GQG Partners (GQG) H2 2024 earnings summary

Executive summary

• Funds Under Management (FUM) reached $153 billion at year-end 2024, up 26.9% year-over-year, driven by net flows of $20.2 billion and strong investment performance across all core strategies.

• Net revenues rose 47% to $760 million, net operating income increased 50% to $578 million, and net income attributable to GQG Partners Inc. rose 52.8% to $431.6 million.

• Declared a Q4 dividend of $0.0378 per share (90% payout), with the payout ratio expanded to 50%-95% of distributable earnings.

• Closed first acquisition, launching Private Capital Solutions (PCS) and successfully fundraising for its first fund.

• Launched Middle East operations in Abu Dhabi, expanding global talent and operational reach.

Financial highlights

• Average FUM for 2024 was $148.2 billion, up from $101.9 billion in 2023.

• Distributable earnings rose to $447.9 million from $297.9 million year-over-year.

• Dividend per share increased 50% year-over-year, with total dividends paid at $370.2 million.

• Operating margin for 2024 was 76%, up 170 basis points from 2023.

• Management fees comprised 96.8% of net revenue, supporting stable earnings.

Outlook and guidance

• Entering 2025 with strong momentum, optimism in U.S. equity and wholesale channels, and a robust pipeline for PCS.

• Rebranding of Quality Dividend Income to Quality Value expected to unlock significant growth opportunities.

• PCS business anticipated to grow, with potential for billion-dollar FUM over the intermediate term.

• No intention to reduce dividend payout; flexibility maintained for future strategic opportunities.

• Continued investment in client-facing activities, new markets, and infrastructure.