Artisan Partners Asset Management : Reports 2Q26 Results (52fa20)

About this update from Artisan Partners Asset Management Inc.

‌Artisan Partners Asset Management Inc. Reports 2Q26 Results and Quarterly Dividend Milwaukee, WI - July 28, 2026 - Artisan Partners Asset Management Inc. (NYSE: APAM) (the "Company" or "Artisan Partners") today reported its results for the quarter ended June 30, 2026, and declared a quarterly dividend. Chief Executive Officer Jason Gottlieb said: "Our long-term investment performance remains strong, with over 75% of our assets under management outperforming benchmarks across the three-, five-, and ten-year, and since-inception periods. Our strategies participated in the strong market environment during the quarter while remaining resilient as volatility returned in June, reflecting the quality and discipline of our investment teams. "Our credit-oriented teams continued to deliver exceptional investment performance and business development results. During the quarter, our credit strategies raised approximately $700 million of net inflows, representing a 15% annualized organic growth rate and their 16th consecutive quarter of positive organic growth. Our alternative strategies added approximately $300 million of net inflows, representing a 25% annualized organic growth rate and positive organic growth in five of the last six quarters. EMsights Capital Group continues to build momentum, surpassing $5 billion in assets under management. While pressures on equity flows persist, we funded a $1 billion institutional mandate for our Global Discovery strategy and raised more than $200 million of net inflows into our Sustainable Emerging Markets strategy. "Firmwide net outflows totaled $10.5 billion during the quarter, including $6.4 billion of net outflows from the U.S. Value team's strategies, largely concentrated in the loss of a single sub-advisory mandate. After the significant decline in assets, we determined to wind down the U.S. Value business and return capital to investors in the U.S. Mid-Cap Value, Value Equity, and Value Income strategies, a process that we expect will be largely complete by the end of the third quarter. While the wind-down was a difficult decision, the U.S. Value team had a tremendous run over nearly 30 years at Artisan Partners, generating and compounding wealth for clients and contributing to the success and growth of the firm. "Assets under management ended the quarter at $183.4 billion, a record quarter-end level. Average assets under management increased 9% compared to the second quarter of 2025, while revenues increased 9% to $307.9 million. On a GAAP basis, operating income increased 6% to $84.6 million, operating margin was 27.5% and earnings per share were $1.11. On an adjusted basis, operating income increased 13% to $101.4 million, operating margin expanded 120 basis points to 32.9% and earnings per share increased 13% to $0.94. These results demonstrate the earnings power of our diversified platform and our ability to generate attractive financial performance despite flow headwinds in select equity franchises. "Consistent with our goal to be one of the world's preeminent multi-asset class investment platforms, we remain focused on expanding our capabilities in areas where we see durable client demand and can maximize alpha, including credit and alternatives, while continuing to invest to support our high-performing investment teams. Our strong balance sheet, consistent cash generation and disciplined capital allocation position us well to invest for long-term growth while continuing to return meaningful capital to shareholders." ‌AUM and Flows For the Three Months Ended For the Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (unaudited, in millions) Beginning assets under management $ 172,981 $ 179,928 $ 162,390 $ 179,928 $ 161,208 Gross client cash inflows 8,797 9,188 6,233 17,985 13,247 Gross client cash outflows (19,296) (12,305) (8,096) (31,601) (17,950) Net client cash flows (10,499) (3,117) (1,863) (13,616) (4,703) Acquisitions 1 - 880 - 880 - Realizations 2 (58) - - (58) - Artisan Funds' distributions not reinvested 3 (231) (134) (194) (365) (310) Investment returns and other 21,196 (4,576) 15,212 16,620 19,350 Ending assets under management $ 183,389 $ 172,981 $ 175,545 $ 183,389 $ 175,545 Average assets under management $ 181,874 $ 182,403 $ 166,774 $ 182,187 $ 166,782 ‌Financial Results The table below presents AUM and a comparison of certain GAAP and non-GAAP ( " adjusted " ) financial measures. For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 (unaudited, in millions except per share amounts or as otherwise noted) Assets Under Management (amounts in billions) Ending $ 183.4 $ 173.0 $ 175.5 $ 183.4 $ 175.5 Average 181.9 182.4 166.8 182.2 166.8 Consolidated Financial Results (GAAP) Revenues $ 307.9 $ 303.0 $ 282.8 $ 610.9 $ 559.9 Operating income 84.6 94.2 79.8 178.8 166.3 Operating margin 27.5 % 31.1 % 28.2 % 29.3 % 29.7 % Net income attributable to Artisan Partners Asset Management Inc. $ 80.9 $ 58.0 $ 67.6 $ 138.9 $ 128.7 Basic earnings per share 1.11 0.76 0.94 1.90 1.78 Diluted earnings per share 1.11 0.76 0.94 1.90 1.78 Adjusted 4 Financial Results Adjusted operating income $ 101.4 $ 94.2 $ 89.6 $ 195.6 $ 178.6 Adjusted operating margin 32.9 % 31.1 % 31.7 % 32.0 % 31.9 % Adjusted EBITDA 5 $ 106.0 $ 98.4 $ 94.2 $ 204.4 $ 187.8 Adjusted net income 76.5 70.8 67.5 147.3 134.5 Adjusted net income per adjusted share 0.94 0.87 0.83 1.81 1.66 1 Reflects AUM obtained in connection with the closing of the Grandview Property Partners acquisition on January 2, 2026. 2 Represents the distribution of realized proceeds from the disposition of assets. 3 Reflects the amount of income and capital gain distributions that were not reinvested in the Artisan Funds. 4 Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibit 2. 5 Adjusted EBITDA represents adjusted net income before interest expense, income taxes, depreciation and amortization expense. ‌Capital Management and Balance Sheet Cash and cash equivalents were $334.5 million at June 30, 2026, compared to $214.4 million at December 31, 2025. During the June 30, 2026 quarter, the Company paid a dividend of $0.77 per share of Class A common stock with respect to the March 2026 quarter. The Company had total borrowings of $190.0 million at June 30, 2026 and December 31, 2025. Total stockholders' equity was $465.3 million at June 30, 2026, compared to $478.1 million at December 31, 2025. The Company had 71.0 million Class A common shares outstanding at June 30, 2026. The Company's debt leverage ratio, calculated in accordance with its loan agreements, was 0.39x at June 30, 2026. Dividend The Company's board of directors declared a variable quarterly dividend of $0.80 per share of Class A common stock with respect to the June 2026 quarter. The variable quarterly dividend represents approximately 80% of the cash generated in the June 2026 quarter and will be paid on August 31, 2026, to shareholders of record as of the close of business on August 17, 2026. Based on our projections and subject to change, we expect some portion of the 2026 dividend payments to constitute a return of capital for tax purposes. Subject to board approval each quarter, we currently expect to pay a quarterly dividend of approximately 80% of the cash the Company generates each quarter from operations. We expect cash generation will generally equal adjusted net income plus long-term incentive compensation expense, less cash reserved for future franchise capital awards, with additional adjustments made for certain other sources and uses of cash, including capital expenditures. After the end of the year, our board will consider payment of a special dividend from the 20% withheld each quarter plus any discrete sources and uses of cash throughout the year, including gains realized upon seed capital redemptions and investments redeemed in connection with forfeited franchise capital awards. ********* ‌Conference Call The Company will host a conference call on July 29, 2026, at 11:00 a.m. (Eastern Time) to discuss these results. Hosting the call will be Jason Gottlieb, Chief Executive Officer and President, and C.J. Daley, Chief Financial Officer. Supplemental materials that will be reviewed during the call are available on the Company's website at https://www.apam.com . The call will be webcast and can be accessed via the Company's website. Listeners may also access the call by dialing 877.328.5507 or 412.317.5423 for international callers; the conference ID is 10209594. A replay of the call will be available until August 5, 2026, at 9:00 a.m. (Eastern Time), by dialing 855.669.9658 or 412.317.0088 for international callers; the replay conference ID is 2052531. An audio recording will also be available on the Company's website. Forward-Looking Statements and Other Disclosures Certain statements in this release, and other written or oral statements made by or on behalf of the Company, are "forward-looking statements" within the meaning of the federal securities laws. 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. These forward-looking statements are only predictions based on current expectations and projections about future events. These 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 for whatever reason, poor performance of our investment strategies, change in the legislative and regulatory environment in which we operate, operational or technical errors or other matters that cause 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 fiscal year ended December 31, 2025, filed with the SEC on February 20, 2026, as such factors may be updated from time to time. Our periodic and current reports are accessible on the SEC's website at https://www.sec.gov . The Company undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release except as required by law. Assets Under Management (AUM) refers to the assets of pooled vehicles and separate accounts to which Artisan Partners provides services. Artisan Partners' AUM as reported here includes assets of certain strategies for which Artisan Partners provides model portfolios to managed account sponsors, for which we earn only investment-related service fees. Model assets are generally reported on a lag not exceeding one quarter and represented $382 million, $314 million, and $115 million in aggregate as of June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Artisan's definition of AUM is not based on any definition of Assets Under Management contained in Form ADV or in any of Artisan's investment management agreements. Results for any investment strategy described herein, and for different investment products within a strategy, are affected by numerous factors, including different material market or economic conditions; different investment management fee rates, brokerage commissions and other expenses; and the reinvestment of dividends or other earnings. The returns for any strategy may be positive or negative, and past performance does not guarantee future results. In these materials we present relative performance, sourced from Artisan Partners, MSCI, Russell, S&P, JP Morgan and ICE BofA. Current performance may be lower or higher than the performance shown. Unless otherwise noted, composite returns have been presented gross of investment advisory fees applied to client accounts, but include applicable trade commissions and transaction costs. Management fees, when reflected, would reduce the results presented for an investor in an account managed within a composite. Net-of-fees composite returns presented in these materials were calculated using the highest model investment advisory fees applicable to portfolios within the composite. Fees may be higher for certain pooled vehicles, and the composite may include accounts with performance-based fees. Index returns do not reflect the payment of fees and expenses. Certain Artisan composite returns may be represented by a single account. In these materials, we present Value Added, which is the difference between an Artisan strategy's average annual return and the return of its respective benchmark. We may also present Excess Returns (alpha), which are an estimate of the amount in dollars by which Artisan's investment strategies have outperformed or underperformed their respective benchmark. Excess Returns are calculated by (i) multiplying a strategy's beginning-of-year AUM by the difference between the returns (in basis points) of the strategy (gross of fees, unless otherwise indicated) and the benchmark for the ensuing year and (ii) summing all strategies' Excess Returns for each year calculated. Investment returns and other include all changes in AUM not included in Excess Returns, client cash flows, acquisitions, realizations and Artisan Funds distributions not reinvested. The benchmark used for purposes of presenting a strategy's performance and calculating Value Added and Excess Returns is generally the market index most commonly used by our clients to compare the performance of the relevant strategy. For certain strategies that are managed for absolute return, the benchmark used for purposes of presenting a strategy's performance and calculating Value Added and Excess Returns is the index used by the Company's management to evaluate the performance of the strategy. YTD Relative performance as presented in these materials compares the performance of a strategy's composite to its respective index. Composites / Indexes used for the comparison calculations described are: Non-U.S. Growth Strategy / International Value Strategy-MSCI EAFE Index; Global Equity Strategy / Global Opportunities Strategy / Global Value Strategy / Franchise Strategy-MSCI All Country World Index; Global Discovery Strategy: MSCI All Country World Small Mid Cap Index; Non-U.S. Small-Mid Growth Strategy-MSCI All Country World Index Ex USA Small Mid Index; U.S. Mid-Cap Growth Strategy-Russell Midcap Growth® Index; U.S. Mid-Cap Value Strategy-Russell Midcap Value® Index; U.S. Small-Cap Growth Strategy-Russell 2000 Growth® Index; Value Equity Strategy-Russell 1000 Value® Index; Developing World Strategy / Sustainable Emerging Markets Strategy-MSCI Emerging Markets Index; High Income Strategy-ICE BofA U.S. High Yield Index; Credit Opportunities Strategy-ICE BofA U.S. Dollar 3-Month Deposit Offered Rate Constant Maturity Index; Antero Peak Strategy / Antero Peak Hedge Strategy / Select Equity Strategy / Value Income Strategy-S&P 500® Market Index; International Explorer Strategy-MSCI All Country World Index Ex USA Small Cap; Floating Rate Strategy-S&P UBS Leveraged Loan Index; Global Unconstrained Strategy-ICE BofA 3-Month U.S. Treasury Bill Index; Global Special Situations Strategy-ICE BofA Global High Yield Index; Emerging Markets Debt Opportunities Strategy-J.P. Morgan EMB Hard Currency/Local Currency 50-50; Emerging Markets Local Opportunities Strategy-J.P. Morgan GBI-EM Global Diversified Index. Where applicable, composite returns have been included for the following discontinued strategies and their indexes: Global Small-Cap Growth Strategy (Jul 1, 2013-Dec 31, 2016)-MSCI ACWI Small Cap Index; U.S. Small-Cap Value Strategy (Jun 1, 1997-Apr 30, 2016)-Russell 2000® Index; Non-U.S. Small-Cap Growth Strategy (Jan 1, 2002-Nov 30, 2018)-MSCI EAFE Small Cap Index; China Post-Venture Strategy (Apr 1, 2021-Jun 30, 2025). Index returns do not reflect the payment of fees and expenses. An investment cannot be made directly in an Artisan Partners composite or a market index and the aggregated results are hypothetical. None of the information in these materials constitutes either an offer or a solicitation to buy or sell any fund securities, nor is any such information a recommendation for any fund security or investment service. The funds and strategies may not be available to all investors in all jurisdictions. Grandview Property Partners is a separate, wholly-owned subsidiary and a registered investment adviser with the U.S. Securities and Exchange Commission. Any discrepancies included in this release between totals and the sums of the amounts listed are due to rounding. About Artisan Partners Artisan Partners is a global multi-asset investment platform providing a broad range of high value-added investment strategies in growing asset classes to sophisticated clients around the world. Since 1994, the firm has been committed to attracting experienced, disciplined investment professionals to manage client assets. Artisan Partners' autonomous investment teams oversee a diverse range of investment strategies across multiple asset classes. Strategies are offered through various investment vehicles to accommodate a broad range of client mandates. Source: Artisan Partners Asset Management Inc. Investor Relations Inquiries 866.632.1770 [email protected] Exhibit 1 Artisan Partners Asset Management Inc. Consolidated Statements of Operations (unaudited; in millions, except per share amounts or as noted) ‌Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenues Management fees Artisan Funds and Artisan Global Funds $ 198.0 $ 192.9 $ 179.6 $ 390.9 $ 354.3 Separate accounts and other 109.7 109.9 103.2 219.6 205.6 Performance fees 0.2 0.2 - 0.4 - Total revenues 307.9 303.0 282.8 610.9 559.9 Operating expenses Compensation and benefits 182.0 168.7 165.8 350.7 321.0 Distribution, servicing and marketing 7.7 7.5 6.8 15.2 13.2 Occupancy 7.0 7.1 7.3 14.1 14.7 Communication and technology 14.0 13.8 13.6 27.8 26.5 General and administrative 12.3 11.5 9.5 23.8 18.2 Amortization of intangible assets 0.3 0.2 - 0.5 - Total operating expenses 223.3 208.8 203.0 432.1 393.6 Operating income 84.6 94.2 79.8 178.8 166.3 Interest expense (2.2) (2.1) (2.1) (4.3) (4.2) Interest income on cash and cash equivalents and other 2.3 1.9 1.9 4.2 3.9 Gain (loss) on non-operating liabilities (0.2) - - (0.2) - Net investment gain (loss) of consolidated investment products 12.7 (2.5) 22.7 10.2 29.8 Net investment gain (loss) of nonconsolidated investment products 29.5 (5.1) 18.6 24.4 22.4 Total non-operating income (expense) 42.1 (7.8) 41.1 34.3 51.9 Income before income taxes 126.7 86.4 120.9 213.1 218.2 Provision for income taxes 25.9 18.8 24.9 44.7 44.9 Net income before noncontrolling interests 100.8 67.6 96.0 168.4 173.3 Less: Net income attributable to noncontrolling interests -Artisan Partners Holdings LP 15.1 11.1 13.4 26.2 25.3 Less: Net income (loss) attributable to noncontrolling interests - consolidated investment products 4.8 (1.5) 15.0 3.3 19.3 Net income attributable to Artisan Partners Asset Management Inc. $ 80.9 $ 58.0 $ 67.6 $ 138.9 $ 128.7 Basic earnings per share - Class A common shares $ 1.11 $ 0.76 $ 0.94 $ 1.90 $ 1.78 Diluted earnings per share - Class A common shares $ 1.11 $ 0.76 $ 0.94 $ 1.90 $ 1.78 Average shares outstanding Class A common shares 66.4 66.1 65.6 66.2 65.5 Participating unvested restricted share-based awards 5.2 5.1 5.4 5.2 5.4 Total average shares outstanding 71.6 71.2 71.0 71.4 70.9 Artisan Partners Asset Management Inc. Reconciliation of GAAP to Non-GAAP ("Adjusted") Measures (unaudited; in millions, except per share amounts or as noted) Exhibit 2 ‌Net income attributable to Artisan Partners Asset Management Inc. (GAAP) Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings LP Add back: Provision for income taxes Add back: Compensation expense (reversal) related to market valuation changes in compensation plans Add back: Change in fair value of contingent consideration Add back: Net investment (gain) loss of investment products attributable to APAM Less: Adjusted provision for income taxes Adjusted net income (Non-GAAP) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, $ 80.9 $ 58.0 $ 67.6 $ 138.9 $ 128.7 15.1 11.1 13.4 26.2 25.3 25.9 18.8 24.9 44.7 44.9 16.8 0.0 9.8 16.8 12.3 0.2 - - 0.2 - (37.3) 6.1 (26.1) (31.2) (32.6) 25.1 23.2 22.1 48.3 44.1 $ 76.5 $ 70.8 $ 67.5 $ 147.3 $ 134.5 2026 2026 2025 2026 2025 Average shares outstanding Class A common shares 66.4 66.1 65.6 66.2 65.5 Assumed vesting or exchange of: Unvested restricted share-based awards 5.2 5.1 5.4 5.2 5.4 Artisan Partners Holdings LP units outstanding (noncontrolling interest) 10.1 10.1 10.2 10.1 10.3 Adjusted shares 81.7 81.3 81.2 81.5 81.2 Basic earnings per share (GAAP) $ 1.11 $ 0.76 $ 0.94 $ 1.90 $ 1.78 Diluted earnings per share (GAAP) $ 1.11 $ 0.76 $ 0.94 $ 1.90 $ 1.78 Adjusted net income per adjusted share (Non-GAAP) $ 0.94 $ 0.87 $ 0.83 $ 1.81 $ 1.66 Operating income (GAAP) $ 84.6 $ 94.2 $ 79.8 $ 178.8 $ 166.3 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 16.8 0.0 9.8 16.8 12.3 Adjusted operating income (Non-GAAP) $ 101.4 $ 94.2 $ 89.6 $ 195.6 $ 178.6 Operating margin (GAAP) 27.5 % 31.1 % 28.2 % 29.3 % 29.7 % Adjusted operating margin (Non-GAAP) 32.9 % 31.1 % 31.7 % 32.0 % 31.9 % Net income attributable to Artisan Partners Asset Management Inc. (GAAP) $ 80.9 $ 58.0 $ 67.6 $ 138.9 $ 128.7 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings LP 15.1 11.1 13.4 26.2 25.3 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 16.8 0.0 9.8 16.8 12.3 Add back: Change in fair value of contingent consideration 0.2 - - 0.2 - Add back: Net investment (gain) loss of investment products attributable to APAM (37.3) 6.1 (26.1) (31.2) (32.6) Add back: Interest expense 2.2 2.1 2.1 4.3 4.2 Add back: Provision for income taxes 25.9 18.8 24.9 44.7 44.9 Add back: Depreciation and amortization 2.2 2.3 2.5 4.5 5.0 Adjusted EBITDA (Non-GAAP) $ 106.0 $ 98.4 $ 94.2 $ 204.4 $ 187.8 ‌Supplemental Non-GAAP Financial Information The Company's management uses non-GAAP measures (referred to as "adjusted" measures) of net income to evaluate the profitability and efficiency of the underlying operations of the 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) change in fair value of contingent consideration, (5) non-recurring expenses (if any) and (6) 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 the Company's 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 meaningful information to analyze the Company's profitability and efficiency between periods and over time. The Company has included these non-GAAP measures to provide investors with the same financial metrics used by management to manage the Company. Non-GAAP measures should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures used by other companies, even if similar terms are used to identify such measures. The Company's non-GAAP measures are as follows: 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) change in fair value of contingent consideration, (5) non-recurring expenses (if any) and (6) 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. Adjusted net income per adjusted share is calculated by dividing adjusted net income by adjusted shares. The number of adjusted shares is derived by assuming the vesting of all unvested Class A share-based awards and the exchange of all outstanding limited partnership units of Artisan Partners Holdings for Class A common stock of APAM on a one-for-one basis. Adjusted operating income represents the operating income of the consolidated company excluding compensation expense related to market valuation changes in compensation plans and non-recurring expenses. Adjusted operating margin is calculated by dividing adjusted operating income by total revenues. Adjusted EBITDA represents adjusted net income before interest expense, income taxes, depreciation and amortization expense. Net gain (loss) on the tax receivable agreements represents the income (expense) associated with the change in estimate of amounts payable under the tax receivable agreements entered into in connection with APAM's initial public offering and related reorganization. Compensation expense (reversal) related to market valuation changes in compensation plans represents the expense (income) associated with the change in the long-term incentive award liability resulting from investment returns of the underlying investment products. Because the compensation expense impact of the investment market exposure is economically hedged, management believes it is useful to reflect the expected net income offset in the calculation of adjusted operating income, adjusted net income, and adjusted EBITDA. The related investment gain (loss) on the underlying investments is included in the adjustment for net investment gain (loss) of investment products. 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. Change in fair value of contingent consideration represents the income (expense) associated with the change in fair value of acquisition-related contingent consideration. Non-recurring expenses (if any) represents non-recurring professional fees that are not reflective of core operations. 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. Exhibit 3 Artisan Partners Asset Management Inc. Condensed Consolidated Statements of Financial Condition (unaudited; in millions) ‌As of June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 334.5 $ 214.4 Accounts receivable 122.6 154.5 Investment securities 246.2 228.0 Deferred tax assets 335.8 354.7 Goodwill 40.3 - Other intangible assets, net 7.7 - Assets of consolidated investment products 209.6 462.0 Operating lease assets 110.6 105.3 Other 52.2 58.4 Total assets $ 1,459.5 $ 1,577.3 Liabilities and equity Accounts payable, accrued expenses and other $ 48.5 $ 32.4 Accrued short-term incentive compensation 112.2 28.9 Accrued long-term incentive compensation 117.4 105.4 Contingent consideration 26.1 - Operating lease liabilities 125.7 120.9 Borrowings 189.2 189.1 Amounts payable under tax receivable agreements 275.0 303.4 Liabilities of consolidated investment products 14.0 14.8 Total liabilities 908.1 794.9 Redeemable noncontrolling interests 86.1 304.3 Total stockholders' equity 465.3 478.1 Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 1,459.5 $ 1,577.3 Artisan Partners Asset Management Inc. Assets Under Management by Investment Team and Vehicle (unaudited; in millions) ‌Three Months Ended By Investment Team Sustainable EMsights Grandview Exhibit 4 Growth Global Equity U.S. Value International Value Group Global Value Emerging Markets Credit Developing World Antero Peak Group International Small-Mid Capital Group Property Partners Total June 30, 2026 Beginning assets under management $ 28,283 $ 15,849 $ 7,506 $ 51,743 $ 35,804 $ 2,781 $ 15,530 $ 3,145 $ 2,346 $ 4,332 $ 4,763 $ 899 $ 172,981 Gross client cash inflows 1,844 491 126 2,580 842 463 1,279 266 291 116 499 - 8,797 Gross client cash outflows (4,630) (1,077) (6,483) (3,193) (1,431) (227) (591) (681) (318) (520) (145) - (19,296) Net client cash flows (2,786) (586) (6,357) (613) (589) 236 688 (415) (27) (404) 354 - (10,499) Acquisitions 1 - - - - - - - - - - - - - Realizations 2 - - - - - - - - - - - (58) (58) Artisan Funds' distributions not reinvested 3 - - - (115) - - (110) - - - (6) - (231) Investment returns and other 4,281 1,622 630 7,353 4,820 491 402 562 497 381 161 (4) 21,196 Ending assets under management $ 29,778 $ 16,885 $ 1,779 $ 58,368 $ 40,035 $ 3,508 $ 16,510 $ 3,292 $ 2,816 $ 4,309 $ 5,272 $ 837 $ 183,389 Average assets under management $ 28,535 $ 17,231 $ 5,675 $ 56,112 $ 38,820 $ 3,316 $ 16,099 $ 3,303 $ 2,627 $ 4,249 $ 5,037 $ 870 $ 181,874 March 31, 2026 Beginning assets under management $ 31,259 $ 15,907 $ 7,880 $ 54,010 $ 37,264 $ 2,537 $ 15,051 $ 4,283 $ 2,446 $ 4,913 $ 4,378 $ - $ 179,928 Gross client cash inflows 1,884 549 181 2,134 1,320 402 1,372 258 361 189 538 - 9,188 Gross client cash outflows (3,395) (1,035) (247) (3,603) (1,470) (150) (611) (643) (357) (609) (185) - (12,305) Net client cash flows (1,511) (486) (66) (1,469) (150) 252 761 (385) 4 (420) 353 - (3,117) Acquisitions 1 - - - - - - - - - - - 880 880 Realizations 2 - - - - - - - - - - - - - Artisan Funds' distributions not reinvested 3 - - - (29) - - (101) - - - (4) - (134) Investment returns and other (1,465) 428 (308) (769) (1,310) (8) (181) (753) (104) (161) 36 19 (4,576) Ending assets under management $ 28,283 $ 15,849 $ 7,506 $ 51,743 $ 35,804 $ 2,781 $ 15,530 $ 3,145 $ 2,346 $ 4,332 $ 4,763 $ 899 $ 172,981 Average assets under management 4 $ 30,346 $ 16,729 $ 7,878 $ 54,979 $ 37,676 $ 2,831 $ 15,403 $ 3,894 $ 2,484 $ 4,657 $ 4,656 $ 890 $ 182,403 June 30, 2025 Beginning assets under management $ 34,669 $ 13,442 $ 7,540 $ 47,486 $ 30,256 $ 1,625 $ 12,434 $ 4,147 $ 2,121 $ 5,353 $ 3,317 $ - $ 162,390 Gross client cash inflows 770 220 65 2,297 886 202 1,027 196 147 110 313 - 6,233 Gross client cash outflows (2,714) (763) (134) (1,883) (1,008) (56) (729) (175) (146) (447) (41) - (8,096) Net client cash flows (1,944) (543) (69) 414 (122) 146 298 21 1 (337) 272 - (1,863) Artisan Funds' distributions not reinvested 3 - - - (101) - - (91) - - - (2) - (194) Investment returns and other 4,023 2,262 294 3,072 2,772 276 455 616 418 840 184 - 15,212 Ending assets under management $ 36,748 $ 15,161 $ 7,765 $ 50,871 $ 32,906 $ 2,047 $ 13,096 $ 4,784 $ 2,540 $ 5,856 $ 3,771 $ - $ 175,545 Average assets under management $ 34,785 $ 14,272 $ 7,372 $ 49,017 $ 31,191 $ 1,769 $ 12,559 $ 4,452 $ 2,261 $ 5,518 $ 3,578 $ - $ 166,774 1 Reflects AUM obtained in connection with the closing of the Grandview Property Partners acquisition on January 2, 2026. 2 Represents the distribution of realized proceeds from the disposition of assets. 3 Reflects the amount of income and capital gain distributions that were not reinvested in the Artisan Funds. 4 For Grandview Property Partners, average assets under management is for the period beginning January 2, 2026, when the team was acquired. Artisan Partners Asset Management Inc. Assets Under Management by Investment Team and Vehicle (unaudited; in millions) ‌Three Months Ended By Vehicle Exhibit 4 June 30, 2026 Artisan Funds and Artisan Global Funds Separate Accounts and Other 1 Total Beginning assets under management $ 84,459 $ 88,522 $ 172,981 Gross client cash inflows 5,831 2,966 8,797 Gross client cash outflows (6,858) (12,438) (19,296) Net client cash flows Acquisitions 2 Realizations 3 (1,027) - - (9,472) - (58) (10,499) - (58) Artisan Funds' distributions not reinvested 4 (231) - (231) Investment returns and other 10,274 10,922 21,196 Net transfers 5 (28) 28 - Ending assets under management $ 93,447 $ 89,942 $ 183,389 Average assets under management $ 90,469 $ 91,405 $ 181,874 March 31, 2026 Beginning assets under management $ 87,875 $ 92,053 $ 179,928 Gross client cash inflows 6,353 2,835 9,188 Gross client cash outflows (7,424) (4,881) (12,305) Net client cash flows (1,071) (2,046) (3,117) Acquisitions 2 Realizations 3 Artisan Funds' distributions not reinvested 4 - - (134) 880 - - 880 - (134) Investment returns and other (2,211) (2,365) (4,576) Ending assets under management $ 84,459 $ 88,522 $ 172,981 Average assets under management $ 89,171 $ 93,232 $ 182,403 June 30, 2025 Beginning assets under management $ 79,220 $ 83,170 $ 162,390 Gross client cash inflows 4,467 1,766 6,233 Gross client cash outflows (4,648) (3,448) (8,096) Net client cash flows (181) (1,682) (1,863) Artisan Funds' distributions not reinvested 4 (194) - (194) Investment returns and other 6,781 8,431 15,212 Ending assets under management $ 85,626 $ 89,919 $ 175,545 Average assets under management $ 81,406 $ 85,368 $ 166,774 1 Separate accounts and other consists of AUM we manage in or through vehicles other than Artisan Funds and Artisan Global Funds. This AUM includes assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and in our own private funds, as well as certain assets managed by the Credit team in custom, investor-driven mandates and assets under advisement for certain strategies for which we provide model portfolios to managed account sponsors. 2 Reflects AUM obtained in connection with the closing of the Grandview Property Partners acquisition on January 2, 2026. 3 Represents the distribution of realized proceeds from the disposition of assets. 4 Reflects the amount of income and capital gain distributions that were not reinvested in the Artisan Funds. 5 Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle, or account and into another strategy, vehicle, or account. Exhibit 5 Artisan Partners Asset Management Inc. Assets Under Management by Investment Team and Vehicle (unaudited; in millions) ‌Six Months Ended By Investment Team Global Growth Equity International U.S. Value Value Group Sustainable Global Emerging Value Markets Credit Developing World Antero Peak Group EMsights International Capital Small-Mid Group Grandview Property Partners Total June 30, 2026 Beginning assets under management $ 31,259 $ 15,907 $ 7,880 $ 54,010 $ 37,264 $ 2,537 $ 15,051 $ 4,283 $ 2,446 $ 4,913 $ 4,378 $ - $ 179,928 Gross client cash inflows 3,728 1,040 307 4,714 2,162 865 2,651 524 652 305 1,037 - 17,985 Gross client cash outflows (8,025) (2,112) (6,730) (6,796) (2,901) (377) (1,202) (1,324) (675) (1,129) (330) - (31,601) Net client cash flows (4,297) (1,072) (6,423) (2,082) (739) 488 1,449 (800) (23) (824) 707 - (13,616) Acquisitions 1 - - - - - - - - - - - 880 880 Realizations 2 - - - - - - - - - - - (58) (58) Artisan Funds' distributions not reinvested 3 - - - (144) - - (211) - - - (10) - (365) Investment returns and other 2,816 2,050 322 6,584 3,510 483 221 (191) 393 220 197 15 16,620 Ending assets under management $ 29,778 $ 16,885 $ 1,779 $ 58,368 $ 40,035 $ 3,508 $ 16,510 $ 3,292 $ 2,816 $ 4,309 $ 5,272 $ 837 $ 183,389 Average assets under management 4 $ 29,442 $ 16,988 $ 6,767 $ 55,570 $ 38,265 $ 3,076 $ 15,755 $ 3,599 $ 2,557 $ 4,452 $ 4,847 $ 880 $ 182,187 June 30, 2025 Beginning assets under management $ 38,445 $ 12,934 $ 7,597 $ 44,295 $ 28,679 $ 1,552 $ 11,942 $ 4,100 $ 2,211 $ 6,544 $ 2,909 $ - $ 161,208 Gross client cash inflows 2,055 401 130 5,205 1,493 291 2,050 414 244 264 700 - 13,247 Gross client cash outflows (5,623) (1,597) (337) (3,869) (2,543) (130) (1,304) (412) (294) (1,717) (124) - (17,950) Net client cash flows (3,568) (1,196) (207) 1,336 (1,050) 161 746 2 (50) (1,453) 576 - (4,703) Artisan Funds' distributions not reinvested 3 - - - (125) - - (182) - - - (3) - (310) Investment returns and other 1,871 3,423 375 5,365 5,277 334 590 682 379 765 289 - 19,350 Ending assets under management $ 36,748 $ 15,161 $ 7,765 $ 50,871 $ 32,906 $ 2,047 $ 13,096 $ 4,784 $ 2,540 $ 5,856 $ 3,771 $ - $ 175,545 Average assets under management $ 36,731 $ 13,994 $ 7,535 $ 47,765 $ 30,793 $ 1,692 $ 12,406 $ 4,371 $ 2,261 $ 5,890 $ 3,344 $ - $ 166,782 1 Reflects AUM obtained in connection with the closing of the Grandview Property Partners acquisition on January 2, 2026. 2 Represents the distribution of realized proceeds from the disposition of assets. 3 Reflects the amount of income and capital gain distributions that were not reinvested in the Artisan Funds. 4 For Grandview Property Partners, average assets under management is for the period beginning January 2, 2026, when the team was acquired. Exhibit 5 Artisan Partners Asset Management Inc. Assets Under Management by Investment Team and Vehicle (unaudited; in millions) ‌Six Months Ended By Vehicle Artisan Funds and Artisan Global Funds Separate Accounts and Other 1 Total June 30, 2026 Beginning assets under management $ 87,875 $ 92,053 $ 179,928 Gross client cash inflows 12,184 5,801 17,985 Gross client cash outflows (14,282) (17,319) (31,601) Net client cash flows (2,098) (11,518) (13,616) Acquisitions 2 - 880 880 Realizations 3 - (58) (58) Artisan Funds' distributions not reinvested 4 (365) - (365) Investment returns and other 8,063 8,557 16,620 Net transfers 5 (28) 28 - Ending assets under management $ 93,447 $ 89,942 $ 183,389 Average assets under management $ 89,853 $ 92,334 $ 182,187 June 30, 2025 Beginning assets under management $ 77,614 $ 83,594 $ 161,208 Gross client cash inflows 9,486 3,761 13,247 Gross client cash outflows (10,236) (7,714) (17,950) Net client cash flows (750) (3,953) (4,703) Artisan Funds' distributions not reinvested 4 (310) - (310) Investment returns and other 9,099 10,251 19,350 Net transfers 5 (27) 27 - Ending assets under management $ 85,626 $ 89,919 $ 175,545 Average assets under management $ 80,938 $ 85,844 $ 166,782 1 Separate accounts and other consists of AUM we manage in or through vehicles other than Artisan Funds and Artisan Global Funds. This AUM includes assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and in our own private funds, as well as certain assets managed by the Credit team in custom, investor-driven mandates and assets under advisement for certain strategies for which we provide model portfolios to managed account sponsors. 2 Reflects AUM obtained in connection with the closing of the Grandview Property Partners acquisition on January 2, 2026. 3 Represents the distribution of realized proceeds from the disposition of assets. 4 Reflects the amount of income and capital gain distributions that were not reinvested in the Artisan Funds. 5 Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle, or account and into another strategy, vehicle, or account. ‌Artisan Partners Asset Management Inc. Investment Strategy AUM and Gross Composite Performance 1 As of June 30, 2026 (unaudited) Exhibit 6 Average Annual Composite Inception Strategy AUM Average Annual Total Returns (%) Value-Added 3 Since Inception Investment Team and Strategy Date (in $MM) 2 1 YR 3 YR 5 YR 10 YR Inception (bps) Growth Team Global Opportunities Strategy 2/1/2007 $ 13,441 11.23% 14.02% 5.37% 13.21% 11.14% 323 MSCI All Country World Index 23.67% 19.68% 10.98% 12.78% 7.91% Global Discovery Strategy 9/1/2017 $ 1,885 18.04% 16.81% 6.24% --- 14.15% 486 MSCI All Country World Small Mid Cap Index 23.24% 16.58% 7.22% --- 9.29% U.S. Mid-Cap Growth Strategy 4/1/1997 $ 10,359 21.83% 16.06% 3.97% 13.55% 14.51% 449 Russell® Midcap Index 21.63% 16.50% 8.49% 11.99% 10.67% Russell® Midcap Growth Index 6.17% 15.59% 6.02% 13.04% 10.02% U.S. Small-Cap Growth Strategy 4/1/1995 $ 2,981 39.55% 16.74% 2.89% 13.91% 11.12% 261 Russell® 2000 Index 40.78% 18.58% 6.98% 11.62% 9.62% Russell® 2000 Growth Index 38.74% 18.42% 5.56% 11.96% 8.51% Franchise Strategy 10/1/2024 $ 1,112 6.18% --- --- --- 10.59% (802) MSCI All Country World Index 23.67% --- --- --- 18.61% Global Equity Team Global Equity Strategy 4/1/2010 $ 420 22.67% 27.67% 11.49% 15.50% 13.85% 352 MSCI All Country World Index 23.67% 19.68% 10.98% 12.78% 10.33% Non-U.S. Growth Strategy 1/1/1996 $ 16,465 22.38% 22.62% 11.22% 11.46% 10.51% 463 MSCI EAFE Index 20.23% 16.42% 9.04% 9.65% 5.88% U.S. Value Team Value Equity Strategy 7/1/2005 $ 473 11.32% 13.87% 10.35% 12.58% 9.89% 95 Russell® 1000 Index 22.01% 20.44% 12.65% 15.29% 11.22% Russell® 1000 Value Index 27.09% 17.76% 11.16% 11.51% 8.94% U.S. Mid-Cap Value Strategy 4/1/1999 $ 1,298 8.58% 7.40% 5.00% 8.60% 11.46% 142 Russell ® Midcap Index 21.63% 16.50% 8.49% 11.99% 10.06% Russell® Midcap Value Index 26.62% 16.49% 9.47% 10.62% 10.04% Value Income Strategy 3/1/2022 $ 8 14.36% 12.71% --- --- 7.76% (713) S&P 500 Index 22.33% 20.59% --- --- 14.89% International Value Group International Value Strategy 7/1/2002 $ 57,099 24.61% 17.59% 12.36% 12.64% 12.33% 519 MSCI EAFE Index 20.23% 16.42% 9.04% 9.65% 7.14% International Explorer Strategy 11/1/2020 $ 1,230 21.86% 18.78% 10.76% --- 17.43% 590 MSCI All Country World Index Ex USA Small Cap 19.83% 16.40% 6.30% --- 11.53% Global Special Situations Strategy 4/1/2025 $ 39 15.57% --- --- --- 14.65% 636 ICE BofA Global High Yield Index 5.43% --- --- --- 8.29% Global Value Team Global Value Strategy 7/1/2007 $ 38,967 25.16% 22.19% 13.47% 13.42% 10.48% 287 MSCI All Country World Index 23.67% 19.68% 10.98% 12.78% 7.61% Select Equity Strategy 3/1/2020 $ 1,068 29.17% 22.97% 13.21% --- 16.60% (98) S&P 500 Index 22.33% 20.59% 13.40% --- 17.58% Sustainable Emerging Markets Team Sustainable Emerging Markets Strategy 7/1/2006 $ 3,508 38.12% 23.63% 7.58% 11.69% 7.61% 86 MSCI Emerging Markets Index 43.51% 23.00% 7.19% 10.07% 6.75% Credit Team High Income Strategy 4/1/2014 $ 14,288 5.40% 9.74% 5.61% 7.55% 7.15% 221 ICE BofA US High Yield Index 5.74% 8.78% 4.13% 5.70% 4.94% Credit Opportunities Strategy 7/1/2017 $ 417 8.32% 15.28% 11.48% --- 13.09% 1,037 ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity Index 4.07% 4.83% 3.60% --- 2.72% Floating Rate Strategy 1/1/2022 $ 290 6.00% 8.64% --- --- 7.09% 91 S&P UBS Leveraged Loan Index 4.29% 7.57% --- --- 6.18% Custom Credit Solutions 4 7/1/2025 $ 1,515 --- --- --- --- --- --- Developing World Team Developing World Strategy 7/1/2015 $ 3,292 (8.87)% 13.14% (1.69)% 12.18% 10.59% 274 MSCI Emerging Markets Index 43.51% 23.00% 7.19% 10.07% 7.85% Antero Peak Group Antero Peak Strategy 5/1/2017 $ 2,562 20.58% 25.33% 13.91% --- 19.92% 473 S&P 500 Index 22.33% 20.59% 13.40% --- 15.19% Antero Peak Hedge Strategy 11/1/2017 $ 254 16.89% 22.45% 11.82% --- 14.86% (12) S&P 500 Index 22.33% 20.59% 13.40% --- 14.98% International Small-Mid Team Non-U.S. Small-Mid Growth Strategy 1/1/2019 $ 4,309 10.60% 9.67% 1.81% --- 10.96% 58 MSCI All Country World Index Ex USA Small Mid Cap 20.64% 17.08% 6.72% --- 10.38% EMsights Capital Group Global Unconstrained Strategy 4/1/2022 $ 1,825 12.43% 10.86% --- --- 11.07% 693 ICE BofA 3-month Treasury Bill Index 3.84% 4.63% --- --- 4.14% Emerging Markets Debt Opportunities Strategy 5/1/2022 $ 1,506 16.00% 13.27% --- --- 13.76% 669 J.P. Morgan EMB Hard Currency/Local Currency 50-50 8.59% 8.26% --- --- 7.07% Emerging Markets Local Opportunities Strategy 8/1/2022 $ 1,941 13.99% 10.95% --- --- 12.55% 414 J.P. Morgan GBI-EM Global Diversified Index 7.85% 7.30% --- --- 8.41% Grandview Property Partners 5 Grandview Property Partners --- $ 837 --- --- --- --- --- --- Total Assets Under Management $ 183,389 1 We measure 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 those accounts with respect to which we believe client-imposed restrictions may have a material impact on portfolio construction and those accounts managed in a currency other than U.S. dollars (the results of these accounts, which represented approximately 19% of our assets under management at June 30, 2026, are maintained in separate composites, which are not presented in these materials). Returns for periods less than one year are not annualized. 2 AUM for Artisan Sustainable Emerging Markets, U.S. Mid-Cap Growth, Value Equity and Global Value strategies includes $381.8 million in aggregate for which Artisan Partners provides investment models to managed account sponsors (generally reported on a lag not exceeding one quarter). 3 Value-added is the amount, in basis points, by which the average annual gross composite return of each of our strategies has outperformed or underperformed its respective benchmark. See Forward-Looking Statements and Other Disclosures for further information on the benchmark indexes used. Value-added for periods less than one year is not annualized. 4 Custom Credit Solutions represents assets managed by the Credit team within custom, investor-driven mandates for which there is no combined performance track record. A portion of these assets under management was previously reported under the High Income strategy. 5 Grandview Property Partners' AUM reflects assets managed across Grandview's flagship fund and co-investment program. Performance information for the Grandview Funds is not reported.

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