Artisan Partners Asset Management Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Artisan Partners Asset Management Inc. has submitted its 2023 10-K annual report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Artisan Partners Asset Management Inc. (APAM) filed a Annual Report (10-K) with the SEC on February 22, 2024. Artisan Partners Asset Management Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is Investment Advice, SIC code 6282. The filing includes data for fiscal years 2021, 2022, and 2023. Key financial data points such as revenue, net income, and EPS are expected to be detailed within the full report.

Why It Matters

For investors and stakeholders tracking Artisan Partners Asset Management Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Artisan Partners Asset Management's financial health, operational performance, and strategic direction for the fiscal year 2023, offering insights into its investment strategies and market position. Investors and analysts can use this report to assess the company's profitability, asset growth, and any potential risks or opportunities, aiding in investment decisions related to APAM.

Risk Assessment

Risk Level: medium — Artisan Partners Asset Management Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains a wealth of information, specific financial performance metrics for 2023 (revenue, net income, EPS) are not immediately available in the provided header data, requiring a deeper dive into the full document for a complete risk assessment.

Analyst Insight

Review the full 10-K filing to analyze Artisan Partners Asset Management's detailed financial statements, management discussion, and risk factors for fiscal year 2023 to inform investment strategy.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period)
• 2024-02-22 — Filing Date (The date the 10-K was filed with the SEC)
• 2023 — Reporting Year (The primary fiscal year covered by the report)
• 6282 — SIC Code (Standard Industrial Classification for Investment Advice)

Key Players & Entities

• Artisan Partners Asset Management Inc. (company) — Filer of the 10-K report
• APAM (company) — Ticker symbol for Artisan Partners Asset Management Inc.
• 2023-12-31 (date) — Fiscal year end date
• 2024-02-22 (date) — Filing date of the 10-K report
• 6282 (industry_code) — Standard Industrial Classification for Investment Advice
• DE (state) — State of incorporation
• 414-390-6100 (phone_number) — Business phone number

FAQ

Key Dates

• 2024-02-22: 10-K Filing — Submission of the annual report for fiscal year 2023.
• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.

Key Financial Figures

• $0.01 — 2(b) of the Act: Class A Common Stock, $0.01 par value APAM The New York Stock Excha

Filing Documents

• apam-20231231.htm (10-K) — 3145KB
• apamex105-2023x12x31.htm (EX-10.5) — 11KB
• apamex107-2023x12x31.htm (EX-10.7) — 11KB
• apamex1032-2023x12x31.htm (EX-10.32) — 55KB
• apamex1033-2023x12x31.htm (EX-10.33) — 67KB
• apamex1034-2023x12x31.htm (EX-10.34) — 93KB
• apamex1035-2023x12x31.htm (EX-10.35) — 87KB
• apamex1036-2023x12x31.htm (EX-10.36) — 38KB
• apam-ex211x2023x12x31.htm (EX-21.1) — 19KB
• apam-ex231x2023x12x31.htm (EX-23.1) — 3KB
• apam-ex311x2023x12x31.htm (EX-31.1) — 9KB
• apam-ex312x2023x12x31.htm (EX-31.2) — 9KB
• apam-ex321x2023x12x31.htm (EX-32.1) — 4KB
• apam-ex322x2023x12x31.htm (EX-32.2) — 5KB
• apamex971-2023x12x31.htm (EX-97.1) — 19KB
• apam-20231231_g1.jpg (GRAPHIC) — 176KB
• apam-20231231_g2.jpg (GRAPHIC) — 91KB
• 0001517302-24-000015.txt (&nbsp;) — 12826KB
• apam-20231231.xsd (EX-101.SCH) — 61KB
• apam-20231231_cal.xml (EX-101.CAL) — 78KB
• apam-20231231_def.xml (EX-101.DEF) — 505KB
• apam-20231231_lab.xml (EX-101.LAB) — 745KB
• apam-20231231_pre.xml (EX-101.PRE) — 615KB
• apam-20231231_htm.xml (XML) — 1767KB

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 31

Legal Proceedings

Item 3. Legal Proceedings 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 Information about our Executive Officers 31 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32

[Reserved]

Item 6. [Reserved] 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Qualitative and Quantitative Disclosures Regarding Market Risk

Item 7A. Qualitative and Quantitative Disclosures Regarding Market Risk 61

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 63

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 97

Controls and Procedures

Item 9A. Controls and Procedures 97

Other Information

Item 9B. Other Information 97

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 97 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 98

Executive Compensation

Item 11. Executive Compensation 98

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 98

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 98

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 98 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 99

Form 10-K Summary

Item 16. Form 10-K Summary 101

Signatures

Signatures 102 Except where the context requires otherwise, in this report: "Artisan Funds" refers to each series of Artisan Partners Funds, Inc., an open-ended management investment company, registered with the Securities and Exchange Commission. "Artisan Global Funds" refers to each sub-fund of Artisan Partners Global Funds plc, an open-ended investment company registered with the Central Bank of Ireland pursuant to the European UCITS Directive. "Artisan Private Funds" refers to private investment funds sponsored by Artisan. "Client" and "clients" refer to investors who access our investment management services by investing in funds, including Artisan Funds, Artisan Global Funds, Artisan Private Funds, or other pooled investment vehicles (including collective investment trusts) for which we serve as investment adviser, or by engaging us to manage a separate account or provide a non-discretionary model portfolio in one or more of our investment strategies. "Company", "Artisan", "we", "us" or "our" refer to Artisan Partners Asset Management Inc. ("APAM") and its direct and indirect subsidiaries, including Artisan Partners Holdings LP ("Artisan Partners Holdings" or "Holdings"), and, for periods prior to our IPO, "Artisan," the "company," "we," "us" and "our" refer to Artisan Partners Holdings and, unless the context otherwise requires, its direct and indirect subsidiaries. On March 12, 2013, APAM closed its IPO and related IPO Reorganization. Prior to that date, APAM was a subsidiary of Artisan Partners Holdings. The IPO Reorganization and IPO are described in the notes to our consolidated financial statements included in Part II of this Form 10-K. "IPO" means the initial public offering of 12,712,279 shares of Class A common stock of Artisan Partners Asset Management Inc. completed on March 12, 2013. "IPO Reorganization" means the series of transactions Artisan Partners Asset Management Inc. and Artisan Partners Holdings completed on March 12, 2013, immed

Forward-Looking Statements

Forward-Looking Statements This report contains, and from time to time our management may make, forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements regarding future events and our future performance, as well as management's current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "expects", "intends", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue", the negative of these terms and other comparable terminology. Forward-looking statements are only predictions based on current expectations of our management and information available to us at the time such statements are made. Forward-looking statements are subject to a number of risks and uncertainties, and there are important factors that could cause actual results, level of activity, performance, actions or achievements to differ materially from the results, level of activity, performance, actions or achievements expressed or implied by the forward-looking statements. These factors include: the loss of key investment professionals or senior management, adverse market or economic conditions, poor performance of our investment strategies, significant changes in client cash inflows or outflows or declines in market value of the assets in the accounts we manage, change in the legislative and regulatory environment in which we operate, our ability to maintain our current fee rates, operational or technical errors or other damage to our reputation and other factors disclosed in the Company's filings with the Securities and Exchange Commission, including those factors listed under the caption entitled "Risk Factors" in Item 1A of this Form 10-K, as may be amended from time to time.

Forward-looking statements include, but are not limited to, statements about

Forward-looking statements include, but are not limited to, statements about: our anticipated future results of operations; our potential operating performance and efficiency, including our ability to operate under different and unique circumstances; our expectations with respect to future business initiatives, including the development of new investment teams, strategies and vehicles; our expectations with respect to the performance of our investment strategies; our expectations with respect to future levels of assets under management, including the capacity of our strategies and client cash inflows and outflows; our expectations with respect to industry trends and how those trends may impact our business; our financing plans, cash needs and liquidity position; our intention to pay dividends and our expectations about the amount of those dividends; our expected levels of compensation of our employees, including equity- and cash-based long-term incentive compensation; our expectations with respect to future expenses and the level of future expenses; our expected tax rate, and our expectations with respect to deferred tax assets; and our estimates of future amounts payable pursuant to our tax receivable agreements. ii Table of Contents Investment Performance and Assets Under Management (AUM) Information Used in this Report We manage investments primarily through pooled investment funds and separate accounts. We serve as investment adviser to Artisan Funds, Artisan Global Funds and Artisan Private Funds. We refer to funds and other accounts that are managed by us with a broadly common investment objective and substantially in accordance with a single model account as being part of the same investment "strategy". We measure investment performance based upon the results of our "composites", which represent the aggregate performance of all discretionary client accounts (including pooled investment vehicles) invested in the same strategy, except for th

Business

Item 1. Business Overview Founded in 1994, Artisan is an investment management firm focused on providing high valued added, active investment strategies in asset classes for sophisticated clients around the world. Since our founding, we have maintained a business model that is designed to maximize our ability to produce attractive investment results for our clients, and we believe this model has contributed to our success in doing so. We focus on attracting, retaining and developing talented investment professionals by creating an environment in which each investment team is provided ample resources and support, transparent and direct financial incentives, a high degree of investment autonomy, and a long-term time horizon. Each of our investment teams is led by one or more experienced portfolio managers and applies its own unique investment philosophy and process. We believe this autonomous investment team structure promotes independent analysis and accountability among our investment professionals, which we believe promotes superior investment results. Each of our investment teams manages one or more investment strategies, each of which is designed to have a clearly articulated, consistent and replicable investment process that is well-understood by clients and managed to achieve long-term performance. Over our firm's history, we have created new investment strategies that can use a broad array of securities, instruments and techniques (which we call degrees of freedom) to differentiate returns and manage risk. We launch a new strategy when we believe it has the potential to achieve superior investment performance in an area that we believe will have sustained client demand at attractive fee rates over the long term. We strive to maintain the integrity of the investment process followed in each of our strategies by rigorous adherence to the investment parameters we have communicated to our clients. We also carefully monitor our investment capacity in each inve

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