Part I [Unaudited Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Artisan Partners Asset Management Inc. for Q1 2025 and 2024, covering financial condition, operations, and cash flows [Unaudited Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased to $1.37 billion as of March 31, 2025, from $1.62 billion at December 31, 2024, primarily due to a decrease in consolidated investment products Condensed Consolidated Balance Sheet | Account | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,370,310** | **$1,618,756** | | Cash and cash equivalents | $212,890 | $201,172 | | Investment securities | $247,484 | $208,792 | | Assets of consolidated investment products | $219,582 | $538,172 | | **Total Liabilities** | **$868,069** | **$868,837** | | Borrowings | $199,471 | $199,430 | | Amounts payable under tax receivable agreements | $341,988 | $341,461 | | **Total Stockholders' Equity** | **$394,645** | **$422,002** | [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenues increased to $277.1 million, operating income rose to $86.5 million, and net income attributable to the company was $61.1 million Consolidated Statement of Operations Highlights | Metric | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | **Total Revenues** | **$277,147** | **$264,351** | | Management fees | $277,147 | $264,322 | | **Total Operating Expenses** | **$190,612** | **$186,708** | | Compensation and benefits | $155,161 | $149,880 | | **Operating Income** | **$86,535** | **$77,643** | | **Net Income Attributable to APAM** | **$61,139** | **$59,481** | | Diluted Earnings Per Share | $0.82 | $0.84 | | Dividends Declared per Class A Share | $1.34 | $1.02 | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to $157.9 million in Q1 2025, while cash used in investing and financing activities also rose, primarily due to higher dividend payments Cash Flow Summary | Cash Flow Activity | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,874 | $147,019 | | Net cash used in investing activities | ($38,276) | ($29,112) | | Net cash used in financing activities | ($91,856) | ($63,791) | | **Net increase in cash and cash equivalents** | **$27,742** | **$54,116** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including VIE consolidation, borrowings, revenue disaggregation, compensation structures, and income tax liabilities, notably a $342.0 million TRA liability - The company consolidates Variable Interest Entities (VIEs) where it has a controlling financial interest, which includes five sub-funds of Artisan Global Funds and three Artisan Private Funds as of March 31, 2025[33](index=33&type=chunk)[42](index=42&type=chunk) Revenue by Vehicle | Vehicle | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | Artisan Funds | $160,973 | $153,002 | | Artisan Global Funds | $13,773 | $12,460 | | Separate accounts and other | $102,401 | $98,860 | | **Total Management Fees** | **$277,147** | **$264,322** | - In Q1 2025, the company granted **$46.8 million** of franchise capital awards to investment team members, which are cash-based long-term incentives tied to the investment returns of the strategies they manage[73](index=73&type=chunk) - As of March 31, 2025, the liability for amounts payable under the Tax Receivable Agreements (TRAs) was **$342.0 million**, with expected payments of approximately **$38.9 million** in fiscal 2025[85](index=85&type=chunk)[171](index=171&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the firm's Q1 2025 performance, noting a 1% AUM increase to $162.4 billion driven by market appreciation despite net client outflows, alongside revenue growth and expanded operating margin - Launched the Global Special Situations strategy, managed by the International Value Group, and made the Growth team's Franchise strategy available to clients[114](index=114&type=chunk) Key Performance Indicators | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Ending AUM ($ billions) | 162.4 | 160.4 | | Average AUM ($ billions) | 166.7 | 154.2 | | Net Client Cash Flows ($ billions) | (2.8) | (0.5) | | Total Revenues ($ millions) | 277.1 | 264.4 | | GAAP Operating Margin (%) | 31.2 | 29.4 | | Adjusted Operating Margin (%) | 32.1 | 30.9 | [AUM and Investment Performance](index=27&type=section&id=AUM%20and%20Investment%20Performance) AUM increased by $1.2 billion to $162.4 billion in Q1 2025, driven by market appreciation offsetting net client outflows, with varied performance across investment groups AUM Changes | AUM Component | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | Beginning AUM | $161,208 | $150,167 | | Gross client cash inflows | $7,014 | $6,186 | | Gross client cash outflows | ($9,854) | ($6,709) | | **Net client cash flows** | **($2,840)** | **($523)** | | Investment returns and other | $4,138 | $10,825 | | **Ending AUM** | **$162,390** | **$160,384** | - For Q1 2025, 15 of 27 investment strategies had net outflows totaling **$4.8 billion**, partially offset by **$2.0 billion** of net inflows from the remaining strategies[122](index=122&type=chunk) - As of March 31, 2025, AUM was sourced **60%** from the Intermediated Wealth channel and **40%** from the Institutional channel[132](index=132&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q1 2025 revenues increased 5% to $277.1 million due to higher average AUM, despite a lower weighted average management fee, while operating expenses rose 2% primarily from increased compensation - The increase in revenues of **$12.7 million** was primarily driven by an **8%** increase in average AUM, despite a decrease in the weighted average management fee to **67.5 basis points**[142](index=142&type=chunk) - Compensation and benefits, the largest expense, increased by **$5.3 million (4%)** due to higher incentive compensation tied to revenues and increased headcount[145](index=145&type=chunk) - Non-operating income decreased by **$20.2 million**, primarily due to lower net investment gains on consolidated and nonconsolidated investment products compared to the prior-year period, reflecting market conditions[148](index=148&type=chunk) [Supplemental Non-GAAP Financial Information](index=37&type=section&id=Supplemental%20Non-GAAP%20Financial%20Information) The company presents non-GAAP measures, with Q1 2025 adjusted net income at $67.0 million and adjusted operating margin at 32.1%, reflecting underlying operational profitability Reconciliation of GAAP to Non-GAAP Measures | Metric | Q1 2025 (Non-GAAP) ($ millions) | Q1 2024 (Non-GAAP) ($ millions) | Q1 2025 (GAAP) ($ millions) | Q1 2024 (GAAP) ($ millions) | | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Income** | **$67.0** | **$61.6** | - | - | | Net Income Attributable to APAM | - | - | $61.1 | $59.5 | | **Adjusted Net Income per Share** | **$0.83** | **$0.76** | - | - | | Diluted EPS | - | - | $0.82 | $0.84 | | **Adjusted Operating Margin** | **32.1%** | **30.9%** | - | - | | Operating Margin | - | - | 31.2% | 29.4% | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $212.9 million in cash and a $100 million undrawn credit facility, supporting its dividend policy and expected TRA payments - The company maintains a strong liquidity position with **$212.9 million** in cash and cash equivalents and a **$100 million** undrawn revolving credit facility as of March 31, 2025[159](index=159&type=chunk)[163](index=163&type=chunk) - A variable quarterly dividend of **$0.68 per share** was declared for Q1 2025, consistent with the policy to pay out approximately **80%** of cash generated each quarter[167](index=167&type=chunk)[168](index=168&type=chunk) - The liability under the Tax Receivable Agreements (TRAs) was **$342.0 million** at quarter-end, with a payment of **$29.2 million** made in April 2025[169](index=169&type=chunk)[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in quantitative and qualitative market risk disclosures have occurred since the last annual report - There have been no material changes in market risk disclosures since the last Form 10-K filing[180](index=180&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[182](index=182&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[183](index=183&type=chunk) Part II [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal or administrative proceedings - There are currently no material legal proceedings against the company[184](index=184&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section refers investors to the 'Risk Factors' discussion in the company's latest Annual Report on Form 10-K - For a discussion of risk factors, the report refers to the company's latest annual report on Form 10-K[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, 301,505 shares of Class B common stock were canceled and Class C common stock issued due to an employee-partner termination, constituting an unregistered equity sale - As a result of an employee-partner's termination, **301,505 shares** of Class B common stock were canceled and **301,505 shares** of Class C common stock were issued during Q1 2025[186](index=186&type=chunk) [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[187](index=187&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[188](index=188&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) The company reports no other material information, including no Rule 10b5-1 trading arrangement adoptions or terminations by directors or officers - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[188](index=188&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Interactive Data Files (XBRL) - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL data (101, 104)[189](index=189&type=chunk)

Financial Data and Key Metrics Changes - First quarter results showed a 7% decline in revenues primarily due to the absence of $17 million in performance fees from the previous quarter [25] - Adjusted operating income decreased by 19% sequentially and adjusted operating margin fell by 470 basis points from the previous quarter [25] - Assets under management (AUM) at the end of March were $162 billion, reflecting a slight increase from the previous quarter and the same period last year [26] - Average AUM for the quarter increased by 1% sequentially and 8% year-over-year [27] - Adjusted net income per adjusted share declined by 21% compared to the last quarter but increased by 9% year-over-year [29] Business Line Data and Key Metrics Changes - The firm has seen eleven consecutive quarters of positive fixed income flows, with net client cash outflows of approximately $2.8 billion in the first quarter [26][27] - The intermediated wealth channel now accounts for 60% of total AUM, with an annualized organic growth rate of 5% over the past five years [27][28] - New strategies launched include the Artisan Global Special Situation strategy and the Artisan franchise strategy, targeting high-value clients [14][17] Market Data and Key Metrics Changes - The firm reported $4.1 billion in market returns, including $1.8 billion or 110 basis points of returns in excess of benchmarks [26] - The institutional business has faced pressure, but the firm believes it will maintain solid growth, particularly in the intermediated wealth channel [57] Company Strategy and Development Direction - The company is focused on expanding its capabilities in fixed income and alternatives, particularly in the retail and insurance channels [35] - There is a strategic shift towards the private wealth market, with a significant presence and growth potential identified [22][23] - The firm aims to align its distribution structure to better access and service the intermediated wealth channel [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to generate long-term outcomes despite current market volatility [24] - The firm views market disruptions as opportunities for growth and expansion [47] - There is an ongoing dialogue regarding capacity management, with potential for some strategies to open up capacity in the near future [44] Other Important Information - The company declared a quarterly dividend of $0.68 per share, reflecting lower cash generation due to the absence of performance fees [32] - The balance sheet remains strong, with $138 million in seed capital and ample liquidity for future strategies [30] Q&A Session Summary Question: Opportunities in fixed income and alternatives - Management highlighted the potential for growth in fixed income and alternatives, particularly through existing franchises and new strategies [35][36] Question: Normalized expenses and maintaining margins - Management indicated that guidance for the full year remains unchanged, with variable expenses fluctuating with revenues [38][39] Question: Capacity constraints and market movements - Management confirmed ongoing communication about capacity management, with some strategies in soft close mode [44] Question: M&A activity and market opportunities - Management acknowledged numerous opportunities in the market and emphasized a judicious approach to adding capabilities [46][47] Question: Growth in intermediated wealth and strategy mix - Management noted that the long-term asset allocation of client mix differs from institutional, requiring a tailored approach to strategies [66][67] Question: Institutional side and market volatility - Management observed rebalancing activity in the equity space and increased interest in credit strategies amid market volatility [70][72]

Financial Data and Key Metrics Changes - First quarter results reflected a 7% decline in revenues primarily due to the absence of $17 million in performance fees from the previous quarter [27] - Adjusted operating income decreased by 19% sequentially, with a 470 basis point decrease in adjusted operating margin from the fourth quarter [27] - Assets under management (AUM) at the end of March stood at $162 billion, slightly up from the previous quarter and year ago, reflecting $4.1 billion in market returns [28] - Adjusted net income per adjusted share declined by 21% compared to the last quarter but was up 9% year-over-year [31] Business Line Data and Key Metrics Changes - The firm has seen eleven consecutive quarters of positive fixed income flows, with average AUM for the quarter up 1% sequentially and 8% year-over-year [29] - Net client cash outflows during the quarter were approximately $2.8 billion, including a $1.2 billion outflow from a separate account rebalancing within the mid-cap growth strategy [28] - The intermediated wealth channel now accounts for 60% of total AUM, with an annualized organic growth rate of 5% over the past five years [30] Market Data and Key Metrics Changes - The firm has a significant presence in the intermediated wealth market, with approximately 172 relationships of over $50 million, and 117 clients invested in three or more strategies [24][55] - The institutional business has faced pressure, but the firm believes it will maintain solid growth, particularly as it expands into credit and alternatives [57] Company Strategy and Development Direction - The company is focused on expanding its distribution structure to better access and service the intermediated wealth channel, aligning interests between investment talent, clients, and the firm [24][25] - The firm has evolved from a long-only public equity manager to a multi-asset class investment platform, increasing the number of investment strategies from 12 to 27 since 2013 [8] - The company aims to continue leveraging market volatility as an opportunity for growth, particularly in fixed income and alternative strategies [38][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to generate successful long-term outcomes for clients and shareholders, emphasizing the importance of maintaining a stable investment environment [25] - The management highlighted the potential for growth in the intermediated wealth channel, particularly among family offices and other high-net-worth clients [64] - There is an ongoing dialogue regarding capacity management, with some strategies in soft close mode, but potential for capacity openings in the near future [45][46] Other Important Information - The company declared a quarterly dividend of $0.68 per share for the March 2025 quarter, reflecting lower cash generation due to the absence of performance fees [35] - The balance sheet remains strong, with $138 million in seed capital and ample liquidity for future strategies [32] Q&A Session Summary Question: Opportunities in fixed income and alternatives in retail or insurance channels - Management highlighted the potential for growth in fixed income and alternatives, particularly through existing franchises and new strategies [37][38] Question: Normalized expenses and maintaining margins - Management indicated that guidance for the full year remains unchanged, with variable expenses fluctuating with revenues and long-term incentive compensation guidance intact [40][41] Question: Capacity constraints in strategies - Management noted that some strategies are in soft close mode, but there may be opportunities for capacity adjustments based on market conditions [45][46] Question: M&A activity and market opportunities - Management acknowledged the active market for M&A and team lift-outs, emphasizing a judicious approach to adding capabilities [47][48] Question: Growth opportunities in intermediated wealth - Management discussed the growth in intermediated wealth relationships and the alignment of distribution to support this growth [54][55] Question: Institutional business outlook amid market volatility - Management observed rebalancing activity in the equity space and increased interest in credit strategies, with a focus on communication with clients [70][71]

Business Overview - Artisan Partners' business model is talent-driven and designed for investment talent to thrive [2] - The firm focuses on active strategies and autonomous franchises managed by business professionals [2] - Artisan Partners had 27 investment strategies as of March 31, 2025 [11] Investment Performance - Artisan Partners strategies with greater than 10-year track records show strong average annual returns since inception, net of fees [3, 4] - The Developing World strategy has an inception-to-date average annual net return of 1033% [9] - The Global Unconstrained strategy has an inception-to-date average annual net return of 987% [9] - The Emerging Markets Debt Opportunities strategy has an inception-to-date average annual net return of 1179% [9] - The Emerging Markets Local Opportunities strategy has an inception-to-date average annual net return of 895% [9] Financial Highlights - The company's run-rate revenue is $1124 million as of March 31, 2025 [11] - Assets Under Management (AUM) reached $1624 billion as of 1Q25, a 1% increase from 1Q24 [15, 20] - Net client cash flows were -$28 billion in 1Q25 [17, 20] - The weighted average management fee was 068% as of March 31, 2025 [20] - Adjusted net income per adjusted share was $083 in 1Q25 [26]

Artisan Partners Asset Management Inc. Reports 1Q25 Results Milwaukee, WI - April 29, 2025 - Artisan Partners Asset Management Inc. (NYSE: APAM) (the "Company" or "Artisan Partners") today reported its results for the three months ended March 31, 2025, and declared a quarterly dividend. Chief Executive Officer Eric Colson said, "For 30 years, Artisan Partners has focused on investments, people and trust. Knowing that markets change quickly, unexpectedly and sometimes dramatically, we have built our firm to ...

MILWAUKEE, April 29, 2025 (GLOBE NEWSWIRE) -- Artisan Partners Asset Management Inc. (NYSE: APAM) (the “Company” or “Artisan Partners”) today reported its results for the three months ended March 31, 2025, and declared a quarterly dividend. The full March 2025 quarter earnings release and investor presentation can be viewed at www.apam.com. Conference Call The Company will host a conference call on April 30, 2025, at 1:00 p.m. (Eastern Time) to discuss its results for the three months ended March 31, 2025. ...

Financial Results Announcement - Artisan Partners Asset Management Inc. will report its first quarter 2025 financial results on April 29, 2025, at approximately 4:30 p.m. (Eastern Time) [1] - The earnings release and supplemental materials will be available on the investor relations section of artisanpartners.com [1] - A conference call to discuss the results will be hosted by CEO Eric Colson, President Jason Gottlieb, and CFO C.J. Daley on April 30, 2025, at 1:00 p.m. (Eastern Time) [1] Conference Call Participation - A live webcast of the conference call will be available via the investor relations section of artisanpartners.com [2] - Interested participants can dial in using the following numbers: United States/Toll Free: 1-877-328-5507, International: 1-412-317-5423, with Conference ID: 10197435 [2] - An audio replay of the conference call will be available one hour after the end of the conference until May 7, 2025, at 9:00 a.m. (Eastern Time) [2] Company Overview - Artisan Partners is a global investment management firm providing a broad range of high value-added investment strategies in growing asset classes [3] - The firm has been committed to attracting experienced investment professionals since its establishment in 1994 [3] - Artisan Partners' autonomous investment teams manage a diverse range of investment strategies across multiple asset classes [3]

MILWAUKEE, April 09, 2025 (GLOBE NEWSWIRE) -- Artisan Partners Asset Management Inc. (NYSE: APAM) today reported that its preliminary assets under management ("AUM") as of March 31, 2025 totaled $162.4 billion. Artisan Funds and Artisan Global Funds accounted for $79.2 billion of total firm AUM, while separate accounts and other AUM1 accounted for $83.2 billion. PRELIMINARY ASSETS UNDER MANAGEMENT BY STRATEGY2 As of March 31, 2025 - ($ Millions) Growth Team Global Opportunities$ 19,249 Global Discover ...

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $167.7 billion as of February 28, 2025 [1] - The AUM is divided into Artisan Funds and Artisan Global Funds, totaling $81.3 billion, while separate accounts and other AUM account for $86.4 billion [1] AUM by Strategy - The Growth Team's AUM includes: - Global Opportunities: $20,708 million - U.S. Mid-Cap Growth: $12,712 million - U.S. Small-Cap Growth: $2,978 million - The Global Equity Team's AUM includes: - Non-U.S. Growth: $13,417 million - International Value: $46,553 million - The Global Value Team's AUM includes: - Global Value: $30,646 million - The Credit Team's AUM includes: - High Income: $11,968 million - The Developing World Team's AUM includes: - Developing World: $4,356 million - Total firm AUM is $167,698 million [2] Separate Accounts and Other AUM - Separate account and other AUM consist of assets managed through vehicles other than Artisan Funds or Artisan Global Funds, including traditional separate accounts and Artisan-branded collective investment trusts [3] - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $109.0 million for which investment models are provided to managed account sponsors [4] Company Overview - Artisan Partners is a global investment management firm offering a range of high value-added investment strategies to sophisticated clients [5] - The firm has been committed to attracting experienced investment professionals since its establishment in 1994 [5]

The Zacks Investment Management industry continues to bear the brunt of a constant shift toward passive investing. As fees earned by the industry players are lower compared with active investment strategies, this continues to exert pressure on margins. Also, tighter regulations, rising compliance costs and technology upgrades are expected to strain industry players’ profitability. Yet, the industry will benefit from investors' shift toward higher-yielding investment vehicles. Hence, sustained economic growt ...