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]

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Core Viewpoint - Artisan Partners Asset Management Inc. announced the appointment of Jason Gottlieb as the new CEO, succeeding Eric Colson, effective after the annual meeting on June 4, 2025 [1] Group 1: Leadership Changes - Jason Gottlieb, currently the President of the Company, will take over as CEO, while Eric Colson will transition to Executive Chair [1] - The Board of Directors is expected to elect Mr. Gottlieb to the Board, and Mr. Colson will assume the role of Chair from Stephanie DiMarco, who will become Lead Independent Director [1] Group 2: Background of Jason Gottlieb - Mr. Gottlieb joined Artisan Partners in October 2016 as Managing Director of Investment Operations and was promoted to COO of Investments and Executive Vice President in February 2017, and then to President in January 2021 [2] - Prior to Artisan, Mr. Gottlieb was a partner and managing director at Goldman Sachs, leading the Alternative Investment & Manager Selection Group and managing the Goldman Sachs Multi-Manager Alternatives Fund [2] Group 3: Statements from Leadership - Eric Colson expressed confidence in Jason Gottlieb's leadership abilities and noted that this appointment is part of a long-term succession plan [3] - Jason Gottlieb stated his honor in leading the organization and emphasized the goal of expanding the multi-asset investment platform and driving business growth [3] Group 4: Company Overview - Artisan Partners is a global investment management firm that offers a wide range of high value-added investment strategies across various asset classes to sophisticated clients [4] - The firm has been committed to attracting experienced investment professionals since its establishment in 1994, with autonomous investment teams managing diverse strategies [4]

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]

Business Overview - Artisan Partners has built its business on a consistent philosophy and business model since its founding[2] - The firm emphasizes a high value-added, talent-driven, and thoughtful approach to investment[2] - Artisan Partners operates with autonomous investment franchises managed by business professionals[2] - The company focuses on active strategies and long-term growth with a global demand perspective[2] Asset Growth and Diversification - From 2004 to 2024, Artisan Partners increased its investment teams from 4 to 11 and investment strategies from 7 to 25[3] - Equity AUM grew from $40 billion in 2004 to $144 billion in 2024[3] - Fixed Income AUM increased from zero in 2004 to $14 billion in 2024[3] - Alternatives AUM reached $3 billion by 2024[3] Financial Performance - The company's AUM at the end of 2024 was $1612 billion, compared to $1502 billion at the end of 2023, representing a 7% increase[15,17] - The ending AUM growth rate for Equity was +5%, Fixed Income was +39%, and Alternative was +21%[17] - The adjusted net income per adjusted share for the year 2024 was $355, compared to $289 in 2023, an increase of 23%[22]

Financial Data and Key Metrics Changes - In the fourth quarter, revenues rose by 6% sequentially and increased by 19% compared to the same quarter last year [23][26] - Adjusted operating income was up 12% sequentially and 37% year-over-year, driven by revenue growth outpacing operating expense increases [28][29] - Assets under management (AUM) ended at $161 billion, down 4% from the previous quarter but up 7% year-over-year [24][25] Business Line Data and Key Metrics Changes - The fixed income business achieved its tenth consecutive quarter of positive flows, with net inflows of $3.6 billion in 2024 [25][26] - 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 [10][11] - 13 out of 25 investment strategies achieved net inflows in 2024, with 10 strategies exceeding $100 million in inflows [7][8] Market Data and Key Metrics Changes - The average AUM for the fourth quarter was up 2% sequentially and 18% year-over-year, while full-year average AUM improved by 15% [25][28] - Approximately 3% of AUM is subject to performance fees, with a weighted average recurring fee rate of 68 basis points for the quarter [27][29] Company Strategy and Development Direction - The company aims to build durable investment franchises by supporting investment talent and focusing on long-term growth [4][20] - There is a commitment to expanding the investment platform, developing existing franchises, and tapping into demand for high-value-added investments [22][33] - The company is strategically managing capacity in its international value strategy to maintain performance [38] Management's Comments on Operating Environment and Future Outlook - Management anticipates moderate strategic moves in asset allocation due to current macroeconomic uncertainties, with a focus on inflation and global market volatility [49][50] - The company is well-positioned to capture opportunities in active management as volatility in markets can benefit their strategies [51][52] Other Important Information - The company declared a quarterly dividend of $0.84 per share and a year-end special dividend of $0.50, totaling a 25% increase in dividends compared to 2023 [31][32] - The balance sheet remains strong with $155 million in seed capital and an unused $100 million revolving credit facility [29][30] Q&A Session Summary Question: Discussion on organic growth rate and fee rate - Management noted that the organic growth and fee rate changes are influenced by foundational assets in fixed income strategies, which have performance-based fees that can lower the overall fee rate [39][40] Question: Seed capital needs and payout rate for 2025 - The payout ratio is expected to remain in the mid-90s range, with some gains on seed capital realized in 2024 and more anticipated in 2025 [42][43] Question: Response to volatility in global and international emerging markets - Management indicated that there is a hesitance in the market due to macroeconomic factors, expecting only moderate strategic moves in asset allocation [49][50]