Artisan Partners Asset Management (APAM) Q4 2024 earnings summary

Executive summary

• Celebrated 30th anniversary, highlighting a history of building a high-value-added investment platform supporting talent and growth across asset classes.

• Achieved strong financial performance in 2024, with revenue up 14% year-over-year and adjusted net income up 23% year-over-year.

• Expanded to 11 investment teams managing 25 strategies, including equities, fixed income, alternatives, and private assets.

• Maintained a transparent, predictable financial model with stable margins and strong cash flow.

• Reported financial results for Q4 2024 and the year ended December 31, 2024, including declaration of a quarterly and special annual dividend.

Financial highlights

• Q4 revenues rose 6% sequentially and 19% year-over-year to $297.0M; adjusted operating income up 12% sequentially and 37% year-over-year.

• Assets under management (AUM) ended Q4 at $161.2 billion, up 7% year-over-year despite net client outflows.

• Adjusted net income per share improved 14% sequentially and 35% year-over-year; full-year adjusted EPS was $3.55, up 23% from 2023.

• Adjusted operating margin for 4Q24 was 36.8%, up 470 bps year-over-year; full-year 2024 margin was 33.8%.

• Weighted average recurring fee rate for Q4 was 68 bps (excluding performance fees); full-year 2024 management fee was 0.69%.

Outlook and guidance

• Expect long-term incentive amortization of ~$75 million for 2025; fixed expenses (excluding LTIP) to rise mid to low single digits.

• Compensation and benefits expenses to be seasonally higher in Q1 2025 by ~$6 million.

• Payout ratio expected to remain in the mid-90% range for 2025, with continued retention of cash for growth initiatives.

• Focus remains on sustainable long-term growth, fee discipline, and maintaining stable margins through market cycles.

• Continued investment in talent and franchise development to drive future growth.