Company Overview - Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience, managing approximately $71 billion of capital across various credit strategies as of September 30, 2024 [3][4]. - Triumvirate Environmental, founded in 1988, provides sustainable environmental solutions to over 4,000 customers across North America, focusing on life sciences, healthcare, education, and advanced manufacturing [5]. - Berkshire Partners is a 100% employee-owned investment firm with a focus on private and public equity, currently investing from its Fund XI, which has approximately $7.8 billion in commitments [6]. Financing Details - OHA served as Administrative Agent and Joint Lead Arranger for a private unitranche facility to support Berkshire Partners' acquisition of Triumvirate Environmental, which includes a unitranche term loan, delayed draw term loan, and revolver [1][2]. - The financing solution was tailored to meet the specific needs of Berkshire Partners, leveraging OHA's flexibility and structuring expertise [2][3]. Strategic Positioning - Triumvirate has established a niche competitive position within the environmental services industry, which is expected to support its growth trajectory [3]. - OHA emphasizes long-term partnerships with companies and sponsors, providing access to proprietary opportunities and customized credit solutions across market cycles [3][4].

Core Viewpoint - T. Rowe Price Group, Inc. (TROW) reported lower-than-expected results for the fourth quarter of 2024, with adjusted earnings per share of $2.12, missing the consensus estimate of $2.23, despite a year-over-year increase of 23.3% [1][3] Financial Performance - Fourth-quarter net revenues increased by 11.1% year over year to $1.82 billion, but fell short of the Zacks Consensus Estimate of $1.88 billion [4] - For the full year 2024, net revenues reached $7.09 billion, up 9.8% year over year, yet also missed the consensus estimate of $7.16 billion [4] - Investment advisory fees rose by 16.1% year over year to $1.67 billion, aligning with estimates [4] - Net income attributable to T. Rowe Price on a GAAP basis was $439.9 million, showing a slight year-over-year increase [2] Expenses and Income - Total operating expenses increased marginally to $1.26 billion in the fourth quarter, slightly below the estimate of $1.33 billion [5] - Capital allocation-based income significantly declined to negative $5.2 million from $40.2 million in the prior year quarter, primarily due to lower market returns [5] Assets Under Management (AUM) - As of December 31, 2024, total AUM grew by 11.2% year over year to $1.61 trillion, although the projection was $1.71 billion [6] - The fourth quarter saw net market appreciation and income of $5.9 billion, but net cash outflows amounted to $8.2 billion [6] Liquidity and Capital Distribution - T. Rowe Price had a strong liquidity position with cash and cash equivalents of $2.65 billion as of December 31, 2024, up from $2.07 billion a year earlier, enabling continued investment [6] - The company distributed a total of $355 million to shareholders through dividends and share repurchases in the fourth quarter [7] Strategic Outlook - TROW's solid AUM balance, expanding distribution reach, and diversification efforts through acquisitions are expected to support future top-line growth [8] - However, concerns remain regarding elevated expenses and reliance on investment advisory fees [9]

Financial Data and Key Metrics Changes - The company closed 2024 with $1.6 trillion in assets under management (AUM) and $43.2 billion in net outflows, which is a significant improvement from previous years [7][19] - Adjusted diluted earnings per share (EPS) for Q4 2024 was $2.12, bringing full-year adjusted diluted EPS to $9.33, up 23% from 2023 [18] - Full-year adjusted revenue reached nearly $7.2 billion, a 10.1% increase from 2023 [23] Business Line Data and Key Metrics Changes - The ETF business grew significantly, closing the year with almost $8 billion in AUM, with net inflows of $4.7 billion for the year, more than tripling from 2023 [10][22] - The target date franchise had net inflows of $16.3 billion for the year, with $2.2 billion in net flows for Q4, marking its strongest Q4 since 2019 [10][20] - Fixed income and alternatives also saw positive net flows for both the fourth quarter and the full year [21] Market Data and Key Metrics Changes - The EMEA and APAC regions, along with the Americas Institutional channel, experienced positive net flows during the year [21] - The company noted a significant increase in gross sales, with a strong net pipeline ending the year better than the previous year [14] Company Strategy and Development Direction - The company is focused on expanding its ETF business and enhancing its insurance asset management offerings through partnerships, particularly with Aspida [12][60] - There is a commitment to delivering innovative retirement offerings and exploring the integration of alternatives into target date products [40][41] - The company aims to leverage its strong balance sheet for potential M&A and strategic investments to enhance capabilities and client access [63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reducing outflows in 2025 and building on the momentum from 2024, despite acknowledging the challenges in the current market environment [16][110] - The company is focused on improving investment performance and strategic initiatives to regain positive net flows [110] Other Important Information - The company returned over $1.4 billion to stockholders in 2024 and maintained a strong balance sheet with $3.1 billion in cash and discretionary investments [16][28] - Adjusted operating expenses for the full year were $4.46 billion, up 6.3% from 2023, with expectations for a 4-6% increase in 2025 [26][27] Q&A Session Summary Question: Insights on the Aspida partnership and insurance opportunities - Management highlighted excitement about the partnership with Aspida, focusing on refining insurance asset management offerings and potential co-development of investment products [58][60] Question: Fee rate dynamics and outlook - Management noted higher fee compression this year, with an average of about 2%, influenced by sales in lower fee strategies and elevated redemptions in higher fee products [72][73] Question: Client demand for hybrid products - Management acknowledged the growing interest in hybrid products across public and private markets, with ongoing discussions about potential offerings [88][90] Question: Future private equity allocations in retirement products - Management indicated a commitment to offering best-in-class solutions, open to partnerships or M&A to enhance capabilities in private equity and credit [96][97] Question: Gross sales trends and pipeline context - Management reported improved gross sales across channels, with a strong pipeline for retirement date funds and a positive outlook for 2025 [104][108]

Core Insights - T. Rowe Price reported revenue of $1.82 billion for the quarter ended December 2024, reflecting an 11.1% increase year-over-year, but fell short of the Zacks Consensus Estimate by 3.02% [1] - The company's EPS was $2.12, up from $1.72 in the same quarter last year, but also missed the consensus estimate of $2.23 by 4.93% [1] Financial Performance Metrics - Assets Under Management (EOP) for Equity stood at $829.7 billion, below the average estimate of $847.53 billion [4] - Multi-asset Assets Under Management (EOP) totaled $536 billion, compared to the average estimate of $549.88 billion [4] - Total Net Cash Inflows were reported at -$19.3 billion, worse than the average estimate of -$12.84 billion [4] - Total Assets Under Management reached $1,606.6 billion, below the average estimate of $1,640.43 billion [4] - Fixed Income Assets Under Management (EOP) was $188.1 billion, slightly below the estimate of $190.6 billion [4] Revenue Breakdown - Administrative, distribution, and servicing fees generated net revenues of $143.20 million, below the average estimate of $154 million, but showed a 1.9% increase year-over-year [4] - Investment advisory fees amounted to $1.67 billion, slightly below the estimate of $1.68 billion, but represented a 14.1% increase year-over-year [4] - Capital allocation-based income reported a loss of -$5.20 million, significantly lower than the average estimate of $40.06 million, marking a 112.9% decline year-over-year [4] - Multi-asset investment advisory fees were $473.80 million, exceeding the estimate of $470.95 million, with an 18.3% year-over-year increase [4] - Fixed income investment advisory fees reached $106.20 million, slightly above the estimate of $105.81 million, reflecting an 8.2% year-over-year increase [4] - Alternatives investment advisory fees were $81 million, below the estimate of $100.57 million, showing a 17.4% decline year-over-year [4] - Equity investment advisory fees matched the estimate at $1.01 billion, with a 16.4% increase year-over-year [4] Stock Performance - T. Rowe Price shares returned +2.2% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Q4 2024 Earnings Release Supplement T. Rowe Price Group, Inc. February 5, 2025 A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of December 31, 2024, unless otherwise noted. All figures are USD, unless otherwise noted. Forward-Looking Statement This presentation, and other statements that T. Rowe Price may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to T. Row ...

T. Rowe Price (TROW) came out with quarterly earnings of $2.12 per share, missing the Zacks Consensus Estimate of $2.23 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.93%. A quarter ago, it was expected that this financial services firm would post earnings of $2.36 per share when it actually produced earnings of $2.57, delivering a surprise of 8.90%.Over the last four quarters, ...

Assets Under Management (AUM) - T. Rowe Price Group reported assets under management (AUM) of $1.61 trillion as of December 31, 2024, with a decrease of $24.3 billion during Q4 2024[4] - The average AUM for 2024 was $1.56 trillion, representing a 14.7% increase from $1.36 trillion in 2023[2] - Assets under management (AUM) at December 31, 2024, reached $1,606.6 billion, reflecting a growth of 11.2% from $1,444.5 billion at the beginning of the period[23] - The firm managed $1.61 trillion in assets under management as of December 31, 2024, with approximately two-thirds being retirement-related[18] Financial Performance - Diluted earnings per common share (EPS) for Q4 2024 were $1.92, a 1.1% increase from $1.90 in Q4 2023, while the full year EPS was $9.15, up 17.9% from $7.76[2] - Total revenues for the year ended December 31, 2024, increased to $7,093.6 million, up 9.8% from $6,460.5 million in 2023[22] - Net income attributable to T. Rowe Price Group, Inc. for the year ended December 31, 2024, was $2,100.1 million, a 17.5% increase from $1,788.7 million in 2023[22] - For the year ended December 31, 2024, the net income attributable to T. Rowe Price Group, Inc. was $2,100.1 million, up from $2,139.5 million in 2023, a decrease of 1.8%[34] - The diluted earnings per share for the year ended December 31, 2024, was $9.15, down from $9.33 in 2023, a decrease of 1.9%[34] Client Flows and Outflows - The company experienced net client outflows of $19.3 billion in Q4 2024 and $43.2 billion for the full year 2024, reducing outflows by nearly half year over year[2] - The firm plans to continue expanding its ETF business and insurance channel, and is optimistic about achieving positive client flows in the upcoming year[2] Revenue Sources - Net revenues for Q4 2024 were $1.82 billion, an increase of 11.1% compared to $1.64 billion in Q4 2023[9] - Investment advisory fees for Q4 2024 totaled $1.67 billion, reflecting a 16.1% increase from $1.44 billion in Q4 2023[9] - Investment advisory fees for the year ended December 31, 2024, totaled $6,399.7 million, representing a 12.1% increase from $5,709.5 million in 2023[23] Operating Expenses - Total operating expenses for Q4 2024 were $1,256.1 million, a slight increase of 0.1% from Q4 2023 and 7.2% from Q3 2024, while adjusted operating expenses rose by 6.2% year-over-year[12] - Compensation, benefits, and related costs in Q4 2024 amounted to $705.4 million, reflecting an increase of 8.6% from Q4 2023, primarily due to higher bonus accruals and employee benefits[12] - The company reported a total of $4,760.3 million in operating expenses for the year ended December 31, 2024, compared to $4,498.8 million in 2023, an increase of 5.8%[34] Taxation - The effective income tax rate for the firm in 2024 was 24.3%, down from 26.3% in 2023, primarily due to lower valuation allowances recognized[14] - The firm estimates its effective tax rate for the full year 2025 will range from 23.0% to 27.0% on a U.S. GAAP basis[15] - The non-GAAP effective tax rate for the year was reported at 27.2%, with a quarterly rate of 28.5% for Q4 2023[36] Cash Flow and Capital Management - The company reported a net cash outflow of $39.5 million for the year, primarily due to net cash flows prior to manager-driven distributions[23] - The company reported net cash provided by operating activities of $1,685.6 million for the year, after adjustments for various items[26] - The company reported a net cash used in financing activities of $936.6 million for the year, indicating significant outflows[26] Strategic Focus and Future Outlook - The firm plans to continue focusing on expanding its multi-asset and alternatives investment strategies to drive future growth[22] - The company plans to file its Form 10-K Annual Report for 2024 with the U.S. Securities and Exchange Commission in mid-February 2025[16] - The firm emphasizes the importance of non-GAAP financial measures for evaluating core operating results and comparing with industry peers[29] - Management emphasized the importance of these non-GAAP measures for understanding the firm's core operating results and improving comparability across periods[36]

Core Viewpoint - T. Rowe Price Group, Inc. is expected to report improved quarterly revenues and earnings for Q4 2024 compared to the previous year, despite facing challenges such as net outflows and fluctuating market conditions [1][4]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for T. Rowe Price's fourth-quarter earnings is $2.23 per share, reflecting a year-over-year increase of 29.7% [9]. - The consensus estimate for total revenues is $1.88 billion, indicating a growth of 14.6% from the prior-year quarter [10]. - The company has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 8.81% [2]. Group 2: Asset Management and Market Performance - As of December 31, 2024, T. Rowe Price's preliminary assets under management (AUM) stood at $1.61 trillion, a decrease of 3.6% from September 30, 2024, primarily due to poor equity market performance [4]. - The Zacks Consensus Estimate for total AUM is $1.64 trillion, suggesting a sequential increase of 3.2% [5]. - The S&P 500 Index rose by 2.4% in the October-December quarter, indicating favorable market conditions, although equity markets lagged behind fixed-income performance [3]. Group 3: Expenses and Financial Outlook - Operating expenses for T. Rowe Price are estimated to rise to $1.33 billion, reflecting a 5.7% increase on a sequential basis due to investments in technology and client acquisition [7]. - The consensus estimate for investment advisory fees is $1.68 billion, indicating a decline of 2.9% sequentially [5]. - The consensus estimate for administrative, distribution, and servicing fees is $154 million, implying a 4.1% increase from the previous quarter [6]. Group 4: Competitive Landscape - Invesco reported adjusted earnings of 52 cents per share, surpassing estimates and showing a 10.6% increase from the prior year, driven by reduced expenses and higher net revenues [11]. - BlackRock's adjusted earnings of $11.93 per share exceeded estimates, with a 23.5% year-over-year increase, supported by robust AUM growth despite challenges from higher expenses [12].

In its upcoming report, T. Rowe Price (TROW) is predicted by Wall Street analysts to post quarterly earnings of $2.23 per share, reflecting an increase of 29.7% compared to the same period last year. Revenues are forecasted to be $1.88 billion, representing a year-over-year increase of 14.6%.Over the last 30 days, there has been a downward revision of 3.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their in ...

Reflects T. Rowe Price's commitment to expanding its client capabilities in insurance, its leadership in retirement asset management, and the growing intersection of traditional asset management, alternative investments, and insuranceBALTIMORE and NEW YORK and DURHAM, N.C., Feb. 3, 2025 /PRNewswire/ -- T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), a global investment management firm and a leader in retirement, T. Rowe Price's alternative credit subsidiary Oak Hill Advisors (OHA), and life insurance and annui ...