HMC Capital, an alternative asset manager, has announced a 45% increase in its assets under management (AUM) for the first half of FY25, bolstered by strong growth in its real estate and private credit divisions.
The company’s AUM surged to $18.5 billion for the six months ending 31 December 2024, with its real estate segment accounting for the largest share at $9.8 billion. The digital infrastructure segment followed with $5 billion. These results reflect HMC’s ongoing expansion, as the firm aims to achieve $50 billion in AUM within the next three to five years, supported by its diversified business model and multiple growth drivers.
For the same period, HMC reported revenue of $272.3 million, with management fees totaling $126.5 million. The firm’s statutory profit after tax stood at $166.9 million.
In the private credit space, which was significantly bolstered by the acquisition of Payton Capital last year, HMC saw a 14% increase in AUM, reaching $1.8 billion. This growth was primarily driven by the company’s corporate real estate lending business. The firm is also exploring the possibility of launching an ASX-listed vehicle in the private credit sector in the near future.
“HMC is focused on key growth areas, particularly mid-market residential and industrial sectors, where credit quality remains strong,” the company stated. “Corporate and asset-based finance private credit investments are now well established.”
David Di Pilla, Managing Director and CEO of HMC, commented on the firm’s performance: “HMC has made a strong start to FY25, delivering another record financial result, supported by significant contributions from our private equity division and growth in recurring funds management income. The 45% increase in AUM demonstrates our ability to execute large-scale, complex transactions in sectors that attract strong investor demand, both in Australia and globally.”
He added, “We are well-positioned for the second half of the financial year, with robust momentum in each of our growth platforms.”
In a webinar following the results announcement, Di Pilla discussed developments since HMC’s acquisition of Payton Capital last July. “We remain focused on the residential mid-market real estate sector and may look to increase ticket size over time to drive AUM velocity and access better quality borrowers,” he explained.
He also highlighted key operational changes within the business, including the integration of Payton Capital into the company’s risk management framework, a redevelopment of the investment committee process, and the appointment of a new head of credit with experience from a major Australian trading bank. Additionally, HMC has upgraded its legal and compliance functions.
In line with its strong performance, HMC declared an interim dividend of 6 cents per share, fully franked.
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