Acadian Asset Management (BSIG) 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, with $0.9B in positive net flows for the quarter.

• 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, driven by higher management and performance fees.

• 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; full-year adjusted EBITDA was $177M, up 32%.

• ENI for Q4 2024 was $49M, up from $33M in Q4 2023; FY 2024 ENI $105.8M, up 40%.

• ENI diluted EPS: $1.30 in Q4 2024 (up 69%); $2.76 for FY 2024 (up 55%).

Outlook and guidance

• 2025 full-year operating expense ratio expected at 47%-49% if equity markets remain stable.

• Variable compensation ratio projected at 44%-48% for 2025.

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

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

• 2025 full-year Acadian LLC key employee distribution ratio expected at 7%-8%.