Fiera Capital (FSZ) Q3 2024 earnings summary

Executive summary

• Assets under management (AUM) rose by $6.6B (4%) in Q3 2024 to $165.5B, driven by favorable market conditions, new mandates, and positive net organic growth in both public and private markets.

• Private Markets AUM grew 2.1% to $19.5B, with new subscriptions and positive market impact; Public Markets AUM increased 4.5% to $146.0B, offset by PineStone outflows.

• Investment performance remained strong, with 89% of equity and 97% of fixed income AUM in Public Markets outperforming benchmarks over five years.

• Adjusted EBITDA margin exceeded 30% for the quarter, reaching its highest level in two years.

• Dividend increased to $0.216 per share, payable December 19, 2024.

Financial highlights

• Q3 2024 revenue was $171.7M, up 8% year-over-year, with private markets revenues up 17% and public markets up 4%.

• Adjusted EBITDA for Q3 was $51.7M, up 18% year-over-year; adjusted EBITDA margin rose to 30.1% from 27.7%.

• Adjusted net earnings were $28.9M ($0.25 per share), up from $24M ($0.18 per share) last year.

• Net earnings attributable to shareholders were $12.6M for Q3, up from $11M last year.

• LTM free cash flow was $95M, remaining above dividends paid.

Outlook and guidance

• Strong pipeline of mandates in both public and private markets, with $900M in new mandates in Q3 and $3.6B year-to-date.

• Committed, undeployed capital of $1.4B in Private Markets supports future growth.

• Management expects continued AUM growth and increased interest in fixed income and alternative strategies as cash rates decline.

• Performance fee outlook for Q4 remains uncertain due to market volatility and client rebalancing.