Hamilton Lane's shares opened for trading at $17.85 on Wednesday – 11.5 percent higher than the $16 share price initially set – and ended the day at $18.02, 12.6 percent up.
The firm began trading on Wednesday on the Nasdaq Global Select Market, issuing 11.87 million Class A common shares and raising a total of $190 million.
After deducting underwriting discounts and commissions, the net proceeds from the initial public offering will be about $176.7 million, or about $203 million if the underwriters exercise their option to purchase additional shares.
The firm said in the offering prospectus filed on Wednesday with the Securities and Exchange Commission that it will use at least $133.5 million to repay a term loan and about $6 million to pay expenses incurred in connection with the IPO as well as for general corporate purposes. Some of the proceeds will also be used to buy shares from existing owners.
Pennsylvania-based Hamilton Lane offers customised separate accounts, specialised funds, advisory services, distribution management services, and data and analytics services for reporting monitoring. It had about $57 million in net income on about $180 million in revenue in the year ended 31 March.
Hamilton Lane has about $40 billion of assets under management and about $274 billion of assets under advisement. It has 280 employees, including more than 90 investment professionals operating 11 offices.
Its client and investor base included more than 350 institutions and intermediaries as of 30 September.
Prior to the IPO, Hamilton Lane was owned by an investor group, members of management and current and former employees. Mario Giannini has been chief executive since 2001.
JPMorgan and Morgan Stanley acted as underwriters for the offering.