you look forward, I think what you should expect to see is addition of more distribution partners and an addition of more product and a continued kind of reinvestment in our resources around all of those areas.

But again, I think from management’s perspective, we’re viewing this as this is a long road, which is exciting. That’s one of the big growth drivers we see as the future of the business, but this is all not going to be coming in tomorrow.

Operator: [Operator Instructions] Mr. Erik Hirsch, there are no further questions at this time. Please proceed.

Erik Hirsch: Again, thank you for the time. We know it was a very, very busy day for a number of you. So we appreciate the participation. And again, wish everyone well. Thank you.

Operator: Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may all disconnect.