Fiera Capital Corp (FRRPF) Q3 2024 Earnings Call: Strong Revenue Growth and AUM Expansion

Fiera Capital Corporation (FRRPF) reported strong financial results for the third quarter of 2024, with notable growth in revenue and assets under management (AUM). The company's earnings call highlighted key aspects of its performance, providing valuable insights into its growth strategy and market positioning.
**Revenue Growth and AUM Expansion**
Fiera Capital's revenue for the third quarter of 2024 increased by 8% year-over-year, driven by growth in both Public and Private Markets platforms. The company's AUM grew by $6.6 billion (4.2%) to $165.5 billion, reflecting a favorable market impact of $7.0 billion from both equity and fixed income mandates. Excluding AUM sub-advised by PineStone, net organic growth was $0.2 billion during the quarter.

**Adjusted EBITDA and Margin Improvement**
The company's adjusted EBITDA increased by 18% year-over-year to $51.7 million, with a 30.1% adjusted EBITDA margin, the highest in two years. This improvement in operational efficiency and revenue growth demonstrates Fiera Capital's ability to generate value for shareholders through effective cost management and revenue expansion.

**Regional Distribution Structure and New Mandates**
Fiera Capital's regional distribution structure played a significant role in driving revenue growth. The company's diversified distribution channels, including Institutional, Financial Intermediaries, and Private Wealth, contributed to a net organic growth of $0.2 billion during the quarter. This growth was primarily driven by positive net organic growth in Private Markets and Public Markets (excluding PineStone). The regional distribution structure allowed Fiera Capital to capture new mandates of approximately $900 million across both platforms, further boosting revenue.
**Debt Reduction and Share Buyback Program**
In Q3 2024, Fiera Capital reduced its debt and purchased approximately 650 thousand Class A shares for a total consideration of $5.2 million. This debt reduction, along with higher adjusted EBITDA, brought its net debt ratio below 3x. The share buyback program further enhanced shareholder value.
Fiera Capital's strong Q3 2024 earnings reflect its effective growth strategy, operational efficiency, and ability to capture new mandates. The company's focus on both Public and Private Markets, along with its diversified distribution channels, has driven revenue growth and AUM expansion. As the company continues to execute its growth strategy, investors can expect Fiera Capital to maintain its strong financial performance and generate value for shareholders.