Acadian Asset Management (BSIG) Q3 2024 earnings summary

Executive summary

• ENI per share rose to $0.59 in Q3 2024, up 31% year-over-year, driven by higher AUM and share repurchases.

• AUM reached a record $120.3B, up 23.5% year-over-year, with $0.5B net inflows reversing prior outflows.

• U.S. GAAP EPS was $0.45, slightly down from $0.46 in Q3 2023; net income attributable to controlling interests fell to $16.9M.

• Transition to a single business model completed, with rebranding to Acadian Asset Management and a new CEO effective Q1 2025.

• Acadian delivered $44.7M Adjusted EBITDA, up 18.6% year-over-year.

Financial highlights

• Total revenue increased 14.7% year-over-year to $123.1M, driven by higher management fees from increased AUM.

• Operating expenses rose 24.6% year-over-year, mainly due to higher compensation and benefits.

• ENI increased to $22.2M for Q3 2024 from $19.3M in Q3 2023.

• Share repurchases of $100M since December 2023 contributed to per-share earnings growth.

• Cash balance at quarter-end was $53.6M; revolving facility fully paid down.

Outlook and guidance

• Management expects to continue generating strong free cash flow and to deploy excess capital for organic growth and share repurchases.

• Organic growth initiatives in credit and equity alternatives progressing, with new strategies seeded and building track records.

• Full-year ENI operating expense ratio projected at 45%-49% and variable compensation ratio at 44%-48%, assuming stable equity markets.

• Company remains open to strategic alternatives if they create shareholder value.

• Management expects available cash and cash equivalents, supplemented by financing as needed, to be sufficient to fund operations and capital requirements for at least the next twelve months.