Fiera Capital (FSZ) Q4 2024 earnings summary

Executive summary

• Assets under management (AUM) ended 2024 at $167.1B (CAD 167.1B), up $1.6B for Q4 and $5.4B (3.3%) for the year, driven by market gains and new mandates, with Private Markets AUM up nearly 7%.

• Private Markets delivered strong net organic growth, contributing 35% of 2024 revenues, with new mandates in real estate, private debt, and agriculture, and nearly all strategies generating positive returns.

• Public Markets saw positive net organic growth in equities (excluding PineStone), but overall net outflows due to fixed income redemptions and PineStone-related outflows.

• Performance fees declined significantly year-over-year, impacting total revenue and adjusted earnings.

• Despite market strength, lower performance fees led to a decrease in total revenues and profitability compared to 2023.

Financial highlights

• Q4 2024 total revenue was $184M, down 13% year-over-year, mainly due to lower performance fees; full-year revenue was $689M, up slightly year-over-year.

• Base management fees rose 6% year-over-year in Q4 to $157M; for the year, base management fees were up 3% to $612M.

• Adjusted EBITDA for Q4 was $53.4M (down 31% year-over-year); full-year Adjusted EBITDA was $196M (down 5%), with margins at 28.4% for the year.

• Adjusted net earnings for Q4 were $22.8M ($0.21 per share diluted), down from $50M ($0.37 per share) last year; full-year adjusted net earnings were $103M, down 19%.

• Net loss attributable to shareholders in Q4 was $0.2M, compared to net earnings of $39.4M in Q4 2023.

Outlook and guidance

• Expectation of returning to sustained net inflows as PineStone-related outflows subside and regionalized distribution model gains traction.

• Anticipate continued demand for private credit, real assets, and agriculture, with strong pipelines and consultant interest in these strategies.

• Management remains optimistic about 2025 results, citing momentum in regional distribution and strong leadership.

• Committed, undeployed capital of ~$900M as of year-end provides a strong pipeline for future opportunities.

• Management expects further AUM outflows related to PineStone sub-advised mandates in 2025, including a $5.7B transfer in January and an additional $1.0B anticipated.