Acadian Asset Management (AAMI) Q4 2024 earnings summary

Executive summary

• Q4 2024 delivered record results with U.S. GAAP EPS up 109% year-over-year to $1.13 and ENI EPS up 69% to $1.30, both record highs, driven by higher management and performance fees, and share repurchases.

• Net income attributable to controlling interests rose 86% year-over-year to $42.5M; AUM reached $117.3B, up 13% from Q4 2023.

• 94% of strategies by revenue outperformed benchmarks over 3-, 5-, and 10-year periods.

• Net inflows of $0.9B in Q4 and $1.8B for 2024, with $21B gross sales for the year, marking the first positive annual net flow since 2019.

• Board declared a $0.01/share interim dividend, payable March 28, 2025.

Financial highlights

• Q4 2024 revenue rose 28% year-over-year to $167.8M; management fees up 18%, performance fees up 52%.

• Operating income increased 83% to $65.0M; operating margin expanded to 39% from 27% in Q4 2023.

• Adjusted EBITDA up 41% to $73M in Q4 2024; ENI margin improved to 42% from 36%.

• FY 2024 ENI was $105.8M, up 40%; adjusted EBITDA was $177M, up 32% from 2023.

• FY 2024 GAAP EPS was $2.22, up 43%; ENI EPS $2.76, up 55% year-over-year.

Outlook and guidance

• 2025 full-year ENI operating expense ratio expected at 47%-49% if AUM remains stable.

• 2025 full-year variable compensation ratio projected at 44%-48%.

• Continued investment in product innovation, expansion, and distribution to drive long-term growth.

• Expects to deploy excess capital for organic growth and share buybacks.

• Enhanced and extension strategies, systematic credit, and equity alternatives are key growth drivers.