Fiera Capital Q4 Earnings Call Highlights

Core Insights - Fiera Capital reported total assets under management (AUM) of CAD 164.1 billion at year-end, with a 5.7% increase excluding sub-advised strategies, driven by net inflows of approximately CAD 1 billion and strong equity market performance in 2025 [4][5][18] Private Wealth - AUM in private wealth totaled $14 billion at the end of Q4, reflecting a 2% sequential decline and a 6% decrease year-over-year, primarily due to negative net contributions from Treasuries and sub-advised strategies [1] Private Markets - Private markets AUM reached CAD 22 billion, marking an 11.4% year-over-year increase, supported by net inflows of roughly CAD 900 million and a significant acquisition in real estate [2][5] - Private markets generated 37% of total revenues despite representing only 13% of total AUM, indicating a strong revenue contribution [5][18] Public Markets - Public markets AUM ended the year at CAD 142.1 billion, with a 0.5% increase in Q4 and a 4.7% increase for the year, excluding sub-advised strategies [3] - Total AUM in public markets declined by 1.7% in Q4 and 1.8% for the year, largely due to net outflows from sub-advisory strategies [3][5] Financial Performance - Adjusted net earnings for Q4 were CAD 30 million, with an adjusted EBITDA margin of 30.4%, while full-year adjusted net earnings rose to CAD 108 million, a 5% increase from the previous year [14][15] - Total revenue for Q4 was CAD 180 million, an 8% sequential increase but a 2% decline year-over-year, attributed to lower public market management fees [17] Capital Allocation and Debt Management - Net debt at the end of the quarter was CAD 664 million, with a net debt ratio of 3.4x, down from 3.5x [21] - The company aims to achieve a net debt ratio of 2.5x by the end of 2028 as part of its strategic initiatives [22] Strategic Initiatives - Management outlined a three-year plan starting in 2026 focused on strengthening distribution, enhancing investment performance, positioning private markets for growth, optimizing operations, and increasing financial capacity for reinvestment [22]