HMC Capital - 1H FY24 Results
HMC Capital (ASX: HMC) today released its results for the half year ended 31 December 2023. The strong financial result demonstrates the operating leverage in HMC’s business, significant fund outperformance and strong fundraising momentum. In addition, HMC has today announced a new operating structure which reflects its more diversified business following three new growth initiatives being announced today.
Financial highlights:
• Operating EPS of 16.6 cents (+100% on the prior corresponding period)
• Net cash balance sheet with $1.2bn liquidity including liquid assets and debt capacity
Operational highlights:
• Funds under management (FUM) of $8.5bn (+37% on 1H FY23) and >$10bn including development pipeline and new growth initiatives
• Strong investment returns generated by unlisted funds
i) HMC Capital Partners Fund I (HMCCP): 24% IRR since inception
ii) Last Mile Logistics Fund I: 23% IRR since inception
iii) Unlisted Healthcare Fund: 15% IRR since inception
New growth initiatives:
• Established new Capital Solutions platform led by Robert Vanderzeil to manage strategic balance sheet investments
• Establishing new Energy Transition platform to be led by Angela Karl to capitalise on investment opportunity of a generation
• Acquiring North American Digital Infrastructure platform (StratCap) for US$28.5m to capitalise on rapidly growing and opportunity rich sector
HMC Managing Director and CEO, David Di Pilla, said “Our first half results are pleasing and reflect the growing momentum across our more diversified platform. I’m particularly proud of the strong performance HMC’s funds are delivering for our investors, which has been achieved in challenging market conditions. Our new divisional structure reflects our continued evolution into a more diversified and increasingly global business. We are incredibly excited about the growth potential we are now embedding into our platform and are confident that this platform can grow FUM well beyond $20bn over the next few years.”
HMC Capital is targeting operating EPS of no less than 33 cents in FY24 and reaffirmed its FY24 dividend guidance of 12 cents per share.
For additional information please refer to the 1H FY24 financial results presentation here or visit the investor centre.
