Q2 2025 AllianceBernstein Holding LP Earnings Call Transcript
Key Points
- AllianceBernstein Holding LP (AB) ended the quarter with record assets under management of $829 billion, providing a strong foundation for future growth.
- The company reported a 7% increase in adjusted earnings per unit compared to the prior year, reflecting strong financial performance.
- AB's private markets platform grew 20% year-over-year, reaching $77 billion in fee-paying and net fee-eligible assets under management.
- The firm is on track to deliver a 33% operating margin in 2025, ahead of its 2027 target range of 30% to 35%.
- AB continues to expand its distribution coverage, adding new partnerships and mandates, which enhances its market reach and revenue potential.
- Firm-wide net flows turned negative in the second quarter, with active strategies shedding $4.8 billion, primarily due to market volatility.
- Active equity experienced significant outflows, shedding $6 billion firm-wide, mainly driven by retail redemptions.
- The downturn in overseas demand for marquee income strategies resulted in $1.5 billion of firm-wide taxable outflows.
- The firm's fee rate decreased to 38.7 basis points, driven by a mix shift in assets under management and flows.
- Retail flows turned negative due to macroeconomic turbulence, halting a streak of seven consecutive quarterly inflows.
Thank you for standing by and welcome to the AllianceBernstein second quarter 2025 earnings review. (Operator Instructions) As a reminder, this conference is being recorded and will be available for replay on our website shortly after the conclusion of this call.
I would now like to turn the conference over to your host for this call, Head of Investor Relations for AllianceBernstein, Mr. Ioanis Jorgali. Please go ahead.
Good morning, everyone and welcome to our second quarter 2025 earnings review. This conference call is being webcast and accompanied by a slide presentation that's posted in the Investor Relations section of our website www.alliancebernstein.com.
With us today to discuss the company's results for the quarter are Seth Bernstein, President and CEO, and Tom Simeone, CFO. Onur Erzan, Head of Global Client Group and Private Wealth, will join us for questions after our prepared remarks.
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