Artisan Partners Asset Management Files Q2 2024 10-Q

TL;DR

APAM's Q2 10-Q is in. Financials look solid, check the details.

AI Summary

Artisan Partners Asset Management Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and provides financial details for the company, which is involved in investment advice. The report includes data related to various classes of common stock and consolidated entities.

Why It Matters

This filing provides investors with a detailed look at Artisan Partners' financial performance and position during the second quarter of 2024, crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20240726 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Artisan Partners Asset Management Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240726 (date) — Filing date
• MILWAUKEE (location) — Company's business and mailing address city

FAQ

Key Financial Figures

• $0.01 — stered Class A common stock, par value $0.01 per share APAM New York Stock Exchange

Filing Documents

• apam-20240630.htm (10-Q) — 2275KB
• apam-ex311x2024x06x30.htm (EX-31.1) — 9KB
• apam-ex312x2024x06x30.htm (EX-31.2) — 9KB
• apam-ex321x2024x06x30.htm (EX-32.1) — 4KB
• apam-ex322x2024x06x30.htm (EX-32.2) — 5KB
• 0001517302-24-000057.txt ( ) — 8881KB
• apam-20240630.xsd (EX-101.SCH) — 51KB
• apam-20240630_cal.xml (EX-101.CAL) — 64KB
• apam-20240630_def.xml (EX-101.DEF) — 389KB
• apam-20240630_lab.xml (EX-101.LAB) — 546KB
• apam-20240630_pre.xml (EX-101.PRE) — 474KB
• apam-20240630_htm.xml (XML) — 1357KB

Unaudited Consolidated Financial Statements

Item 1. Unaudited Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023 1 Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 2 Unaudited Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 3 Unaudited Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 4 Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 6 Notes to Unaudited Consolidated Financial Statements 7

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 46

Other Information

Part II Other Information

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47

Other Information

Item 5. Other Information 47

Exhibits

Item 6. Exhibits 47

Signatures

Signatures 49 Except where the context requires otherwise, in this report, references to the "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"). On March 12, 2013, APAM closed its initial public offering and related corporate reorganization. Prior to that date, APAM was a subsidiary of Artisan Partners Holdings.

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 the Company's Annual Report on Form 10-K for the fisc

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

— Financial Information

Part I — Financial Information

Unaudited Consolidated Financial Statements

Item 1. Unaudited Consolidated Financial Statements ARTISAN PARTNERS ASSET MANAGEMENT INC. Unaudited Condensed Consolidated Statements of Financial Condition (U.S. dollars in thousands, except per share amounts) June 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 195,416 $ 141,008 Accounts receivable 110,953 101,169 Investment securities 201,217 150,522 Property and equipment, net 45,402 46,638 Deferred tax assets 428,501 436,529 Prepaid expenses and other assets 18,745 20,348 Operating lease assets 91,229 94,747 Assets of consolidated investment products Cash and cash equivalents 37,531 37,459 Accounts receivable and other 13,587 13,343 Investment assets, at fair value 362,701 364,095 Total assets $ 1,505,282 $ 1,405,858 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS' EQUITY Accounts payable, accrued expenses, and other $ 22,232 $ 25,509 Accrued incentive compensation 139,986 52,226 Borrowings 199,349 199,267 Operating lease liabilities 109,169 113,391 Amounts payable under tax receivable agreements 347,701 364,048 Liabilities of consolidated investment products Accounts payable, accrued expenses, and other 23,278 38,080 Investment liabilities, at fair value 15,443 9,580 Total liabilities 857,158 802,101 Commitments and contingencies Redeemable noncontrolling interests 276,420 252,406 Common stock Class A common stock ($ 0.01 par value per share, 500,000,000 shares authorized, 69,903,580 and 68,554,078 shares outstanding at June 30, 2024 and December 31, 2023, respectively) 699 685 Class B common stock ($ 0.01 par value per share, 200,000,000 shares authorized, 1,690,281 and 2,435,739 shares outstanding at June 30, 2024 and December 31, 2023, respectively) 17 24 Class C common stock ($ 0.01 par value per share, 400,000,000 shares authorized, 8,777,951 and 9,024,947 shares outstanding at June 30, 2024 and December 31, 2023, respectively) 87 90 Additional paid-in capital 207,664 193,722 Retai

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View this 10-Q filing on SEC EDGAR