AllianceBernstein (AB ) Hits Record $867B AUM Driven by Private Wealth and ETFs

Core Insights - AllianceBernstein Holding achieved a record $867 billion in assets under management (AUM) by the end of 2025, driven by market appreciation and strong performance in specialized segments [1][7] - The firm experienced $9.4 billion in total active net outflows for the year, primarily due to $22.5 billion in redemptions from active equities and a decline in taxable fixed-income demand [2] - The adjusted operating margin expanded to 33.7% in 2025, with a focus on scaling high-growth platforms and exceeding private market AUM targets of $90 to $100 billion by 2027 [3] Financial Performance - The Bernstein Private Wealth business reached $156 billion in AUM, contributing 37% of firmwide revenues [1] - The private markets platform grew 18% to $82 billion, while the active ETF suite saw 65% organic growth, ending the year with $14 billion in assets [1] - Q4 adjusted earnings fell 9% year-over-year to $0.96 per unit, and full-year performance fees dropped 24% to $172 million [2] Strategic Focus - The company aims to maintain its adjusted operating margin while expanding its private credit and international ETF franchises [3] - Management expressed ambition to exceed private market AUM targets through continued growth in high-potential areas [3]