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HMC Capital Ltd

HMC Capital Ltd

ASX:HMC

Financials

Fund Manager Summary

The fund managers believe that HMC Capital Ltd presents a promising outlook for investors, particularly given its position as a capital light alternative asset manager in the early stages of growth. With $12.6bn of funds under management, HMC has established capabilities across four key verticals: Real Estate ($9.6bn), Private Credit ($1.6bn), Digital Infrastructure ($0.7bn), and Private Equity ($0.8bn), alongside a developing Renewables platform set to launch in FY25. The fund managers note that these verticals are supported by positive long-term trends and significant scalability potential. In their opinion, the combination of a founder-led management team with substantial ownership and a proven track record positions HMC to potentially grow into a $50bn+ alternative asset manager over the medium term, thus offering compelling risk-adjusted value.

Source: Trading View

Commentary From The Managers

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Antares Capital

30 Sept 2025

$3.18

Summary

  • Antares Capital exited their investment in HMC during the month.
  • A small leeway was allowed post results meeting to assess progress.
  • Focus was on stalled processes regarding healthcare real estate investment trust.
  • Also considered the disposal of its renewable energy business.
  • Neither of these initiatives have progressed as expected.
  • Antares Capital believes there are better uses of the capital.
  • They also see a need for a better allocation within the portfolio.

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Commentary From The Managers

Antares Capital

30 Sept 2025

$3.18

  • Antares Capital exited their investment in HMC during the month.
  • A small leeway was allowed post results meeting to assess progress.
  • Focus was on stalled processes regarding healthcare real estate investment trust.
  • Also considered the disposal of its renewable energy business.
  • Neither of these initiatives have progressed as expected.
  • Antares Capital believes there are better uses of the capital.
  • They also see a need for a better allocation within the portfolio.

Summary

Firetrail Investments

30 Sept 2025

$3.18

  • Firetrail Investments notes that asset manager HMC underperformed the market in September.
  • HMC's HealthCo REIT announced a one-month extension of its partial rent deferral agreement with Healthscope.
  • Firetrail Investments views this update as immaterial.
  • Firetrail Investments continues to be attracted to HMC's diversified alternative asset management business.
  • Firetrail Investments highlights HMC's compelling valuation as a key factor in their investment thesis.

Summary

Ellerston Capital

30 Sept 2025

$3.18

  • HMC Capital Ltd. has experienced a significant decline in share price, falling from a peak of $12.54/share in late November 2024.
  • The decline followed successful transactions, including the Sigma Healthcare/Chemist Warehouse deal and the Digico Infrastructure REIT (DGT) IPO.
  • HMC holds approximately 20% of DGT, which is now trading 47% below its issue price of $5.00.
  • The broader performance of HMC's listed entities has been underwhelming, contributing to the de-rating.
  • HMC's share price has collapsed by 75%, currently sitting at $3.18/share.
  • The stock remains friendless, with no specific news explaining its 17% fall this month.
  • Ellerston Capital continues to hold its position in HMC, reflecting a long-term investment perspective despite recent challenges.

Summary

Seneca Financial Solutions

30 Sept 2025

$3.18

  • Seneca Financial Solutions has initiated a position in HMC Capital (HMC) despite a 20% decline in share price.
  • The fund manager views insider buying as a positive indicator of confidence in the company.
  • Quality management is highlighted as a key strength of HMC Capital.
  • Seneca believes in a relatively simple turnaround strategy that could benefit investors.
  • The market remains skeptical about HMC's balance sheet and its ability to raise funds for growth.
  • Seneca Financial Solutions sees potential for significant valuation increases compared to the current share price.

Summary

Antares Capital

30 June 2025

$5.10

  • Antares Capital sold their investment in HMC Capital (HMC) due to growing concerns about risks related to its $950 million acquisition of Neon Australia’s Victorian assets.
  • The acquisition was intended to seed HMC’s energy transition portfolio, a key component of its growth ambitions.
  • It became apparent that HMC was struggling to secure capital partners for the purchase, leading to increased reliance on debt.
  • This reliance on debt eliminated HMC’s ability to generate management fees on the transaction.
  • There was a significant risk that HMC would be forced to divest the acquired assets, jeopardizing future earnings growth.
  • HMC’s listed vehicles, HealthCo (HCW) and DigiCo (DGT), have materially underperformed, impacting overall investor confidence.
  • HCW has dropped around 30% in the past year due to issues with Healthscope, while DGT is trading about 35% below its December 2024 IPO price.
  • The poor performance raised serious questions about HMC’s future capacity to raise capital through public vehicles.
  • Given these material risks and uncertainties regarding strategy and capital raising, Antares Capital chose to reallocate capital to opportunities with better risk-adjusted returns.

Summary

Clime Investment Management

31 May 2025

$4.85

  • Clime Investment Management sold their investment in HMC, an Australian alternative funds manager.
  • The decision followed developments in capital markets and an earnings update from HMC during their May investor day.
  • Clime revised their outlook for HMC's value creation potential in digital infrastructure and renewable energy.
  • This review led to the difficult decision to exit their small holding in HMC.

Summary

Clime Investment Management

30 Apr 2025

$4.86

  • HMC was a detractor over the month.
  • Clime Investment Management notes the company hosted an investor day.
  • Investor day showcased strong management credentials and attractive strategy.
  • Concerns arose regarding the need to raise equity for recent investments in the renewable energy sector.

Summary

Smallco Investment Manager

31 Mar 2025

$6.23

  • HMC’s operating earnings have more than tripled.
  • The stock price has fallen 36% due to concerns about HMC’s growth outlook.
  • The decline is linked to ongoing issues with two HMC-listed vehicles, DGT and HCW.
  • These issues may take time to resolve.
  • Despite challenges, HMC has growth opportunities in multiple areas.
  • It is crucial for HMC to demonstrate its ability to source institutional capital to fund these growth opportunities.
  • Public markets are currently less receptive to new capital initiatives.
  • Smallco Investment Manager continues to hold because of the potential growth despite current challenges.

Summary

Cooper Investors

31 Mar 2025

$6.23

  • Cooper Investors notes a sharp pullback in HMC Capital (HMC) due to negative market sentiment.
  • Key concerns include HMC's exposure to data centres, particularly through a 19% ownership of DigiCo Infrastructure REIT.
  • Sector struggles are linked to fears that DeepSeek may significantly reduce demand.
  • HMC also has a 23% exposure to Healthscope via HealthCo Healthcare & Wellness REIT (HCW), which is facing pressures.
  • Despite recent challenges, Cooper Investors sees long-term potential in HMC, drawing parallels with Macquarie and Blackstone, two successful alternative asset managers.
  • The investment thesis for HMC, outlined in previous communications, remains intact and Cooper Investors continues to hold the position.

Summary

Clime Investment Management

31 Mar 2025

$6.23

  • HMC Capital was a detractor to performance over the month.
  • Stock faced aggressive sell-down due to concerns over growth in funds under management (FUM).
  • Negative sentiment surrounding private credit and digital infrastructure asset classes impacted performance.
  • Publicly listed stocks HCW and DGT created by HMC are unlikely to grow due to depressed share prices.
  • The majority of HMC's FUM and reputation as an alternative fund manager is tied to unlisted funds.
  • Clime Investment Management continues to hold due to the strength of HMC's unlisted funds.

Summary

Smallco Investment Manager

31 Dec 2024

$9.86

  • Smallco Investment Manager highlights HMC Capital (HMC) as a key stock driving performance in 2024.
  • HMC, listed in 2019, transitioned from an internally managed property group to a diversified real assets manager.
  • The company now operates across real estate, private equity, digital infrastructure, private credit, and energy transition sectors.
  • Initial investment by Smallco Investment Manager occurred in April 2023 at a price of $3.50, with HMC’s assets under management (AUM) at approximately $6bn.
  • In under two years, HMC’s AUM has surged to about $16bn and the share price has nearly tripled.
  • HMC aims for ambitious growth, targeting $50bn+ in AUM in the coming years.
  • The firm’s success hinges on its ability to identify growth sectors and raise capital effectively.
  • Future share price performance is expected to remain strong if HMC approaches its AUM target.
  • However, the capacity to raise funds rapidly will depend on the performance of the funds managed by HMC.
  • The recent market response to the DigiCo REIT listing illustrates potential risks to HMC’s funding model.

Summary

Cooper Investors

31 Dec 2024

$9.86

  • Cooper Investors continues to build on the portfolio's position in capital-light alternative asset manager HMC Capital (HMC).
  • HMC was founded by ex-UBS investment banker David Di Pilla, successfully acquiring the Masters Property portfolio in 2016.
  • This acquisition returned a >6x multiple on invested capital, underpinning the IPO of HMC in 2019.
  • HMC has grown to manage approximately $17.5bn in assets under management (AUM).
  • Established platforms operate in four key verticals: Real Estate (~$10bn), Private Credit (~$2bn), Digital Infrastructure (~$5bn), and Private Equity (~$1bn).
  • A fifth vertical, Energy Transition, is in development with a second seed asset acquisition agreement signed.
  • The verticals are in end markets supported by positive long-term trends and scalable growth opportunities.
  • HMC's current trajectory is likened to that of Macquarie and Blackstone 25 years ago, both of which have scaled tremendously.
  • HMC's current stage is comparable to Macquarie and Blackstone when they had ~$20bn in AUM.
  • The investment proposition is backed by the potential for HMC to grow from $17.5bn AUM to $50bn over the next 3-5 years.
  • This growth could yield significant upside to the current $10ps share price.
  • The pathway to $50bn AUM includes: growth in real estate, private credit expansion, digital infrastructure development, and execution of the energy transition platform.
  • The management team is founder-led with significant ownership and a strong track record.

Summary

Wilson Asset Management

31 Oct 2024

$10.17

  • HMC Capital completed a $300 million institutional capital raise.
  • The funds will be used for the $1.9 billion purchase of Global Switch Australia, a Sydney data centre owner.
  • This acquisition will serve as a seed asset for HMC's new Global DigiCo Platform.
  • There is strong demand from investors for high-quality digital infrastructure assets, leading to an oversubscribed placement.
  • Global Switch presents significant growth opportunities with a large-scale development pipeline.
  • This acquisition is expected to provide solid exposure to the burgeoning data centre market.
  • HMC Capital’s management is exploring further data centre opportunities in the US.
  • These acquisitions are anticipated to drive earnings and valuation growth in the coming years.

Summary

Cooper Investors

30 Sept 2024

$8.20

  • Cooper Investors recently added HMC Capital (HMC) to the portfolio.
  • HMC is a capital light alternative asset manager at an early stage in their growth journey.
  • HMC currently manages $12.6bn in funds across four key verticals:
    • Real Estate: $9.6bn
    • Private Credit: $1.6bn
    • Digital Infrastructure: $0.7bn
    • Private Equity: $0.8bn
  • A fifth vertical, a Renewables platform, is under development and targets a launch during FY25.
  • The verticals operate in end markets supported by positive long-term trends with significant scalability.
  • Each vertical has the potential to match HMC’s total current FUM of $12.6bn.
  • The opportunity set, combined with a founder-led management team with significant ownership, lays the groundwork for growth.
  • Cooper Investors sees potential for HMC to grow into a $50bn+ alternative asset manager over the medium term.
  • This represents compelling risk-adjusted value latency.

Summary

Oracle Advisory Group

30 June 2024

$7.02

  • Oracle Advisory Group has added a new position in HMC Capital as of April.
  • HMC upgraded its earnings guidance from 33 cents per share to 40 cents per share in May.
  • Founded by David Di Pilla, HMC Capital listed on the ASX in 2019.
  • HMC manages over $12.5bn in funds across two listed REITs, HomeCo Daily Needs (HDN) and HealthCo (HCW), as well as several unlisted funds.
  • Recently diversified FUM into private credit and launched a high-conviction strategy.
  • Acquired Payton Capital, a commercial real estate debt manager with $1.5bn in assets, and launched a private credit platform.
  • Aim to establish a $5bn+ diversified private credit platform, driven by strong demand in the current high-risk-free rate environment.
  • High-conviction strategy gaining media attention, involved in proposed merger of Sigma Healthcare and Chemist Warehouse and active roles in Lendlease, Ingenia Communities, and Graincorp.
  • Oracle Advisory Group believes HMC's high-conviction strategy can scale well and become highly profitable.
  • HMC has a strong track record of high performance since its listing.
  • Oracle Advisory Group is pleased to place capital alongside smart managers at HMC.

Summary

Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed. 

Ella Walker, Equity Research Analyst

ANALYST INSIGHT

Equity Research Analyst

"With a robust foundation and a visionary management team, HMC Capital appears poised to transform its $12.6bn in assets into a $50bn powerhouse. The potential for explosive growth across diverse sectors suggests this could be a game-changer in alternative asset management."

Last Updated: 30 Sept 2025

Query The Data

Frequently Asked Questions

Who is investing in HMC Capital Ltd (ASX:HMC)?

Fund managers including Cooper Investors, Oracle Advisory Group, Antares Capital, Wilson Asset Management, Smallco Investment Manager, Clime Investment Management, Seneca Financial Solutions, Ellerston Capital and Firetrail Investments have invested in HMC Capital Ltd (ASX:HMC).

Why do fund managers invest in HMC Capital Ltd?

Fund managers invest in HMC Capital Ltd due to its capital-light model and early growth stage, managing $12.6 billion across four established verticals: Real Estate, Private Credit, Digital Infrastructure, and Private Equity. The company is developing a fifth vertical in Renewables, leveraging positive long-term market trends with significant scalability potential. The founder-led management team, with substantial ownership and a proven track record, positions HMC for substantial growth, potentially reaching over $50 billion in assets under management.

What happened to HMC Capital Ltd (ASX:HMC)?

Fund managers have invested in HMC Capital Ltd due to its potential for recovery driven by insider buying, quality management, and a straightforward turnaround strategy. Despite recent share price declines and skepticism about its balance sheet, some fund managers see significant upside potential based on their valuation assessments. HMC's diversified alternative asset management business also presents an attractive investment opportunity, though recent performance and stalled projects have led to mixed sentiments among investors.

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