Hmc Capital Limited (HMC)

HMC Capital has demonstrated rapid growth since its 2019 listing, primarily driven by a significant increase in Funds Under Management (FUM) through strategic acquisitions and the successful scaling of its listed REITs. The company's earnings are composed of stable, recurring management fees from its A$7.6 billion FUM (as of early 2024) and potentially lucrative, albeit more volatile, performance fees. Recent performance has been underpinned by the defensive nature of its daily needs retail and healthcare property portfolios, which have shown resilience in a challenging macroeconomic environment.

The company's strategic direction is focused on scaling FUM towards its A$10 billion+ target by expanding into new 'megatrend' asset classes, including private credit and energy transition infrastructure. Future growth catalysts include the successful launch and capital raising for these new strategies, accretive acquisitions of other asset management platforms, and the potential crystallisation of significant performance fees from its established funds. HMC's ability to execute this expansion and navigate the higher interest rate environment will be critical to its continued success and valuation.