Core Insights - Mercer Global Advisors has completed two acquisitions at the end of 2025, marking its most active acquisition year to date [1] Group 1: Acquisitions - Mercer acquired Long Run Wealth Advisors, a firm based in Lake Placid, N.Y., with approximately $640 million in assets under management, enhancing its presence in upstate New York [2] - The firm also purchased Poterack Capital Advisory, a virtual wealth management firm managing about $265 million in assets, founded in 2001 [3] - The two transactions represent Mercer's 17th and 18th closed deals of 2025, contributing to an addition of $10 billion in assets through acquisitions during the year [5] Group 2: Benefits of Acquisitions - Joining Mercer provides Long Run access to centralized resources such as advanced estate and tax planning, institutional-grade investment management, and family office services [3] - The partnership is expected to enhance professional development opportunities for Long Run's next-generation leaders and establish a continuity plan for clients [3] - Poterack Capital Advisory's partnership with Mercer allows for a focus on client service while offloading various business management aspects, positioning the firm for long-term growth [4] Group 3: Ownership and Advisors - Mercer is majority-owned by Oak Hill Capital, Genstar Capital, Altas Partners, and GIC, a global institutional investor [5] - Marshberry advised Long Run in the acquisition deal, while Poterack Capital Advisory was advised by Tyson Pettit, president and founder of the Iron River Group [4]

Core Insights - Apollo Global Management (APO) and KKR & Co. Inc. (KKR) are leading firms in the asset management sector, each with distinct business models and growth strategies that may influence their future performance [1][20] Apollo Global Management (APO) - Apollo's diversified business model supports sustainable earnings, with a compound annual growth rate (CAGR) of 7.8% in assets under management (AUM) from 2021 to 2024 [3] - The company completed the acquisition of Bridge Investment in September 2025, which is expected to nearly double its real estate AUM to over $110 billion [3][20] - Apollo's revenue expanded at a CAGR of 63.7% from 2021 to 2024, with continued growth in the first nine months of 2025 [5] - Recent acquisitions, including Argo Infrastructure Partners, enhance Apollo's capabilities in fast-growing sectors [4] - Apollo's forward price-to-earnings (P/E) ratio is 15.36X, lower than KKR's, providing a valuation advantage [15][20] - The company raised its quarterly dividend by 10.9% to 51 cents per share in May 2025, resulting in a dividend yield of 1.6% [15] KKR & Co. Inc. (KKR) - KKR's total AUM has shown a five-year CAGR of 23.9% from 2019 to 2024, with growth continuing into 2025 [6] - The firm closed a majority stake in HealthCare Royalty Partners in July 2025, adding nearly $3 billion to its AUM [6] - KKR's revenue has grown at a CAGR of 16.3% from 2019 to 2024, with ongoing growth in the first nine months of 2025 [7] - KKR announced a multi-year partnership with Sallie Mae to acquire private education loans, broadening its investment opportunities [8] - KKR's forward P/E ratio is 20.24X, indicating a higher valuation compared to Apollo [15] - The company raised its quarterly dividend by 5.6% to 19 cents per share in May 2025, resulting in a dividend yield of 0.6% [15] Comparative Analysis - Apollo is seen as having more upside potential due to its diversified model and sustained AUM momentum, while KKR's near-term upside appears limited by its higher valuation [20][21] - Both companies have shown strong growth trajectories, but Apollo's recent acquisitions and lower P/E ratio create a compelling investment case [20]

Financial Performance - Great Elm Group (GEG) grew pro forma Fee-Paying Assets Under Management (FPAUM) by 10% year-over-year as of September 30, 2025[6] - Great Elm Group (GEG) grew pro forma Assets Under Management (AUM) by 7% year-over-year as of September 30, 2025, reaching $792 million[6, 33] - GECC raised approximately $28 million in gross proceeds through equity issuances[7] - GECC issued $57.5 million principal amount of its 7.75% Notes due December 31, 2030[7] - Monomoy BTS sold its second property for approximately $7.4 million, resulting in a gain of $0.5 million[7] Strategic Partnerships and Investments - Great Elm announced a strategic partnership with Kennedy Lewis Investment Management (KLIM), delivering up to $150 million in leverageable capital[6] - Woodstead Value Fund, L.P purchased 4.0 million shares of GEG at $2.25 per share, totaling $9 million[6] - GECC sold 1.3 million shares to an affiliate of Booker Smith at $11.65 per share for gross proceeds of $15 million[6] Capital Allocation - GEG's Board authorized an additional $5 million of stock repurchases, bringing the total stock repurchase program to $25 million[6] - As of November 11, 2025, GEG repurchased 5.6 million shares for $10.9 million at an average price of $1.93 per share[6]

Core Insights - MAI has completed the acquisition of Evoke Advisors, increasing its assets under management (AUM) to over $65 billion and enhancing its national presence and capabilities [1][2] - The acquisition is part of MAI's growth strategy, particularly aimed at improving services for ultra-high-net-worth (UHNW) clients and institutions [1][5] Group 1: Acquisition Details - The addition of Evoke Advisors allows MAI to operate across 34 offices in the US [2] - MAI has added over $30 billion in AUM during the year, indicating significant growth [2] - The integration of talent from both firms has led to an expanded Office of Managing Partners (OMP) [2] Group 2: Leadership and Management - Rick Buoncore continues as chairman and CEO, with new managing partners from Evoke joining the OMP [3][4] - The OMP now includes various managing partners overseeing different areas such as Evoke Ultra-High Net Worth, Operations, Family Office & Tax Services, and Wealth Management [4] Group 3: Strategic Goals - The acquisition enables MAI to expand its capabilities and provide clients with greater access to a national platform and specialized expertise [5] - MAI aims to unify its brand, pursue organic growth opportunities, and equip advisors with tools and resources to maximize the benefits of the expanded platform [6]

Financial Data and Key Metrics Changes - The company achieved a record AUM of $2.1 trillion, reflecting a $123 billion increase or 6% from the previous quarter and a $329 billion increase or 18% year-over-year [24] - Average long-term AUM rose to $1.46 trillion, a 9% increase from the last quarter and a 16% increase from the same quarter last year [24] - Net revenues for the third quarter reached $1.2 billion, an increase of $82 million compared to the same quarter last year, primarily driven by higher investment management fees [31] Business Line Data and Key Metrics Changes - The company reported strong net long-term inflows of nearly $29 billion, marking an 8% annualized organic growth, the best flow quarter since 2021 [12] - In the ETF and indexed offerings, the company reached $1 trillion in AUM, with an annualized organic growth of 15% [13] - Fundamental fixed income saw over $4 billion in net long-term inflows, while total fixed income inflows across all products reached nearly $13 billion [15] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM now comes from clients outside the U.S., with two-thirds of net inflows this quarter from AMEA and Asia-Pacific regions [12] - The China joint venture reached a record high AUM of $122 billion, reflecting a 16% increase over the last quarter, with $7.3 billion of net long-term inflows [16] - The company experienced a significant increase in demand for fixed income products, particularly in Asia, with strong institutional interest in investment-grade bonds [15] Company Strategy and Development Direction - The company is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [4] - A hybrid investment platform is being implemented, expected to be completed by the end of 2026, aimed at simplifying operations and improving investment performance [5][6] - The company is pursuing growth through partnerships, such as the Barings Private Markets partnership, and is in the final stages of selling a majority interest in its Indian business [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [11] - The company is optimistic about future growth opportunities, particularly in private markets and fixed income, as it continues to innovate and meet client demand [19][20] - Management expressed confidence in the ongoing initiatives to enhance investment performance and reduce redemption rates in fundamental equities [22] Other Important Information - The company recorded a non-cash impairment charge of $36 million related to the sale of IntelliFlow, which is expected to close in the fourth quarter [33] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an 11.2% effective tax rate [34] - The company plans to continue common share repurchases, with a total payout ratio expected to be near 60% this year [38] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management indicated strong participation and momentum in favor of the fee change proposals, but could not disclose specific quorum details [41][42] - The reclassification of marketing expenses does not impact operating income or the proposal's approval likelihood [43] Question: Clarification on proxy voting expenses - Proxy solicitation expenses are considered marketing expenses of the fund and are not expected to affect Invesco's operating expenses [45][46] Question: Insights on fixed income flows and future expectations - The company has seen strong fixed income performance and expects continued strength, despite some recent volatility [51][52] Question: Details on divestitures and capital return priorities - Proceeds from the sale of the Indian business are expected to be $140 to $150 million, with negligible impact on overall operating results [57][58] - The company remains focused on improving its balance sheet and returning capital to shareholders while investing in growth [59] Question: Future expense growth related to the Alpha platform - Implementation costs for the Alpha platform are expected to remain high through 2026, with a focus on managing fixed expenses [63][64] Question: Variable expenses outlook for 2026 and 2027 - Variable expenses are expected to fluctuate with revenue, while fixed expenses will be closely managed to drive operating leverage [70][71]

Core Insights - BlackRock's second-quarter 2025 adjusted earnings per share (EPS) reached $12.05, exceeding the Zacks Consensus Estimate of $10.66, marking a 16% increase from the previous year [1][9] - The company's shares are down 6.4% in early market trading following the earnings report [1] Financial Performance - BlackRock's revenues for the quarter were $5.42 billion, a 13% year-over-year increase, but slightly below the Zacks Consensus Estimate of $5.43 billion [3][9] - Total expenses rose to $3.69 billion, up 23% year over year, driven by increases across all cost components [3][9] - Net income attributable to BlackRock on a GAAP basis was $1.59 billion, reflecting a 7% increase from the prior-year quarter [2] Assets Under Management (AUM) - As of June 30, 2025, AUM reached a record high of $12.52 trillion, an 18% increase year over year, supported by $46 billion in long-term net inflows [5][9] - The average AUM for the quarter was $11.97 trillion, up 15% year over year [5] Non-Operating Income and Share Repurchases - Non-operating income was reported at $521 million, significantly higher than $214 million in the prior-year quarter [4] - BlackRock repurchased shares worth $375 million during the reported quarter [6] Strategic Acquisitions - The company completed the acquisition of HPS Investment Partners on July 1, 2025, which is expected to enhance its position as a global asset manager [2][7]