HMC Capital AUM rises 45%, thanks to real estate flows
Alternative asset manager HMC Capital has reported a 45 per cent rise in assets under management (AUM) in the first half of FY25, and how its private credit division is performing following the acquisition of Payton Capital.
Announcing its results for the six months to 31 December, the firm said the period had been defined by strong growth in its AUM which rose by 45 per cent to $18.5 billion. The largest of these was $9.8 billion in its real estate, followed by $5 billion in digital infrastructure.
The firm previously stated that it is looking to target $50 billion in AUM over the next three to five years, underpinned by a diversified business model with multiple growth drivers.
Revenue was $272.3 million and management fees were $126.5 million, while statutory profit after tax was $166.9 million.
In private credit, which was formed from the acquisition of Payton Capital last year, it said it had seen 14 per cent growth in assets under management to $1.8 billion driven by its corporate real estate lending business. It is also considering the potential to launch an ASX-listed vehicle in the said space in due course.
“HMC remains focused on core growth areas including mid-market residential and industrial where credit quality remains highest. Corporate and asset-based finance private credit investment now established,” it said.
HMC managing director and chief executive, David Di Pilla, said: “HMC has made a strong start to FY25 with the group delivering another record financial result supported by a significant profit contribution from our private equity division and growth in recurring funds management income. AUM increased by 45 per cent which is a testament to our ability to execute large-scale and complex transactions in sectors attracting strong demand from investors both in Australia and globally.
“We are well-positioned moving into the second half of the financial year, with strong momentum in each of our growth platforms.”
Speaking on a webinar following the results, Di Pilla expanded on the developments since the acquisition of Payton Capital last July.
“We intend to stay focused on the core of the residential mid-market real estate sector. We will potentially have the potential to increase ticket size over time to give us AUM velocity and expose us to better quality borrowers and counterparties.
“The changes we’ve made to the business include: we’ve fully integrated Payton into our risk management framework, we’ve redeveloped the investment committee process, we’ve hired a head of credit from a domestic Aussie trading bank, and the legal and compliance function has been materially upgraded.”
The firm declared an interim dividend of 6 cents per share, 100 per cent franked.
AUTHOR
Laura Dew
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