Q4 2025 Artisan Partners Asset Management Inc Earnings Call Transcript
Key Points
- Artisan Partners Asset Management Inc (APAM) achieved significant absolute returns for clients in 2025, with firm-wide asset-weighted investment returns exceeding 20% net of fees.
- The company reported strong financial performance, with revenues reaching an all-time high of $336 million in the fourth quarter of 2025, up 13% compared to the prior-year fourth quarter.
- Assets under management (AUM) reached an all-time high of $180 billion at year-end 2025, driven by over $33 billion of investment gains.
- The acquisition of Grandview Property Partners expands APAM's strategic expansion into alternative investments and establishes a foundation in private real estate.
- APAM's balance sheet remains strong, with approximately $214 million of cash and a conservatively leveraged capital structure, allowing for consistent capital returns to shareholders and flexibility for business investments.
- APAM experienced higher-than-expected outflows of $15.6 billion in its equity platform, primarily in global opportunities, US mid-cap growth, and non-US small-mid growth strategies.
- Trailing one-year performance was negatively impacted by underperformance in two of the largest equity strategies, International Value and Global Opportunities.
- The acquisition of Grandview Property Partners is expected to have an immaterial impact on 2026 earnings, with accretion to earnings per share anticipated only after the final closing of Grandview's next flagship fund.
- Institutional demand in Europe faces challenges due to regulatory changes and short-term performance issues, particularly affecting global exposure.
- Fixed expenses are expected to increase in low-single digits in 2026, primarily due to merit-based salary increases and inflationary market data and technology costs.
Good afternoon, and welcome to the Artisan Partners Asset Management business update and fourth-quarter 2025 earnings call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Artisan Partners Asset Management. Please go ahead.
Welcome to the Artisan Partners Asset Management business update and earnings call. Today's call will include remarks from Jason Gottlieb, CEO; and CJ Daley, CFO. Following these remarks, we will open the line for questions. Our latest results and investor presentation are available on the Investor Relations section of our website.
Before we begin today, I would like to remind you that comments made during today's call, including responses to questions, may include forward-looking statements. These are subject to known and unknown risks and uncertainties, including, but not limited to, the factors set forth in our earnings release and detailed in our SEC
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