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MILWAUKEE, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Artisan Partners Asset Management Inc. (NYSE: APAM) (“Artisan”), with approximately $182.6 billion in assets under management as of October 31, 2025, announced today that it has entered into a definitive agreement to acquire 100% of equity interest of Grandview Property Partners (“Grandview”), a real estate private equity firm specializing in originating, developing, acquiring and managing middle market properties across the United States. This partnership unders ...

Core Insights - Investors in Artisan Partners Asset Management Inc. (APAM) should monitor stock movements due to significant activity in the options market, particularly the Nov 21, 2025 $22.50 Put, which has high implied volatility [1] Company Overview - Artisan Partners Asset Management is currently rated as Zacks Rank 2 (Buy) in the Financial - Investment Management Industry, which is in the top 21% of the Zacks Industry Rank [3] - Over the last 60 days, one analyst has raised the earnings estimate for the current quarter from $1.04 per share to $1.13 per share, with no downward revisions [3] Market Sentiment - The high implied volatility in options trading suggests that investors anticipate a significant price movement for Artisan Partners Asset Management, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the underlying stock does not move as much as expected [4]

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $182.6 billion as of October 31, 2025 [1][2] Summary by Category Total Assets Under Management - Total AUM is $182.6 billion, with Artisan Funds and Artisan Global Funds contributing $88.5 billion and separate accounts and other AUM accounting for $94.1 billion [1] AUM by Strategy - The AUM is distributed across various strategies, including: - Global Opportunities: $19,747 million - Global Discovery: $1,882 million - U.S. Mid-Cap Growth: $11,149 million - U.S. Small-Cap Growth: $2,988 million - International Value: $52,454 million - Global Value: $34,498 million - High Income: $13,038 million - Developing World: $4,950 million - Other strategies also contribute to the total AUM [2][3] Investment Approach - Artisan Partners operates as a global multi-asset investment platform, offering a range of high value-added investment strategies across multiple asset classes [4]

Group 1: Pebblebrook Hotel Trust (PEB) - Pebblebrook Hotel Trust is a real estate investment trust with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 7.47, significantly lower than the industry average of 12.70 [1] - Pebblebrook Hotel Trust possesses a Value Score of A [1] Group 2: Preferred Bank (PFBC) - Preferred Bank is a provider of banking products and services with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its next year earnings has also increased by 5.6% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 8.84, slightly below the industry average of 8.90 [2] - Preferred Bank possesses a Value Score of B [2] Group 3: Artisan Partners Asset Management Inc. (APAM) - Artisan Partners Asset Management Inc. is an asset management company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 3.8% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 11.82, compared to the industry average of 14.70 [3] - Artisan Partners Asset Management Inc. possesses a Value Score of B [3]

Assets Under Management (AUM) - As of September 30, 2025, the company's assets under management (AUM) increased to $181.3 billion, a rise of $5.8 billion or 3% from $175.5 billion at June 30, 2025, primarily due to $8.3 billion of market appreciation[117]. - Total Assets Under Management (AUM) reached $181.306 billion[131]. - As of September 30, 2025, the total assets under management (AUM) reached $181,306 million, an increase from $167,840 million as of September 30, 2024, representing a growth of approximately 8.7%[136]. - The ending AUM by distribution channel as of September 30, 2025, was $109,165 million (60.2%) for intermediated wealth and $72,141 million (39.8%) for institutional clients[136]. - The beginning AUM for the nine months ended September 30, 2025, was $161,208 million, showing a decrease from $167,840 million at the end of the previous fiscal year[134]. Revenue and Income - Revenue for the three months ended September 30, 2025, was $301.3 million, an 8% increase from $279.6 million for the same period in 2024[117]. - Total operating income for the three months ended September 30, 2025, was $101.8 million, up 9% from $93.2 million in the same period of 2024[142]. - For the nine months ended September 30, 2025, management fees were $861.2 million, a 6% increase from $814.7 million in the same period of 2024[156]. - Total operating income for the nine months ended September 30, 2025, was $268.1 million, a 4% increase from $257.5 million in the same period of 2024[156]. - Net income attributable to Artisan Partners Asset Management Inc. for the three months ended September 30, 2025, was $66.8 million, down 8% from $72.9 million in the same period of 2024[142]. Client Cash Flows - Net client cash flows for the three months ended September 30, 2025, were $(2.3) billion, a significant decline of 213.5% compared to $(0.7) billion for the same period in 2024[123]. - For the nine months ended September 30, 2025, net client cash flows were $(7.0) billion, compared to $(2.9) billion for the same period in 2024, indicating a 144.6% decline[123]. - The company experienced a net client cash flow decline of $2,329 million for the three months ended September 30, 2025, compared to a net inflow of $879 million for the same period in 2024[132]. - Gross client cash inflows for the nine months ended September 30, 2025, totaled $19,331 million, while gross client cash outflows were $26,363 million, resulting in net client cash flows of negative $7,032 million[134]. - Gross client cash inflows for the three months ended September 30, 2025, were $6.084 billion, compared to $6.210 billion for the same period in 2024, a decrease of 2%[137]. Investment Performance - Global Opportunities Strategy reported a 1-year return of 10.43% and a 3-year return of 19.57%[130]. - U.S. Mid-Cap Growth Strategy achieved a 1-year return of 22.48% and a 10-year return of 14.47%[130]. - Non-U.S. Growth Strategy delivered a 1-year return of 30.44% and a 5-year return of 11.23%[130]. - Developing World Strategy posted a 1-year return of 21.09% and a 3-year return of 29.38%[131]. - Global Value Strategy achieved a 1-year return of 21.11% and a 5-year return of 17.52%[131]. - Sustainable Emerging Markets Strategy reported a 1-year return of 28.24% and a 5-year return of 9.47%[130]. - Credit Opportunities Strategy delivered a 1-year return of 15.53% and a 3-year return of 16.34%[130]. - Franchise Strategy reported a 1-year return of 23.94% since its inception[130]. - Value Income Strategy achieved a 1-year return of 4.63% and a 5-year return of 6.32%[130]. Operating Expenses and Margins - The GAAP operating margin was 33.8% for the three months ended September 30, 2025, compared to 33.3% for the same period in 2024, while the adjusted operating margin was 36.2%, up from 35.0%[117]. - Total operating expenses for the three months ended September 30, 2025, were $199.5 million, an increase of 7% from $186.4 million in the same period of 2024[142]. - Total compensation and benefits increased by $14.3 million, or 10%, for the three months ended September 30, 2025, primarily due to a $7.3 million increase in short-term incentive compensation[149]. - Total compensation and benefits accounted for 56% of revenues for the nine months ended September 30, 2025, compared to 55% for the same period in 2024[161]. - The adjusted operating margin improved to 33.4% for the nine months ended September 30, 2025, compared to 32.7% in 2024[174]. Tax and Other Financial Metrics - The provision for income taxes increased by 50% to $36.9 million for the three months ended September 30, 2025, compared to $24.6 million in the same period of 2024[142]. - The effective income tax rate for the three months ended September 30, 2025, was 30.0%, up from 19.1% in the same period of 2024[153]. - The effective income tax rate increased to 24.0% for the nine months ended September 30, 2025, from 19.9% in 2024, influenced by a $10.7 million charge from the enactment of the OBBBA[165][166]. - Artisan's share of total investment gains for the three months ended September 30, 2025, was $15.7 million, including $10.1 million from compensation plan hedges[152]. - Total non-operating income decreased by $13.9 million, or 39%, for the three months ended September 30, 2025, compared to the same period in 2024[151]. Dividends and Distributions - The company declared and distributed dividends of $0.73 per share of Class A common stock during the three months ended September 30, 2025[117]. - The company declared a variable quarterly dividend of $0.88 per share of Class A common stock for the September quarter of 2025, representing approximately 80% of the cash generated in that quarter[185]. - Total distributions from Holdings Partnership to limited partners for the nine months ended September 30, 2025, were $276.8 million, compared to $241.8 million for the same period in 2024, reflecting a 14.5% increase[184]. Cash and Financing Activities - As of September 30, 2025, cash and cash equivalents increased to $300.2 million from $201.2 million as of December 31, 2024, representing a 49.2% increase[175]. - The company had $190 million in unsecured notes outstanding and a $100 million revolving credit facility, which was unused as of September 30, 2025[180]. - Net cash provided by operating activities decreased by $86.5 million for the nine months ended September 30, 2025, totaling $249.2 million compared to $335.7 million for the same period in 2024[190]. - The net cash used in financing activities decreased by $63.4 million for the nine months ended September 30, 2025, totaling $142.5 million compared to $205.9 million for the same period in 2024[192].

Group 1: PennyMac Mortgage Investment Trust (PMT) - PMT is a real estate investment trust that primarily invests in residential mortgage loans and mortgage-related assets [1] - The Zacks Consensus Estimate for PMT's current year earnings has increased by 10.3% over the last 60 days [1] Group 2: TPG RE Finance Trust (TRTX) - TRTX is a commercial real estate finance company focusing on originating, acquiring, and managing commercial mortgage loans and related debt instruments [2] - The Zacks Consensus Estimate for TRTX's current year earnings has increased by 1% over the last 60 days [2] - TRTX has a dividend yield of 13%, which is higher than the industry average of 12.1% [2] Group 3: Artisan Partners Asset Management (APAM) - APAM is an investment management firm that provides high-value added, active investment strategies globally [3] - The Zacks Consensus Estimate for APAM's current year earnings has increased by 1.9% over the last 60 days [3] - APAM has a dividend yield of 6.7%, compared to the industry average of 3% [3]

Financial Data and Key Metrics Changes - Revenue growth of 7% compared to the previous quarter and 8% year-over-year, driven by strong market conditions and lower fixed expenses, leading to a margin expansion of 450 basis points [11] - Adjusted operating income increased by 22% compared to the prior quarter and 12% year-over-year [12] - Adjusted net income per adjusted share rose by 23% quarter-over-quarter and 11% year-over-year [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached an all-time high of $181.3 billion, with net inflows in 14 of 26 investment strategies year-to-date [7][8] - The credit business saw $1.8 billion in year-to-date net inflows, marking the 13th consecutive quarter of positive credit flows [8] - Emerging markets strategies, including Sustainable Emerging Markets and Developing World, experienced positive inflows, indicating growing demand [8][19] Market Data and Key Metrics Changes - Strong performance in equities, with several strategies generating year-to-date returns exceeding 20%, outperforming benchmarks by 425 to 934 basis points net of fees [5][6] - The company noted a resurgence in interest in emerging markets, contrasting with previous trends where allocations were cut [19][20] Company Strategy and Development Direction - The company aims to expand its multi-asset class investment platform by enhancing distribution and aligning compensation to a sales orientation [9][28] - Focus on internal and external talent acquisition to build differentiated investment franchises, particularly in real estate, private credit, and secondaries [9][10][24] - The company is modernizing its vehicle lineup to adapt to evolving client preferences, including models, SMAs, ETFs, and private funds [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment performance, with over 70% of AUM outperforming benchmarks over three years [4] - The outlook for performance fees in the fourth quarter is projected to be similar to the previous year, subject to market conditions [14] - Management acknowledged the impact of client rebalancing activities, particularly in the intermediate wealth space, but noted strong long-term performance [39] Other Important Information - The company declared a quarterly dividend of $0.88 per share, a 21% increase over the prior quarter [14] - The balance sheet remains strong with $300 million in cash and $140 million in firm seed investments [13] Q&A Session Summary Question: Demand for non-U.S. strategies - Management noted growing demand in global mandates and direct international equity exposure, particularly in emerging markets [17][19] Question: M&A opportunities and allocation - Management highlighted active engagement in real estate and emphasized that M&A opportunities will not be transformative but will align with the company's core values [21][24] Question: Improving gross flows and distribution efforts - Management discussed efforts to enhance distribution by aligning compensation with sales and expanding the team targeting the UK and Middle East markets [27][29] Question: Client rebalancing activity - Management provided insights into rebalancing trends, particularly in the intermediate wealth space, and noted that these were not terminations but adjustments in exposure [38][39] Question: Outlook on expenses - Management confirmed that fixed expense growth is tracking in the mid-single digits, with no unusual changes expected moving forward [41][42]

Financial Data and Key Metrics Changes - Revenue growth of 7% compared to the previous quarter and 8% year-over-year, driven by strong market conditions and lower fixed expenses, resulting in a margin expansion of 450 basis points [11] - Adjusted operating income increased by 22% compared to the prior quarter and 12% year-over-year [12] - Adjusted net income per adjusted share rose by 23% quarter-over-quarter and 11% year-over-year [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached an all-time high of $181.3 billion, with net inflows in 14 of 26 investment strategies year-to-date [7][8] - The credit business saw $1.8 billion in year-to-date net inflows, marking the 13th consecutive quarter of positive credit flows [8] - Emerging markets strategies, including Sustainable Emerging Markets and Developing World, experienced positive inflows, indicating growing demand [8][19] Market Data and Key Metrics Changes - Strong performance in equities, with several strategies generating year-to-date returns exceeding 20%, outperforming benchmarks by 425 to 934 basis points net of fees [5][6] - The firm noted a significant uptick in inquiries for international equity exposure, particularly in the Global Equity Franchise [19] Company Strategy and Development Direction - The company aims to expand its multi-asset class investment platform by enhancing distribution capabilities and aligning compensation to a sales orientation [9][28] - Focus on internal and external talent acquisition to build differentiated investment franchises, particularly in real estate, private credit, and secondaries [9][24] - The company is modernizing its vehicle lineup to adapt to evolving client preferences, including models, SMAs, ETFs, and private funds [31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of selling more and losing less, emphasizing the need for improved gross flows and reduced redemptions [9][28] - The outlook for expenses remains disciplined, with expectations for mid-single-digit growth in fixed expenses for 2025 [42] - Anticipation of approximately $900 million in mutual fund distributions in the fourth quarter, with performance fees projected to be similar to the previous year [14] Other Important Information - The company declared a quarterly dividend of $0.88 per share, a 21% increase over the prior quarter [14] - The balance sheet remains strong with $300 million in cash and $140 million in firm seed investments [13] Q&A Session Summary Question: Demand for Non-U.S. Strategies - Management noted growing demand in global mandates and direct international equity exposure, particularly in emerging markets, with significant interest from institutional clients [18][19] Question: M&A Opportunities - Management discussed active engagement in real estate and the potential for M&A, emphasizing that any acquisitions would not be transformative but rather align with the company's existing capabilities [21][24][25] Question: Improving Gross Flows - Management outlined efforts to enhance distribution, including doubling the field team and expanding into untapped markets like the U.K. and the Middle East [28][29] Question: Client Rebalancing Activity - Management reported significant rebalancing activity in the intermediate wealth space, impacting certain strategies but noted that these were not terminations [39][40] Question: Expense Outlook - Management confirmed expectations for fixed expense growth to remain in the mid-single digits for 2025, with no unusual changes anticipated [42]

Financial Data and Key Metrics Changes - Revenue growth of 7% compared to the previous quarter and 8% year-over-year, driven by strong market conditions and lower fixed expenses, leading to a margin expansion of 450 basis points [11] - Adjusted operating income increased by 22% compared to the prior quarter and 12% year-over-year [12] - Adjusted net income per adjusted share rose by 23% quarter-over-quarter and 11% year-over-year [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached an all-time high of $181.3 billion, with net inflows in 14 of 26 investment strategies year-to-date [6][8] - The credit business saw $1.8 billion in year-to-date net inflows, marking the 13th consecutive quarter of positive credit flows [8] - Emerging markets strategies, including Sustainable Emerging Markets and Developing World, experienced positive inflows, indicating growing demand [8][20] Market Data and Key Metrics Changes - Strong performance in equities, with several strategies generating year-to-date returns exceeding 20%, outperforming benchmarks by 425 to 934 basis points [5] - The firm noted a significant uptick in inquiries for international equity exposure, particularly in the Global Equity Franchise [20] Company Strategy and Development Direction - The company aims to expand its multi-asset class investment platform by enhancing distribution capabilities and exploring new talent acquisition [9][10] - Focus on growing capabilities in private credit, real estate, and secondaries, with a methodical approach to M&A that aligns with the company's core values [25][26][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of improving gross flows and reducing redemptions, with ongoing efforts to align compensation with sales orientation [30] - The company anticipates approximately $900 million in mutual fund distributions in the fourth quarter, with performance fees projected to be similar to the previous year [15][39] Other Important Information - The Board of Directors declared a quarterly dividend of $0.88 per share, a 21% increase over the prior quarter [14] - The balance sheet remains strong with $300 million in cash and $140 million in firm seed investments [13] Q&A Session Summary Question: Demand for non-U.S. strategies - Management noted growing interest in global mandates and direct international equity exposure, particularly in emerging markets, with significant performance improvements driving renewed interest [20] Question: M&A allocation and philosophy - The company is actively exploring M&A opportunities, particularly in real estate, while emphasizing that any acquisitions will not be transformative but will align with existing capabilities [26][27] Question: Efforts to improve gross flows - Management discussed initiatives to enhance distribution, including doubling the field team and modernizing the vehicle lineup to better meet client preferences [30][33] Question: Client rebalancing activity - Management observed significant rebalancing activity among sophisticated clients, particularly in the intermediate wealth space, impacting certain equity strategies [40]