Acadian Asset Management Inc. · NYSE:AAMI
Acadian Asset Management — Q1 2025 Earnings Presentation
39 slides from Acadian Asset Management's earnings presentation, May 1, 2025
Slide 1: Acadian Reports Financial and Operating Results for Q1 2025
1 Acadian Asset Management Inc. Reports Financial and Operating Results for the First Quarter Ended March 31, 2025 • U.S. GAAP earnings per share of $0.54 for the quarter, 46% increase compared to $0.37 for Q1'24 • U.S. GAAP net income attributable to controlling interests of $20.1 million for the q
Slide 2: Dividend Declaration and Conference Call
2 Dividend Declaration The Company’s Board of Directors approved a quarterly interim dividend of $0.01 per share payable on June 27, 2025 to shareholders of record as of the close of business on June 13, 2025. Conference Call Dial-in The Company will hold a conference call and simultaneous webcast t
Slide 3: Forward-Looking Statements
3 Forward-Looking Statements This communication includes forward-looking statements which may include, from time to time, anticipated revenues, margins, operating expense, variable compensation and distribution ratios, cash flows or earnings growth profile, expectations regarding investment process,
Slide 4: Q1 2025
Q1 2025 EARNINGS PRESENTATION May 1, 2025
Slide 5: Presenters: Kelly Young and Melody Huang
5 Kelly Young President and Chief Executive Officer Melody Huang Director of Finance and Investor Relations
Slide 6: Nearly 40-year operating history
6 Nearly 40-year operating history Founded in 1986, Acadian has pioneered systematic investing and we continue to lead the sector through constant innovation. We have delivered sustained outperformance across various investment strategies and through numerous market cycles Pure systematic investment
Slide 7: Key Performance Metrics
7 Key Performance Metrics Q1'24 Q1'25 Increase (Decrease) Net income attributable to controlling interests $m $14.6 $20.1 38% U.S. GAAP diluted EPS $0.37 $0.54 46% Economic net income $m $17.4 $20.3 17% ENI diluted EPS $0.44 $0.54 23% Adjusted EBITDA $m $31.9 $35.2 10% NCCF $b $0.4 $3.8 850% EOP AUM
Slide 8: Outstanding Performance Track Records
8 100% 100% 100% 3-Year 5-Year 10-Year 100% 100% 100% 3-Year 5-Year 10-Year 99% 100% 100% 3-Year 5-Year 10-Year 100% 100% 100% 3-Year 5-Year 10-Year 100% 100% 100% 3-Year 5-Year 10-Year Global Equity Outstanding Performance Track Records % of Major Strategy Group Assets Outperforming Benchmarks Emer
Slide 9: Meaningful Long Term Alpha Generation
9 95% 94% 95% 3-Year 5-Year 10-Year Meaningful Long Term Alpha Generation 92% 90% 91% 3-Year 5-Year 10-Year +4.4% 5-year annualized return in excess of benchmark +3.5% 5-year annualized return in excess of benchmark Revenue Weighted Asset Weighted Consolidated Firmwide Investment Performance _______
Slide 10: Extensive Global Distribution Platform
10 Extensive Global Distribution Platform 4 > 10 years > 90 > 40 > 1,000 ~ 40 global distribution offices serving clients countries represented across client base investment consultant relationships global distribution offices serving clients experienced distribution professionals average relationsh
Slide 11: Highly Regarded Institutional Investment Manager
11 Acadian: Highly Regarded Institutional Investment Manager ▪ 6 clients among the top 20 global asset owners ▪ 27 clients among the top 50 U.S. retirement plans ▪ > 50% of assets from clients invested in multiple Acadian strategies ▪ 37% of assets managed for clients outside the U.S. ▪ > 80 institu
Slide 12: Positive Trend in Net Flows
12 $(2.3)B $1.8B $3.8B FY 2023 FY 2024 Q1'25 Positive Trend in Net Flows Net Flows Q1’25 net flows of $3.8 billion, highest in nineteen years
Slide 13: Product Initiatives to Drive Growth
13 Product Initiatives to Drive Growth Enhanced Equity Equity Extensions Systematic Credit Equity Alternatives
Slide 14: Enhanced Equity: Vast Market Opportunity
14 Enhanced Equity: Vast Market Opportunity ▪ Enhanced Equity is one of Acadian’s key product initiatives to drive long term growth ▪ Recent flows have been robust, end of Q1’25 AUM of ~$12B doubled from prior year, expected to continue meaningful growth in the future ▪ Enhanced Equity strategies ad
Slide 15: Enhanced Equity: Proven Acadian Advantage
15 Enhanced Equity: Proven Acadian Advantage ▪ Enhanced Equity strategies designed to repackage Acadian’s alpha in a lower risk manner to meet market demand ▪ These strategies leverage Acadian’s proprietary investment process to invest in benchmark stocks and deliver attractive risk-adjusted returns
Slide 16: Enhanced Equity: Robust Results
16 Enhanced Equity: Robust Results ▪ Acadian’s Enhanced Equity targets stable alpha with low active risk and has produced consistent outperformance ___________________________________________________________ Acadian Enhanced Global Equity Composite vs. the MSCI All-Country World benchmark, as of Dec
Slide 17: Low Leverage Ratios With High Liquidity Position
17 ___________________________________________________________ Please see Definitions and Additional Notes (1) Represents the Company’s total debt, divided by last twelve months Adjusted EBITDA. (2) Represents the Company’s total debt, net of total cash and cash equivalents, divided by last twelve m
Slide 18: Track Record of Significant Value Creation Through Buybacks
18 86 37 Q4’19 Q1'25 Track Record of Significant Value Creation Through Buybacks ▪ $1.4 billion in excess capital returned to stockholders over the last 5 years through share buybacks and dividends ▪ During the first quarter of 2025, repurchased 0.8 million shares of common stock (2% of total outsta
Slide 19: Positioned for Multiple Expansion & Value Creation
19 9x 12x AAMI Peer Average Acadian: Positioned for Multiple Expansion & Value Creation 33% Q1’25 LTM P/E Multiple ___________________________________________________________ AAMI calculation based on Q1’25 LTM ENI EPS and share price as of April 29, 2025 at $26.69 (increase 33% at peer average mult
Slide 20: Closing: Acadian Investment Opportunity
20 Closing: Acadian Compelling Investment Opportunity ▪ Only pure-play, publicly traded systematic manager ▪ Nearly 40-year track record with competitive edge in systematic investing ▪ Strong performance track record: ▪ > 90% of strategies by revenue outperforming over 3- / 5- / 10- year periods(1)
Slide 21: U.S. GAAP Statement of Operations
21 U.S. GAAP Statement of Operations ($ in millions, unless otherwise noted) Q1'24 Q1'25 Increase (Decrease) Management fees $ 102.2 $ 112.9 10.5 % Performance fees 3.1 5.3 71.0 % Consolidated Funds’ revenue 0.4 1.7 n/m Total revenue 105.7 119.9 13.4 % Compensation and benefits 58.1 60.8 4.6 % Gener
Slide 22: Supplemental Information
22 Supplemental Information
Slide 23: Key Performance Metrics
23 Outstanding Performance Metrics Key Performance Metrics ($ in millions, unless otherwise noted) Q1'24 Q1'25 Increase (Decrease) U.S. GAAP Basis Revenue $ 105.7 $ 119.9 13.4 % Pre-tax income attributable to controlling interests 20.7 28.4 37.2 % Net income attributable to controlling interests 14.
Slide 24: ENI Revenue
24 ENI Revenue ($ in millions) Q1'24 Q1'25 Increase (Decrease) Management fees $ 102.2 $ 112.9 10% Performance fees 3.1 5.3 71% ENI revenue $ 105.3 $ 118.2 12% ENI Revenue ▪ ENI revenue includes management fees and performance fees ▪ Q1'25 ENI revenue of $118.2 million increased from Q1'24 by 12%; p
Slide 25: ENI Operating Expenses
25 _______________________________________________________ Please see Definitions and Additional Notes (1) Operating Expense Ratio reflects total ENI operating expenses as a percent of management fees. (2) Represents reported ENI management fee revenue. ▪ ENI operating expenses reflect the Company’s
Slide 26: ENI Variable Compensation
26 ENI Variable Compensation ($ in millions) Q1'24 Q1'25 Increase (Decrease) Cash variable compensation $ 24.9 $ 29.5 18% Add: Non-cash equity-based award amortization 1.7 0.9 (47)% Variable compensation 26.6 30.4 14% Earnings before variable compensation $ 55.8 $ 63.9 15% Variable Compensation Rati
Slide 27: Acadian LLC Key Employee Distributions
27 Acadian LLC Key Employee Distributions ($ in millions) Q1'24 Q1'25 Increase (Decrease) Earnings after variable compensation (ENI operating earnings) $ 29.2 $ 33.5 15% Less: Acadian LLC key employee distributions (2.2) (3.1) 41% Earnings after Acadian LLC key employee distributions $ 27.0 $ 30.4 1
Slide 28: Balance Sheet Management
28 ($ in millions) December 31, 2024 March 31, 2025 Assets Cash and cash equivalents $ 94.8 $ 119.6 Investment advisory fees receivable 164.7 132.0 Right of use assets 52.5 50.9 Investments 67.9 52.9 Other assets 164.0 157.7 Assets of consolidated Funds 159.3 164.2 Total assets $ 703.2 $ 677.3 Liabi
Slide 29: Assets Under Management Rollforward
29 Assets Under Management Rollforward ($ in billions, unless otherwise noted) Q1'24 Q1'25 Beginning balance $ 103.7 $ 117.3 Gross sales 4.3 8.8 Gross outflows (4.7) (5.8) Reinvested income and distributions 0.8 0.8 Net flows 0.4 3.8 Market appreciation 6.3 0.8 Ending balance $ 110.4 $ 121.9 Average
Slide 30: Reconciliations and Disclosures
30 Reconciliations and Disclosures
Slide 31: Reconciliation of Net Income to ENI and Adjusted EBITDA
31 ($ in millions) Q1'24 Q1'25 U.S. GAAP net income attributable to controlling interests $ 14.6 $ 20.1 Adjustments to reflect the economic earnings of the Company: Non-cash key employee-owned equity and profit interest revaluations(2) 4.4 (0.3) Amortization of acquired intangible assets(2) — — Capi
Slide 32: Reconciliations from U.S. GAAP to Non-GAAP Measures
32 Reconciliations from U.S. GAAP to Non-GAAP Measures(1) Reconciliation of per-share U.S. GAAP Net Income to Economic Net Income per share ($) Q1'24 Q1'25 U.S. GAAP net income per share $ 0.37 $ 0.54 Adjustments to reflect the economic earnings of the Company: i. Non-cash key employee-owned equity
Slide 33: Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense
33 Reconciliations from U.S. GAAP to Non-GAAP Measures(1) Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense ($ in millions) Q1'24 Q1'25 U.S. GAAP operating expense $ 82.8 $ 88.0 Less: items excluded from ENI Non-cash key employee-owned equity and profit interest revaluations (4.
Slide 34: Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI
34 Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI ($ in millions) Q1'24 Q1'25 U.S. GAAP pre-tax income $ 21.8 $ 32.1 Adjustments to reflect the economic earnings of the Company: Non-cash key employee-owned equity and profit interest revaluations 4.4 (0.3) Capital transaction costs 0.1 0.1
Slide 35: Segment Reconciliation
35 Segment Reconciliation ($ in millions) Q1'24 Q1'25 U.S. GAAP Consolidated Revenue $ 105.7 $ 119.9 Exclude revenue from consolidated funds (a) 0.4 1.7 Quant & Solutions Segment ENI Revenue 105.3 118.2 Quant & Solutions Segment ENI Expenses Fixed compensation and benefits (b) 21.6 22.9 Variable com
Slide 36: Segment Reconciliation (continued)
36 Segment Reconciliation (continued) Notes to Segment Reconciliation (a) Adjusted to exclude consolidated Funds revenues which are included in U.S. GAAP revenue. (b) Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided. (c) Variable compens
Slide 37: Definitions and Additional Notes
37 References to “Acadian Asset Management”, “Acadian”, “AAMI” or the “Company” refer to Acadian Asset Management Inc.; references to “Hold Co” refer to AAMI and its subsidiaries excluding Acadian Asset Management LLC (“Acadian LLC”). The Company currently operates its business through one asset man
Slide 38: Adjusted EBITDA
38 Adjusted EBITDA Adjusted EBITDA is defined as economic net income before interest, income taxes, depreciation and amortization. The Company notes that its calculation of Adjusted EBITDA may not be consistent with Adjusted EBITDA as calculated by other companies. The Company believes Adjusted EBIT
Slide 39: ENI variable compensation ratio
39 ENI variable compensation ratio The ENI variable compensation ratio is calculated as variable compensation divided by ENI earnings before variable compensation. It is used by management and is useful to investors to evaluate consolidated variable compensation as measured against the Company’s ENI
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