In its results for the 12 months to 30 June, the firm said assets under management (AUM) in the private equity division stood at $0.6 billion. Overall, AUM at HMC was $18.7 billion which was up 47 per cent on the prior corresponding period.
The unlisted HMC Capital Partners Fund I (HMCCP), which targets public and private companies with real asset backing to unlock “trapped” value through improved capital allocation and portfolio management, has reached its three-year performance benchmark, making it easier to secure research ratings and platform visibility, the firm said.
Group managing director and CEO David Di Pilla explained on the firm’s post-results webinar that HMC is now looking to expand fundraising for its private equity vehicle into wholesale platforms, having removed all previous barriers.
“The future growth opportunity there is to go to the direct investor market plus wholesale platforms,” Di Pilla said.
“One of the big gating items with wholesale platforms was the ratings and the three-year track record, both of those have been ticked so we are confident we will be in a strong position to continue fund flow there.
“Our focus is around driving great returns and great outcomes. We have a lot of great investors and we will consolidate and cash in on that in the back half of the year.”
In April, HMC announced it would launch a second closed-ended private equity vehicle known as HMC Capital Partners Fund II (HMCCP) – a more traditional private equity structure – but this has since been scrapped based on investor feedback.
“Previously announced restructuring of the fund as HMCCP II not proceeding following investor feedback regarding the appeal of the existing strategy and a preference for liquidity. [We] intend to focus fund investment and effort on our highest conviction names where we believe we can generate the greatest returns,” the firm said in the FY2024–25 results.
However, it said it continues to explore deal-specific co-investment opportunities to grow the private equity vertical in other ways beyond HMCCP.
Meanwhile, its private credit division was formed from the acquisition of Payton Capital in July 2024 which allowed HMC to establish a diversified private credit platform over the medium term covering real estate, corporate, mezzanine, and infrastructure private credit investment management.
AUM in the sector now stands at $1.9 billion driven by its commercial real estate (CRE) lending business.
Craig Schloeffel, head of private credit, said: “HMC Private Credit is emerging as a leading non-bank lender. Our assets under management grew by 25 per cent, driven by strong flows into the core funds which have doubled in size since we acquired Payton Capital.
“We are well-positioned to grow as Australian investor appetite remains strong and over the medium-term, we will scale several times over while maintaining disciplined credit quality.”
This growth in private credit AUM helped HMC to report an 84 per cent increase in management fees to $146.9 million, up from $79.7 million.
It currently has over 500 investors on the private credit platform which include financial advisers and high-net-worth investors and plans to expand into wholesale platforms.
Shares dive despite growth
Overall, HMC’s pre-tax operating earnings expanded 74 per cent on the year in FY24–25. However, despite this win, the firm’s indication that it expects weaker growth in FY25–26 sent its share price tumbling on Tuesday.
Namely, the firm said it was targeting pre-tax earnings of 40 cent per share, down from 56 per cent achieved in the 12 months to June 2025.
“FY25 was a landmark year for HMC Capital, with pre-tax operating EPS increasing by 51 per cent and assets under management reaching $18.7 billion,” Di Pilla said.
“This growth highlights the scalability of our business model and the strength of our diversified platform spanning real estate, private equity, private credit, digital infrastructure and energy transition. Each of these verticals is now generating meaningful earnings while also providing strong optionality for future expansion.”
Looking back at the 12 months to June, Di Pilla said the firm has focused on operationalising each of its verticals to ensure they are positioned for sustainable long-term growth.
“This has included building out leadership teams, strengthening governance frameworks, and investing in new talent and capabilities across digital infrastructure, energy transition, real estate and private credit.
“These initiatives ensure that each platform can scale independently while continuing to benefit from the shared resources, balance sheet strength and capital relationships of the broader HMC Group.”
