Artisan Partners Asset Management Inc. (APAM) Q2 2024 Earnings Call Transcript

Artisan Partners Asset Management held its Q2 2024 earnings call, highlighting a period of strategic growth and investment diversification. The call, led by Executive Vice President and CAO Eileen Lee Kwei, Chief Executive Officer Eric Colson, President Jason Gottlieb, and Chief Financial Officer C.J. Daley, emphasized the company's commitment to high-value-added investing and its focus on talent and long-term allocators.

Strategic Investments in Alternatives and Emerging Markets

The call underscored Artisan Partners' strategic expansion into alternative investments and emerging markets. The company has seen success in its Emerging Markets Debt strategies, with the EMsights Capital Group generating impressive returns since its inception. Additionally, Artisan Partners has been actively investing in alternatives, with six of its strategies now classified as Alternative or Liquid Alternatives. The company's focus on talent-driven strategies, long-term demand, and fragmented markets has proven to be a winning formula, with a strong pipeline of institutional interest and a growing network of high-quality institutional anchors.

Financial Performance and Outlook

Financially, Artisan Partners reported an increase in assets under management to $159 billion, down slightly from the previous quarter but up 11% from the same period in 2023. Net client cash outflows for the quarter were $1.6 billion, with outflows in growth and value strategies partially offset by inflows in Sustainable Emerging Markets and Fixed Income strategies. The company's revenue and net income for the quarter showed steady growth, reflecting the success of its strategic investments and operational efficiency.

Looking Ahead: Opportunities and Challenges

Looking ahead, Artisan Partners is poised for further growth, particularly in emerging markets and alternatives. The company's focus on attracting and retaining top talent, maintaining long-term relationships with allocators, and expanding its operational platform is expected to drive future success. However, challenges remain, including macroeconomic uncertainties and competition in the highly fragmented alternatives market. Nevertheless, Artisan Partners' strategic approach and commitment to high-value-added investing position the company well for continued growth and success.

Investor Takeaways

Investors and analysts attending the call gained valuable insights into Artisan Partners' strategic growth initiatives, financial performance, and future outlook. The company's focus on high-value-added investing, strategic expansion into alternatives and emerging markets, and commitment to long-term allocators has positioned it for continued success in a rapidly evolving market. As Artisan Partners continues to navigate the challenges and opportunities ahead, investors will closely watch its performance and strategic moves in the alternative investment and emerging market spaces.