Assets Under Management (AUM) - As of December 31, 2024, the company's assets under management (AUM) increased to $161.2 billion, a rise of $11.0 billion or 7% from $150.2 billion at the end of 2023, driven by $15.9 billion in market appreciation, offset by $3.7 billion in net client cash outflows and $1.2 billion in distributions not reinvested [250]. - The average AUM for the year ended December 31, 2024, was $160.2 billion, reflecting a 15.0% increase from $139.3 billion in 2023 [250]. - Total Assets Under Management (AUM) reached $161,208 million [269]. - As of December 31, 2024, total assets under management (AUM) reached $161,208 million, an increase from $150,167 million in 2023, representing a growth of 7.0% [271]. - The retail channel represented 3.3% of total AUM as of December 31, 2024, a decrease from 3.8% in 2023, indicating a trend towards institutional and intermediary channels [271]. - Institutional AUM accounted for 62.2% of total AUM as of December 31, 2024, compared to 63.0% in 2023, indicating a slight shift in distribution channels [271]. - Approximately 54% of AUM were invested in strategies focused on non-U.S. companies, and 45% were in currencies other than the U.S. dollar [391]. Revenue and Income - Total revenue for the year ended December 31, 2024, was $1,111.8 million, marking a 14.0% increase from $975.1 million in 2023 [250]. - Management fees rose to $1,096.9 million in 2024, up from $970.8 million in 2023, reflecting a growth of 12.9% [416]. - Net income attributable to Artisan Partners Asset Management Inc. for 2024 was $259.7 million, compared to $222.3 million in 2023, marking an increase of 16.8% [416]. - Basic earnings per share increased to $3.66 in 2024, up from $3.19 in 2023, representing a growth of 14.7% [416]. - Adjusted net income for the year ended December 31, 2024, was $287.3 million, up from $233.1 million in 2023, representing a 23.2% increase [342]. - Adjusted net income per adjusted share increased to $3.55 in 2024 from $2.89 in 2023, reflecting a 22.8% growth [342]. Client Cash Flows - Net client cash flows for 2024 were $(3.7) billion, compared to $(4.1) billion in 2023, indicating a slight improvement in client retention [257]. - The company experienced gross client cash inflows of $25.7 billion and outflows of $29.3 billion during 2024, resulting in net client cash flows of $(3.7) billion [260]. - Gross client cash inflows for the year ended December 31, 2024, totaled $25,650 million, while gross outflows were $29,349 million, resulting in net client cash flows of -$3,699 million [270]. - The net client cash flows for Artisan Funds were -$811 million, while Separate Accounts and Other experienced net outflows of -$2.888 billion for the year ended December 31, 2024 [273]. Expenses and Costs - Total operating expenses increased by $73.7 million, or 11%, to $745.2 million in 2024, driven by a $64.7 million increase in total compensation and benefits [324]. - Total compensation and benefits represented 53% of revenues in 2024, down from 54% in 2023 [326]. - Fixed compensation costs, excluding long-term incentive compensation, are expected to increase in the mid- to low-single digits in 2025 [292]. - General and administrative costs are expected to remain consistent with 2024 levels [307]. Dividends - The company declared and distributed dividends of $3.16 per share of Class A common stock during 2024, with a total of $3.48 per share declared for the fiscal year [250]. - The quarterly dividend for Class A common stock increased to $2.82 per share in 2024 from $2.31 in 2023, a rise of 22% [354]. - Artisan Partners Holdings' total distributions increased to $354.8 million in 2024 from $293.0 million in 2023, representing a 20.9% increase [353]. Investment Performance - Global Opportunities Strategy AUM is $20,591 million with a 1-year return of 16.13% [267]. - Global Discovery Strategy AUM is $1,808 million with a 1-year return of 17.51% [267]. - U.S. Mid-Cap Growth Strategy AUM is $12,952 million with a 1-year return of 13.27% [267]. - Value Equity Strategy AUM is $4,915 million with a 1-year return of 13.49% [267]. - Developing World Strategy AUM is $4,100 million with a 1-year return of 30.04% [268]. - Credit Opportunities Strategy AUM is $272 million with a 1-year return of 18.06% [268]. - The average annual total returns for the Global Equity Strategy over 5 years is 8.44% [267]. - The average annual value added since inception for the Global Discovery Strategy is 677 basis points [267]. Financial Position - Cash and cash equivalents as of December 31, 2024, were $201.2 million, compared to $141.0 million in 2023, indicating a 42.7% increase [343]. - Total stockholders' equity increased to $422.002 million by December 31, 2024, up from $351.351 million at the end of 2023, reflecting a growth of about 20.0% [423]. - The total liabilities as of December 31, 2024, were $868.8 million, up from $802.1 million in 2023, reflecting an increase of 8.3% [414]. - Cash flows from operating activities for 2024 were $372.838 million, compared to $253.028 million in 2023, indicating a significant increase of approximately 47.5% [427]. Tax and Compliance - The effective income tax rate increased to 20.6% in 2024 from 18.7% in 2023, primarily due to a decrease in non-controlling interests and limitations on executive compensation deductions [330]. - The company recognized a liability of $341.5 million under TRAs as of December 31, 2024, representing 85% of expected tax benefits [357]. - The company has not recorded a valuation allowance on any deferred tax assets as of December 31, 2024 [384]. - The company has utilized professionals with specialized skills to assist in evaluating audit evidence related to deferred tax assets and TRA, indicating a focus on compliance and accuracy in financial reporting [410].

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $168.4 billion as of January 31, 2025 [1] - Artisan Funds and Artisan Global Funds contributed $80.8 billion to the total AUM, while separate accounts and other AUM accounted for $87.6 billion [1] AUM by Strategy - The Global Opportunities strategy has AUM of $21,585 million, while Global Discovery has $1,951 million [2] - U.S. Mid-Cap Growth strategy holds $13,691 million, and U.S. Small-Cap Growth has $3,233 million [2] - The International Value strategy leads with $45,484 million, followed by Global Value at $30,291 million [2] - High Income under the Credit Team has $11,806 million, and Developing World strategy has $4,292 million [2] Separate Accounts and Other AUM - Separate accounts and other AUM include assets managed through vehicles other than Artisan Funds or Artisan Global Funds, such as traditional separate accounts and Artisan-branded collective investment trusts [3] - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $104.6 million for which investment models are provided to managed account sponsors [4]

Financial Data and Key Metrics Changes - In Q4 2024, revenues increased by 6% compared to Q3 2024 and by 19% year-over-year [34][38] - Adjusted operating income rose by 12% sequentially and by 37% compared to the same quarter last year [40] - Assets under management (AUM) at the end of December 2024 were $161 billion, down 4% from the previous quarter but up 7% from the end of 2023 [35] - The weighted average recurring fee rate for the quarter, excluding performance fees, was 68 basis points, while including performance fees, it was 72 basis points [39][40] Business Line Data and Key Metrics Changes - In 2024, 13 out of 25 investment strategies achieved net inflows, with 10 strategies exceeding $100 million in inflows [12] - The Denver-based credit team raised $1.7 billion in net inflows, while the Boston-based EMsights Capital Group raised $1.9 billion, collectively managing nearly $15 billion across six strategies [15][16] - The fixed income business experienced positive flows for 10 consecutive quarters and 11 consecutive years [36] Market Data and Key Metrics Changes - Average AUM for Q4 2024 was up 2% sequentially and up 18% compared to Q4 2023, with full-year average AUM improving by 15% [36] - The international value fund now represents approximately 25% of the platform, indicating significant growth [52] Company Strategy and Development Direction - The company aims to build its investment platform by developing existing franchises and adding new talent, focusing on high value-added investments [32] - The firm emphasizes capacity management to ensure performance is not compromised, particularly in the international value strategy [56][57] - The company is exploring opportunities in alternative investments, particularly in real estate credit and equity [86][90] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious approach from clients regarding capital allocation due to macroeconomic uncertainties, expecting moderate strategic moves rather than wholesale changes [70][71] - The firm is well-positioned to capture volatility in global markets, which presents active management opportunities [74] Other Important Information - The company declared a quarterly dividend of $0.84 per share and a year-end special dividend of $0.50, totaling $3.48 per share for 2024, a 25% increase from 2023 [45][46] - The firm has a strong balance sheet with $155 million in seed capital and a $100 million unused revolving credit facility [44] Q&A Session Summary Question: Thoughts on organic growth rate and fee rate - Management indicated that foundational assets have contributed to a decrease in fee rates, particularly in fixed income strategies [58] Question: Dividend payout ratio and seed capital needs - The payout ratio is expected to remain in the mid-90% range, with some gains from seed capital realized in 2024 [63] Question: Response to volatility in global and international emerging markets - Management noted a hesitance in client behavior due to macroeconomic factors, expecting only modest changes in asset allocation [70][71] Question: Significant milestones for strategies in 2025 - The Developing World fund will celebrate its 10-year anniversary, and the International Explorer strategy will hit its three-year milestone [82][83] Question: Update on private markets and alternative investments - The firm is methodically building out its investment strategy group and exploring opportunities in alternatives, particularly in real estate [86][90]

Artisan Partners Asset Management BUSINESS UPDATE AND FOURTH QUARTER 2024 EARNINGS PRESENTATION BUSINESS PHILOSOPHY & APPROACH | High Value Added | Talent Driven | Thoughtful | | --- | --- | --- | | Investment Firm | Business Model | Growth | | Active Strategies | Designed for Investment Talent to Thrive | Active Talent Identification | | Autonomous Franchises | Managed by Business Professionals | Entrepreneurial Commitment | | Proven Results | Structured to Align Interests | Focus on Long-Term | | | | Glob ...

Assets Under Management (AUM) - Assets Under Management (AUM) at December 31, 2024, was $161.2 billion, a 7% increase from $150.2 billion at December 31, 2023, primarily due to investment returns of $15.9 billion[11][16] - The average AUM for the year ended December 31, 2024, was $160.2 billion, a 15% increase from $139.3 billion in 2023[21] - Artisan Partners' assets under management (AUM) included non-discretionary assets reported at $105 million as of December 31, 2024, up from $78 million in 2023[34] - Total Assets Under Management (AUM) reached $161.208 billion, with significant contributions from various strategies[72] - Ending assets under management decreased to $161,208 million for the three months ended December 31, 2024, down 4.0% from $167,840 million in the previous quarter[55] - Average assets under management for the year ended December 31, 2024, were $160,232 million, compared to $139,321 million in 2023, indicating an increase of about 15.0%[67] Financial Performance - Revenues for the December 2024 quarter were $297.0 million, a 19% increase from $249.0 million in the December 2023 quarter, driven by higher average AUM and a $10.6 million increase in performance fee revenue[12][17] - Operating income for the year ended December 31, 2024, was $366.6 million, a 21% increase from $303.6 million in 2023, with an operating margin of 33.0% compared to 31.1% in 2023[21][23] - Adjusted net income for the December 2024 quarter was $85.2 million, or $1.05 per adjusted share, compared to $62.8 million, or $0.78 per adjusted share, in the December 2023 quarter[20] - GAAP net income for the year ended December 31, 2024, was $259.7 million, or $3.66 per share, up from $222.3 million, or $3.19 per share, in 2023[25] - Adjusted net income for the year ended December 31, 2024, was $287.3 million, or $3.55 per adjusted share, compared to $233.1 million, or $2.89 per adjusted share, in 2023[25] - Operating income for the three months ended December 31, 2024, was $109.1 million, representing a 43.0% increase from $76.4 million in the same quarter of 2023[45] - Net income attributable to Artisan Partners Asset Management Inc. for the three months ended December 31, 2024, was $69.7 million, up from $64.8 million in the same period last year, reflecting an increase of 4.8%[47] - Basic earnings per share for Class A common shares for the three months ended December 31, 2024, were $0.97, compared to $0.92 for the same period in 2023, marking a 5.4% increase[47] Cash Flow and Dividends - Cash and cash equivalents increased to $201.2 million at December 31, 2024, from $141.0 million at December 31, 2023[26] - The company declared a variable quarterly dividend of $0.84 per share and a special dividend of $0.50 per share for the December 2024 quarter[30] - The variable quarterly dividend represents approximately 80% of the cash generated in the December 2024 quarter[30] - The company expects to pay a quarterly dividend of approximately 80% of cash generated from operations, subject to board approval[31] Operating Expenses - Operating expenses for the year ended December 31, 2024, were $745.2 million, an 11% increase from $671.5 million in 2023, primarily due to a $64.7 million increase in compensation and benefits[22] - Total operating expenses for the three months ended December 31, 2024, were $187.9 million, up from $172.6 million in the same period last year, indicating an increase of 8.0%[45] Client Cash Flows - The company reported $3.6 billion in net inflows from its credit-oriented investment franchises in 2024, with nearly $15 billion managed across six different strategies[3][4] - Gross client cash inflows for the year ended December 31, 2024, were $25,650 million, a 19.9% increase from $21,395 million in 2023[55] - Net client cash flows for the year ended December 31, 2024, were $(3,699) million, a 9.2% improvement compared to $(4,076) million in 2023[55] - Gross client cash inflows for the quarter were $7.649 billion, while gross client cash outflows totaled $8.473 billion, resulting in net client cash flows of negative $824 million[58] Investment Performance - The Developing World strategy generated a cumulative return of 157.03% since inception, significantly outperforming the MSCI Emerging Markets Index's cumulative return of 38.83%[6] - The Artisan Sustainable Emerging Markets Strategy reported an AUM of $1,552 million, achieving a 7.50% return[72] - The U.S. Mid-Cap Growth Strategy had an AUM of $20,591 million, with a 1-year return of 16.13%[70] - The Global Opportunities Strategy achieved a 1-year return of 17.49% with an AUM of $12,410 million[70] - The Emerging Markets Debt Opportunities Strategy reported an AUM of $1,024 million, with a return of 10.85%[72] - The China Post-Venture Strategy had a 1-year return of 14.48% with an AUM of $178 million[70] - The Value Income Strategy achieved a return of 25.02% with an AUM of $16 million[70] - The International Value Strategy reported an AUM of $43,911 million, with a 1-year return of 7.77%[70] - The Developing World Strategy had a remarkable 1-year return of 30.04% with an AUM of $4,100 million[72] - The Global Unconstrained Strategy achieved a return of 12.25% with an AUM of $701 million[72] Balance Sheet - Total stockholders' equity rose to $422.0 million at December 31, 2024, compared to $351.4 million at December 31, 2023[28] - Total liabilities rose to $868.8 million as of December 31, 2024, compared to $802.1 million as of December 31, 2023, reflecting an increase of 8.3%[54] - Total assets increased to $1,618.8 million as of December 31, 2024, compared to $1,405.9 million as of December 31, 2023, representing a growth of 15.1%[54]

MILWAUKEE, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Artisan Partners Asset Management Inc. (NYSE: APAM) (the “Company” or “Artisan Partners”) today reported its results for the quarter and year ended December 31, 2024, and declared a quarterly and special annual dividend. The full earnings release and investor presentation can be viewed at www.apam.com. Conference Call The Company will host a conference call on February 5, 2025 at 1:00 p.m. (Eastern Time) to discuss these results. Hosting the call will be Eric Col ...

MILWAUKEE, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Artisan Partners Asset Management Inc. (NYSE: APAM) will report its fourth quarter and full-year 2024 financial results and information relating to its quarterly and special annual dividend on February 4, 2025 at approximately 4:30 p.m. (Eastern Time). Artisan Partners Asset Management’s earnings release and supplemental materials will be available on the investor relations section of artisanpartners.com at that time. Chief Executive Officer Eric Colson, Presiden ...

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Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $161.2 billion as of December 31, 2024, with Artisan Funds and Artisan Global Funds contributing $77.6 billion and separate accounts and other AUM accounting for $83.6 billion [1][2] AUM Breakdown - Artisan Funds distributions not reinvested amounted to approximately $450 million, impacting the December month-end AUM [1] - The AUM by strategy includes: - Global Opportunities: $20.591 billion - U.S. Mid-Cap Growth: $12.952 billion - U.S. Small-Cap Growth: $3.094 billion - International Value: $43.911 billion - Global Value: $28.364 billion [2][3] Additional Information - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $105.0 million for which Artisan Partners provides investment models to managed account sponsors [4] - Artisan Partners is a global investment management firm established in 1994, focusing on high value-added investment strategies across multiple asset classes [5]

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