Artisan Partners Asset Management Inc.

Assets under management ended at a record $183 billion, up 6% from the March quarter and 5% from a year ago. Average AUM was $182 billion, flat sequentially and up 9% year over year. Revenue was $308 million, up 2% sequentially and 9% year over year. Adjusted operating income was $101.4 million, adjusted operating margin was 32.9%, and adjusted EPS was $0.94; adjusted operating income was up 13% year over year and margin expanded 120 basis points. Year-to-date adjusted operating income was $195.6 million, adjusted operating margin was 32%, and adjusted EPS was $1.81. Net client outflows totaled $10.5 billion, including $6.4 billion from U.S. Value and $2.8 billion from Growth. Looking ahead, the September quarter is expected to be negatively impacted by about $0.03 per share from the U.S. Value wind-down, while fixed expense guidance for the year remains mid-single digits excluding Grandview and long-term incentive compensation.

Jason Gottlieb framed the quarter as evidence that Artisan’s autonomous team model and platform diversification are working, even amid equity headwinds. He highlighted strong long-term performance, record AUM, and growing interest in credit, alternatives, EM, and global strategies, while noting the firm is intentionally redeploying resources away from U.S. Value after losing two large sub-advisory mandates. His tone was constructive and strategic, focused on building longer-term growth through new vehicles, talent additions, and platform expansion.

Charles Daley said the quarter benefited from higher average AUM and a modest increase in fee rate, with revenue up to $308 million and adjusted operating margin at 32.9%. He cited a strong balance sheet with $335 million of cash, about $100 million of seed investments remaining on the balance sheet after roughly $20 million of seed capital redemptions, and over $180 million of excess capital after the quarterly dividend. He also noted the quarterly dividend was raised to $0.80 per share, up 4% sequentially and 10% year over year, and reiterated that the September quarter will be hit by about $0.03 per share from the U.S. Value wind-down.

Analysts focused on client demand, redemption risk, platform expansion, Grandview fundraising, and fee-rate run rates. Management said EM demand is strong, but broader equity risk appetite is more cautious and rebalancing remains a drag on net flows; gross sales are improving as distribution hires ramp up. On Grandview, Jason Gottlieb said Fund III had about $150 million in committed capital and Fund IV is expected later this summer or early fall, likely much larger, with an anchor investor discussion underway. Management also said fee rates are a reasonable year-to-date starting point, while credit underperformance was described as modest and partly tied to limited energy exposure, not a structural issue.