Acadian Asset Management (BSIG) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 net inflows of $3.8 billion, the highest in 19 years, driving AUM to $121.9 billion, up over 10% year-over-year as of March 31, 2025.

• Net income attributable to controlling interests rose 38% year-over-year to $20.1 million; diluted EPS up 46% to $0.54.

• Over 90% of strategies by revenue outperformed benchmarks over 3-, 5-, and 10-year periods, with a 4.4% annualized excess return.

• Enhanced Equity AUM doubled year-over-year to ~$12 billion, supporting robust growth and targeting the $16 trillion global passive equity market.

• Repurchased 0.8 million shares (2% of total) for $19.4 million in Q1 2025; interim dividend of $0.01 per share declared, payable June 27, 2025.

Financial highlights

• Total Q1 2025 revenue increased 13.4% year-over-year to $119.9 million, driven by higher management and performance fees.

• Adjusted EBITDA rose 10% to $35.2 million; ENI up 17% to $20.3 million.

• U.S. GAAP operating margin improved to 27% from 22% in Q1 2024; ENI operating margin stable at 28%.

• Management fees increased 10.5% to $112.9 million; performance fees rose 71% to $5.3 million year-over-year.

• Diluted shares outstanding decreased 8.7% year-over-year due to buybacks.

Outlook and guidance

• Management expects continued strong net flows and AUM growth, supported by product and distribution initiatives.

• Full-year 2025 ENI operating expense ratio projected at 47%-49%; variable compensation ratio expected at 44%-48%.

• No change expected in blended fee rate or expense ratios in the near term.

• Debt drawn for seasonal needs expected to be fully paid down by year-end.

• Distribution ratio for key employee distributions anticipated at 8%-9% if equity markets remain stable.