Artisan Partners Asset Management Inc.
For the period ended Mar 31, 2026. Filed May 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 4, 2026
APAM$39.13-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001517302-25-000086
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0001517302-26-000091
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 141 previous paragraphs and 124 current paragraphs.
72 unchanged; 45 reworded; 7 added; 18 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 25 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
•We acquired Grandview Property Partners for $22.5 million of upfront cash consideration with future consideration payable upon the achievement of committed capital milestones and certain revenue run rates for future Grandview Funds as well as the underlying performance of those funds over the seven-year period following the acquisition's closing date.
Current report
Global markets and our AUM were volatile during the period. We reached record AUM near the end of February 2026 before declining to $173 billion at March 31, 2026. Preliminary AUM as of April 30, 2026, increased to approximately $183 billion reflecting global market movements.
Current report
The weighted average fee rate, inclusive of performance fees, was 67.4 basis points for the three months ended March 31, 2026, compared to 67.5 basis points for the three months ended March 31, 2025.
Current report
The increase in total compensation and benefits was primarily driven by a $8.7 million increase in short-term incentive compensation driven by higher revenues in the three months ended March 31, 2026. A 2% increase in full-time associates, including those associated with the Grandview acquisition, also led to increases in compensation and benefit related expenses.
Current report
Adjustments to income tax expense as a result of the enactment of tax laws (if any) relates to the remeasurement of deferred tax assets upon enactment.
Current report
Pursuant to the terms of the Grandview Property Partners acquisition agreement, we agreed to make up to $50 million of capital commitments across Grandview’s next two flagship funds.
Current report
In fiscal 2026 we expect to make TRA payments totaling approximately $40.4 million, $30.3 million of which was paid during April 2026.
Removed paragraphs (18)
Previous report
By December 2025, we expect the equity Artisan Funds to have completed their annual income and capital gain distributions. Based on our current estimates and assumptions, we expect fourth quarter distributions to result in approximately $900 million of net client cash outflows from investors who choose not to reinvest their distributions. The fourth quarter 2025 distributions, estimates of which we expect Artisan Funds to disclose in advance of the record dates, may cause increased mutual fund redemptions.
Previous report
The increase in compensation and benefits is primarily driven by a $7.3 million increase in short-term incentive compensation driven by higher revenues and a $6.8 million increase in long-term incentive compensation. The long-term incentive compensation increase was comprised of a $4.1 million increase from higher grant date value amortization of the awards as a result of the higher 2025 grant value as compared to the 2020 grant that was fully amortized in 2025 as well as a $2.7 million increase from market valuation changes.
Previous report
We estimate that our GAAP and adjusted effective tax rates will increase 1% to 3% beginning in 2027 as a result of the compensation deduction limitation rules within the OBBBA.
Previous report
Nine months ended September 30, 2025, compared to Nine months ended September 30, 2024
Previous report
Investment Advisory Revenues
Previous report
The increase in revenues of $46.4 million, or 6%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, was driven primarily by a $11.8 billion, or 7%, increase in our average AUM. The weighted average management fee, which excludes performance fees, was 67.7 basis points for the nine months ended September 30, 2025, compared to 68.8 basis points for the nine months ended September 30, 2024. The decrease in the weighted average investment management fee was due in part to amendments of certain investment management agreements as well as an increase in the AUM weighting of credit strategies with lower fee rates.
Previous report
The following table sets forth the investment advisory fees and weighted average management fee earned by investment vehicles. The weighted average management fee for Artisan Funds and Artisan Global Funds reflects the additional services we provide to these pooled vehicles.
Previous report
Operating Expenses
Previous report
Compensation and Benefits
Previous report
The long-term incentive compensation increase was comprised of a $10.5 million increase from market valuation changes as well as a $8.6 million increase from higher grant date value amortization of the awards as a result of the higher 2025 grant value as compared to the 2020 grant that was fully amortized in 2025. Salaries, short-term incentive compensation and benefits increased 5% due to a $14.5 million increase in incentive compensation driven by higher revenues, and a $2.0 million increase in employee separation costs, primarily associated with the winding down of our China Post-Venture strategy as of June 30, 2025.
Previous report
Other operating expenses
Previous report
Other operating expenses decreased $2.8 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to a decrease in general and administrative costs, most notably decreases in travel and entertainment costs and professional fees.
Previous report
Non-Operating Income (Expense)
Previous report
Artisan's share of the $72.9 million total investment gains for the nine months ended September 30, 2025 was $48.3 million, comprised of $31.0 million of gains on investments to hedge compensation plans and $17.3 million of gains on seed investments.
Previous report
Provision for Income Taxes
Previous report
Earnings Per Share
Previous report
On August 15, 2025, Artisan Partners Holdings issued $50 million of 5.43% Series G Senior Notes and used the proceeds, along with cash on hand, to repay the $60 million of 4.29% Series D Senior Notes that matured on August 16, 2025. The Company incurred debt issuance costs of $0.4 million related to the notes which are amortized as interest expense over the life of the instrument.
Previous report
We extended the lease on our largest office space for an additional ten years which increased our operating lease liabilities by $33.1 million.
Reworded paragraphs (45)
Previous wording
We are a global multi-asset investment platform focused on providing a broad range of high-value added investment strategies in growing asset classes to sophisticated clients around the world. As of September 30, 2025, our 11 autonomous investment teams managed a total of 26 investment strategies across multiple asset classes and investment styles.
Current wording
We are a global multi-asset investment platform focused on providing a broad range of high-value added investment strategies in growing asset classes to sophisticated clients around the world. As of March 31, 2026, our 12 autonomous investment teams managed a total of 27 investment strategies across multiple asset classes and investment styles.
Previous wording
We offer our investment management capabilities primarily to sophisticated investors that operate with institutional decision-making processes and longer-term investment horizons. We employ knowledgeable and investment focused relationship managers who are directly aligned with our investment teams, and we pair them with regional and distribution channel experts. We provide access to our investment strategies through multiple investment vehicles, including separate accounts and different types of pooled vehicles. As of September 30, 2025, approximately 73% of our assets under management (AUM) were managed for clients and investors domiciled in the U.S. and 27% of our AUM were managed for clients and investors domiciled outside of the U.S.
Current wording
We offer our investment management capabilities primarily to sophisticated investors that operate with institutional decision-making processes and longer-term investment horizons. We employ knowledgeable and investment focused relationship managers who are directly aligned with our investment teams, and we pair them with regional and distribution channel experts. We provide access to many of our investment strategies through multiple investment vehicles, including separate accounts and different types of pooled vehicles. As of March 31, 2026, approximately 74% of our assets under management (AUM) were managed for clients and investors domiciled in the U.S. and 26% of our AUM were managed for clients and investors domiciled outside of the U.S.
Previous wording
•During the three months ended September 30, 2025, our AUM increased to $181.3 billion, an increase of $5.8 billion, or 3%, compared to $175.5 billion at June 30, 2025, primarily due to $8.3 billion of market appreciation, partially offset by $2.3 billion of net client cash outflows and $0.2 billion of Artisan Funds’ distributions not reinvested.
Current wording
•During the three months ended March 31, 2026, our AUM declined to $173.0 billion, a decrease of $6.9 billion, or 4%, compared to $179.9 billion at December 31, 2025, primarily due to $4.6 billion of market depreciation, $3.1 billion of net client cash outflows and $0.1 billion of Artisan Funds’ distributions not reinvested, partially offset by the acquisition of $0.9 billion from Grandview Property Partners.
Previous wording
•Average AUM for the three months ended September 30, 2025 was $177.4 billion, an increase of 6% from the average of $166.8 billion for the three months ended June 30, 2025, and an increase of 9% from the average of $162.8 billion for the three months ended September 30, 2024.
Current wording
•Average AUM for the three months ended March 31, 2026 was $182.4 billion, an increase of 1% from the average of $180.9 billion for the three months ended December 31, 2025, and an increase of 9% from the average of $166.7 billion for the three months ended March 31, 2025.
Previous wording
•We earned $301.3 million in revenue for the three months ended September 30, 2025, an increase of 8% from revenues of $279.6 million for the three months ended September 30, 2024.
Current wording
•We earned $303.0 million in revenue for the three months ended March 31, 2026, an increase of 9% from revenues of $277.1 million for the three months ended March 31, 2025.
Previous wording
•Our GAAP operating margin was 33.8% for the three months ended September 30, 2025, compared to 33.3% for the three months ended September 30, 2024. Adjusted operating margin was 36.2% for the three months ended September 30, 2025, compared to 35.0% for the three months ended September 30, 2024.
Current wording
•Our GAAP operating margin was 31.1% for the three months ended March 31, 2026, compared to 31.2% for the three months ended March 31, 2025. Adjusted operating margin was 31.1% for the three months ended March 31, 2026, compared to 32.1% for the three months ended March 31, 2025.
Previous wording
•We generated $0.93 of earnings per basic and diluted share and $1.02 of adjusted EPS.
Current wording
•We generated $0.76 of earnings per basic and diluted share and $0.87 of adjusted EPS.
Previous wording
•We declared and distributed dividends of $0.73 per share of Class A common stock during the three months ended September 30, 2025.
Current wording
•We declared and distributed dividends of $1.58 per share of Class A common stock during the three months ended March 31, 2026.
Previous wording
•We declared, effective October 28, 2025, a quarterly dividend with respect to the three months ended September 30, 2025, of $0.88 per share of Class A common stock.
Current wording
•We declared, effective April 28, 2026, a quarterly dividend with respect to the three months ended March 31, 2026, of $0.77 per share of Class A common stock.
Previous wording
Limited partners of Holdings, some of whom are employees, held approximately 13% of the equity interests in Holdings as of September 30, 2025. Our results reflect that significant noncontrolling interest.
Current wording
Limited partners of Holdings, some of whom are employees, held approximately 12% of the equity interests in Holdings as of March 31, 2026 which is reflected as noncontrolling interest.
Previous wording
During the nine months ended September 30, 2025, certain limited partners of Holdings exchanged 51,500 common units (along with a corresponding number of shares of Class B or Class C common stock of APAM, as applicable) for 51,500 shares of Class A common stock. In connection with the exchanges, APAM received 51,500 GP units of Holdings increasing its ownership interest in Holdings.
Current wording
During the three months ended March 31, 2026, certain limited partners of Holdings exchanged 160,114 common units (along with a corresponding number of shares of Class B or Class C common stock of APAM, as applicable) for 160,114 shares of Class A common stock. In connection with the exchanges, APAM received 160,114 GP units of Holdings increasing its ownership interest in Holdings.
Previous wording
APAM’s equity ownership interest in Holdings was 87% at September 30, 2025 and December 31, 2024.
Current wording
APAM’s equity ownership interest in Holdings was 88% and 87% at March 31, 2026 and December 31, 2025, respectively.
Previous wording
Economic uncertainty and volatility in global financial markets impact the value of our AUM. Because the revenue we earn is based on the value of our AUM, fluctuations in our AUM due to changes in the economic environment and financial markets will result in corresponding fluctuations in our revenue and earnings.
Current wording
Global market conditions can materially impact our financial performance. Because the revenue we earn is based on the value of our AUM, fluctuations in our AUM due to changes in the economic environment and financial markets will result in corresponding fluctuations in our revenue and earnings.
Previous wording
The following table presents the total returns of relevant market indices for the three and nine months ended September 30, 2025 and 2024:
Current wording
The following table presents the total returns of relevant market indices for the three months ended March 31, 2026 and 2025:
Previous wording
Changes to our operating results from one period to another are primarily caused by changes in the amount of our AUM. Changes in the relative composition of our AUM among our investment strategies and vehicles and the effective fee rates on our products also impact our operating results.
Current wording
Changes to our operating results from one period to another are primarily caused by changes in the amount of our AUM. A key driver of changes in our AUM over time is the long-term investment performance of our investment strategies. Changes in the relative composition of our AUM among our investment strategies and vehicles and the effective fee rates on our products also impact our operating results.
Previous wording
•investment performance, including fluctuations in both the financial markets and foreign currency exchange rates and the quality of our investment decisions;
Current wording
•investment performance, including fluctuations in both the financial markets and foreign currency exchange rates and the quality of our investment decisions as assessed relative to applicable third-party benchmarks and peer groups, as appropriate;
Previous wording
Over the long-term, we expect to generate the majority of our AUM growth through investment returns, which has been our historical experience.
Current wording
Our equity strategies experienced net outflows of $4.2 billion in the first quarter of 2026, while our credit and alternative asset classes generated combined net inflows of $1.1 billion. While net flows are inherently difficult to predict, if recent performance and market trends persist, we could continue to experience net outflows in our equity strategies and net inflows in our credit and alternative strategies throughout the remainder of 2026. Over the long term, we expect to generate the majority of our AUM growth through investment returns, which has been our historical experience.
Previous wording
The different fee structures associated with Artisan Funds, Artisan Global Funds, and separate accounts and other pooled vehicles, and the different fee schedules applicable to each of our investment strategies, make the composition of our AUM an important determinant of the investment management fees we earn. Historically, we have received higher effective rates of investment management fees from Artisan Funds and Artisan Global Funds than from traditional separate accounts reflecting, among other things, the different and broader array of services we provide to Artisan Funds and Artisan Global Funds. Our investment management fees also differ by investment strategy, with higher-capacity strategies having lower standard fee rates than strategies with more limited capacity.
Current wording
The different fee structures associated with Artisan Funds, Artisan Global Funds, and separate accounts and other vehicles, and the different fee schedules applicable to each of our investment strategies, make the composition of our AUM an important determinant of the investment management fees we earn. Historically, we have received higher effective rates of investment management fees from Artisan Funds and Artisan Global Funds than from traditional separate accounts reflecting, among other things, the different and broader array of services we provide to Artisan Funds and Artisan Global Funds. Our investment management fees also differ by investment strategy, with higher-capacity strategies having lower standard fee rates than strategies with more limited capacity.
Previous wording
Certain separate account clients pay us fees based on the performance of their accounts relative to agreed-upon benchmarks, which typically results in a lower base fee but allows us to earn higher fees if the performance we achieve for that client is superior to the performance of the agreed-upon benchmark. We may also receive performance fees or incentive allocations from Artisan Private Funds. Approximately 3% of our $181.3 billion of AUM as of September 30, 2025 have performance fee billing arrangements.
Current wording
Certain separate account clients pay us fees based on the performance of their accounts relative to agreed-upon benchmarks, which typically results in a lower base fee but allows us to earn higher fees if the performance we achieve for that client is superior to the performance of the agreed-upon benchmark. We may also receive performance fees or incentive allocations from Artisan Private Funds. Approximately 4% of our $173.0 billion of AUM as of March 31, 2026 are subject to performance fee billing arrangements, of which substantially all performance fees are recognized in the fourth quarter.
Previous wording
The increase in revenues of $21.7 million, or 8%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, was driven primarily by a $14.6 billion, or 9% increase in our average AUM. The weighted average investment management fee, which excludes performance fees, was 67.5 basis points for the three months ended September 30, 2025, compared to 68.5 basis points for the three months ended September 30, 2024. The decrease in the weighted average investment management fee was due in part to amendments of certain investment management agreements as well as an increase in the AUM weighting of credit strategies with lower fee rates.
Current wording
The increase in revenues of $25.9 million, or 9%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was driven primarily by a $15.7 billion, or 9% increase in our average AUM.
Previous wording
The following table sets forth investment advisory fees and the weighted average management fee by investment vehicle. The weighted average management fee for Artisan Funds and Artisan Global Funds reflects the additional services we provide to these pooled vehicles.
Current wording
The following table sets forth investment advisory fees and the weighted average fee by investment vehicle. The weighted average fee rate for Artisan Funds and Artisan Global Funds reflects the additional services we provide to these pooled vehicles.
Previous wording
Total compensation and benefits was 54% and 53% of our revenues for the three months ended September 30, 2025 and 2024, respectively.
Current wording
Total compensation and benefits was 56% of our revenues for the three months ended March 31, 2026 and 2025.
Previous wording
Other operating expenses decreased $1.2 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to a decrease in general and administrative costs, most notably decreases in travel and entertainment costs and professional fees.
Current wording
Other operating expenses increased $4.7 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to an increase in general and administrative costs, most notably increases in professional fees.
Previous wording
Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments, and net investment gain (loss) on franchise capital investments decreased $14.8 million in the aggregate for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, predominately due to market conditions.
Current wording
Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments and net investment gain (loss) on franchise capital investments decreased $18.5 million in aggregate for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, predominately due to market conditions.
Previous wording
Artisan's share of the $20.7 million total investment gains for the three months ended September 30, 2025 was $15.7 million, comprised of $10.1 million of gains on investments to hedge compensation plans and $5.6 million of gains on seed investments.
Current wording
Artisan's share of the $7.6 million total investment losses for the three months ended March 31, 2026 was comprised of $6.3 million of losses on investments to hedge compensation plans and $0.2 million of gains on seed investments. $1.5 million of the total investment losses for the three months ended March 31, 2026 were attributable to noncontrolling interests.
Previous wording
The provision for income taxes primarily represents APAM’s U.S. federal, state and local income taxes on its allocable portion of Holdings’ income, as well as foreign income taxes payable by Holdings’ subsidiaries. APAM’s effective income tax rate for the three months ended September 30, 2025 and 2024 was 30.0% and 19.1%, respectively. Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 14% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the three months ended September 30, 2025 and 2024. Thus, income before income taxes includes amounts that are attributable to noncontrolling interests and not taxable to APAM and its subsidiaries, which reduces the effective tax rate. As APAM’s equity ownership in Holdings increases, the effective tax rate will likewise increase as more income will be subject to corporate-level taxes. The effective tax rate in the three months ended September 30, 2025 included a $10.7 million charge associated with the enactment of the OBBBA, which increased the effective tax rate by 8.6%. The effective tax rate was favorably impacted in both periods due to tax deductible dividends paid on unvested restricted share-based awards.
Current wording
The provision for income taxes primarily represents APAM’s U.S. federal, state and local income taxes on its allocable portion of Holdings’ income, as well as foreign income taxes payable by Holdings’ subsidiaries. APAM’s effective income tax rate for the three months ended March 31, 2026 and 2025 was 21.7% and 20.6%, respectively. Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 14% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the three months ended March 31, 2026 and 2025. Thus, income before income taxes includes amounts that are attributable to noncontrolling interests and not taxable to APAM and its subsidiaries, which reduces the effective tax rate. As APAM’s equity ownership in Holdings increases, the effective tax rate will likewise increase as more income will be subject to corporate-level taxes.
Previous wording
Our management uses non-GAAP measures (referred to as “adjusted” measures) of net income to evaluate the profitability and efficiency of the underlying operations of our business and as a factor when considering net income available for distributions and dividends. These adjusted measures remove the impact of (1) net gain (loss) on the tax receivable agreements (if any), (2) compensation expense (reversal) related to market valuation changes in compensation plans, (3) net investment gain (loss) of investment products, (4) non-recurring expenses, and (5) the adjustment to deferred taxes as a result of the OBBBA enactment. These adjusted measures also remove the non-operational complexities of our structure by adding back noncontrolling interests and assuming all income of Artisan Partners Holdings is allocated to APAM. Management believes these non-GAAP measures provide more meaningful information to analyze our profitability and efficiency between periods and over time. We have included these non-GAAP measures to provide investors with the same financial metrics used by management to manage the Company.
Current wording
Our management uses non-GAAP measures (referred to as “adjusted” measures) of net income to evaluate the profitability and efficiency of the underlying operations of our business and as a factor when considering net income available for distributions and dividends. These adjusted measures remove the impact of (1) net gain (loss) on the tax receivable agreements (if any), (2) compensation expense (reversal) related to market valuation changes in compensation plans, (3) net investment gain (loss) of investment products, (4) non-recurring expenses (if any) and (5) adjustments to deferred taxes as a result of the enactment of tax laws (if any). These adjusted measures also remove the non-operational complexities of our structure by adding back noncontrolling interests and assuming all income of Artisan Partners Holdings is allocated to APAM. Management believes these non-GAAP measures provide more meaningful information to analyze our profitability and efficiency between periods and over time. We have included these non-GAAP measures to provide investors with the same financial metrics used by management to manage the Company.
Previous wording
•Adjusted net income represents net income excluding the impact of (1) net gain (loss) on the tax receivable agreements (if any), (2) compensation expense (reversal) related to market valuation changes in compensation plans, (3) net investment gain (loss) of investment products, (4) non-recurring expenses, and (5) the adjustment to deferred taxes as a result of the OBBBA enactment. Adjusted net income also reflects income taxes assuming the vesting of all unvested Class A share-based awards and as if all outstanding limited partnership units of Artisan Partners Holdings had been exchanged for Class A common stock of APAM on a one-for-one basis. Assuming full vesting and exchange, all income of Artisan Partners Holdings is treated as if it were allocated to APAM, and the adjusted provision for income taxes represents an estimate of income tax expense at an effective rate reflecting APAM’s current federal, state and local income statutory tax rates. The adjusted tax rate was 24.7% for all periods presented.
Current wording
•Adjusted net income represents net income excluding the impact of (1) net gain (loss) on the tax receivable agreements (if any), (2) compensation expense (reversal) related to market valuation changes in compensation plans, (3) net investment gain (loss) of investment products, (4) non-recurring expenses (if any) and (5) adjustments to deferred taxes as a result of the enactment of tax laws (if any). Adjusted net income also reflects income taxes assuming the vesting of all unvested Class A share-based awards and as if all outstanding limited partnership units of Artisan Partners Holdings had been exchanged for Class A common stock of APAM on a one-for-one basis. Assuming full vesting and exchange, all income of Artisan Partners Holdings is treated as if it were allocated to APAM, and the adjusted provision for income taxes represents an estimate of income tax expense at an effective rate reflecting APAM’s current federal, state and local income statutory tax rates. The adjusted tax rate was 24.7% for all periods presented.
Previous wording
Net investment gain (loss) of investment products represents the non-operating income (expense) related to the Company’s investments, in both consolidated investment products and nonconsolidated investment products, including investments held to economically hedge compensation plans. Excluding these non-operating market gains or losses on investments provides greater transparency to evaluate the profitability and efficiency of the underlying operations of the business. Interest income generated on cash and cash equivalents is considered part of normal operations, and therefore, is not excluded from adjusted net income.
Current wording
Net investment gain (loss) of investment products represents the non-operating income (expense) related to the Company’s investments, in both consolidated sponsored investment products and nonconsolidated sponsored investment products, including investments in sponsored investment products held to economically hedge compensation plans. Excluding these non-operating market gains or losses on investments provides greater transparency to evaluate the profitability and efficiency of the underlying operations of the business. Interest income generated on cash and cash equivalents is considered part of normal operations, and therefore, is not excluded from adjusted net income.
Previous wording
Non-recurring expenses represents non-recurring professional fees that are not reflective of core operations.
Current wording
Non-recurring expenses (if any) represents non-recurring professional fees that are not reflective of core operations.
Previous wording
We manage our cash balances in order to fund our day-to-day operations. We mitigate concentration risk through the diversification of financial institutions holding daily operating cash balances and by investing excess operating cash in various money market funds. $274.4 million of our cash and cash equivalents balance was invested in money market funds as of September 30, 2025.
Current wording
We manage our cash balances in order to fund our day-to-day operations. We mitigate concentration risk through the diversification of financial institutions holding daily operating cash balances and by investing excess operating cash in various money market funds. $243.1 million of our cash and cash equivalents balance was invested in money market funds as of March 31, 2026.
Previous wording
We utilize cash to make seed investments in Artisan-sponsored investment products to support the development of new investment strategies and vehicles. As of September 30, 2025, the balance of all seed investments, including investments in consolidated investment products, was $142.4 million. The seed investments are generally redeemable at our discretion, though subject to certain monthly or quarterly timing restrictions for the Artisan Private Funds. We monitor for opportunities to redeem our seed investments as sufficient scale in each investment strategy, vehicle and class, as applicable, is achieved.
Current wording
We utilize cash to make seed investments in Artisan-sponsored investment products to support the development of new investment strategies and vehicles. As of March 31, 2026, the balance of all seed investments, including investments in consolidated investment products, was $109.9 million. The seed investments are generally redeemable at our discretion, though subject to certain monthly or quarterly timing restrictions for certain Artisan Private Funds. We monitor for opportunities to redeem our seed investments as sufficient scale in each investment strategy, vehicle and class, as applicable, is achieved.
Previous wording
During the nine months ended September 30, 2025, we also made investments of $46.8 million related to funded long-term incentive compensation plans. As of September 30, 2025, the value of investments held in connection with funded long-term incentive compensation plans was $222.2 million.
Current wording
During the three months ended March 31, 2026, we made investments of $50.6 million related to funded long-term incentive compensation plans. As of March 31, 2026, the value of investments held in connection with funded long-term incentive compensation plans was $255.0 million.
Previous wording
We have $190 million in unsecured notes outstanding and a $100 million revolving credit facility with a five-year term ending in August 2027. The notes are comprised of three series, Series E, Series F and Series G, each with a balloon payment at maturity. The $100 million revolving credit facility was unused as of and for the nine months ended September 30, 2025.
Current wording
We have $190 million in unsecured notes outstanding and a $100 million revolving credit facility with a five-year term ending in August 2027. The notes are comprised of three series, Series E, Series F and Series G, each with a balloon payment at maturity. The $100 million revolving credit facility was unused as of and for the three months ended March 31, 2026.
Previous wording
Artisan Partners Holdings’ distributions, including distributions to APAM for the three and nine months ended September 30, 2025 and 2024, were as follows:
Current wording
Artisan Partners Holdings’ distributions, including distributions to APAM for the three months ended March 31, 2026 and 2025, were as follows:
Previous wording
On October 28, 2025, we, acting as the general partner of Artisan Partners Holdings, declared a distribution of $27.5 million, payable by Artisan Partners Holdings to holders of its partnership units, including APAM.
Current wording
On April 28, 2026, we, acting as the general partner of Artisan Partners Holdings, declared a distribution of $40.7 million, payable by Artisan Partners Holdings to holders of its partnership units, including APAM.
Previous wording
APAM declared and paid the following dividends per share during the three and nine months ended September 30, 2025 and 2024:
Current wording
APAM declared and paid the following dividends per share during the three months ended March 31, 2026 and 2025:
Previous wording
Our board of directors declared, effective October 28, 2025, a variable quarterly dividend of $0.88 per share of Class A common stock with respect to the September quarter of 2025, payable on November 28, 2025 to stockholders of record as of the close of business on November 14, 2025. The variable quarterly dividend represents approximately 80% of the cash generated in the September quarter of 2025 and a pro-rata portion of 2025 tax savings related to our tax receivable agreements.
Current wording
Our board of directors declared, effective April 28, 2026, a variable quarterly dividend of $0.77 per share of Class A common stock with respect to the March quarter of 2026, payable on May 29, 2026 to stockholders of record as of the close of business on May 15, 2026. The variable quarterly dividend represents approximately 80% of the cash generated in the March quarter of 2026 and a pro-rata portion of 2026 tax savings related to our tax receivable agreements.
Previous wording
In addition to funding our normal operations, we will be required to fund amounts payable under the TRAs that we entered into in connection with the IPO, which resulted in the recognition of a $303.1 million liability as of September 30, 2025. The liability generally represents 85% of the tax benefits APAM expects to realize as a result of the merger of an entity into APAM as part of the IPO Reorganization, our purchase of partnership units from limited partners of Holdings and the exchange of partnership units (for shares of Class A common stock or other consideration). The estimated liability assumes no material changes in the relevant tax law and that APAM earns sufficient taxable income to realize all tax benefits subject to the TRAs. An increase or decrease in future tax rates will increase or decrease, respectively, the expected tax benefits APAM would realize and the amounts payable under the TRAs. Changes in the estimate of expected tax benefits APAM would realize and the amounts payable under the TRAs as a result of change in tax rates have been and will be recorded in net income.
Current wording
In addition to funding our normal operations, we will be required to fund amounts payable under the TRAs that we entered into in connection with the IPO, which resulted in the recognition of a $305.2 million liability as of March 31, 2026. The liability generally represents 85% of the tax benefits APAM expects to realize as a result of the merger of an entity into APAM as part of the IPO Reorganization, our purchase of partnership units from limited partners of Holdings and the exchange of partnership units (for shares of Class A common stock or other consideration). The estimated liability assumes no material changes in the relevant tax law and that APAM earns sufficient taxable income to realize all tax benefits subject to the TRAs. An increase or decrease in future tax rates will increase or decrease, respectively, the expected tax benefits APAM would realize and the amounts payable under the TRAs. Changes in the estimate of expected tax benefits APAM would realize and the amounts payable under the TRAs as a result of change in tax rates have been and will be recorded in net income.
Previous wording
The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of sales or exchanges by the holders of limited partnership units, the price of the Class A common stock at the time of such sales or exchanges, whether such sales or exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest or depreciable basis or amortizable basis. In certain cases, payments under the TRAs may be accelerated and/or significantly exceed the actual benefits we realize in respect of the tax attributes subject to the TRAs. In such cases, we intend to fund those payments with cash on hand, although we may have to borrow funds depending on the amount and timing of the payments. During the nine months ended September 30, 2025, we made payments totaling $38.3 million related to the TRAs. We do not intend to make any additional payments in 2025. In 2026, we expect to make payments of approximately $40.4 million related to the TRAs.
Current wording
The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of sales or exchanges by the holders of limited partnership units, the price of the Class A common stock at the time of such sales or exchanges, whether such sales or exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest or depreciable basis or amortizable basis. In certain cases, payments under the TRAs may be accelerated and/or significantly exceed the actual benefits we realize in respect of the tax attributes subject to the TRAs. In such cases, we intend to fund those payments with cash on hand, although we may have to borrow funds depending on the amount and timing of the payments. We did not make payments related to the TRAs during the three months ended March 31,
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Total compensation and benefits was 56% and 55% of our revenues for the nine months ended September 30, 2025, and 2024, respectively.
Previous report — wording carried elsewhere
Non-operating income (expense) consisted of the following:
Previous report — wording carried elsewhere
Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments, and net investment gain (loss) on franchise capital investments increased $2.6 million in the aggregate for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, predominately due to market conditions.
Previous report — wording carried elsewhere
The provision for income taxes primarily represents APAM’s U.S. federal, state and local income taxes on its allocable portion of Holdings’ income, as well as foreign income taxes payable by Holdings’ subsidiaries. APAM’s effective income tax rate was 24.0% and 19.9% for the nine months ended September 30, 2025 and 2024, respectively.
Previous report — wording carried elsewhere
Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 14% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the nine months ended September 30, 2025 and 2024. Thus, income before income taxes includes amounts that are attributable to noncontrolling interests and not taxable to APAM and its subsidiaries, which reduces the effective tax rate. As APAM’s equity ownership in Holdings increases, the effective tax rate will likewise increase as more income will be subject to corporate-level taxes. The effective tax rate for the nine months ended September 30, 2025 included a $10.7 million charge from the enactment of the OBBBA, which increased the effective tax rate by 3.1%. The effective tax rate was favorably impacted in both periods due to tax deductible dividends paid on unvested restricted share-based awards and excess income tax benefits from the vesting of restricted share-based awards.
Previous report — wording carried elsewhere
Weighted average basic and diluted shares of Class A common stock outstanding were higher for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, as a result of Holdings’ unit exchanges and equity award grants. See Note 12, “Earnings Per Share” in the Notes to the unaudited consolidated financial statements for further discussion of earnings per share.