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Artisan Partners Asset Management Inc.

Artisan Partners Asset Management Inc.APAM财报

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Artisan Partners is an American asset management company headquartered in Milwaukee, Wisconsin. Outside the United States, the company has offices in Dublin, Hong Kong, London, Singapore and Sydney.

What changed in Artisan Partners Asset Management Inc.'s 10-K — 2024 vs 2025

Top changes in Artisan Partners Asset Management Inc.'s 2025 10-K

395 paragraphs added · 419 removed · 339 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

74 edited+14 added−29 removed56 unchanged
We foster client relationships by prioritizing investment returns. Prioritizing clients’ investment returns may, at times, require us to limit client cash flows and overall assets managed in a strategy—a practice we refer to as capacity management. • Using a deliberate process to bring on new investment talent, launch new strategies and build sustainable franchises.
We foster client relationships by prioritizing investment returns. Prioritizing clients’ investment returns may, at times, require us to limit client cash flows and overall assets managed in a strategy—a practice we refer to as capacity management. • Using a deliberate process to bring on new investment talent, launch new strategies and vehicles and build sustainable franchises.
The fees we charge on separate accounts vary by client, investment strategy and the size of the account. Fees are accrued monthly, but generally are paid quarterly in arrears. A number of our investment strategies are accessible to certain types of employee benefit plans through Artisan-branded collective investment trusts, or CITs.
The fees we charge on separate accounts vary by client, investment strategy and the size of the account. Fees are accrued on a monthly basis and are generally paid quarterly in arrears. A number of our investment strategies are accessible to certain types of employee benefit plans through Artisan-branded collective investment trusts, or CITs.
As of December 31, 2024, Artisan Global Funds represented approximately 5% of our AUM. Regulatory Environment and Compliance Our business is subject to extensive regulation in the United States at the federal level and, to a lesser extent, the state level, as well as by self-regulatory organizations and regulators located outside the United States.
As of December 31, 2025, Artisan Global Funds represented approximately 5% of our AUM. Regulatory Environment and Compliance Our business is subject to extensive regulation in the United States at the federal level and, to a lesser extent, the state level, as well as by self-regulatory organizations and regulators located outside the United States.
We serve as the investment adviser to each series of Artisan Funds, SEC-registered mutual funds that offer no-load, no 12b-1 share classes designed to meet the needs of a range of investors. Each series of Artisan Funds corresponds to an investment strategy we offer to clients.
We serve as the investment adviser to each series of Artisan Funds, which are SEC-registered mutual funds that offer no-load, no 12b-1 share classes designed to meet the needs of a range of investors. Each series of Artisan Funds corresponds to an investment strategy we offer to clients.
As of December 31, 2024, we owned approximately 87% of Artisan Partners Holdings, and the other 13% was owned by the limited partners of Artisan Partners Holdings. Our holding company structure is predominantly a result of our IPO, which we completed in March 2013.
As of December 31, 2025, we owned approximately 87% of Artisan Partners Holdings, and the other 13% was owned by the limited partners of Artisan Partners Holdings. Our holding company structure is predominantly a result of our IPO, which we completed in March 2013.
Artisan Partners Hong Kong Limited and its employees conducting regulated activities under the Securities and Futures Ordinance are subject to the rules, codes and guidelines issued by the SFC from time to time. We have historically operated in Australia on the basis of a “sufficient equivalence relief” exemption from local licensing with the Australian Securities and Investments Commission.
Artisan Partners Hong Kong Limited and its employees conducting regulated activities under the Securities and Futures Ordinance are subject to the rules, codes and guidelines issued by the SFC from time to time. 9 Table of Contents We have historically operated in Australia on the basis of a “sufficient equivalence relief” exemption from local licensing with the Australian Securities and Investments Commission.
In addition to owning all of the shares of our Class B common stock, our employee-partners, together with our other employees, owned unvested restricted shares of our Class A common stock representing approximately 7% of our outstanding Class A common stock as of December 31, 2024.
In addition to owning all of the shares of our Class B common stock, our employee-partners, together with our other employees, owned unvested restricted shares of our Class A common stock representing approximately 7% of our outstanding Class A common stock as of December 31, 2025.
These separate account clients include both institutional and intermediary channel relationships, such as pension and profit sharing plans, corporations, trusts, endowments, foundations, charitable organizations, high net worth individuals, governmental entities, insurance companies, commingled investment vehicles, investment advisers and other financial institutions, trustees of collective investment trusts and investment companies and similar pooled investment vehicles.
These separate account clients include both institutional and intermediated wealth channel relationships, such as pension and profit sharing plans, corporations, trusts, endowments, foundations, charitable organizations, high net worth individuals, governmental entities, insurance companies, commingled investment vehicles, investment advisers and other financial institutions, trustees of collective investment trusts and investment companies and similar pooled investment vehicles.
We act as investment adviser to the CITs and earn a management fee for providing this service. As of December 31, 2024, CITs represented approximately 5% of our AUM. Certain of our investment strategies are primarily offered through Artisan-sponsored unregistered pooled investment vehicles, referred to as Artisan Private Funds.
We act as investment adviser to the CITs and earn a management fee for providing this service. As of December 31, 2025, CITs represented approximately 5% of our AUM. Certain of our investment strategies are offered through Artisan-sponsored, unregistered pooled investment vehicles, referred to as Artisan Private Funds.
We earn management fees, which are based on the average daily net assets of each Artisan Fund and are paid monthly, for serving as investment adviser to these funds. As of December 31, 2024, Artisan Funds represented approximately 43% of our AUM. We also serve as investment manager of Artisan Global Funds, a family of Ireland-based UCITS funds.
We earn management fees, which are based on the average daily net assets of each Artisan Fund and are paid monthly, for serving as investment adviser to these funds. As of December 31, 2025, Artisan Funds represented approximately 44% of our AUM. We also serve as investment manager of Artisan Global Funds, a family of Ireland-based UCITS funds.
The diagram below depicts our organizational structure as of December 31, 2024: (1) Our employees to whom we have granted equity have entered into a stockholders agreement with respect to all shares of our common stock they have acquired from us and any shares they may acquire from us in the future, pursuant to which they granted an irrevocable voting proxy to a stockholders committee currently consisting of Eric R.
The diagram below depicts our organizational structure as of December 31, 2025: (1) Our employees to whom we have granted equity have entered into a stockholders agreement with respect to all shares of our common stock they have acquired from us and any shares they may acquire from us in the future, pursuant to which they granted an irrevocable voting proxy to a stockholders committee currently consisting of Jason A.
See “Investment Performance, Client Cash Flows and Assets Under Management (AUM) Information Used in this Report” for information regarding the benchmarks used. Value-added for periods less than one year is not annualized.
See “Investment Performance, Client Cash Flows and AUM Information Used in this Report” for information regarding the benchmarks used. Value-added for periods less than one year is not annualized.
In addition, 45% of our AUM were invested in securities denominated in currencies other than the U.S. dollar as of December 31, 2024. Our investments in these non-U.S. securities subject us to certain laws and regulations of the jurisdictions in which the issuer resides or is traded.
In addition, 50% of our AUM were invested in securities denominated in currencies other than the U.S. dollar as of December 31, 2025. Our investments in these non-U.S. securities subject us to certain laws and regulations of the jurisdictions in which the issuer resides or is traded.
For serving as investment adviser to Artisan Private Funds, we earn a management fee and, for certain funds, are entitled to receive either an allocation of profits or a performance-based fee. As of December 31, 2024, Artisan Private Funds comprised approximately 1% of our AUM.
For serving as investment adviser to Artisan Private Funds, we earn a management fee and, for certain funds, are entitled to receive either an allocation of profits or a performance-based fee. As of December 31, 2025, Artisan Private Funds comprised approximately 2% of our AUM.
O’Keefe, manages two investment strategies: Global Value and Select Equity. Mr. O’Keefe serves as lead portfolio manager and Michael J. McKinnon serves as portfolio manager of both strategies.
O’Keefe, manages the Global Value and Select Equity strategies. Mr. O’Keefe serves as lead portfolio manager and Michael J. McKinnon serves as portfolio manager of both strategies.
Artisan Partners Limited Partnership and Artisan Partners UK LLP are registered with the SEC as investment advisers under the Investment Advisers Act of 1940 (the “Advisers Act”), and Artisan Funds and several of the investment companies we sub-advise are registered under the Investment Company Act of 1940 (the “1940 Act”).
Artisan Partners Limited Partnership, Artisan Partners UK LLP and Grandview Property Partners are registered with the SEC as investment advisers under the Investment Advisers Act of 1940 (the “Advisers Act”). Artisan Funds and several of the investment companies Artisan Partners Limited Partnership sub-advises are registered under the Investment Company Act of 1940 (the “1940 Act”).
As of December 31, 2024, Artisan Funds and Artisan Global Funds accounted for approximately 48% of our total AUM, and approximately 52% of our AUM were managed in separate accounts and other pooled vehicles. Separate Accounts and Other Pooled Investment Vehicles (“Separate Accounts and Other”) We manage traditional separate accounts within most of our investment strategies.
As of December 31, 2025, Artisan Funds and Artisan Global Funds accounted for approximately 49% of our total AUM, and approximately 51% of our AUM were managed in separate accounts and other pooled vehicles. Separate Accounts and Other Pooled Investment Vehicles (“Separate Accounts and Other”) We manage traditional separate accounts within most of our investment strategies.
Item 1. Business Overview Founded in 1994, Artisan is an investment management firm focused on providing high value-added active investment strategies in growing asset classes to sophisticated clients around the world.
Item 1. Business Overview Founded in 1994, Artisan is a global multi-asset investment platform focused on providing high value-added active investment strategies in growing asset classes to sophisticated clients around the world.
The following table sets forth total AUM and certain performance information for our investment teams and strategies as of December 31, 2024. 1 Table of Contents Investment Team and Strategy AUM as of December 31, 2024 Composite Inception Date Value-Added Since Inception Date (1) as of December 31, 2024 Fund Rating (2) as of December 31, 2024 (in millions) Growth Team Global Opportunities 20,591 February 1, 2007 430 ««« Global Discovery 1,808 September 1, 2017 677 ««««« U.S.
The following table sets forth total AUM and certain performance information for our investment teams and strategies as of December 31, 2025. 1 Table of Contents Investment Team and Strategy AUM as of December 31, 2025 Composite Inception Date Value-Added Since Inception Date (1) as of December 31, 2025 Fund Rating (2) as of December 31, 2025 (in millions) Growth Team Global Opportunities 16,537 February 1, 2007 348 ««« Global Discovery 1,107 September 1, 2017 530 ««« U.S.
As of December 31, 2024, 62% of our AUM were sourced through our institutional channel. Intermediary Channel We maintain relationships with a number of major brokerage firms and larger private banks and trust companies at which the process for identifying which funds to offer has been centralized to a relatively limited number of key decision-makers that exhibit institutional-like decision-making behavior.
As of December 31, 2025, 39% of our AUM were sourced through our institutional channel. 7 Table of Contents Intermediated Wealth Channel We maintain relationships with a number of major brokerage firms and larger private banks and trust companies at which the process for identifying which investment products to offer has been centralized to a relatively limited number of key decision-makers that exhibit institutional-like decision-making behavior.
As a result, there is a level of uncertainty associated with the regulatory environments in which we operate. Accordingly, the discussion below is general in nature, does not purport to be complete and is current only as of the date of this report. U.S.
These laws and regulations are complex and continue to change and evolve over time. As a result, there is a level of uncertainty associated with the regulatory environments in which we operate. Accordingly, the discussion below is general in nature, does not purport to be complete and is current only as of the date of this report. U.S.
Colson (Chief Executive Officer), Charles J. Daley, Jr. (Chief Financial Officer) and Gregory K. Ramirez (Executive Vice President). The stockholders committee, by vote of a majority of its members, will determine the vote of all of the shares subject to the stockholders agreement.
Gottlieb (Chief Executive Officer and President), Eric R. Colson (Executive Chair) and Charles J. Daley, Jr. (Chief Financial Officer). The stockholders committee, by vote of a majority of its members, will determine the vote of all of the shares subject to the stockholders agreement.
Morgan GBI-EM Global Diversified (2.38) % — % — % — % 5.32 % Distribution, Investment Products and Client Relationships The goal of our marketing, distribution and client service efforts is to grow and maintain a client base that is diversified by investment strategy, client type, distribution channel and geographic region.
Distribution, Investment Products and Client Relationships The goal of our marketing, distribution and client service efforts is to grow and maintain a client base that is diversified by investment strategy, client type, distribution channel and geographic region.
We have expanded the range of strategies that we offer by launching new strategies managed by our existing investment teams, as well as by establishing new investment teams when the ideal opportunity to do so arises.
We have expanded our investment platform by launching new strategies managed by our existing investment teams, as well as by establishing or acquiring new investment teams when the ideal opportunity to do so arises.
David Samra, manages two investment strategies: International Value and International Explorer. Mr. Samra serves as lead portfolio manager of the International Value strategy and managing director of the International Explorer strategy. Ian P. McGonigle serves as co-portfolio manager of the International Value strategy and Benjamin L. Herrick serves as associate portfolio manager.
David Samra, manages three investment strategies: International Value, International Explorer and Global Special Situations. Mr. Samra and Ian P. McGonigle serve as portfolio managers and Benjamin L. Herrick serves as associate portfolio manager of the International Value strategy. Mr. Samra also serves as managing director of the International Explorer and Global Special Situations strategies.
As of December 31, 2024, we managed 219 traditional separate accounts spanning 132 client relationships, with our largest separate account relationship representing approximately 11% of our AUM.
As of December 31, 2025, we managed 208 traditional separate accounts spanning 126 client relationships, with our largest separate account relationship representing approximately 12% of our AUM.
We may become subject to additional regulatory demands in the future to the extent we expand our business in existing and new jurisdictions.
We may become subject to additional regulatory demands in the future to the extent there are regulatory changes in jurisdictions in which we currently operate or invest, or we expand our business in existing and new jurisdictions.
Our institutional channel also includes AUM sourced from defined contribution plans. We offer our investment products to institutional clients directly and by marketing our services to the investment consultants and advisors that advise them. As of December 31, 2024, approximately 30% of our AUM were attributed to clients represented by investment consultants.
We offer our investment products to institutional clients directly and by marketing our services to the investment consultants and advisors that advise them. As of December 31, 2025, approximately 25% of our AUM were attributed to clients represented by investment consultants.
We believe in order to attract and retain talent, it is critical that we continue to foster an engaging environment and provide attractive compensation and benefits programs. We regularly review compensation paid to associates to ensure it is competitive, equitable and fair for the role, experience, location and individual contribution.
As an ideal home for talent, we provide attractive compensation and benefits programs. We regularly review compensation paid to associates to ensure it is competitive, equitable and fair for the role, experience, location and individual contribution.
Growth and China Post-Venture. Mark L. Yockey serves as portfolio manager of the Global Equity and Non-U.S. Growth strategies. Charles-Henri Hamker and Andrew J. Euretig are also portfolio managers of the Global Equity strategy and associate portfolio managers of the Non-U.S. Growth strategy.
Growth strategy. Mark L. Yockey serves as portfolio manager of both strategies and Charles-Henri Hamker serves as portfolio manager of the Global Equity strategy and associate portfolio manager of the Non-U.S. Growth strategy. During 2025, the Company wound down the team’s China Post-Venture strategy.
Small-Mid Growth 6,544 January 1, 2019 298 «««« EMsights Capital Group Global Unconstrained 701 April 1, 2022 656 Not yet rated Emerging Markets Debt Opportunities 1,024 May 1, 2022 803 Not yet rated Emerging Markets Local Opportunities 1,184 August 1, 2022 316 Not Applicable Total AUM as of December 31, 2024 161,208 (1) 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.
Small-Mid Growth 4,913 January 1, 2019 123 ««« EMsights Capital Group Global Unconstrained 1,185 April 1, 2022 708 ««««« Emerging Markets Debt Opportunities 1,332 May 1, 2022 630 ««««« Emerging Markets Local Opportunities 1,861 August 1, 2022 395 Not Applicable Total AUM as of December 31, 2025 179,928 2 Table of Contents (1) 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.
As of December 31, 2024, these assets under advisement represented less than 1% of our AUM. 7 Table of Contents Artisan Funds and Artisan Global Funds U.S. investors that do not meet our minimum account size for a separate account, or who otherwise prefer to invest through a mutual fund, can invest in our strategies through Artisan Funds.
Artisan Funds and Artisan Global Funds U.S. investors that do not meet our minimum account size for a separate account, or who otherwise prefer to invest through a mutual fund, can invest in most of our strategies through Artisan Funds.
Artisan Partners Distributors LLC is also subject to the SEC’s Uniform Net Capital Rule and the National Securities Clearing Corporation’s excess net capital requirement, which require that at least a minimum amount of a registered broker-dealer’s assets be kept in relatively liquid form. 8 Table of Contents The legislative and regulatory environment in the U.S. is subject to continual change.
FINRA has the authority to conduct periodic examinations of member broker-dealers, and may initiate administrative proceedings. Artisan Partners Distributors LLC is also subject to the SEC’s Uniform Net Capital Rule and the National Securities Clearing Corporation’s excess net capital requirement, which require that at least a minimum amount of a registered broker-dealer’s assets be kept in relatively liquid form.
(2) The Overall Morningstar Rating TM applicable to the Artisan Fund managed to each investment strategy is derived from a weighted average of the performance figures associated with its three-year, five-year, and ten-year (if applicable) Morningstar Ratings metrics. 2 Table of Contents Growth Team Our Growth team manages four investment strategies: Global Opportunities, Global Discovery, U.S. Mid-Cap Growth and U.S.
(2) The Overall Morningstar Rating TM applicable to the Artisan Fund managed to each investment strategy is derived from a weighted average of the performance figures associated with its three-year, five-year, and ten-year (if applicable) Morningstar Ratings metrics. Not all investment strategies have a corresponding series of Artisan Funds.
Small-Cap Growth. James D. Hamel, Matthew H. Kamm, Jason L. White and Jay C. Warner are the portfolio managers of all four strategies. Mr. Hamel is the lead portfolio manager of the Global Opportunities strategy; Mr. White is the lead portfolio manager of the Global Discovery strategy; Mr. Kamm and Mr. White are the co-lead portfolio managers of the U.S.
Mid-Cap Growth and U.S. Small-Cap Growth strategies. Mr. Hamel and Ms. Wu are the co-lead portfolio managers of the Global Opportunities and Franchise strategies; Mr. White is the lead portfolio manager of the Global Discovery strategy; Mr. Kamm and Mr. White are the co-lead portfolio managers of the U.S. Mid-Cap Growth strategy; and Mr.
Small-Mid Growth (January 1, 2019) Average Annual Gross Returns 0.86 % (4.43) % 4.44 % — % 9.44 % MSCI All Country World Index Ex USA Small Mid Cap (Net) 3.49 % (1.19) % 3.54 % — % 6.46 % EMsights Capital Group EMsights Capital Group manages three investment strategies: Global Unconstrained, Emerging Markets Debt Opportunities and Emerging Markets Local Opportunities.
Small-Mid Growth (January 1, 2019) Average Annual Gross Returns 19.78 % 10.73 % 1.92 % — % 10.86 % MSCI All Country World Index Ex USA Small Mid Cap 30.74 % 16.13 % 6.80 % — % 9.63 % EMsights Capital Group The EMsights Capital Group manages the Global Unconstrained, Emerging Markets Debt Opportunities and Emerging Markets Local Opportunities strategies.
Investment advisory fees are determined and set forth in the investment management agreements between us and our clients. Investment management agreements are generally terminable by our clients upon short or no notice. Investment Teams We offer clients a broad range of actively managed investment strategies diversified by asset class, market cap and investment style.
Investment advisory fees are determined and set forth in the investment management agreements between us and our clients. Investment management agreements are generally terminable by our clients upon short or no notice.
We may also be subject to U.S. laws and regulations with respect to our distribution or investment management activities in non-U.S. markets, including in jurisdictions that may be considered higher risk. 9 Table of Contents Regulatory reforms in jurisdictions in which we currently operate or invest, and expansion of our business into new international jurisdictions, further complicate our compliance efforts.
We may also be subject to U.S. laws and regulations with respect to our distribution or investment management activities in non-U.S. markets, including in jurisdictions that may be considered higher risk.
Approximately 30% of our associates work within our investment teams, 19% within our distribution teams and 51% within our business management and operations teams. Approximately 93% of our associates operate from our U.S. offices and 7% operate from our offices outside of the U.S.
As of December 31, 2025, we employed 567 associates. Approximately 29% of our associates work within our investment teams, 19% within our distribution teams and 52% within our business management and operations teams. Approximately 94% of our associates operate from our U.S. offices and 6% operate from our offices outside of the U.S.
The domestic, international and extra-territorial laws and regulations that apply to our business relate to a broad range of subjects, including securities, compliance, corporate governance, financial reporting and disclosure, tax, privacy and data protection, sustainability, information security, anti-bribery and anti-corruption, anti-money laundering and anti-terrorist financing. These laws and regulations are complex and continue to change and evolve over time.
In addition, a regulatory proceeding, regardless of whether it results in a sanction, can require substantial expenditures and can have an adverse effect on our reputation or business. 8 Table of Contents The domestic, international and extra-territorial laws and regulations that apply to our business relate to a broad range of subjects, including securities, compliance, corporate governance, financial reporting and disclosure, tax, privacy and data protection, sustainability, information security, anti-bribery and anti-corruption, anti-money laundering and anti-terrorist financing.
In our reporting materials, unless otherwise stated, our “separate accounts and other” AUM includes assets we manage in traditional separate accounts, Artisan-branded CITs and Artisan Private Funds. In addition, assets under advisement related to clients for whom we provide investment models but do not have discretionary investment authority are also included within the “separate accounts and other” category.
In addition, assets under advisement related to clients for whom we provide investment models but do not have discretionary investment authority are included within the “separate accounts and other” category. As of December 31, 2025, assets under advisement represented less than 1% of our AUM.
The industry in which we operate is highly competitive. In order to be successful and grow our business, we must be able to compete effectively for AUM.
In addition, we continue to evolve our distribution structure, incorporating specialized resources, expanding strategic partnerships and evolving our product architecture to align with client demand. The industry in which we operate is highly competitive. In order to be successful and grow our business, we must be able to compete effectively for AUM.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Equity (April 1, 2010) Average Annual Gross Returns 18.78 % 2.66 % 8.44 % 10.22 % 11.66 % MSCI ACWI ® Index 17.49 % 5.43 % 10.05 % 9.22 % 9.14 % Non-U.S.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Equity (April 1, 2010) Average Annual Gross Returns 47.84 % 25.85 % 11.25 % 14.37 % 13.66 % MSCI All Country World Index 22.34 % 20.63 % 11.19 % 11.71 % 9.93 % Non-U.S.
Across our institutional, intermediary and retail channels, we generally consider approximately 59% of our AUM as of December 31, 2024 to be attributed to intermediated wealth clients. Access Through a Range of Investment Vehicles Our clients access our investment strategies through a range of investment vehicles, including separate accounts and pooled vehicles.
As of December 31, 2025, approximately 61% of our AUM were sourced through our intermediated wealth channel. Access Through a Range of Investment Vehicles Our clients access our investment strategies through a range of investment vehicles, including separate accounts and pooled vehicles.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Sustainable Emerging Markets (July 1, 2006) Average Annual Gross Returns 8.25 % (2.31) % 2.72 % 5.83 % 5.25 % MSCI Emerging Markets Index 7.50 % (1.92) % 1.70 % 3.63 % 4.44 % Credit Team Our Credit team manages three investment strategies: High Income, Credit Opportunities and Floating Rate.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Sustainable Emerging Markets (July 1, 2006) Average Annual Gross Returns 43.91 % 22.58 % 5.99 % 11.02 % 6.95 % MSCI Emerging Markets Index 33.57 % 16.38 % 4.19 % 8.41 % 5.77 % 5 Table of Contents Credit Team Our Credit team manages the High Income, Credit Opportunities and Floating Rate strategies.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Value Equity (July 1, 2005) Average Annual Gross Returns 13.49 % 9.35 % 12.51 % 11.06 % 9.62 % Russell 1000 ® Index 24.51 % 8.40 % 14.26 % 12.86 % 10.65 % Russell 1000 ® Value Index 14.37 % 5.63 % 8.67 % 8.48 % 8.00 % U.S.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Value Equity (July 1, 2005) Average Annual Gross Returns 14.66 % 17.76 % 13.28 % 13.57 % 9.86 % Russell ® 1000 Index 17.37 % 22.72 % 13.58 % 14.58 % 10.97 % Russell ® 1000 Value Index 15.91 % 13.88 % 11.32 % 10.52 % 8.37 % U.S.
Beini Zhou and Anand Vasagiri serve as co-portfolio managers of the International Explorer strategy. The International Value Group expects to launch a third strategy, the Global Special Situations strategy, during the first half of 2025. Mr. Samra will serve as managing director and Brian Louko will serve as portfolio manager of the new strategy.
Beini Zhou and Anand Vasagiri serve as co-portfolio managers of the International Explorer strategy. Brian Louko serves as the portfolio manager of the Global Special Situations strategy.
Lewis S. Kaufman is the portfolio manager of the Developing World strategy.
Kaufman as portfolio manager, manages the Developing World strategy.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Developing World (July 1, 2015) Average Annual Gross Returns 30.04 % 0.41 % 11.12 % — % 11.59 % MSCI Emerging Markets Index 7.50 % (1.92) % 1.70 % — % 3.51 % 5 Table of Contents Antero Peak Group Antero Peak Group manages two investment strategies: Antero Peak and Antero Peak Hedge.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Developing World (July 1, 2015) Average Annual Gross Returns 9.15 % 22.93 % 0.17 % 13.37 % 11.36 % MSCI Emerging Markets Index 33.57 % 16.38 % 4.19 % 8.41 % 6.05 % Antero Peak Group The Antero Peak Group manages the Antero Peak and Antero Peak Hedge strategies.
See “Risk Factors—Risks Related to Legal or Regulatory Factors and Taxation—We are subject to extensive, complex and sometimes overlapping laws, rules and regulations.” and “Risk Factors—Risks Related to Legal or Regulatory Factors and Taxation—The regulatory environment in which we operate is subject to continual change, and regulatory developments may adversely affect our business.” Industry Trends and Competition The investment management industry continues to evolve as market trends and other forces, including the current regulatory environment, create headwinds for traditional asset management firms. • Passive and alternative investment options continue to grow organically while traditional actively managed strategies generally remain in outflows. • A number of shifts in the distribution landscape are putting pressure on traditional distribution models.
See “Risk Factors—Risks Related to Legal or Regulatory Factors and Taxation.” Industry Trends and Competition The investment management industry continues to evolve as market trends and other forces create headwinds for traditional asset management firms. • Passive and alternative investment options continue to gain market share, while traditional actively managed equity strategies, in particular, continue to remain in net outflows. • Shifts in the global distribution landscape continue to put pressure on traditional distribution practices.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Opportunities (February 1, 2007) Average Annual Gross Returns 16.13 % 0.60 % 10.64 % 12.32 % 11.05 % MSCI ACWI ® Index 17.49 % 5.43 % 10.05 % 9.22 % 6.75 % Global Discovery (September 1, 2017) Average Annual Gross Returns 17.51 % 0.14 % 11.10 % — % 13.55 % MSCI ACWI ® Small Mid Index 8.68 % 0.82 % 6.61 % — % 6.78 % U.S.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Opportunities (February 1, 2007) Average Annual Gross Returns 10.14 % 16.73 % 5.25 % 12.42 % 11.00 % MSCI All Country World Index 22.34 % 20.63 % 11.19 % 11.71 % 7.52 % Global Discovery (September 1, 2017) Average Annual Gross Returns 13.25 % 17.59 % 5.33 % — % 13.51 % MSCI All Country World Small Mid Cap Index 19.29 % 14.56 % 7.27 % — % 8.21 % U.S.
Mid-Cap Value (April 1, 1999) Average Annual Gross Returns 5.76 % 3.51 % 8.65 % 7.82 % 11.83 % Russell Midcap ® Index 15.34 % 3.79 % 9.91 % 9.62 % 9.63 % Russell Midcap ® Value Index 13.07 % 3.88 % 8.59 % 8.10 % 9.52 % Value Income (March 1, 2022) Average Annual Gross Returns 10.91 % — % — % — % 4.98 % S&P 500 Market Index 25.02 % — % — % — % 12.73 % International Value Group The International Value Group, led by N.
Mid-Cap Value (April 1, 1999) Average Annual Gross Returns 2.82 % 9.07 % 7.82 % 9.11 % 11.48 % Russell ® Midcap Index 10.60 % 14.34 % 8.67 % 11.00 % 9.67 % Russell ® Midcap Value Index 11.05 % 12.26 % 9.82 % 9.77 % 9.57 % Value Income (March 1, 2022) Average Annual Gross Returns 11.35 % 11.48 % — % — % 6.61 % S&P 500 Index 17.88 % 22.98 % — % — % 14.05 % 4 Table of Contents International Value Group The International Value Group, led by N.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception International Value (July 1, 2002) Average Annual Gross Returns 7.77 % 7.90 % 10.23 % 8.74 % 11.53 % MSCI EAFE ® Index 3.82 % 1.64 % 4.72 % 5.19 % 5.91 % International Explorer (October 1, 2020) Average Annual Gross Returns 7.32 % 4.47 % — % — % 13.58 % MSCI All Country World Index Ex USA Small Cap (Net) 3.36 % (1.46) % — % — % 6.80 % Global Value Team Our Global Value team, led by Daniel J.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception International Value (July 1, 2002) Average Annual Gross Returns 24.05 % 18.39 % 12.97 % 11.18 % 12.03 % MSCI EAFE Index 31.22 % 17.21 % 8.92 % 8.18 % 6.88 % International Explorer (October 1, 2020) Average Annual Gross Returns 20.17 % 16.43 % 10.57 % — % 14.83 % MSCI All Country World Index Ex USA Small Cap 29.26 % 15.59 % 6.90 % — % 10.82 % Global Special Situations Strategy (April 1, 2025) Average Annual Gross Returns — % — % — % — % 7.22 % ICE BofA Global High Yield Index — % — % — % — % 8.62 % Global Value Team Our Global Value team, led by Daniel J.
Morgan EMB Hard Currency/Local Currency 50-50 2.28 % — % — % — % 4.64 % Emerging Markets Local Opportunities (August 1, 2022) Average Annual Gross Returns 1.05 % — % — % — % 8.48 % J.P.
Morgan EMB Hard Currency/Local Currency 50-50 15.34 % 9.54 % — % — % 7.44 % Emerging Markets Local Opportunities (August 1, 2022) Average Annual Gross Returns 25.39 % 13.73 % — % — % 13.16 % J.P.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Value (July 1, 2007) Average Annual Gross Returns 11.90 % 7.74 % 9.51 % 8.90 % 8.93 % MSCI ACWI ® Index 17.49 % 5.43 % 10.05 % 9.22 % 6.40 % Select Equity (March 1, 2020) Average Annual Gross Returns 16.96 % 7.91 % — % — % 12.92 % S&P 500 Market Index 25.02 % 8.93 % — % — % 17.11 % 4 Table of Contents Sustainable Emerging Markets Team Our Sustainable Emerging Markets (SEM) team manages one investment strategy.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Value (July 1, 2007) Average Annual Gross Returns 35.45 % 24.71 % 14.65 % 12.46 % 10.22 % MSCI All Country World Index 22.34 % 20.63 % 11.19 % 11.71 % 7.21 % Select Equity (March 1, 2020) Average Annual Gross Returns 30.58 % 24.95 % 13.91 % — % 15.77 % S&P 500 Index 17.88 % 22.98 % 14.42 % — % 17.24 % Sustainable Emerging Markets Team Our Sustainable Emerging Markets (SEM) team manages one investment strategy.
Rezo Kanovich is the portfolio manager of the Non-U.S. Small-Mid Growth strategy. Effective March 31, 2024, the International Small-Mid team became its own autonomous investment franchise. Previously, the Non-U.S. Small-Mid Growth strategy was part of the Global Equity team. As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Non-U.S.
Small-Mid Growth strategy. As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Non-U.S.
We believe that minimizing other demands allows our portfolio managers and other investment professionals to focus their energies and attention on the investment decision-making process, which we believe enhances the opportunity to achieve superior investment returns. 6 Table of Contents Institutional Channel Our institutional distribution channel includes institutional clients, such as U.S.-registered mutual funds, non-U.S. funds and collective investment trusts we advise; state and local governments; employee benefit plans including Taft-Hartley plans; foundations; and endowments.
We believe that minimizing other demands allows our portfolio managers and other investment professionals to focus their energies and attention on the investment decision-making process, which we believe enhances the opportunity to achieve superior investment returns.
The FCA’s rules under this system govern, among other things, capital resources requirements, senior management arrangements, business conduct, interaction with clients, and systems and controls. Artisan Partners Europe is authorized and regulated by the Central Bank of Ireland, which regulates our Irish business activities, including our management of Artisan Global Funds, a family of Ireland-domiciled UCITS funds.
APEL Financial Distribution Services Limited is authorized and regulated by the Central Bank of Ireland, which regulates our Irish business activities, including our management and distribution of Artisan Global Funds, a family of Ireland-domiciled UCITS funds.
For additional information concerning the competitive risks that we face, see “Risk Factors—Competition and Distribution Risks—The investment management industry is intensely competitive and experiencing transformative pressures.” 10 Table of Contents Human Capital Resources Since Artisan Partners was founded in 1994, our success as an investment management firm has been predicated on having talented associates throughout the organization in every role, at every level.
For additional information concerning the competitive risks that we face, see “Risk Factors—Competition and Distribution Risks—The investment management industry is intensely competitive and experiencing transformative pressures.” 10 Table of Contents Human Capital Resources As a talent-driven business, we believe our people are the firm’s greatest asset. We commit tremendous energy to talent management.
Financial Conduct Authority, which is responsible for the conduct of business and supervision of financial firms in the United Kingdom. The FCA imposes a comprehensive system of regulation that is primarily principles-based (compared to the primarily rules-based U.S. regulatory system).
The FCA imposes a comprehensive system of regulation that is primarily principles-based (compared to the primarily rules-based U.S. regulatory system) and govern, among other things, capital resources requirements, senior management arrangements, business conduct, interaction with clients, and systems and controls.
We also maintain relationships with a number of financial advisory firms and broker-dealer advisors that offer our investment products to their clients. These advisors range from relatively small firms to large organizations. As of December 31, 2024, approximately 35% of our AUM were sourced through our intermediary channel.
We also maintain relationships with a number of financial advisory firms and broker-dealer advisors that offer our investment products to their clients. AUM sourced via these third-party financial intermediaries constitute the majority of our intermediated wealth channel. Our intermediated wealth channel also includes AUM from investors who invest in Artisan Funds directly or through mutual fund supermarkets.
As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Antero Peak (May 1, 2017) Average Annual Gross Returns 32.68 % 5.26 % 13.80 % — % 18.62 % S&P 500 Market Index 25.02 % 8.93 % 14.51 % — % 14.44 % Antero Peak Hedge (November 1, 2017) Average Annual Gross Returns 30.33 % 4.31 % 10.78 % — % 13.26 % S&P 500 Market Index 25.02 % 8.93 % 14.51 % — % 14.13 % International Small-Mid Team International Small-Mid Team manages one investment strategy.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Antero Peak (May 1, 2017) Average Annual Gross Returns 21.80 % 23.66 % 12.20 % — % 18.98 % S&P 500 Index 17.88 % 22.98 % 14.42 % — % 14.83 % Antero Peak Hedge (November 1, 2017) Average Annual Gross Returns 18.28 % 20.32 % 9.92 % — % 13.86 % S&P 500 Index 17.88 % 22.98 % 14.42 % — % 14.59 % 6 Table of Contents International Small-Mid Team Our International Small-Mid team, led by Rezo Kanovich as portfolio manager, manages the Non-U.S.
Mid-Cap Growth (April 1, 1997) Average Annual Gross Returns 13.27 % (3.13) % 10.15 % 10.80 % 14.27 % Russell Midcap ® Index 15.34 % 3.79 % 9.91 % 9.62 % 10.31 % Russell Midcap ® Growth Index 22.10 % 4.04 % 11.46 % 11.53 % 9.98 % U.S.
Mid-Cap Growth (April 1, 1997) Average Annual Gross Returns 16.05 % 18.13 % 3.33 % 12.08 % 14.33 % Russell ® Midcap Index 10.60 % 14.34 % 8.67 % 11.00 % 10.32 % Russell ® Midcap Growth Index 8.66 % 18.62 % 6.64 % 12.48 % 9.93 % U.S.
We also regularly evaluate potential new investment teams and talent, as well as new investment structures and vehicles in an effort to enhance and expand our investment platform. In addition, we have evolved our distribution structure, incorporating additional associates, re-aligning incentives and providing a robust set of resources, as well as making continued investments to deepen our digital distribution capabilities.
In response to these and other headwinds, we have continued to build out our alternatives capabilities and increase degrees of investment freedom within our existing investment strategies. We also regularly evaluate potential new investment teams and talent, as well as new investment structures and vehicles in an effort to enhance and expand our investment platform.
Each strategy is managed by one of the investment teams described below.
Investment Teams We offer clients a broad range of actively managed investment strategies diversified by asset class, market cap and investment style. Each strategy is managed by one of the investment teams described below.
Mid-Cap Value 2,666 April 1, 1999 231 «« Value Income 16 March 1, 2022 (775) Not yet rated International Value Group International Value 43,911 July 1, 2002 562 ««««« International Explorer 384 October 1, 2020 678 Not yet rated Global Value Team Global Value 28,364 July 1, 2007 253 ««« Select Equity 315 March 1, 2020 (419) ««« Sustainable Emerging Markets Team Sustainable Emerging Markets 1,552 July 1, 2006 81 ««« Credit Team High Income 11,593 April 1, 2014 247 ««««« Credit Opportunities 272 July 1, 2017 1,147 Not Applicable Floating Rate 77 January 1, 2022 60 «««« Developing World Team Developing World 4,100 July 1, 2015 808 «««« Antero Peak Group Antero Peak 1,979 May 1, 2017 418 «« Antero Peak Hedge 232 November 1, 2017 (87) Not Applicable International Small-Mid Team Non-U.S.
Mid-Cap Value 2,113 April 1, 1999 191 « Value Income 17 March 1, 2022 (744) «« International Value Group International Value 53,064 July 1, 2002 515 ««««« International Explorer 912 November 1, 2020 401 ««« Global Special Situations 34 April 1, 2025 (140) Not Applicable Global Value Team Global Value 36,280 July 1, 2007 301 «««« Select Equity 984 March 1, 2020 (147) «««« Sustainable Emerging Markets Team Sustainable Emerging Markets 2,537 July 1, 2006 118 «««« Credit Team High Income 13,191 April 1, 2014 232 ««««« Credit Opportunities 367 July 1, 2017 1,091 Not Applicable Floating Rate 93 January 1, 2022 84 «««« Custom Credit Solutions (3) 1,400 July 1, 2025 --- Not Applicable Developing World Team Developing World 4,283 July 1, 2015 531 «««« Antero Peak Group Antero Peak 2,220 May 1, 2017 415 ««« Antero Peak Hedge 226 November 1, 2017 (73) Not Applicable International Small-Mid Team Non-U.S.
This relief is set to expire for foreign financial service providers like us and, as a result, Artisan Partners Limited Partnership or one of its affiliates may need to apply for and obtain a securities license or a new exemption by April 2026.
Currently, foreign financial service providers can continue to rely on the “sufficient equivalence relief” until March 2027, and Artisan Partners Limited Partnership or its affiliates may need to apply for and obtain an Australian financial services license or rely on a new exemption by then.
Political and electoral changes and developments have in the past introduced, and may in the future introduce, additional uncertainty. New legal or regulatory requirements often add further complexity to our business and operations, and addressing such new requirements may require substantial expenditures of time and capital.
The legislative and regulatory environment in the U.S. is subject to continual change. In addition, the firm’s increasing product and vehicle complexity introduces a broader and evolving set of regulatory requirements. New or changing legal or regulatory requirements can add further complexity to our business and operations, and addressing such requirements may require substantial expenditures of time and capital. Non-U.S.
Michael A. Cirami and Sarah C. Orvin serve as the portfolio managers of each strategy. As of December 31, 2024 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Unconstrained (April 4, 2022) Average Annual Gross Returns 12.25 % — % — % — % 10.80 % ICE BofA 3-month U.S.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception Global Unconstrained (April 1, 2022) Average Annual Gross Returns 12.79 % 11.30 % — % — % 11.30 % ICE BofA 3-month Treasury Bill Index 4.18 % 4.81 % — % — % 4.22 % Emerging Markets Debt Opportunities (May 1, 2022) Average Annual Gross Returns 16.77 % 14.01 % — % — % 13.74 % J.P.
Mid-Cap Growth strategy; and Mr. Warner is the lead portfolio manager of the U.S. Small-Cap Growth strategy. Mr. Cepukenas, who previously managed the U.S. Small-Cap Growth strategy, remains an active member of the Growth team, serving in an advisory capacity as a managing director.
Warner is the lead portfolio manager of the U.S. Small-Cap Growth strategy.
Mid-Cap Growth 12,952 April 1, 1997 429 ««« U.S. Small-Cap Growth 3,094 April 1, 1995 280 ««« Global Equity Team Global Equity 346 April 1, 2010 252 ««« Non-U.S. Growth 12,410 January 1, 1996 450 ««« China Post-Venture 178 April 1, 2021 395 Not Applicable U.S. Value Team Value Equity 4,915 July 1, 2005 162 «««« U.S.
Mid-Cap Growth 10,280 April 1, 1997 440 ««« U.S. Small-Cap Growth 2,782 April 1, 1995 260 ««« Franchise 553 October 1, 2024 35 Not Applicable Global Equity Team Global Equity 432 April 1, 2010 373 «««« Non-U.S. Growth 15,475 January 1, 1996 456 ««««« U.S. Value Team Value Equity 5,750 July 1, 2005 149 «««« U.S.
Dollar 3-Month Deposit Offered Rate Constant Maturity Index 5.47 % 3.91 % 2.58 % — % 2.43 % Floating Rate (January 1, 2022) Average Annual Gross Returns 8.78 % 7.44 % — % — % 7.44 % S&P UBS Leveraged Loan Index 9.05 % 6.84 % — % — % 6.84 % Developing World Team Our Developing World team manages one investment strategy.
As of December 31, 2025 Investment Strategy (Composite Inception Date) 1 Year 3 Years 5 Years 10 Years Inception High Income (April 1, 2014) Average Annual Gross Returns 9.08 % 11.74 % 6.32 % 8.16 % 7.31 % ICE BofA US High Yield Index 8.50 % 10.02 % 4.49 % 6.44 % 4.99 % Credit Opportunities (July 1, 2017) Average Annual Gross Returns 11.06 % 18.58 % 13.73 % — % 13.57 % ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity Index 4.42 % 5.00 % 3.25 % — % 2.66 % Floating Rate (January 1, 2022) Average Annual Gross Returns 7.50 % 10.35 % — % — % 7.45 % S&P UBS Leveraged Loan Index 5.94 % 9.30 % — % — % 6.61 % Developing World Team Our Developing World team, led by Lewis S.
Small-Cap Growth (April 1, 1995) Average Annual Gross Returns 15.96 % (2.69) % 6.72 % 10.98 % 10.58 % Russell 2000 ® Index 11.54 % 1.24 % 7.40 % 7.81 % 8.93 % Russell 2000 ® Growth Index 15.15 % 0.21 % 6.85 % 8.08 % 7.78 % Global Equity Team Our Global Equity team manages three investment strategies: Global Equity, Non-U.S.
Small-Cap Growth (April 1, 1995) Average Annual Gross Returns 9.56 % 12.26 % (1.42) % 11.82 % 10.55 % Russell ® 2000 Index 12.81 % 13.72 % 6.09 % 9.61 % 9.05 % Russell ® 2000 Growth Index 13.01 % 15.57 % 3.18 % 9.57 % 7.95 % Franchise (October 1, 2024) Average Annual Gross Returns 21.10 % — % — % — % 16.89 % MSCI All Country World Index 22.34 % — % — % — % 16.54 % 3 Table of Contents Global Equity Team Our Global Equity team manages the Global Equity strategy and the Non-U.S.
We also actively support a number of associate-led groups as part of our ongoing commitment to providing an environment that allows our talented associates to thrive. These groups, which include the Pride Alliance, Multicultural Exchange, diffAbilities and the Women’s Networking Initiative, create supportive and collaborative networks, encourage engagement and a sense of belonging, and enhance professional and personal growth.
Through Artisan Unity, we support associate-led groups that strengthen community and help our associates to do their best work. These groups reinforce our commitment to an environment where our talented associates are supported and able to thrive. As collaborative networks, they encourage engagement, promote professional and personal growth and promote unity across our community.
Removed
The Growth team expects to launch a fifth strategy, the Franchise strategy, in the first quarter of 2025.
Added
Statements regarding weighted average fee rates herein are inclusive of both management fees and performance fees (including incentive allocations), if applicable, as set forth in our investment management agreements. Artisan Funds and Artisan Global Funds do not have any performance fee or incentive allocation arrangements.
Removed
Tiffany Hsiao serves as portfolio manager and Yuan Yuan Ji serves as associate portfolio manager of the China Post-Venture strategy.
Added
(3) Custom Credit Solutions represents assets managed by the Credit team within custom, investor-driven mandates for which there is no combined performance track record. Growth Team Our Growth team manages five investment strategies. James D. Hamel, Matthew H. Kamm, Jason L. White, Jay C. Warner and Angela Wu are portfolio managers of the Global Opportunities, Global Discovery, U.S.
Removed
Growth (January 1, 1996) Average Annual Gross Returns 11.77 % 1.74 % 4.71 % 5.71 % 9.37 % MSCI EAFE ® Index 3.82 % 1.64 % 4.72 % 5.19 % 4.87 % China Post-Venture (April 1, 2021) Average Annual Gross Returns 14.48 % (7.52) % — % — % (8.41) % MSCI China SMID Cap Index 9.54 % (10.70) % — % — % (12.36) % 3 Table of Contents U.S.
Added
Growth (January 1, 1996) Average Annual Gross Returns 37.93 % 21.19 % 9.83 % 9.47 % 10.22 % MSCI EAFE Index 31.22 % 17.21 % 8.92 % 8.18 % 5.66 % U.S. Value Team Our U.S. Value team manages the Value Equity, U.S. Mid-Cap Value and Value Income strategies. Thomas A. Reynolds, Daniel L.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Some investment consultants, for example, 15 Table of Contents have implemented programs in which the consultant provides a range of services, including selection, in a fiduciary capacity, of asset managers to serve as sub-adviser at lower fee rates than the manager’s otherwise applicable rates, with the expectation of a larger amount of AUM through that consultant.
Some investment consultants, for example, have implemented programs in which the consultant provides a range of services, including selection, in a fiduciary capacity, of asset managers to serve as sub-adviser at lower fee rates than the manager’s otherwise applicable rates, with the expectation of a 15 Table of Contents larger amount of AUM through that consultant.
We may be prohibited from selling these investments for a period of time and generally will be unable to sell these securities publicly unless their sale is registered under applicable securities law or unless an exemption from such registration is available.
We may be prohibited from selling these investments for a period of time and generally will be unable to sell these securities publicly unless their sale is registered under applicable securities law or an exemption from such registration is available.
Risks Related to our Business Our efforts to establish and develop new teams, strategies and vehicles, or pursue other strategic transactions, may face challenges or ultimately be unsuccessful, which could impact our results of operations, reputation and culture. We seek to recruit new investment teams that manage high value-added investment strategies and would allow us to grow strategically.
Risks Related to our Business Our efforts to establish and develop new teams, strategies and vehicles, or pursue other strategic transactions, may face challenges or ultimately be unsuccessful, which could impact our results of operations, reputation and culture. We seek to recruit new investment teams that manage high value-added investment strategies and allow us to grow strategically.
We intend to fund the payment of amounts due under the TRAs out of the reduced tax payments that APAM realizes in respect of the tax attributes to which the TRAs relate. We also intend to cause Holdings to make distributions in an amount sufficient to allow us to pay our taxes and pay any additional operating expenses.
We intend to fund the payment of amounts due under the TRAs out of the reduced tax payments that APAM realizes in respect of the tax attributes to which the TRAs relate. We also intend to cause Holdings to make distributions in an amount sufficient to allow us to pay our taxes and additional operating expenses.
Holdings is a partnership for U.S. federal income tax purposes and, as such, is not subject to U.S. federal income tax. Instead, Holdings’ taxable income is allocated to holders of its partnership units, including us. Accordingly, we incur income taxes on our proportionate share of Holdings’ taxable income and also may incur expenses related to our operations.
Holdings is a partnership for U.S. federal income tax purposes and, as such, is not subject to U.S. federal income tax. Instead, Holdings’ taxable income is allocated to holders of its partnership units, including us. Accordingly, we incur income taxes on our proportionate share of Holdings’ taxable income and also incur expenses related to our operations.
Similarly, we may establish new investment teams or strategies or expand operations into new geographic areas if we believe such actions are in the best interests of our clients, even though our profitability may be adversely affected in the short term.
Similarly, we may establish new investment teams, strategies or vehicles or expand operations into new geographic areas if we believe such actions are in the best interests of our clients, even though our profitability may be adversely affected in the short term.
Our regulatory and compliance obligations impose significant operational and cost burdens on us and cover a broad range of topics including, investment advisory matters, securities and other financial instruments, financial reporting and other disclosure matters, sustainability, accounting, tax, data protection, and privacy.
Our regulatory and compliance obligations impose significant operational and cost burdens on us and cover a broad range of topics including, investment advisory matters, securities and other financial instruments, financial reporting and other disclosure matters, sustainability, accounting, tax, cybersecurity and data protection, and privacy.
The incorporation of new teams, strategies, vehicles and types of investments could strain our resources and increase the likelihood of an error or failure, a risk which is exacerbated by the increasingly specialized nature of newer investment teams and strategies.
The incorporation of new teams, strategies, vehicles and types of investments could strain our resources and increase the likelihood of an error or failure, a risk which is exacerbated by the increasingly complex and specialized nature of newer investment teams and strategies.
The interest rate on each of the notes is subject to a 100 basis point increase in the event Holdings receives a below-investment grade rating. Each series requires a balloon payment at maturity.
The fixed interest rate on each of the notes is subject to a 100 basis point increase in the event Holdings receives a below-investment grade rating. Each series requires a balloon payment at maturity.
Our investment strategies can perform poorly for a number of reasons, including general market conditions; investor sentiment about market and economic conditions; investment styles and philosophies; investment decisions; the performance of the companies in which our investment strategies invest and the currencies in which those investments are made; the liquidity of securities or instruments in which our investment strategies invest; our inability to identify sufficient appropriate investment opportunities for existing and new client assets on a timely basis; and our inability to retain key investment professionals and other personnel.
Our investment strategies can perform poorly for a number of reasons, including general market conditions; investor sentiment about market and economic conditions, as well as investment styles and philosophies; investment decisions; the performance of the companies in which our investment strategies invest and the currencies in which those investments are made; the liquidity of securities or instruments in which our investment strategies invest; our inability to identify sufficient appropriate investment opportunities for existing and new client assets on a timely basis; and our inability to retain key investment professionals and other personnel.
Prior to vesting, though, the franchise capital awards will generally be invested in one or more of the investment strategies managed by the award recipient’s investment team.
Prior to vesting, the franchise capital awards will generally be invested in one or more of the investment strategies managed by the award recipient’s investment team.
As we expand the scope of our business and our client base, we must continue to monitor and address any conflicts between the interests of our stockholders and those of our clients.
As we expand the scope and complexity of our business and client base, we must continue to monitor and address any conflicts between the interests of our stockholders and those of our clients.
In addition, to the extent clients are successful in claiming that their losses resulted from fraud, negligence, willful misconduct, breach of contract or similar misconduct, these clients may have remedies against us, the mutual funds and other funds we advise and/or our investment professionals under various U.S. and non-U.S. laws.
In addition, to the extent clients are successful in claiming that their losses resulted from fraud, negligence, willful misconduct, breach of contract, breach of fiduciary duty or similar misconduct, these clients may have remedies against us, the mutual funds and other funds we advise and/or our investment professionals under various U.S. and non-U.S. laws.
See “Item 1—Business” in Part I of this report for a breakdown of AUM managed within each investment strategy and the portfolio manager(s) responsible for each strategy. In addition to our key investment professionals, we also depend on the contributions of our senior management team led by Eric R. Colson and Jason A.
See “Item 1—Business” in Part I of this report for a breakdown of AUM managed within each investment strategy and the portfolio manager(s) responsible for each strategy. In addition to our key investment professionals, we also depend on the contributions of our senior management team led by Jason A. Gottlieb and Eric R.
If we are unsuccessful in maintaining such an environment or compensation levels or structures, for example if the activities we undertake in pursuit of growing our alternatives-focused business impacts our ability to simultaneously maintain our traditional equity-focused investment teams and strategies, our existing investment professionals may leave our firm or fail to produce their best work on a consistent, long-term basis and/or we may be unsuccessful in attracting talented new investment professionals, any of which could negatively impact the performance of our investment strategies, our financial results and our ability to grow.
If we are unsuccessful in maintaining such an environment or compensation levels or structures, for example if the activities we undertake in pursuit of growing new areas of our business impact our ability to simultaneously maintain our traditional equity-focused investment teams and strategies, our existing investment professionals may leave our firm or fail to produce their best work on a consistent, long-term basis and/or we may be unsuccessful in attracting talented new investment professionals, any of which could negatively impact the performance of our investment strategies, our financial results and our ability to grow.
In the case of a change of control, the assumptions include that in each taxable year ending on or after the closing date of the change of control, our taxable income (prior to the application of the tax deductions and tax basis and other benefits related to entering into the TRAs) will equal the greater of (i) the actual taxable income (prior to the application of the tax deductions and tax basis and other benefits related to entering into the TRAs) for the taxable year and (ii) the highest taxable income (calculated without taking into account extraordinary items of income or deduction and prior to the application of the tax deductions and tax basis and other benefits related to entering into the TRAs) in any of the four fiscal quarters ended prior to the closing date of the change of control, annualized and increased by 10% for each taxable year beginning with the second taxable year following the closing date of the change of control.
In the case of a change of control, the assumptions include that in each taxable year ending on or after the closing date of the change of control, our taxable income (prior to the application of the tax deductions and tax basis and other benefits related to entering into the TRAs) will equal the greater of (i) the actual taxable income (prior to the application of the tax deductions and tax basis and other benefits related to entering into the TRAs) for the taxable year and (ii) the highest taxable income 25 Table of Contents (calculated without taking into account extraordinary items of income or deduction and prior to the application of the tax deductions and tax basis and other benefits related to entering into the TRAs) in any of the four fiscal quarters ended prior to the closing date of the change of control, annualized and increased by 10% for each taxable year beginning with the second taxable year following the closing date of the change of control.
While we have focused significant attention and resources on the development and maintenance of compliance policies, procedures and practices, any inadvertent non-compliance with applicable laws, rules or regulations, either in the U.S. or abroad, could result in various legal proceedings, including civil litigation and regulatory investigations and enforcement actions that could result in fines, 20 Table of Contents suspensions of individual employees, or limitations on particular business activities, any of which could have an adverse impact on our reputation and business.
While we have focused significant attention and resources on the development and maintenance of compliance policies, procedures and practices, any inadvertent non-compliance with applicable laws, rules or regulations, either in the U.S. or abroad, could result in various legal proceedings, including civil litigation and regulatory investigations and enforcement actions that could result in fines, suspensions of individual employees or limitations on particular business activities, any of which could have an adverse impact on our reputation and business.
In addition, our third-party service providers and other intermediaries with which we conduct business and transmit data have in the past been, and may in the future be, subject to successful cyberattacks or other data security events, and, despite our service provider oversight processes and practices, we cannot ensure that such third parties, or the service providers to such third parties, have appropriate controls in place to protect the confidentiality of data in the custody of such party or to allow them to continue their business operations, including the provision of their services to us.
In addition, our third-party service providers and other intermediaries with which we conduct business and transmit data have in the past been, and may in the future be, subject to successful cybersecurity incidents or other data security events, and, despite our service provider oversight processes and practices, we cannot ensure that such third parties, or the service providers to such third parties, have appropriate controls in place to protect the confidentiality of data in the custody of such party or to allow them to continue their business operations, including the provision of their services to us.
Despite the measures we have taken and may in the future take to address and mitigate cybersecurity and other technology risks, which are discussed further in “Item 1C—Cybersecurity” in Part I of this report, we cannot guarantee that our systems, networks and applications, and those of third parties on whom we rely, will not be subject to disruptions, system failures or outages, unauthorized access, ransomware, breaches or other interference.
Despite the measures we have taken and may in the future take to address and mitigate cybersecurity and other technology risks, which are discussed further in “Item 1C—Cybersecurity” in Part I of this report, we cannot guarantee that our systems, networks and applications, and those of third parties on whom we rely, will not be subject to disruptions, system failures or outages, unauthorized access, cybersecurity incidents or other interference.
Financial markets have experienced, and may continue to experience, volatility and disruption amid continued concerns about elevated inflation, uncertainty around the timing and extent of changes in interest rates, effects of geopolitical tensions, conflicts and wars, and other global economic conditions.
Financial markets have experienced, and may continue to experience, volatility and disruption amid continued concerns about elevated inflation, uncertainty around the timing and extent of changes in interest rates, economic and trade policy, effects of geopolitical tensions, conflicts and wars, and other global economic conditions.
Despite our efforts to implement succession plans with respect to these key professionals, the loss of any of these key professionals could limit our ability to successfully execute our business strategy or adversely affect our ability to retain existing and attract new client assets and related revenues.
Despite our efforts to implement succession plans, the loss of any of these key professionals could limit our ability to successfully execute our business strategy or adversely affect our ability to retain existing and attract new client assets and related revenues.
Our separate account clients have in the past and may in the future reduce the aggregate amount of AUM with us with minimal or no notice for any reason, including due to declining financial market conditions.
Our separate account clients have in the past and may in the future reduce the aggregate amount of AUM with us with minimal or no notice for any reason, including due to deteriorating financial market conditions.
Risks Related to Our Structure Control by our stockholders committee of approximately 10% of the combined voting power of our capital stock and the rights of holders of limited partnership units of Artisan Partners Holdings may give rise to conflicts of interest.
Risks Related to Our Structure Control by our stockholders committee of approximately 9% of the combined voting power of our capital stock and the rights of holders of limited partnership units of Artisan Partners Holdings may give rise to conflicts of interest.
However, we are unable to completely eliminate the potential for real or perceived conflicts of interest. Our failure to comply with clients’ investment guidelines and applicable legal limitations could result in damage awards against us and a loss of AUM, either of which could adversely affect our reputation and financial condition.
However, we are unable to completely eliminate the potential for real or perceived conflicts of interest. 19 Table of Contents Our failure to comply with clients’ investment guidelines and applicable legal limitations could result in damage awards against us and a loss of AUM, either of which could adversely affect our reputation and financial condition.
As our business expands into new geographic regions and introduces new investment products with expanded degrees of freedom, the regulatory requirements to which we are subject will increase in number.
As our business expands into new geographic regions and introduces new, more complex investment products with expanded degrees of freedom, the regulatory requirements to which we are subject will increase in number.
As of December 31, 2024, we recorded a $341 million liability, representing amounts payable under the TRAs equal to 85% of the tax benefit we expected to realize from the H&F Corp merger described above, our purchase of partnership units from limited partners of Holdings and the exchange of partnership units from March 2013 through December 31, 2024, assuming no material changes in the related tax law and that APAM earns sufficient taxable income to realize all tax benefits subject to the TRAs.
As of December 31, 2025, we recorded a $303 million liability, representing amounts payable under the TRAs equal to 85% of the tax benefit we expected to realize from the H&F Corp merger described above, our purchase of partnership units from limited partners of Holdings and the exchange of partnership units from March 2013 through December 31, 2025, assuming no material changes in the related tax law and that APAM earns sufficient taxable income to realize all tax benefits subject to the TRAs.
Those provisions include: • The right of certain classes of our capital stock to vote, as separate classes, on certain amendments to our restated certificate of incorporation and certain fundamental transactions. • The ability of our Board to determine to issue shares of preferred stock. • Advance notice procedures that stockholders must comply with in order to nominate candidates to our Board or to propose matters to be acted upon at a stockholders’ meeting. • A limitation that, generally, stockholder action may only be taken at an annual or special meeting or by unanimous written consent. • A requirement that a special meeting of stockholders may be called only by our Board, the Chair of the Board or the Chief Executive Officer. • The ability of our Board to adopt, amend and repeal our amended and restated bylaws by majority vote, while such action by stockholders would require a super majority vote. • Except with respect to awards held by our named executive officers which are double trigger, single trigger vesting upon a change in control for unvested employee equity awards.
Those provisions include: • The right of certain classes of our capital stock to vote, as separate classes, on certain amendments to our restated certificate of incorporation and certain fundamental transactions. • The ability of our Board to determine to issue shares of preferred stock. • Advance notice procedures that stockholders must comply with in order to nominate candidates to our Board or to propose matters to be acted upon at a stockholders’ meeting. • A limitation that, generally, stockholder action may only be taken at an annual or special meeting or by unanimous written consent. • A requirement that a special meeting of stockholders may be called only by our Board, the Chair of the Board or the Chief Executive Officer. • The ability of our Board to adopt, amend and repeal our amended and restated bylaws by majority vote, while such action by stockholders would require a super majority vote. • Except with respect to restricted share based awards held by our named executive officers which are double trigger, single trigger vesting upon a change in control.
Our clients may withdraw funds if they perceive conflicts of interest between the investment decisions we make for strategies in which they have invested and our obligations to our stockholders.
Our clients may withdraw funds if they perceive conflicts of interest between the investment decisions we make for strategies or vehicles in which they have invested and our obligations to our stockholders.
Payments under the TRAs are expected to give rise to certain 24 Table of Contents additional tax benefits attributable to either further increases in basis or in the form of deductions for imputed interest, depending on the TRA and the circumstances. Any such benefits are covered by the TRAs and will increase the amounts due thereunder.
Payments under the TRAs are expected to give rise to certain additional tax benefits attributable to either further increases in basis or in the form of deductions for imputed interest, depending on the TRA and the circumstances. Any such benefits are covered by the TRAs and will increase the amounts due thereunder.
These consultants review and evaluate our products and our firm from time to time. As of December 31, 2024, the investment consultant advising the largest portion of our AUM represented approximately 4% of our total AUM.
These consultants review and evaluate our products and our firm from time to time. As of December 31, 2025, the investment consultant advising the largest portion of our AUM represented approximately 4% of our total AUM.
Under such scenario we would be required to pay the other parties to the TRAs 85% of such amount, or approximately $466 million, over generally a minimum of 15 years.
Under such scenario we would be required to pay the other parties to the TRAs 85% of such amount, or approximately $420 million, over generally a minimum of 15 years.
Even if our and our service providers’ technology infrastructure and the confidentiality of sensitive data are successfully protected, we may incur significant expense in connection with our response to any such attacks and the adoption and maintenance of additional security measures.
Even if our and our service providers’ technology infrastructure and the confidentiality of sensitive data are successfully protected, we may incur significant expense in connection with our response to any such cybersecurity incident and the adoption and maintenance of additional security measures.
Operational issues or errors or interruption or failure of our financial, trading, compliance and other data processing systems, whether caused by human error, power or telecommunications failure, cyber-attack, ransomware or viruses, severe weather events, natural disaster, fire, act of terrorism or war, pandemics or other unpredictable events, could result in a disruption of our business, liability to clients, regulatory intervention or reputational damage, and thus adversely affect our business.
Operational issues or errors or interruption or failure of our financial, trading, compliance and other data processing systems, whether caused by human error, power or telecommunications failure, disruptive cyber threats, severe weather events, natural disaster, fire, act of terrorism or war, pandemics or other unpredictable events, could result in a disruption of our business, liability to clients, regulatory intervention or reputational damage, and thus adversely affect our business.
In the future, we expect to offer new investment strategies in new asset classes through different types of investment vehicles and fund structures which could present different types of operational, regulatory and distribution-related risks with which we have little to no experience.
In the future, we expect to offer investment strategies through different types of investment vehicles and fund structures which could present different types of operational, regulatory and distribution-related risks with which we have little to no experience.
If the market price of our Class A common stock declines significantly, investors may be unable to sell shares of Class A common 25 Table of Contents stock at or above their purchase price, if at all. The market price of our Class A common stock may fluctuate or decline significantly in the future.
If the market price of our Class A common stock declines significantly, investors may be unable to sell shares of Class A common stock at or above their purchase price, if at all. The market price of our Class A common stock may fluctuate or decline significantly in the future.
Assuming no material changes in the relevant tax law and that APAM earns sufficient taxable income to realize all tax benefits that are subject to the TRAs, we expect that the reduction in tax payments for us associated with (i) the merger described above; (ii) the purchase or exchange of partnership units from March 2013 through December 31, 2024; and (iii) projected future purchases or exchanges of partnership units would aggregate to approximately $501 million over generally a minimum of 15 years, assuming the future purchases or exchanges described in clause (iii) occurred at a price of $43.05 per share of our Class A common stock, the closing price of our Class A common stock on December 31, 2024.
Assuming no material changes in the relevant tax law and that APAM earns sufficient taxable income to realize all tax benefits that are subject to the TRAs, we expect that the reduction in tax payments for us associated with (i) the merger described above; (ii) the purchase or exchange of partnership units from March 2013 through December 31, 2025; and (iii) projected future purchases or exchanges of partnership units would aggregate to approximately $445 million over generally a minimum of 15 years, assuming the future purchases or exchanges described in clause (iii) occurred at a price of $40.74 per share of our Class A common stock, the closing price of our Class A common stock on December 31, 2025.
Changes to our investment environment or compensation structures could cause instability within our investment teams and/or have an adverse effect on the performance of our investment strategies, our financial results and our ability to grow. Attracting, developing and retaining talented investment professionals is an essential component of our business strategy.
Changes to our investment environment or compensation structures, or decisions related to resource allocation, could cause instability within our investment teams and/or have an adverse effect on the performance of our investment strategies, our financial results and our ability to grow. Attracting, developing and retaining talented investment professionals is an essential component of our business strategy.
Some of the key service providers and vendors upon which we rely operate in a remote or hybrid environment, which subjects both us and third-party service providers and key vendors to risk of operational issues and interruptions as well as to a heightened risk of cyberattacks or other privacy or data security incidents.
Some of the key service providers and vendors upon which we rely operate in a remote or hybrid environment, which subjects both us and third-party service providers and key vendors to risk of operational issues and interruptions as well as to a heightened risk of disruptive cyber threats or other privacy or data security incidents.
The agreements also restrict Holdings from making distributions to its partners (including us), other than tax distributions or distributions to fund our ordinary expenses, if a default (as defined in the respective agreements) has occurred and is continuing or would result from such a distribution.
The agreements also restrict Holdings from making distributions to its partners (including us), other than tax distributions or 23 Table of Contents distributions to fund our ordinary expenses, if a default (as defined in the respective agreements) has occurred and is continuing or would result from such a distribution.
A decrease in the value of our AUM as a result of poor performance has in the past, and would in the future, have an adverse impact on our revenues, as nearly all of the investment management fees we earn are based on a specified percentage of clients’ average AUM.
A decrease in the value of our AUM as a result of poor performance has in the past, and would in the future, have an adverse impact on our revenues, as nearly all of the investment management fees we earn are based on a specified percentage of clients’ average AUM. Poor performance also reduces revenues attributed to performance-based fees.
Our experiences with cybersecurity and other technology threats have included phishing scams, introductions of malware, attempts at electronic break-ins, brand infringements or impersonations, ransomware and unauthorized payment requests.
Our experiences with cybersecurity and other technology threats have included phishing scams, introductions of malicious software, attempts at electronic break-ins, brand infringements or impersonations, ransomware and unauthorized payment requests.
We also look to develop new, differentiated strategies managed by our existing teams. We expect the costs associated with establishing a new investment team, strategy or vehicle to initially exceed the revenues generated, which will negatively impact our results of operations.
We also look to develop new, differentiated strategies or vehicles managed by our existing teams. We expect the costs associated with establishing a new investment team, strategy or vehicle to initially exceed the revenues generated, which negatively impacts our results of operations.
The financial and reputational impact of control failures can be significant. Moreover, as we grow our operations in new geographic regions, the potential for particular types of political, economic or infrastructure instabilities, information, technology or security limitations or breaches, or other country- or region-specific business continuity risks increases.
The financial and reputational impact of control failures can be significant. Moreover, as we grow our operations in new geographic regions, the potential for particular types of political, economic or infrastructure instabilities, information, technology or cyber threats or other country- or region-specific business continuity risks increases.
As of December 31, 2024, we believe we are in compliance with all of the covenants set forth in the agreements.
As of December 31, 2025, we believe we are in compliance with all of the covenants set forth in the agreements.
In addition, because the majority of our pre-IPO owners, including certain members of APAM’s board of directors (the “Board”), hold or held a portion of their ownership interests in our business through Holdings, rather than through Artisan Partners Asset Management, these pre-IPO owners may have conflicting interests with holders of our Class A common stock.
In addition, because the majority of our pre-IPO owners, including certain members of APAM’s board of directors (the “Board”), hold or held a portion of their ownership interests in our business through Holdings, rather than through APAM, these pre-IPO owners may have conflicting interests with holders of our Class A common stock.
Any person acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to 26 Table of Contents have consented to this provision of our restated certificate of incorporation.
Any person acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to have consented to this provision of our restated certificate of incorporation.
If our revenues decline without a commensurate reduction in our expenses, our net income will be reduced. Several of our investment strategies invest principally in the securities of non-U.S. companies, which involve foreign currency exchange, tax, political, social and economic uncertainties and risks.
If our revenues decline without a commensurate reduction in our expenses, our net income will be reduced. Several of our investment strategies invest principally in the securities of non-U.S. companies, which involve foreign currency exchange risks and may face heightened tax, political, social, economic and legal risks.
A number of factors, including the following, serve to increase our competitive risks: • Unlike some of our competitors, we do not currently engage in impact investing, offer passive investment strategies, exchange-traded funds or “solutions” products like target-date funds. • A number of our competitors have greater financial, technical, marketing and other resources, more comprehensive name recognition and more personnel than we do. • Potential competitors have a relatively low cost of entering the investment management industry. • Some investors may prefer to invest with an investment manager that is not publicly traded based on the perception that a publicly-traded asset manager may focus on the manager’s own growth to the detriment of investment performance. • Other industry participants may seek to recruit our investment professionals. • Many competitors charge lower fees for their investment management services than we do. 16 Table of Contents • We have less experience in the management and distribution of alternative products, toward which investor allocations are growing, as compared to active equity products.
A number of factors, including the following, serve to increase our competitive risks: • Unlike some of our competitors, we do not currently engage in impact investing, offer passive investment strategies or “solutions” products like target-date funds. • A number of our competitors have greater financial, technical, marketing and other resources, more comprehensive name recognition and more personnel than we do. • Potential competitors have a relatively low cost of entering the investment management industry. • Some investors may prefer to invest with an investment manager that is not publicly traded based on the perception that a publicly-traded asset manager may focus on the manager’s own growth to the detriment of investment performance. • Other industry participants may seek to recruit our investment professionals. • Many competitors charge lower fees for their investment management services than we do. 16 Table of Contents • The majority of our investment strategies are traditional active equity products, compared to alternative products where investor allocations continue to grow.
If we were to elect to terminate the TRAs associated with (i) the merger described above; (ii) the purchase or exchange of partnership units from March 2013 through December 31, 2024; and (iii) projected future purchases or exchanges of partnership units, as of December 31, 2024, based on a share price of $43.05 per share of Class A common stock and certain other assumptions, we estimate that we would be required to pay approximately $340 million in the aggregate under the TRAs.
If we were to elect to terminate the TRAs associated with (i) the merger described above; (ii) the purchase or exchange of partnership units from March 2013 through December 31, 2025; and (iii) projected future purchases or exchanges of partnership units, as of December 31, 2025, based on a share price of $40.74 per share of Class A common stock and certain other assumptions, we estimate that we would be required to pay approximately $322 million in the aggregate under the TRAs.
Our newest investment strategies have the ability to make investments that present different risks and/or degrees of risk than our other strategies, which invest primarily in publicly traded equity securities. For example, several of our newest strategies invest in securities that are not publicly traded.
Our credit and alternative investment strategies have the ability to make investments that present different risks and/or degrees of risk than our earlier strategies, many of which invest primarily in publicly traded equity securities. For example, several of our newest strategies invest in securities that are not publicly traded.
In addition, the investment management industry is facing transformative pressures and trends from a variety of different sources including increased fee pressure; a continued shift away from actively managed equity and fixed income strategies towards alternative, passive and smart beta strategies; increased demands from clients and distributors for client engagement and services; a trend towards institutions developing fewer relationships and partners and reducing the number of investment managers they work with; increased regulatory activity and scrutiny of many aspects of the investment management industry; and advances in technology and digital wealth and distribution tools.
In addition, the investment management industry is facing transformative pressures and trends from a variety of different sources including continued fee pressure; a continued shift away from actively managed equity strategies towards alternative, passive and smart beta strategies; increased demands from clients and distributors for client engagement and services; a trend towards intermediaries developing fewer relationships and partners and reducing the number of investment managers they work with; and advances in technology and digital wealth and distribution tools.
Any significant limitation, failure or breach of the information security infrastructure, software applications, or other systems that are critical to our operations could disrupt our business, damage our reputation, and result in regulatory penalties or other additional costs to us.
Any significant failure of, damage to or attack on our information security infrastructure, software applications or other systems that are critical to our operations could disrupt our business, damage our reputation and result in regulatory penalties or other additional costs to us.
To do so, it is critical that we continue to foster an environment and provide opportunities, compensation and benefits that are attractive for existing and prospective investment professionals.
To do so, it is critical that we continue to foster an environment and provide opportunities, compensation and benefits that are attractive for existing and prospective investment professionals within an increasingly complex platform.
While a majority of our operations take place in the U.S., we do maintain offices in a number of other countries including the U.K., Ireland, Singapore, Australia and Hong Kong. Operating our business in non-U.S. markets is generally more expensive than in the U.S.
While a majority of our operations take place in the U.S., we do maintain offices in a number of other countries including the U.K., Ireland, Singapore, Australia and Hong Kong. Operating our business in non-U.S. markets is generally more expensive than in the U.S. for a number of reasons, including differences in tax and regulatory regimes.
See “Qualitative and Quantitative Disclosures Regarding Market Risk-Exchange Rate Risk” in Item 7A of this report for more information about exchange rate risk. Investments in non-U.S. issuers are affected by tax positions taken in countries or regions in which we are invested as well as political, social and economic uncertainty.
See “Qualitative and Quantitative Disclosures Regarding Market Risk-Exchange Rate Risk” in Item 7A of this report for more information about exchange rate risk. Investments in non-U.S. issuers face heightened tax, political, social, economic and legal risks. Non-U.S. issuers are affected by tax positions taken in countries or regions in which we are invested.
We have indebtedness outstanding in the amount of $200 million in unsecured notes, which exposes us to risks associated with the use of leverage. In addition, we maintain a $100 million revolving credit agreement, though no amounts are outstanding as of the date of this filing.
Indebtedness Risks Our indebtedness may expose us to material risks. We have indebtedness outstanding in the amount of $190 million in unsecured notes, which exposes us to risks associated with the use of leverage. In addition, we maintain a $100 million revolving credit agreement, though no amounts are outstanding as of the date of this filing.
The establishment of new teams or strategies (in particular, alternative investment teams or strategies) may also cause us to depart from our traditional compensation and economic model, which could reduce our profitability and harm our firm’s culture.
The establishment of new teams or strategies, in particular, alternative-focused investment teams or strategies, may also cause us to make changes to our traditional compensation and economic model, which could reduce our profitability and harm our firm’s culture.
Gottlieb, and certain marketing and client service personnel who have direct contact with our institutional clients, consultants, intermediaries and other key individuals within each of our distribution channels.
Colson, and certain marketing and client service personnel who have direct contact with our institutional clients, consultants, intermediaries and other key individuals within our distribution channels.
As of December 31, 2024, approximately 54% of our AUM were invested in strategies that primarily invest in securities of non-U.S. companies. Some of our other strategies also invest on a more limited basis in securities of non-U.S. companies. Approximately 45% of our AUM were invested in securities denominated in currencies other than the U.S. dollar at December 31, 2024.
As of December 31, 2025, approximately 48% of our AUM were invested in strategies that primarily invest in securities of non-U.S. companies. Some of our other strategies also invest on a more limited basis in securities of non-U.S. companies. Approximately 50% of our AUM were invested in securities denominated in currencies other than the U.S. dollar at December 31, 2025.
We expect to cause Holdings, a Delaware limited partnership, to make 23 Table of Contents distributions to its partners, including us, in an amount sufficient for us to pay dividends.
We expect to cause Holdings, a Delaware limited partnership, to make distributions to its partners, including us, in an amount sufficient for us to pay dividends.
Several of our existing strategies, and strategies we may offer in the future, can and do invest in certain instruments (such as derivative securities) and engage in activities (such as shorting and use of leverage) the complexity of which may place additional demands on our existing operational infrastructure and our existing employees, and increase the risk of operational errors.
Several of our existing strategies, and strategies we may offer in the future, can and do invest in certain instruments (such as derivative securities) and engage in activities (such as shorting and use of leverage) the complexity of which may increase the risk of operational errors.
The industry in which we operate is subject to extensive and complex laws, rules and regulations. We are subject to extensive regulation in the United States, primarily at the federal level, including regulation by the SEC, the U.S. Department of Labor, the Financial Industry Regulatory Authority, the Commodity Futures Trading Commission and the National Futures Association.
We are subject to extensive regulation in the United States, primarily at the federal level, including regulation by the SEC, the U.S. Department of Labor, the Financial Industry Regulatory Authority, the Commodity Futures Trading Commission and the National Futures Association.
These initiatives typically involve a number of risks and present financial, managerial and operational challenges to ongoing business operations.
These initiatives, including the acquisition of Grandview, typically involve a number of risks and present financial, managerial and operational challenges to ongoing business operations.
Market and Investment Performance Risks Poor investment performance leads to a loss of AUM which reduces our revenues and negatively impacts our financial condition. The performance of our investment strategies is critical in retaining existing client assets and in attracting new client assets.
Market and Investment Performance Risks Poor investment performance leads to a loss of AUM which reduces our revenues and negatively impacts our financial condition. Our financial results are impacted by changes in the total level of our AUM. The performance of our investment strategies is critical in retaining existing client assets and in attracting new client assets.
All shares subject to the stockholders agreement are voted in accordance with the majority decision of those three members providing the committee with approximately 10% of the aggregate voting power as of February 21, 2025.
All shares subject to the stockholders agreement are voted in accordance with the majority decision of those three members providing the committee with approximately 9% of the aggregate voting power as of February 14, 2026.
We adjust these liabilities in light of changing facts and circumstances and consultations with our outside tax advisors. However, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our estimates. We are subject to extensive, complex and sometimes overlapping laws, rules and regulations.
We adjust these liabilities in light of changing facts and circumstances and consultations with our outside tax advisors. However, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our estimates.
Investors may redeem for any number of reasons, including general financial market conditions, the absolute or relative investment performance we have achieved, or their own financial condition and requirements. In a declining stock market, the pace of redemptions could accelerate.
Investors may redeem for any number of reasons, including general financial market conditions, the absolute or relative investment performance we have achieved or their own financial condition and requirements. 17 Table of Contents In a declining stock market, the pace of redemptions could accelerate. Redemptions reduce our AUM and adversely affect our revenues.
We also provide supplemental incentive payments to investment professionals in support of new or subscale teams or strategies or franchise development efforts. 13 Table of Contents The equity we award to our investment professionals consists of a mix of standard restricted shares which vest pro rata over the five years following the year of grant, and career or franchise shares that generally vest on, or 18 months after, a “qualified retirement” as defined in the applicable award agreement.
The equity we award to our investment professionals consists of a mix of standard restricted shares which vest pro rata over the five years following the year of grant, and career or franchise shares that generally vest on, or 18 months after, a “qualified 13 Table of Contents retirement” as defined in the applicable award agreement.
Further, portfolio managers and other key professionals have an increasing number of employment options other than traditional asset management firms, including multi-manager platforms, alternative investment firms, family offices and insurance companies. Any of our key professionals may resign at any time, retire, join our competitors or form a competing company.
Competition for highly-skilled and motivated portfolio managers and other key investment professionals is intense, and such professionals have an increasing number of employment options beyond traditional asset management firms, including multi-manager platforms, alternative investment firms, family offices and insurance companies. Any of our key professionals may resign at any time, retire, join our competitors or form a competing company.
Misconduct or perceived misconduct by our employees, or even unsubstantiated allegations of such conduct, could cause serious damage to our reputation, resulting in the loss of clients and an adverse effect on our revenues.
Misconduct or perceived misconduct by our employees, or even unsubstantiated allegations of such conduct, could cause serious damage to our reputation, resulting in the loss of clients and an adverse effect on our revenues. Employee misconduct could also subject us to regulatory scrutiny and legal liability.
Because our debt service obligations are fixed, the portion of our cash flow used to service those obligations could become substantial if our revenues decline significantly, whether because of market declines or other reasons. Our Series D, Series E and Series F notes bear interest at a rate equal to 4.29%, 4.53%, and 3.10% per annum, respectively.
Because our debt service obligations are fixed, the portion of our cash flow used to service those obligations could become substantial if our revenues decline or our expenses increase significantly. Our Series E, Series F and Series G notes bear interest at a rate equal to 4.53%, 3.10%, and 5.43% per annum, respectively.
However, we routinely encounter and address such threats, and the number and frequency of potential threats or security incidents experienced by us directly, or indirectly via our vendors, has increased in recent years due to, among other factors, an increase in the number of security vulnerabilities, more sophisticated and automated attacks, proliferation of cloud-based solutions, our increased operations in China and Hong Kong and the increase in remote work.
However, we routinely encounter and address such threats, and the number and frequency of potential threats or security incidents experienced by us directly, or indirectly via our vendors, has increased in recent years due to, among other factors, an increase in vulnerability exploitation, more sophisticated cyber threats, proliferation of cloud-based solutions, our increased operations in certain non-U.S. jurisdictions and the increase in remote work.
Our newest investment strategies and strategies we may establish in the future present certain investment, operational, distribution and other risks that are different in kind and/or degree from those presented by our earlier investment strategies and dealing with those risks presents us with new challenges.
Our credit and alternative investment strategies present investment, operational, distribution and other risks that are different in kind and/or degree from those presented by our earlier investment strategies and dealing with those risks presents us with new challenges.
Our two largest intermediary relationships across multiple distribution channels represented approximately 9% and 8% of our total AUM as of December 31, 2024. Certain of our intermediaries through which we distribute our mutual funds also sell their own funds and technology-enabled investment solutions.
We have relationships with some third-party intermediaries through which we access clients in multiple distribution channels. Our two largest intermediary relationships across multiple distribution channels each represented approximately 9% of our total AUM as of December 31, 2025. Certain of our intermediaries through which we distribute our mutual funds also sell their own funds and technology-enabled investment solutions.
Employee misconduct could also subject us to regulatory scrutiny and legal liability. 19 Table of Contents The expansion of our business inside and outside of the United States raises tax and regulatory risks, may adversely affect our profit margins and places additional demands on our resources and employees. We continue to expand our distribution efforts into non-U.S. markets.
The expansion of our business outside of the United States raises tax and regulatory risks, may adversely affect our profit margins and places additional demands on our resources and employees. We continue to expand our distribution efforts into non-U.S. markets.
However, because our clients invest in our investment strategies in order to gain exposure to the portfolio securities of the respective strategies, we have not adopted corporate-level risk management policies to manage market, interest rate, or exchange rate risks that would affect the value of our overall AUM. 18 Table of Contents We provide a range of services to Artisan Funds, Artisan Global Funds, Artisan Private Funds and sub-advised funds which may expose us to liability.
However, because our clients invest in our investment strategies in order to gain exposure to the portfolio 18 Table of Contents securities of the respective strategies, we have not adopted corporate-level risk management policies to manage market, interest rate or exchange rate risks that would affect the value of our overall AUM.
In addition, the prices of the securities held in the portfolios we manage have in the past and may in the future decline 14 Table of Contents for any number of reasons beyond our control, including, among others, a declining market, general economic downturn or recession, political uncertainty, inflation rates, natural disasters, war, acts of terrorism, or other unpredictable events.
In addition, the prices of the securities held in the portfolios we manage have in the past and may in the future decline for any number of reasons beyond our control, including, among others, a declining market, general economic downturn or recession, political uncertainty, inflation rates, interest rates, natural disasters, war, acts of terrorism, 14 Table of Contents social, civil or political unrest, public health crises, changes in trade policies, including the imposition of new or increased tariffs and the economic impact, volatility and uncertainty resulting therefrom, the imposition of economic sanctions or other unpredictable events.
In addition, since implementing broad remote-work measures during the pandemic, we have an increased dependency on remote equipment and connectivity infrastructure to access critical business systems that may be subject to failure, disruption, or unavailability that could negatively impact our business operations.
In addition, as a global firm with remote work capabilities, we have an increased dependency on remote equipment and connectivity infrastructure to access critical business systems that may be subject to failure, disruption or unavailability that could negatively impact our business operations.
We provide shareholder services, accounting services including the supervision of the activities of Artisan Funds’ accounting services provider in the calculation of the funds’ net asset values, and tax services including calculation of dividend and distribution amounts. We also coordinate the audits of financial statements and supervise tax return preparation.
We prepare or supervise the preparation of Artisan Funds’ regulatory filings and financial statements, and manage compliance and regulatory matters. We provide shareholder services, accounting services including the supervision of the activities of Artisan Funds’ accounting services provider in the calculation of the funds’ net asset values, and tax services including calculation of dividend and distribution amounts.
As our insurance policies come up for renewal, we may need to assume higher deductibles or pay higher premiums, which could have an adverse impact on our results of operations and financial condition. The regulatory environment in which we operate is subject to continual change, and regulatory developments may adversely affect our business.
As our insurance policies come up for renewal, we may need to assume higher deductibles or pay higher premiums, which could have an adverse impact on our results of operations and financial condition.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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The Artisan Risk and Integrity Committee, which includes members of the Company’s senior leadership team including senior representation from the firm’s operations, distribution, finance, internal audit, investment strategy and legal functions, facilitates our annual enterprise risk assessment process, which identifies and prioritizes key risks to achieving our purpose and maintaining our business model.
The Artisan Risk and Integrity Committee, which consists of members of the Company’s senior leadership team including senior representation from the firm’s operations, distribution, finance, internal audit, investment strategy and legal functions, facilitates our annual enterprise risk assessment process, which identifies and prioritizes key risks to achieving our purpose and maintaining our business model.
On a quarterly basis, management reports on any significant cybersecurity events or trends impacting the Company. Annually, our CIO, Director of Technical Services and CISO report to the Audit Committee on our information security program, including with respect to team updates, key areas of risk and the effectiveness of the program.
On a quarterly basis, management reports on any significant cybersecurity events or trends impacting the Company. Annually, our CIO and CISO report to the Audit Committee on our information security program, including with respect to team updates, key areas of risk and the effectiveness of the program.
With respect to cybersecurity risk, we have a dedicated security engineering and operations team, supplemented with security consultants and two managed security service providers, that performs first line responsibilities by identifying security risks, deciding if and how to implement security tools and controls, and implementing and maintaining those tools and controls.
With respect to cybersecurity risk, we have a dedicated security engineering and operations team, supplemented by security consultants and managed security service providers, that performs first line responsibilities, including identifying security risks, determining whether and how to implement security tools and controls, and implementing and maintaining those tools and controls.
This team is led by our Director of Technical Services, who has over 30 years of information technology experience, and reports to our Chief Information Officer (CIO), who has over 40 years of information technology experience.
This team reports to our Chief Information Officer (CIO), who has over 30 years of information technology experience.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Krein has been a managing director of Artisan Partners since he joined the firm in September 2015. Eileen L. Kwei, age 46, has been executive vice president and chief administrative officer of Artisan Partners Asset Management since January 2021. From February 2018 to January 2021, Ms. Kwei was responsible for institutional marketing and client service for the Artisan Credit team.
Krein has been a managing director of Artisan Partners since he joined the firm in September 2015. Eileen L. Kwei, age 47, has been executive vice president and chief administrative officer of Artisan Partners Asset Management since January 2021. From February 2018 to January 2021, Ms. Kwei was responsible for institutional marketing and client service for the Artisan Credit team.
Samuel B. Sellers, age 42, has been executive vice president and chief operating officer of Artisan Partners Asset Management since January 2023. Prior to his current role, Mr. Sellers was head of Investment Operations from January 2021. Previously, he served as deputy general counsel from January 2015 and associate counsel from April 2013. Laura E.
Samuel B. Sellers, age 43, has been executive vice president and chief operating officer of Artisan Partners Asset Management since January 2023. Prior to his current role, Mr. Sellers was head of Investment Operations from January 2021. Previously, he served as deputy general counsel from January 2015 and associate counsel from April 2013. Laura E.
Prior to February 2018, Ms. Kwei was a relationship manager for the Artisan Global Equity team. Ms. Kwei joined Artisan Partners in June 2013 and has been a managing director of Artisan Partners since 2018. Gregory K. Ramirez, age 54, has been executive vice president of Artisan Partners Asset Management since February 2016.
Prior to February 2018, Ms. Kwei was a relationship manager for the Artisan Global Equity team. Ms. Kwei joined Artisan Partners in June 2013 and has been a managing director of Artisan Partners since 2018. Gregory K. Ramirez, age 55, has been executive vice president of Artisan Partners Asset Management since February 2016.
Krein, age 53, has been executive vice president of Artisan Partners Asset Management and Artisan Partners’ head of Global Distribution since January 2020. Prior to becoming head of Global Distribution, Mr. Krein was responsible for institutional marketing and client service for the Artisan Developing World team. Mr.
Krein, age 54, has been executive vice president of Artisan Partners Asset Management and Artisan Partners’ head of Global Distribution since January 2020. Prior to becoming head of Global Distribution, Mr. Krein was responsible for institutional marketing and client service for the Artisan Developing World team. Mr.
Simpson, age 49, has been executive vice president, chief legal officer and secretary of Artisan Partners Asset Management since October 2023. From January 2023 to October 2023 she served as assistant secretary of Artisan Partners Asset Management. She has served as general counsel of Artisan Partners since October 2022.
Simpson, age 50, has been executive vice president, chief legal officer and secretary of Artisan Partners Asset Management since October 2023. From January 2023 to October 2023 she served as assistant secretary of Artisan Partners Asset Management. She has served as general counsel of Artisan Partners since October 2022.
Colson also served as the president of Artisan Partners Asset Management from March 2011 to January 2021 and as chairman of the Company’s Board from August 2015 to August 2021. Mr. Colson has served as the chief executive officer of Artisan Partners since January 2010. Prior to January 2010, Mr.
Prior to becoming executive chair in June 2025, Mr. Colson served as chief executive officer of Artisan Partners Asset Management since March 2011. Mr. Colson also served as the president of Artisan Partners Asset Management from March 2011 to January 2021 and as chairman of the Company’s Board from August 2015 to August 2021. Mr.
From February 2017 to January 2021, he served as executive vice president of Artisan Partners Asset Management. Mr. Gottlieb joined Artisan Partners in October 2016 as a managing director and the chief operating officer of investments. Christopher J.
From February 2017 to January 2021, he served as executive vice president of Artisan Partners Asset Management. Mr. Gottlieb joined Artisan Partners in October 2016 as a managing director and the chief operating officer of investments. Eric R. Colson, age 56, is executive chair and a director of Artisan Partners Asset Management.
Colson served as chief operating officer of investment operations from March 2007 through January 2010. Mr. Colson has been a managing director of Artisan Partners since he joined the firm in January 2005. Charles J. Daley, Jr., age 62, has been executive vice president, chief financial officer and treasurer of Artisan Partners Asset Management since March 2011.
Colson served as the chief executive officer of Artisan Partners from January 2010 to June 2025. Prior to January 2010, Mr. Colson served as chief operating officer of investment operations from March 2007 through January 2010. Mr. Colson has been a managing director of Artisan Partners since he joined the firm in January 2005. Charles J.
Item 4. Mine Safety Disclosures Not applicable 29 Table of Contents Information about our Executive Officers Information regarding our executive officers is as follows: Eric R. Colson, age 55, has been chief executive officer and a director of Artisan Partners Asset Management since March 2011. Mr.
Item 4. Mine Safety Disclosures Not applicable 29 Table of Contents Information about our Executive Officers Information regarding our executive officers is as follows: Jason A. Gottlieb, age 56, has been chief executive officer and a director of Artisan Partners Asset Management since June 2025. He has also been president of Artisan Partners Asset Management since January 2021.
He has served as the chief financial officer of Artisan Partners since August 2010 and has been a managing director since July 2010 when he joined the firm. Jason A. Gottlieb, age 55, has been president of Artisan Partners Asset Management since January 2021.
Daley, Jr., age 63, has been executive vice president, chief financial officer and treasurer of Artisan Partners Asset Management since March 2011. He has served as the chief financial officer of Artisan Partners since August 2010 and has been a managing director since July 2010 when he joined the firm. Christopher J.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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In determining the amount of any future dividends, our Board will take into account: (i) our financial results, (ii) our available cash, as well as anticipated cash requirements (including debt servicing, seed capital for new investment strategies and vehicles, and cash required to support growth and strategic initiatives), (iii) our capital requirements and the capital requirements of our subsidiaries (including Holdings), (iv) contractual, legal, tax and regulatory restrictions on, and implications of, the payment of dividends by us to our stockholders or by our subsidiaries (including Holdings) to us, including the obligation of Holdings to make tax distributions to the holders of partnership units (including us), (v) general economic and business conditions and (vi) any other factors that our Board may deem relevant.
In determining the amount of any future dividends, our Board will take into account: (i) our financial results, (ii) our available cash, as well as anticipated cash requirements (including debt servicing, seed capital for new investment strategies and vehicles, and cash required to support growth and strategic initiatives, including through acquisition), (iii) our capital requirements and the capital requirements of our subsidiaries (including Holdings), (iv) contractual, legal, tax and regulatory restrictions on, and implications of, the payment of dividends by us to our stockholders or by our subsidiaries (including Holdings) to us, including the obligation of Holdings to make tax distributions to the holders of partnership units (including us), (v) general economic and business conditions and (vi) any other factors that our Board may deem relevant.
Performance Graph The following graph compares the year-end cumulative total stockholder return of our Class A common stock during the five-year period ended December 31, 2024, with the year-end cumulative total return of the S&P 500 ® and the Dow Jones U.S. Asset Managers Index.
Performance Graph The following graph compares the year-end cumulative total stockholder return of our Class A common stock during the five-year period ended December 31, 2025, with the year-end cumulative total return of the S&P 500 ® and the Dow Jones U.S. Asset Managers Index.
A stockholder who invested in APAM at its IPO on March 7, 2013, at the IPO price of $30 per share would have experienced a 9% annual total return as of December 31, 2024 if all dividends were retained, compared to a 12% annual total return if all dividends were reinvested.
A stockholder who invested in APAM at its IPO on March 7, 2013, at the IPO price of $30 per share would have experienced an 8% annual total return as of December 31, 2025, if all dividends were retained, compared to an 11% annual total return if all dividends were reinvested.
We expect quarterly cash generation to approximate adjusted net income plus long-term incentive compensation award expense, less cash reserved for future franchise capital awards (which we expect will generally approximate 4% of investment management revenues each quarter), with additional adjustments made for certain other sources and uses of cash, including capital expenditures.
We expect quarterly cash generation to approximate adjusted net income plus long-term incentive compensation award expense, less cash reserved for future franchise capital awards, with additional adjustments made for certain other sources and uses of cash, including capital expenditures.
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.
The variable quarterly dividend of $1.01 per share represents approximately 80% of the cash generated in the fourth quarter of 2025. 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.
As of February 21, 2025, there were approximately 119 stockholders of record of our Class A common stock, 19 stockholders of record of our Class B common stock, and 29 stockholders of record of our Class C common stock.
As of February 19, 2026, there were approximately 103 stockholders of record of our Class A common stock, 16 stockholders of record of our Class B common stock, and 27 stockholders of record of our Class C common stock.
Asset Managers Index $ 115.15 $ 161.92 $ 126.91 $ 155.90 $ 215.15 The above table is provided pursuant to SEC regulations and the outcomes are impacted significantly by beginning- and end-point stock price, as well as the price at which dividends are reinvested.
Asset Managers Index $ 140.62 $ 110.22 $ 135.39 $ 186.85 $ 196.10 The above table is provided pursuant to SEC regulations and the outcomes are impacted significantly by beginning- and end-point stock price, as well as the price at which dividends are reinvested.
Dividend Policy During the first quarter of 2025, our Board declared a variable quarterly dividend of $0.84 per share with respect to the fourth quarter of 2024 and a special annual dividend of $0.50 per share. The variable quarterly dividend of $0.84 per share represents approximately 80% of the cash generated in the fourth quarter of 2024.
Dividend Policy During the first quarter of 2026, our Board declared a dividend of $1.58 per share of Class A common stock, consisting of a variable quarterly dividend of $1.01 per share with respect to the fourth quarter of 2025 and a special annual dividend of $0.57 per share.
For the Years Ended December 31, 2020 2021 2022 2023 2024 Artisan Partners Asset Management Inc. $ 170.96 $ 175.58 $ 120.64 $ 193.24 $ 202.52 S&P 500 Index $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 Dow Jones U.S.
For the Years Ended December 31, 2021 2022 2023 2024 2025 Artisan Partners Asset Management Inc. $ 102.70 $ 70.56 $ 113.03 $ 118.46 $ 121.69 S&P 500 Index $ 128.71 $ 105.40 $ 133.10 $ 166.40 $ 196.16 Dow Jones U.S.
There were no such issuances during the three months ended December 31, 2024. 32 Table of Contents Item 6. [Reserved]
During the three months ended December 31, 2025, 83,134 shares of Class B common stock were canceled, and 83,134 shares of Class C common stock were issued, as a result of the termination of employment of an employee-partner. 32 Table of Contents Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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We expect these expenses will add approximately $6 million to our expenses in the first quarter of 2025, compared to the fourth quarter of 2024. 44 Table of Contents Equity awards granted to our employees consist of standard restricted awards that generally vest on a pro rata basis over 5 years and career awards that vest when both of the following conditions are met (1) pro-rata time vesting over 5 years and (2) a qualifying retirement (as defined in the award agreements).
We expect these expenses will add approximately $6 million to our expenses in the first quarter of 2026, compared to the fourth quarter of 2025. 44 Table of Contents Equity awards granted to our employees consist of standard restricted awards that generally vest on a pro rata basis over 5 years and career awards that vest when both of the following conditions are met (1) pro-rata time vesting over 5 years and (2) a qualifying retirement (as defined in the award agreements).
Artisan Funds authorizes intermediaries to accept purchase, exchange and redemption orders for shares of Artisan Funds on behalf of Artisan Funds. Many intermediaries charge a fee for those services.
Artisan Funds authorizes intermediaries to accept purchase, exchange and redemption orders for shares of Artisan Funds on its behalf. Many intermediaries charge a fee for those services.
As of December 31, 2024, the trigger had not occurred and the capital had not yet been called, therefore the committed capital is not recorded in the Consolidated Statements of Financial Condition. The capital commitment terminates if the market trigger does not occur within three years of the October 30, 2023 initial closing date.
As of December 31, 2025, the trigger had not occurred and the capital had not yet been called, therefore the committed capital is not recorded in the Consolidated Statements of Financial Condition. The capital commitment terminates if the market trigger does not occur within three years of the October 30, 2023 initial closing date.
Our management is required to exercise judgment in developing our provision for income taxes, including the determination of deferred tax assets and liabilities and any valuation allowance that might be required against deferred tax assets. As of December 31, 2024, we have not recorded a valuation allowance on any deferred tax assets.
Our management is required to exercise judgment in developing our provision for income taxes, including the determination of deferred tax assets and liabilities and any valuation allowance that might be required against deferred tax assets. As of December 31, 2025, we have not recorded a valuation allowance on any deferred tax assets.
Accounts receivable primarily represent investment advisory fees that have been earned, but not yet received from our clients. We perform a review of our receivables on a monthly basis to assess collectability. As of December 31, 2024, none of our receivables were considered uncollectible.
Accounts receivable primarily represent investment advisory fees that have been earned, but not yet received from our clients. We perform a review of our receivables on a monthly basis to assess collectability. As of December 31, 2025, none of our receivables were considered uncollectible.
The seed investments are generally redeemable at our discretion, though subject to certain monthly or quarterly timing restrictions within the Artisan Private Funds. We monitor for opportunities to redeem existing seed investments as sufficient scale in those strategies and vehicles is achieved.
The seed investments are generally redeemable at our discretion, subject to certain monthly or quarterly timing restrictions for certain Artisan Private Funds. We monitor for opportunities to redeem existing seed investments as sufficient scale in those strategies and vehicles is achieved.
Our expenses fluctuate due to a number of factors, including the following: • variations in the amount of total compensation expense due to, among other things, changes in the amount of incentive compensation earned and equity awards made, variations in our employee count (including the addition of new investment teams), changes in our product mix and other competitive factors; and • expenses, such as distribution fees, rent, professional service fees, technology and data-related costs, that are incurred to operate and grow our business.
Our expenses fluctuate due to a number of factors, including the following: • variations in the amount of total compensation expense due to, among other things, changes in the amount of incentive compensation earned and long-term incentive awards made, variations in our employee count (including the addition of new investment teams), changes in our product mix and other competitive factors; and • expenses, such as distribution fees, rent, professional service fees, technology and data-related costs, that are incurred to operate and grow our business.
Our failure to comply with any of the covenants or restrictions described above could result in an event of default under the agreements, giving our lenders the ability to accelerate repayment of our obligations. We were in compliance with all debt covenants as of December 31, 2024.
Our failure to comply with any of the covenants or restrictions described above could result in an event of default under the agreements, giving our lenders the ability to accelerate repayment of our obligations. We were in compliance with all debt covenants as of December 31, 2025.
The unaudited table on the following page sets forth the average annual total returns (gross of fees) for each composite and its respective benchmark (and style benchmark, if applicable) over a multi-horizon time period as of December 31, 2024.
The unaudited table on the following page sets forth the average annual total returns (gross of fees) for each composite and its respective benchmark (and style benchmark, if applicable) over a multi-horizon time period as of December 31, 2025.
Earnings Per Share Weighted average basic and diluted shares of Class A common stock outstanding were higher for the year ended December 31, 2024, compared to the year ended December 31, 2023, as a result of unit exchanges and equity award grants.
Earnings Per Share Weighted average basic and diluted shares of Class A common stock outstanding were higher for the year ended December 31, 2025, compared to the year ended December 31, 2024, as a result of unit exchanges and equity award grants.
The special dividend represents the remainder of undistributed cash generated during the year ended December 31, 2024 in addition to other discrete sources and uses of cash throughout the year, including realized gains on seed capital redemptions and investments redeemed in connection with forfeited franchise capital awards, less cash reserved for future growth initiatives including seed investments in new investment strategies and vehicles.
The special dividend represents the remainder of undistributed cash generated during the year ended December 31, 2025 in addition to other discrete sources and uses of cash throughout the year, including realized gains on seed capital redemptions and investments redeemed in connection with forfeited franchise capital awards, less cash reserved for future growth initiatives including acquisitions and seed investments in new investment strategies and vehicles.
Limited partners of Holdings, some of whom are employees, held approximately 13% of the equity interests in Holdings as of December 31, 2024. Our results reflect that significant noncontrolling interest. We operate our business in a single segment.
Limited partners of Holdings, some of whom are employees, held approximately 13% of the equity interests in Holdings as of December 31, 2025. Our results reflect that significant noncontrolling interest. We operate our business in a single segment.
The allocation of such fees between us and Artisan Funds is determined by the board of Artisan Funds, based on information and a recommendation from us, with the goal of allocating to us, at a minimum, all costs attributable to the marketing and distribution of shares of Artisan Funds.
The allocation of such fees between us and Artisan Funds is determined by the board of Artisan Funds, based on information and a recommendation provided by us, with the goal of allocating to us, at a minimum, all costs attributable to the marketing and distribution of shares of Artisan Funds.
Historically, we have received higher effective rates of investment management fees from Artisan Funds and Artisan Global Funds than from traditional separate accounts, reflecting, among other things, the different and broader array of services we provide to Artisan Funds and Artisan Global Funds.
Historically, we have received higher effective rates of fees from Artisan Funds and Artisan Global Funds than from traditional separate accounts, reflecting, among other things, the different and broader array of services we provide to Artisan Funds and Artisan Global Funds.
For each of the years ended December 31, 2024, 2023 and 2022, approximately 80%, 82%, and 82%, respectively, of our investment advisory fees were earned from clients located in the United States. Operating Expenses Our operating expenses consist primarily of compensation and benefits, distribution, servicing and marketing, occupancy, communication and technology, and general and administrative expenses.
For the years ended December 31, 2025, 2024 and 2023, approximately 80%, 80% and 82%, respectively, of our investment advisory fees were earned from clients located in the United States. Operating Expenses Our operating expenses consist primarily of compensation and benefits, distribution, servicing and marketing, occupancy, communication and technology and general and administrative expenses.
These adjustments also remove the non-operational complexities of our 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 more meaningful information to analyze our profitability and efficiency between periods and over time.
These adjusted measures also remove the non-operational complexities of our 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 our profitability and efficiency between periods and over time.
Investment management fees are presented net of cash rebates to certain Artisan Global Fund investors and expense reimbursements pursuant to contractual 57 Table of Contents expense limitations of pooled investment vehicles. A number of investment management agreements provide for performance-based fees or incentive allocations, collectively “performance fees”.
Investment management fees are presented net of cash rebates to certain Artisan Global Fund investors and expense reimbursements pursuant to contractual expense limitations of pooled investment vehicles. A number of investment management agreements provide for performance-based fees or incentive allocations, collectively “performance fees”.
(GAAP) $ 259.7 $ 222.3 $ 206.8 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings 52.9 49.5 49.1 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 7.8 4.8 (3.8) Add back: Net (gain) loss on the tax receivable agreements 0.5 (0.5) (1.0) Add back: Net investment (gain) loss of investment products attributable to APAM (31.9) (38.4) 16.9 Add back: Interest expense 8.6 8.6 9.9 Add back: Provision for income taxes 90.9 71.9 63.4 Add back: Depreciation and amortization 9.9 9.3 7.9 Add back: Non-recurring expenses 1.6 — — Adjusted EBITDA (Non-GAAP) $ 400.0 $ 327.5 $ 349.2 53 Table of Contents Liquidity, Capital Resources, and Contractual Obligations Our working capital needs, including accrued incentive compensation payments, have been and are expected to be met primarily through cash generated by our operations.
(GAAP) $ 290.3 $ 259.7 $ 222.3 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings 58.2 52.9 49.5 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 23.0 7.8 4.8 Add back: Net (gain) loss on the tax receivable agreements (0.6) 0.5 (0.5) Add back: Net investment (gain) loss of investment products attributable to APAM (58.0) (31.9) (38.4) Add back: Interest expense 8.6 8.6 8.6 Add back: Provision for income taxes 111.3 90.9 71.9 Add back: Depreciation and amortization 9.3 9.9 9.3 Add back: Non-recurring expenses — 1.6 — Adjusted EBITDA (Non-GAAP) $ 442.1 $ 400.0 $ 327.5 53 Table of Contents Liquidity, Capital Resources and Contractual Obligations Our working capital needs, including accrued incentive compensation payments, have been and are expected to be met primarily through cash generated by our operations.
New or Revised Accounting Standards See Note 2, “Summary of Significant Accounting Policies — Recent accounting pronouncements” to the Consolidated Financial Statements included in Item 8 of Part II of this Form 10-K. 58 Table of Contents
New or Revised Accounting Standards See Note 2, “Summary of Significant Accounting Policies — Recent accounting pronouncements” to the Consolidated Financial Statements included in Item 8 of Part II of this Form 10-K.
Total compensation and benefits was 53% and 54% of our revenues for the years ended December 31, 2024 and 2023, respectively.
Total compensation and benefits was 54% and 53% of our revenues for the years ended December 31, 2025 and 2024, respectively.
Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 14% and 16% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the years ended December 31, 2024 and 2023, respectively.
Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 14% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the years ended December 31, 2025 and 2024.
Realized and unrealized gains (losses) on investment securities are recorded in net investment income in the Consolidated Statements of Operations. Dividend income from these investments is recognized when earned and is included in net investment income in the Consolidated Statements of Operations.
Realized and unrealized gains (losses) on investment securities are recorded in net investment income in the Consolidated Statements of Operations. Dividend 57 Table of Contents income from these investments is recognized when earned and is included in net investment income in the Consolidated Statements of Operations.
Communication and technology Communication and technology expenses include information and data subscriptions, telephone costs, information systems consulting fees, equipment and software maintenance expenses, operating leases for information technology equipment and depreciation and amortization expenses associated with computer hardware and software.
Communication and technology Communication and technology expenses include information and data subscriptions, telecommunication device and data costs, information systems consulting fees, equipment and software maintenance expenses, operating leases for information technology equipment and depreciation and amortization expenses associated with computer hardware and software.
(2) 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 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 15% of our assets under management at December 31, 2024, are maintained in separate composites, which are not presented in these materials).
(2) 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 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 18% of our AUM at December 31, 2025, are maintained in separate composites, which are not presented in these materials).
In response to such requests or as a result of changes in our operations, we may eventually bear a significant portion of the costs of research that are currently paid for using soft dollars, which would increase our operating expenses materially.
In response to such requests or as a result of changes in our operations, we may eventually bear more of the costs of research that are currently paid for using soft dollars, which could increase our operating expenses materially.
The balance excludes $150.4 million and $115.3 million of investments made related to funded long-term incentive compensation plans as of December 31, 2024 and December 31, 2023, respectively. We manage our cash balances in order to fund our day-to-day operations.
The balance excludes $219.4 million and $150.4 million of investments made related to funded long-term incentive compensation plans as of December 31, 2025 and December 31, 2024, respectively. We manage our cash balances in order to fund our day-to-day operations.
As of December 31, 2024, approximately 75% of our AUM were managed for clients and investors domiciled in the U.S. and 25% of our AUM were managed for clients and investors domiciled outside of the U.S. As a high value-added investment manager we expect that long-term investment performance will be the primary driver of our long-term business and financial results.
As of December 31, 2025, approximately 74% of our AUM were managed for clients and investors domiciled in the U.S. and 26% of our AUM were managed for clients and investors domiciled outside of the U.S. As a high value-added investment manager we expect that long-term investment performance will be the primary driver of our long-term business and financial results.
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.
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, 55 Table of Contents which may include gains realized upon seed capital redemptions and investments redeemed in connection with forfeited franchise capital awards.
We mitigate concentration risk through the diversification of financial institutions holding daily operating cash balances and by investing excess operating cash in various money market funds. $177.4 million of our cash and cash equivalents balance was invested in money market funds as of December 31, 2024.
We mitigate concentration risk through the diversification of financial institutions holding daily operating cash balances and by investing excess operating cash in various money market funds. $166.5 million of our cash and cash equivalents balance was invested in money market funds as of December 31, 2025.
Our 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, and (4) non-recurring expenses.
Our 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) non-recurring expenses and (5) the adjustment to deferred taxes as a result of the OBBBA enactment.
With the exception of the assets managed by our Credit team and EMsights Capital Group (which together represented approximately 9.2% of our AUM at December 31, 2024), the portfolios are invested principally in publicly-traded equity securities.
With the exception of the assets managed by our Credit team and EMsights Capital Group (which together represented approximately 10.0% of our AUM at December 31, 2025), the portfolios are invested principally in publicly-traded equity securities.
(GAAP) $ 259.7 $ 222.3 $ 206.8 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings 52.9 49.5 49.1 Add back: Provision for income taxes 90.9 71.9 63.4 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 7.8 4.8 (3.8) Add back: Net (gain) loss on the tax receivable agreements 0.5 (0.5) (1.0) Add back: Net investment (gain) loss of investment products attributable to APAM (31.9) (38.4) 16.9 Add back: Non-recurring expenses 1.6 — — Less: Adjusted provision for income taxes 94.2 76.5 81.8 Adjusted net income (Non-GAAP) $ 287.3 $ 233.1 $ 249.6 Average shares outstanding Class A common shares 64.9 63.4 62.5 Assumed vesting or exchange of: Unvested Class A restricted share-based awards 5.5 5.7 5.7 Artisan Partners Holdings units outstanding (noncontrolling interests) 10.5 11.5 12.0 Adjusted shares 80.9 80.6 80.2 Basic earnings per share (GAAP) $ 3.66 $ 3.19 $ 2.94 Diluted earnings per share (GAAP) $ 3.66 $ 3.19 $ 2.94 Adjusted net income per adjusted share (Non-GAAP) $ 3.55 $ 2.89 $ 3.11 Operating income (GAAP) $ 366.6 $ 303.6 $ 344.1 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 7.8 4.8 (3.8) Add back: Non-recurring expenses 1.6 — — Adjusted operating income (Non-GAAP) $ 376.0 $ 308.4 $ 340.3 Operating margin (GAAP) 33.0 % 31.1 % 34.6 % Adjusted operating margin (Non-GAAP) 33.8 % 31.6 % 34.3 % Net income attributable to Artisan Partners Asset Management Inc.
(GAAP) $ 290.3 $ 259.7 $ 222.3 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings 58.2 52.9 49.5 Add back: Provision for income taxes 111.3 90.9 71.9 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 23.0 7.8 4.8 Add back: Net (gain) loss on the tax receivable agreements (0.6) 0.5 (0.5) Add back: Net investment (gain) loss of investment products attributable to APAM (58.0) (31.9) (38.4) Add back: Non-recurring expenses — 1.6 — Less: Adjusted provision for income taxes 104.8 94.2 76.5 Adjusted net income (Non-GAAP) $ 319.4 $ 287.3 $ 233.1 Average shares outstanding Class A common shares 65.6 64.9 63.4 Assumed vesting or exchange of: Unvested Class A restricted share-based awards 5.3 5.5 5.7 Artisan Partners Holdings units outstanding (noncontrolling interests) 10.2 10.5 11.5 Adjusted shares 81.1 80.9 80.6 Basic earnings per share (GAAP) $ 4.05 $ 3.66 $ 3.19 Diluted earnings per share (GAAP) $ 4.05 $ 3.66 $ 3.19 Adjusted net income per adjusted share (Non-GAAP) $ 3.93 $ 3.55 $ 2.89 Operating income (GAAP) $ 399.6 $ 366.6 $ 303.6 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans 23.0 7.8 4.8 Add back: Non-recurring expenses — 1.6 — Adjusted operating income (Non-GAAP) $ 422.6 $ 376.0 $ 308.4 Operating margin (GAAP) 33.4 % 33.0 % 31.1 % Adjusted operating margin (Non-GAAP) 35.3 % 33.8 % 31.6 % Net income attributable to Artisan Partners Asset Management Inc.
Holdings Unit Exchanges During the year ended December 31, 2024, certain limited partners of Holdings exchanged 1,173,667 common units (along with a corresponding number of shares of Class B or Class C common stock of APAM, as applicable) for 1,173,667 shares of Class A common stock. In connection with the exchanges, APAM received 1,173,667 GP units of Holdings.
Holdings Unit Exchanges During the year ended December 31, 2025, certain limited partners of Holdings exchanged 71,500 common units (along with a corresponding number of shares of Class B or Class C common stock of APAM, as applicable) for 71,500 shares of Class A common stock. In connection with the exchanges, APAM received 71,500 GP units of Holdings.
The following table presents the total returns of relevant market indices for the years ended December 31, 2024, 2023 and 2022: For the Years Ended December 31, 2024 2023 2022 S&P 500 total returns 25.0 % 26.3 % (18.1) % MSCI All Country World total returns 17.5 % 22.2 % (18.4) % MSCI EAFE total returns 3.8 % 18.2 % (14.5) % Russell Midcap® total returns 15.3 % 17.2 % (17.3) % MSCI Emerging Markets Index 7.5 % 9.8 % (20.1) % ICE BofA US High Yield Index 8.2 % 13.5 % (11.2) % 34 Table of Contents Key Performance Indicators When we review our business and financial performance we consider, among other things, the following: For the Years Ended December 31, 2024 2023 2022 (unaudited; dollars in millions) Assets under management at period end $ 161,208 $ 150,167 $ 127,892 Average assets under management (1) $ 160,232 $ 139,321 $ 141,516 Net client cash flows (2) $ (3,699) $ (4,076) $ (9,813) Total revenues $ 1,112 $ 975 $ 993 Weighted average management fee (3) 68.6 bps 69.8 bps 70.2 bps Operating margin 33.0 % 31.1 % 34.6 % Adjusted operating margin (4) 33.8 % 31.6 % 34.3 % (1) We compute average assets under management by averaging day-end assets under management for the applicable period.
The following table presents the total returns of relevant market indices for the years ended December 31, 2025, 2024 and 2023: For the Years Ended December 31, 2025 2024 2023 S&P 500 Index 17.9 % 25.0 % 26.3 % MSCI All Country World Index 22.3 % 17.5 % 22.2 % MSCI EAFE Index 31.2 % 3.8 % 18.2 % Russell ® Midcap Index 10.6 % 15.3 % 17.2 % MSCI Emerging Markets Index 33.6 % 7.5 % 9.8 % ICE BofA US High Yield Index 8.5 % 8.2 % 13.5 % 34 Table of Contents Key Performance Indicators When we review our business and financial performance we consider, among other things, the following: For the Years Ended December 31, 2025 2024 2023 (unaudited; dollars in millions) Assets under management at period end $ 179,928 $ 161,208 $ 150,167 Average assets under management (1) $ 173,004 $ 160,232 $ 139,321 Net client cash flows (2) $ (12,662) $ (3,699) $ (4,076) Total revenues $ 1,197 $ 1,112 $ 975 Weighted average fee (3) 69.3 bps 69.5 bps 70.4 bps Operating margin 33.4 % 33.0 % 31.1 % Adjusted operating margin (4) 35.3 % 33.8 % 31.6 % (1) We compute average AUM by averaging day-end AUM for the applicable period.
In the first quarter of 2025, we intend to invest an additional $46.8 million related to our economic hedge of franchise capital awards in connection with the grant that was approved by our Board on January 29, 2025.
In the first quarter of 2026, we intend to invest an additional $50.6 million related to our economic hedge of franchise capital awards in connection with the grant that was approved by our Board on January 29, 2026.
We utilize cash to make seed investments in Artisan-sponsored investment products to support the development of new investment strategies and vehicles. As of December 31, 2024, the balance of all seed investments, including investments in consolidated investment products, was $154.9 million.
We utilize cash to make seed investments in Artisan-sponsored investment products to support the development of new investment strategies and vehicles. As of December 31, 2025, the balance of all seed investments, including investments in consolidated investment products, was $151.6 million.
These borrowings contain certain customary covenants including limitations on Artisan Partners Holdings’ ability to: (i) incur additional indebtedness or liens, (ii) engage in mergers or other fundamental changes, (iii) sell or otherwise dispose of assets including equity interests, and (iv) make dividend payments or other distributions to Artisan Partners Holdings’ partners (other than, among others, tax distributions paid to partners for the purpose of funding tax liabilities attributable to their interests) when a default occurred and is continuing or would result from such a distribution.
Holdings maintained an investment grade rating for the year ended December 31, 2025. 54 Table of Contents These borrowings contain certain customary covenants including limitations on Artisan Partners Holdings’ ability to: (i) incur additional indebtedness or liens, (ii) engage in mergers or other fundamental changes, (iii) sell or otherwise dispose of assets including equity interests and (iv) make dividend payments or other distributions to Artisan Partners Holdings’ partners (other than, among others, tax distributions paid to partners for the purpose of funding tax liabilities attributable to their interests) when a default occurred and is continuing or would result from such a distribution.
The following table shows our liquidity position as of December 31, 2024 and December 31, 2023: December 31, 2024 December 31, 2023 (in millions) Cash and cash equivalents $ 201.2 $ 141.0 Accounts receivable 118.7 101.2 Seed investments (1) 154.9 150.1 Undrawn commitment on revolving credit facility 100.0 100.0 (1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated investment products.
The following table shows our liquidity position as of December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 (in millions) Cash and cash equivalents $ 214.4 $ 201.2 Accounts receivable 154.5 118.7 Seed investments (1) 151.6 154.9 Undrawn commitment on revolving credit facility 100.0 100.0 (1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated investment products.
We expect to continue our measured investments in technology to support our investment teams, distribution efforts, and scalable operations. We expect 2025 communication and technology expense to be relatively consistent with 2024. On behalf of our clients, we make decisions to buy and sell securities, select broker-dealers to execute trades and negotiate brokerage commission rates.
We expect to continue our measured investments in technology to support our investment teams, distribution efforts and scalable operations. On behalf of our clients, we make decisions to buy and sell securities, select broker-dealers to execute trades and negotiate brokerage commission rates.
The amount and composition of our AUM are, and will continue to be, influenced by a variety of factors including, among others: • investment performance, including fluctuations in both the financial markets and foreign currency exchange rates and the quality of our investment decisions; • flows of client assets into and out of our various strategies and investment vehicles; • our decision to close strategies or limit the growth of assets in a strategy or a vehicle when we believe it is in the best interest of our clients, as well as our decision to re-open strategies, in part or entirely; • our ability to attract and retain qualified investment, management, and marketing and client service professionals; • industry trends towards products, strategies, vehicles or services that we do not offer; • competitive conditions in the investment management and broader financial services sectors; and • investor sentiment and confidence. 35 Table of Contents The table below sets forth changes in our total AUM: For the Years Ended December 31, 2024 2023 2022 (unaudited; dollars in millions) Beginning assets under management $ 150,167 $ 127,892 $ 174,754 Gross client cash inflows 25,650 21,395 27,227 Gross client cash outflows (29,349) (25,471) (37,040) Net client cash flows (1) (3,699) (4,076) (9,813) Artisan Funds’ distributions not reinvested (2) (1,193) (684) (497) Investment returns and other (3) 15,933 27,035 (36,552) Ending assets under management $ 161,208 $ 150,167 $ 127,892 Average assets under management $ 160,232 $ 139,321 $ 141,516 (1) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested by fund shareholders.
The amount and composition of our AUM are, and will continue to be, influenced by a variety of factors including, among others: • investment performance, including fluctuations in financial markets and foreign currency exchange rates and the quality of our investment decisions, as assessed relative to applicable third-party benchmarks and peer groups, as appropriate; • flows of client assets into and out of our various strategies and investment vehicles; • our decision to close strategies or limit the growth of assets in a strategy or a vehicle when we believe it is in the best interest of our clients, as well as our decision to re-open strategies, in part or entirely; • our ability to attract and retain qualified investment, management, and marketing and client service professionals; • industry trends towards products, strategies, vehicles or services that we do not offer; • competitive conditions in the investment management and broader financial services sectors; and • investor sentiment and confidence. 35 Table of Contents The table below sets forth changes in our total AUM: For the Years Ended December 31, 2025 2024 2023 (unaudited; dollars in millions) Beginning assets under management $ 161,208 $ 150,167 $ 127,892 Gross client cash inflows 27,034 25,650 21,395 Gross client cash outflows (39,696) (29,349) (25,471) Net client cash flows (1) (12,662) (3,699) (4,076) Artisan Funds’ distributions not reinvested (1,982) (1,193) (684) Investment returns and other (2) 33,364 15,933 27,035 Ending assets under management $ 179,928 $ 161,208 $ 150,167 Average assets under management $ 173,004 $ 160,232 $ 139,321 (1) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested by fund shareholders.
Financial highlights for 2024 included the following: • During the year ended December 31, 2024, our AUM increased to $161.2 billion, an increase of $11.0 billion, or 7%, compared to $150.2 billion at December 31, 2023, as a result of $15.9 billion of market appreciation, partially offset by $3.7 billion of net client cash outflows, and $1.2 billion of Artisan Funds’ distributions that were not reinvested by fund shareholders. • Average AUM for the year ended December 31, 2024 was $160.2 billion, an increase of 15.0% from the average of $139.3 billion for the year ended December 31, 2023. • We earned $1,111.8 million in revenue for the year ended December 31, 2024, a 14.0% increase from revenues of $975.1 million for the year ended December 31, 2023. • Our GAAP operating margin was 33.0% in 2024, compared to 31.1% in 2023.
Financial highlights for 2025 included the following: • During the year ended December 31, 2025, our AUM increased to $179.9 billion, an increase of $18.7 billion, or 12%, compared to $161.2 billion at December 31, 2024, as a result of $33.4 billion of market appreciation, partially offset by $12.7 billion of net client cash outflows, and $2.0 billion of Artisan Funds’ distributions that were not reinvested by fund shareholders. • Average AUM for the year ended December 31, 2025 was $173.0 billion, an increase of 8.0% from the average of $160.2 billion for the year ended December 31, 2024. • We earned $1,196.7 million in revenue for the year ended December 31, 2025, a 7.6% increase from revenues of $1,111.8 million for the year ended December 31, 2024. • Our GAAP operating margin was 33.4% in 2025, compared to 33.0% in 2024.
We expect our quarterly cash generation to approximate adjusted net income plus long-term incentive compensation award expense, less cash reserved for future franchise capital awards (which we generally expect will approximate 4% of investment management revenues each quarter) with additional adjustments made for certain other sources and uses of cash, including capital expenditures.
We expect our quarterly cash generation to approximate adjusted net income plus long-term incentive compensation award expense, less cash reserved for future franchise capital awards, with additional adjustments made for certain other sources and uses of cash, including capital expenditures.
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 and (4) non-recurring expenses.
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) non-recurring expenses and (5) the adjustment to deferred taxes as a result of the OBBBA enactment.
(2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested by fund shareholders. (3) We compute our weighted average management fee by dividing annualized investment management fees (which excludes performance fees) by average assets under management for the applicable period.
(2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested by fund shareholders. (3) We compute our weighted average fee by dividing annualized investment management fees, including performance fees, by average AUM for the applicable period. Prior to December 2025, we presented weighted average management fee, which excluded performance fees.
Financing activities consist primarily of partnership distributions to non-controlling interests, dividend payments to holders of our Class A common stock, contributions and distributions to consolidated investment products, and payments of amounts owed under the tax receivable agreements.
Financing activities consist primarily of dividend payments to holders of our Class A common stock, partnership distributions to non-controlling interests, contributions to and distributions from consolidated investment products, payments of principal or proceeds received from our senior notes and payments owed under the tax receivable agreements.
During the year ended December 31, 2024, we also made investments of $39.4 million related to funded long-term incentive compensation plans. As of December 31, 2024, the value of investments held in connection with funded long-term incentive compensations plans was $150.4 million.
During the year ended December 31, 2025, we made investments of $46.8 million related to funded long-term incentive compensation plans. As of December 31, 2025, the value of investments held in connection with funded long-term incentive compensations plans was $219.4 million.
APAM declared and paid the following dividends per share during the years ended December 31, 2024 and 2023: For the Years Ended December 31, Type of Dividend Class of Stock 2024 2023 Quarterly Class A Common $ 2.82 $ 2.31 Special Annual Class A Common $ 0.34 $ 0.35 Our Board declared, effective February 4, 2025 , a variable quarterly dividend of $0.84 per share of Class A common stock with respect to the December quarter of 2024 and a special annual dividend of $0.50 per share.
APAM declared and paid the following dividends per share during the years ended December 31, 2025 and 2024: For the Years Ended December 31, Type of Dividend Class of Stock 2025 2024 Quarterly Class A Common $ 3.13 $ 2.82 Special Annual Class A Common $ 0.50 $ 0.34 Our Board declared, effective February 3, 2026 , a dividend of $1.58 per share of Class A common stock, consisting of a variable quarterly dividend of $1.01 per share of Class A common stock with respect to the December quarter of 2025 and a special annual dividend of $0.57 per share.
Adjusted operating margin was 33.8% in 2024, compared to 31.6% in 2023. • We generated $3.66 of earnings per basic and diluted share and $3.55 of adjusted EPS. • We declared and distributed dividends of $3.16 per share of Class A common stock during 2024. • We declared, effective February 4, 2025, a quarterly dividend of $0.84 per share of Class A common stock with respect to the December 2024 quarter and a special annual dividend of $0.50 per share, for a total of $3.48 of dividends per share with respect to 2024. 33 Table of Contents Organizational Structure Organizational Structure Our operations are conducted through Artisan Partners Holdings LP (“Holdings”) and its subsidiaries.
Adjusted operating margin was 35.3% in 2025, compared to 33.8% in 2024. • We generated $4.05 of earnings per basic and diluted share and $3.93 of adjusted EPS. • We declared and distributed dividends of $3.63 per share of Class A common stock during 2025. • We declared, effective February 3, 2026, a quarterly dividend of $1.01 per share of Class A common stock with respect to the December 2025 quarter and a special annual dividend of $0.57 per share, for a total of $3.87 of dividends per share with respect to 2025. 33 Table of Contents Organizational Structure Organizational Structure Our operations are conducted through Artisan Partners Holdings LP (“Holdings”) and its subsidiaries.
During the year ended December 31, 2024, we made payments totaling $36.9 million, related to the TRAs, including interest. In 2025, we expect to make payments of approximately $38.9 million related to the TRAs.
During the year ended December 31, 2025, we made payments totaling $38.5 million, related to the TRAs, including interest. In 2026, we expect to make payments of approximately $40.4 million related to the TRAs.
Artisan serves as the investment manager and acts as the general partner for certain Artisan Private Funds. Under the terms of these agreements, Artisan earns a management fee, and for certain funds is entitled to receive either an allocation of profits or a performance-based fee.
Under the terms of these agreements, Artisan earns a management fee, and for certain funds is entitled to receive either an allocation of profits or a performance-based fee.
During the first quarter of 2025, the Board approved the annual grant of long-term incentive awards with a grant date fair value of $65.9 million consisting of $19.1 million of restricted share-based awards and $46.8 million of franchise capital awards, to certain employees pursuant to the Company’s 2023 Omnibus Incentive Compensation Plan. The grant will be effective March 3, 2025.
During the first quarter of 2026, the Board approved the annual grant of long-term incentive awards with a grant date fair value of $71.8 million consisting of $21.2 million of restricted share-based awards and $50.6 million of franchise capital awards, to certain employees pursuant to the Company’s 2023 Omnibus Incentive Compensation Plan. The grant will be effective March 2, 2026.
Investment advisory fees, which are comprised of management fees and performance fees (including incentive allocations), fluctuate based on a number of factors, including the total value of our AUM, the composition of AUM among investment vehicles and investment strategies, changes in the fee rates on our products, the extent to which we enter into fee arrangements that differ from our standard fee schedules, which can be affected by custom and the competitive landscape in the relevant market, and, for the accounts on which we earn performance fees, the investment performance of those accounts.
Investment advisory fees, which are comprised of management fees and performance fees (including incentive allocations), fluctuate based on a number of factors, including the total value of our AUM, the composition of AUM among investment vehicles and investment strategies, changes in the fee rates on our products, the extent to which we enter into fee arrangements that differ from our standard fee schedules, which can be affected by custom and the competitive landscape in the relevant market, and, for the accounts on which we earn performance fees, the investment performance of those accounts. 43 Table of Contents The different fee structures associated with Artisan Funds, Artisan Global Funds and separate accounts and other pooled vehicles, and the different fee schedules applicable to each of our investment strategies, make the composition of our AUM an important determinant of the investment advisory fees we earn.
Artisan Partners Limited Partnership, a wholly-owned subsidiary of Holdings, has guaranteed Holdings’ obligations under the terms of the Note Purchase Agreement. 54 Table of Contents In addition, covenants in the note purchase and revolving credit agreements require Artisan Partners Holdings to maintain the following financial ratios: • leverage ratio (calculated as the ratio of consolidated total indebtedness on any date to consolidated EBITDA for the period of four consecutive fiscal quarters ended on or prior to such date) cannot exceed 3.00 to 1.00 (Artisan Partners Holdings’ leverage ratio for the year ended December 31, 2024 was 0.5 to 1.00); and • interest coverage ratio (calculated as the ratio of consolidated EBITDA for any period of four consecutive fiscal quarters to consolidated interest expense for such period) cannot be less than 4.00 to 1.00 for such period (Artisan Partners Holdings’ interest coverage ratio for the year ended December 31, 2024 was 54.8 to 1.00).
In addition, covenants in the note purchase and revolving credit agreements require Artisan Partners Holdings to maintain the following financial ratios: • leverage ratio (calculated as the ratio of consolidated total indebtedness on any date to consolidated EBITDA for the period of four consecutive fiscal quarters ended on or prior to such date) cannot exceed 3.00 to 1.00 (Artisan Partners Holdings’ leverage ratio for the year ended December 31, 2025 was 0.4 to 1.00); and • interest coverage ratio (calculated as the ratio of consolidated EBITDA for any period of four consecutive fiscal quarters to consolidated interest expense for such period) cannot be less than 4.00 to 1.00 for such period (Artisan Partners Holdings’ interest coverage ratio for the year ended December 31, 2025 was 60.3 to 1.00).
See Note 12, “Earnings Per Share” in the Notes to the consolidated financial statements in Item 8 of this report for further discussion of earnings per share. 50 Table of Contents Year Ended December 31, 2023, Compared to the Year Ended December 31, 2022 For the Years Ended December 31, For the Period-to-Period 2023 2022 $ % Statements of operations data: (in millions, except share and per-share data) Revenues Management fees $ 970.8 $ 992.7 $ (21.9) (2) % Performance fees 4.3 0.6 3.7 617 % Total revenues 975.1 993.3 (18.2) (2) % Operating Expenses Total compensation and benefits 529.4 510.4 19.0 4 % Other operating expenses 142.1 138.8 3.3 2 % Total operating expenses 671.5 649.2 22.3 3 % Total operating income 303.6 344.1 (40.5) (12) % Non-operating income (expense) Interest expense (8.6) (9.9) 1.3 13 % Other non-operating income 88.7 (22.4) 111.1 496 % Total non-operating income (expense) 80.1 (32.3) 112.4 348 % Income before income taxes 383.7 311.8 71.9 23 % Provision for income taxes 71.9 63.4 8.5 13 % Net income before noncontrolling interests 311.8 248.4 63.4 26 % Less: Noncontrolling interests - Artisan Partners Holdings 49.5 49.1 0.4 1 % Less: Noncontrolling interests - consolidated investment products 40.0 (7.5) 47.5 633 % Net income attributable to Artisan Partners Asset Management Inc. $ 222.3 $ 206.8 $ 15.5 7 % Share Data Basic earnings per share $ 3.19 $ 2.94 Diluted earnings per share $ 3.19 $ 2.94 Basic weighted average number of common shares outstanding 63,451,932 62,475,960 Diluted weighted average number of common shares outstanding 63,486,479 62,498,509 A detailed discussion of the year-over-year results for the year ended December 31, 2023, compared to the year ended December 31, 2022, can be found in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 22, 2024. 51 Table of Contents Supplemental Non-GAAP Financial Information Our management uses non-GAAP measures (referred to as “adjusted” measures) of net income to evaluate the profitability and efficiency of the underlying operations of our business and as a factor when considering net income available for distributions and dividends.
See Note 12, “Earnings Per Share” in the Notes to the consolidated financial statements in Item 8 of this report for further discussion of earnings per share. 50 Table of Contents Year Ended December 31, 2024, Compared to the Year Ended December 31, 2023 For the Years Ended December 31, For the Period-to-Period 2024 2023 $ % Statements of operations data: (in millions, except share and per-share data) Revenues Management fees $ 1,097.0 $ 970.8 $ 126.2 13 % Performance fees 14.8 4.3 10.5 244 % Total revenues 1,111.8 975.1 136.7 14 % Operating Expenses Total compensation and benefits 594.1 529.4 64.7 12 % Other operating expenses 151.1 142.1 9.0 6 % Total operating expenses 745.2 671.5 73.7 11 % Total operating income 366.6 303.6 63.0 21 % Non-operating income (expense) Interest expense (8.6) (8.6) — — % Other non-operating income 82.6 88.7 (6.1) (7) % Total non-operating income (expense) 74.0 80.1 (6.1) (8) % Income before income taxes 440.6 383.7 56.9 15 % Provision for income taxes 90.9 71.9 19.0 26 % Net income before noncontrolling interests 349.7 311.8 37.9 12 % Less: Noncontrolling interests - Artisan Partners Holdings 52.9 49.5 3.4 7 % Less: Noncontrolling interests - consolidated investment products 37.1 40.0 (2.9) (7) % Net income attributable to Artisan Partners Asset Management Inc. $ 259.7 $ 222.3 $ 37.4 17 % Share Data Basic earnings per share $ 3.66 $ 3.19 Diluted earnings per share $ 3.66 $ 3.19 Basic weighted average number of common shares outstanding 64,900,228 63,451,932 Diluted weighted average number of common shares outstanding 64,939,183 63,486,479 A detailed discussion of the year-over-year results for the year ended December 31, 2024, compared to the year ended December 31, 2023, can be found in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025. 51 Table of Contents Supplemental Non-GAAP Financial Information Our management uses non-GAAP measures (referred to as “adjusted” measures) of net income to evaluate the profitability and efficiency of the underlying operations of our business and as a factor when considering net income available for distributions and dividends.
As of December 31, 2024, we had approximately $117.1 million of future minimum rent commitments under non-cancellable leasing arrangements.
As of December 31, 2025, we had approximately $151.0 million of future minimum rent commitments under non-cancellable leasing arrangements.
Distributions and Dividends Artisan Partners Holdings’ distributions, including distributions to APAM, for the years ended December 31, 2024 and 2023 were as follows: For the Years Ended December 31, 2024 2023 (in millions) Holdings Partnership Distributions to Limited Partners $ 48.9 $ 44.7 Holdings Partnership Distributions to APAM 305.9 248.3 Total Holdings Partnership Distributions $ 354.8 $ 293.0 APAM, acting as the general partner of Artisan Partners Holdings, declared, effective February 4, 2025, a distribution of $41.3 million, payable by Artisan Partners Holdings on February 21, 2025 to holders of its partnership units, including APAM.
Distributions and Dividends Artisan Partners Holdings’ distributions, including distributions to APAM, for the years ended December 31, 2025 and 2024 were as follows: For the Years Ended December 31, 2025 2024 (in millions) Holdings Partnership Distributions to Limited Partners $ 56.2 $ 48.9 Holdings Partnership Distributions to APAM 363.1 305.9 Total Holdings Partnership Distributions $ 419.3 $ 354.8 APAM, acting as the general partner of Artisan Partners Holdings, declared, effective February 3, 2026, a distribution of $47.8 million, payable by Artisan Partners Holdings on February 20, 2026 to holders of its partnership units, including APAM.
Occupancy Occupancy expenses include operating leases for facilities, furniture and office equipment, miscellaneous facility related costs and depreciation expense associated with furniture purchases and leasehold improvements. We expect 2025 occupancy expense to be relatively consistent with 2024.
Occupancy Occupancy expenses include operating leases for facilities, furniture and office equipment, miscellaneous facility related costs and depreciation expense associated with furniture purchases and leasehold improvements.
The following table sets forth revenues we earned by vehicle type for the years ended December 31, 2024, 2023 and 2022: For the Years Ended December 31, 2024 2023 2022 Revenues (in millions) Management fees Artisan Funds & Artisan Global Funds $ 688.8 $ 606.3 $ 617.0 Separate accounts and other 408.2 364.5 375.7 Performance fees 14.8 4.3 0.6 Total revenues $ 1,111.8 $ 975.1 $ 993.3 Average assets under management for period $ 160,232 $ 139,321 $ 141,516 Management fees and performance fees (including incentive allocations) earned from consolidated investment products are eliminated from revenue upon consolidation.
The following table sets forth revenues we earned by vehicle type for the years ended December 31, 2025, 2024 and 2023: For the Years Ended December 31, 2025 2024 2023 Revenues (in millions) Management fees Artisan Funds and Artisan Global Funds $ 741.8 $ 688.8 $ 606.3 Separate accounts and other 425.8 408.2 364.5 Performance fees 29.1 14.8 4.3 Total revenues $ 1,196.7 $ 1,111.8 $ 975.1 Management fees and performance fees (including incentive allocations) earned from consolidated investment products are eliminated from revenue upon consolidation.
The $100 million revolving credit facility was unused as of and for the year ended December 31, 2024. The fixed interest rate on each series of unsecured notes is subject to a 100 basis point increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received.
The fixed interest rate on each series of unsecured notes is subject to a 100 basis point increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received.
Since the IPO, and including the grant in the first quarter of 2025, our Board has approved equity grants of 12,800,786 restricted share-based awards. Total unrecognized non-cash compensation expense for these awards is $72.2 million.
Since the IPO, and including the grant in the first quarter of 2026, our Board has approved equity grants of 13,282,409 restricted share-based awards. Total unrecognized non-cash compensation expense for these awards is $66.0 million.
The Franchise Protection Clause provides that the total number of career awards ultimately vesting will be reduced to the extent that cumulative net client cash outflows from the award recipient’s investment team during a specified measurement period exceeds a set threshold. Performance share units (“PSUs”) were granted to certain executive officers of the Company in 2020, 2021 and 2022.
The Franchise Protection Clause provides that the total number of career awards ultimately vesting will be reduced to the extent that cumulative net client cash outflows from the award recipient’s investment team during a specified measurement period exceeds a set threshold.
Our investment management fees also differ by investment strategy, with higher-capacity strategies having lower standard fee rates than strategies with more limited capacity. 43 Table of Contents Certain separate account clients pay us fees based on the performance of their accounts relative to agreed-upon benchmarks, which typically results in a lower base fee, but allows us to earn higher fees if the performance we achieve for that client is superior to the performance of the agreed-upon benchmark.
Certain separate account clients pay us fees based on the performance of their accounts relative to agreed-upon benchmarks, which typically results in a lower base fee, but allows us to earn higher fees if the performance we achieve for that client is superior to the performance of the agreed-upon benchmark.
Overview and Recent Highlights We are an investment management firm focused on providing high value-added, active investment strategies for sophisticated clients around the world. As of December 31, 2024, our 11 autonomous investment teams managed a total of 25 investment strategies across multiple asset classes and investment styles.
Overview and Recent Highlights We are a global multi-asset investment platform focused on providing a broad range of high-value added investment strategies in growing asset classes to sophisticated clients around the world. As of December 31, 2025, our 11 autonomous investment teams managed a total of 26 investment strategies across multiple asset classes and investment styles.
As of the date of this filing, unvested equity awards consist of the following number of shares by vesting condition: Service Only Service & Performance Conditions Service & Market Conditions Total Standard Pro Rata 5-Year Vesting 941,746 — — 941,746 Qualified Retirement 2,961,290 1,531,526 38,985 4,531,801 Total Unvested 3,903,036 1,531,526 38,985 5,473,547 Including the long-term incentive award approved in the first quarter of 2025, total unrecognized long-term incentive compensation expense (including both equity grants and franchise capital awards) is $211.1 million.
As of the date of this filing, unvested equity awards consist of the following number of shares by vesting condition: Service Only Service & Performance Conditions Service & Market Conditions Total Standard Pro Rata 5-Year Vesting 891,320 — — 891,320 Qualified Retirement 2,735,125 1,550,911 38,985 4,325,021 Total Unvested 3,626,445 1,550,911 38,985 5,216,341 Including the long-term incentive award approved in the first quarter of 2026, total unrecognized long-term incentive compensation expense (including both equity grants and franchise capital awards) is $235.4 million.
Net Gain (Loss) on the Tax Receivable Agreements Non-operating income (expense) also includes gains or losses related to the changes in our estimate of the payment obligation under the TRAs, including the impact of tax rate changes.
Interest Income on Cash and Cash Equivalents and Other Interest income on cash and cash equivalents and other includes income earned from investing excess operating cash in various money market funds. 46 Table of Contents Net Gain (Loss) on the Tax Receivable Agreements Non-operating income (expense) also includes gains or losses related to the changes in our estimate of the payment obligation under the TRAs, including the impact of tax rate changes.
(4) Net transfers represents 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. 41 Table of Contents The following table sets forth our AUM by asset class: Year Ended Equity (1) Fixed Income (2) Alternative (3) Total December 31, 2024 (unaudited; in millions) Beginning assets under management $ 137,368 $ 10,009 $ 2,790 $ 150,167 Gross client cash inflows 18,708 6,067 875 25,650 Gross client cash outflows (25,548) (2,793) (1,008) (29,349) Net client cash flows (4) (6,840) 3,274 (133) (3,699) Artisan Funds' distributions not reinvested (5) (786) (360) (47) (1,193) Investment returns and other 14,227 954 752 15,933 Ending assets under management $ 143,969 $ 13,877 $ 3,362 $ 161,208 Average assets under management $ 145,000 $ 11,954 $ 3,278 $ 160,232 December 31, 2023 Beginning assets under management $ 116,832 $ 7,059 $ 4,001 $ 127,892 Gross client cash inflows 16,671 4,046 678 21,395 Gross client cash outflows (21,072) (2,059) (2,340) (25,471) Net client cash flows (4) (4,401) 1,987 (1,662) (4,076) Artisan Funds' distributions not reinvested (5) (414) (270) — (684) Investment returns and other 25,351 1,233 451 27,035 Ending assets under management $ 137,368 $ 10,009 $ 2,790 $ 150,167 Average assets under management $ 127,390 $ 8,440 $ 3,491 $ 139,321 December 31, 2022 Beginning assets under management $ 161,083 $ 8,037 $ 5,634 $ 174,754 Gross client cash inflows 23,064 3,038 1,125 27,227 Gross client cash outflows (32,714) (3,020) (1,306) (37,040) Net client cash flows (4) (9,650) 18 (181) (9,813) Artisan Funds' distributions not reinvested (5) (283) (209) (5) (497) Investment returns and other (34,318) (787) (1,447) (36,552) Ending assets under management $ 116,832 $ 7,059 $ 4,001 $ 127,892 Average assets under management $ 129,387 $ 7,443 $ 4,686 $ 141,516 (1) Equity includes the following investment strategies: Mid-Cap Growth, Small-Cap Growth, Mid-Cap Value, Non-U.S.
(3) Net transfers represents 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. 41 Table of Contents The following table sets forth our AUM by asset class: Years Ended Equity (1) Credit (2) Alternative (3) Total December 31, 2025 (unaudited; in millions) Beginning assets under management $ 143,969 $ 13,877 $ 3,362 $ 161,208 Gross client cash inflows 20,365 5,376 1,293 27,034 Gross client cash outflows (35,996) (2,535) (1,165) (39,696) Net client cash flows (4) (15,631) 2,841 128 (12,662) Artisan Funds' distributions not reinvested (1,573) (379) (30) (1,982) Investment returns and other 31,253 1,538 573 33,364 Ending assets under management $ 158,018 $ 17,877 $ 4,033 $ 179,928 Average assets under management $ 153,594 $ 15,643 $ 3,767 $ 173,004 December 31, 2024 Beginning assets under management $ 137,368 $ 10,009 $ 2,790 $ 150,167 Gross client cash inflows 18,708 6,067 875 25,650 Gross client cash outflows (25,548) (2,793) (1,008) (29,349) Net client cash flows (4) (6,840) 3,274 (133) (3,699) Artisan Funds' distributions not reinvested (786) (360) (47) (1,193) Investment returns and other 14,227 954 752 15,933 Ending assets under management $ 143,969 $ 13,877 $ 3,362 $ 161,208 Average assets under management $ 145,000 $ 11,954 $ 3,278 $ 160,232 December 31, 2023 Beginning assets under management $ 116,832 $ 7,059 $ 4,001 $ 127,892 Gross client cash inflows 16,671 4,046 678 21,395 Gross client cash outflows (21,072) (2,059) (2,340) (25,471) Net client cash flows (4) (4,401) 1,987 (1,662) (4,076) Artisan Funds' distributions not reinvested (414) (270) — (684) Investment returns and other 25,351 1,233 451 27,035 Ending assets under management $ 137,368 $ 10,009 $ 2,790 $ 150,167 Average assets under management $ 127,390 $ 8,440 $ 3,491 $ 139,321 (1) Equity includes the following investment strategies: U.S.
Value Int’l Value Group Global Value SEM Credit Developing World Antero Peak Group Int’l Small-Mid EMsights Capital Group Total December 31, 2024 (unaudited; in millions) Beginning assets under management $ 38,546 $ 13,725 $ 7,057 $ 41,009 $ 25,670 $ 917 $ 9,683 $ 3,453 $ 2,101 $ 7,151 $ 855 $ 150,167 Gross client cash inflows 4,256 519 655 7,250 3,507 1,094 4,419 558 489 882 2,021 25,650 Gross client cash outflows (9,652) (2,685) (804) (6,238) (3,254) (552) (2,745) (887) (957) (1,494) (81) (29,349) Net client cash flows (2) (5,396) (2,166) (149) 1,012 253 542 1,674 (329) (468) (612) 1,940 (3,699) Artisan Funds’ distributions not reinvested (3) (112) (109) (11) (507) (31) — (360) — (46) (16) (1) (1,193) Investment returns and other 5,407 1,484 700 2,781 2,787 93 945 976 624 21 115 15,933 Ending 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 Average assets under management $ 39,403 $ 13,688 $ 7,454 $ 44,170 $ 28,029 $ 1,414 $ 11,040 $ 3,917 $ 2,282 $ 7,096 $ 1,739 $ 160,232 December 31, 2023 Beginning assets under management $ 33,977 $ 13,871 $ 6,088 $ 30,210 $ 21,767 $ 873 $ 7,140 $ 3,466 $ 3,676 $ 6,752 $ 72 $ 127,892 Gross client cash inflows 3,730 764 452 8,190 2,092 138 3,623 585 342 722 757 21,395 Gross client cash outflows (6,570) (2,759) (762) (4,415) (3,755) (236) (2,063) (1,513) (2,331) (1,063) (4) (25,471) Net client cash flows (2) (2,840) (1,995) (310) 3,775 (1,663) (98) 1,560 (928) (1,989) (341) 753 (4,076) Artisan Funds’ distributions not reinvested (3) (11) (26) (36) (325) (15) — (270) — — (1) — (684) Investment returns and other 7,420 1,875 1,315 7,349 5,581 142 1,253 915 414 741 30 27,035 Ending assets under management $ 38,546 $ 13,725 $ 7,057 $ 41,009 $ 25,670 $ 917 $ 9,683 $ 3,453 $ 2,101 $ 7,151 $ 855 $ 150,167 Average assets under management $ 36,541 $ 13,849 $ 6,514 $ 35,990 $ 23,332 $ 874 $ 8,328 $ 3,512 $ 3,041 $ 6,949 $ 391 $ 139,321 December 31, 2022 Beginning assets under management $ 52,434 $ 23,581 $ 8,053 $ 31,816 $ 26,744 $ 1,173 $ 8,157 $ 8,102 $ 5,277 $ 9,417 $ — $ 174,754 Gross client cash inflows 7,069 1,385 544 7,560 2,759 293 3,021 1,599 1,064 1,867 66 27,227 Gross client cash outflows (8,579) (6,432) (1,617) (6,617) (4,003) (226) (3,033) (2,998) (1,286) (2,249) — (37,040) Net client cash flows (2) (1,510) (5,047) (1,073) 943 (1,244) 67 (12) (1,399) (222) (382) 66 (9,813) Artisan Funds’ distributions not reinvested (3) (5) (34) (47) (173) (16) — (209) (7) (5) (1) — (497) Investment returns and other (16,942) (4,629) (845) (2,376) (3,717) (367) (796) (3,230) (1,374) (2,282) 6 (36,552) Ending assets under management $ 33,977 $ 13,871 $ 6,088 $ 30,210 $ 21,767 $ 873 $ 7,140 $ 3,466 $ 3,676 $ 6,752 $ 72 $ 127,892 Average assets under management (4) $ 38,565 $ 16,722 $ 7,146 $ 30,406 $ 23,574 $ 996 $ 7,548 $ 4,872 $ 4,350 $ 7,297 $ 53 $ 141,516 (1) Effective March 31, 2024, the International Small-Mid team, managing the Non-U.S.
Value Int’l Value Group Global Value SEM Credit Developing World Antero Peak Group Int’l Small-Mid EMsights Capital Group Total December 31, 2025 (unaudited; in millions) 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 3,673 1,380 744 8,728 3,780 630 4,814 828 491 642 1,324 27,034 Gross client cash outflows (14,698) (2,668) (1,200) (8,232) (4,904) (332) (2,376) (972) (668) (3,174) (472) (39,696) Net client cash flows (2) (11,025) (1,288) (456) 496 (1,124) 298 2,438 (144) (177) (2,532) 852 (12,662) Artisan Funds’ distributions not reinvested (83) (271) (16) (1,110) (39) (2) (377) — (23) (52) (9) (1,982) Investment returns and other 3,922 4,532 755 10,329 9,748 689 1,048 327 435 953 626 33,364 Ending 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 Average assets under management $ 36,189 $ 14,774 $ 7,635 $ 50,186 $ 32,802 $ 2,001 $ 13,239 $ 4,571 $ 2,388 $ 5,532 $ 3,687 $ 173,004 December 31, 2024 Beginning assets under management $ 38,546 $ 13,725 $ 7,057 $ 41,009 $ 25,670 $ 917 $ 9,683 $ 3,453 $ 2,101 $ 7,151 $ 855 $ 150,167 Gross client cash inflows 4,256 519 655 7,250 3,507 1,094 4,419 558 489 882 2,021 25,650 Gross client cash outflows (9,652) (2,685) (804) (6,238) (3,254) (552) (2,745) (887) (957) (1,494) (81) (29,349) Net client cash flows (2) (5,396) (2,166) (149) 1,012 253 542 1,674 (329) (468) (612) 1,940 (3,699) Artisan Funds’ distributions not reinvested (112) (109) (11) (507) (31) — (360) — (46) (16) (1) (1,193) Investment returns and other 5,407 1,484 700 2,781 2,787 93 945 976 624 21 115 15,933 Ending 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 Average assets under management $ 39,403 $ 13,688 $ 7,454 $ 44,170 $ 28,029 $ 1,414 $ 11,040 $ 3,917 $ 2,282 $ 7,096 $ 1,739 $ 160,232 December 31, 2023 Beginning assets under management $ 33,977 $ 13,871 $ 6,088 $ 30,210 $ 21,767 $ 873 $ 7,140 $ 3,466 $ 3,676 $ 6,752 $ 72 $ 127,892 Gross client cash inflows 3,730 764 452 8,190 2,092 138 3,623 585 342 722 757 21,395 Gross client cash outflows (6,570) (2,759) (762) (4,415) (3,755) (236) (2,063) (1,513) (2,331) (1,063) (4) (25,471) Net client cash flows (2) (2,840) (1,995) (310) 3,775 (1,663) (98) 1,560 (928) (1,989) (341) 753 (4,076) Artisan Funds’ distributions not reinvested (11) (26) (36) (325) (15) — (270) — — (1) — (684) Investment returns and other 7,420 1,875 1,315 7,349 5,581 142 1,253 915 414 741 30 27,035 Ending assets under management $ 38,546 $ 13,725 $ 7,057 $ 41,009 $ 25,670 $ 917 $ 9,683 $ 3,453 $ 2,101 $ 7,151 $ 855 $ 150,167 Average assets under management $ 36,541 $ 13,849 $ 6,514 $ 35,990 $ 23,332 $ 874 $ 8,328 $ 3,512 $ 3,041 $ 6,949 $ 391 $ 139,321 (1) Effective March 31, 2024, the International Small-Mid team, managing the Non-U.S.
The combined amount, $1.34 per share of Class A common stock, will be paid on February 28, 2025 to stockholders of record as of the close of business on February 14, 2025. The variable quarterly dividend of $0.84 per share represents approximately 80% of the cash generated (as described below) in the December quarter of 2024.
The dividend will be paid on February 27, 2026 to stockholders of record as of the close of business on February 13, 2026. The variable quarterly dividend of $1.01 per share represents approximately 80% of the cash generated (as described below) in the December quarter of 2025.
Small-Mid Growth strategy, became its own autonomous investment franchise. For comparability purposes, historical assets under management for both the Global Equity team and the International Small-Mid team are presented as though they were distinct teams prior to March 31, 2024. (2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested.
Small-Mid Growth strategy, became its own autonomous investment franchise. For comparability purposes, historical AUM for both the Global Equity team and the International Small-Mid team are presented as though they were distinct teams prior to March 31, 2024.
Although we expect to pay dividends according to our dividend policy, we may not pay dividends according to our policy or at all. 55 Table of Contents Tax Receivable Agreements (“TRAs”) In addition to funding our normal operations, we will be required to fund amounts payable under the TRAs that we entered into in connection with the IPO, which resulted in the recognition of a $341.5 million liability as of December 31, 2024.
Tax Receivable Agreements (“TRAs”) In addition to funding our normal operations, we will be required to fund amounts payable under the TRAs that we entered into in connection with the IPO, which resulted in the recognition of a $303.4 million liability as of December 31, 2025.
Cash Flows For the Years Ended December 31, 2024 2023 2022 (in millions) Cash and cash equivalents as of January 1, $ 178.5 $ 143.3 $ 200.8 Net cash provided by operating activities 372.8 253.1 312.6 Net cash used in investing activities (24.9) (38.2) (63.7) Net cash used in financing activities (254.2) (175.0) (306.4) Net impact of deconsolidation of consolidated investment products (4.0) (4.7) — Cash and cash equivalents as of December 31, $ 268.2 $ 178.5 $ 143.3 Year Ended December 31, 2024, Compared to Year Ended December 31, 2023 Net cash provided by operating activities increased $119.7 million for the year ended December 31, 2024, compared to the year ended December 31, 2023, primarily due to a $83.3 million increase from consolidated investment product activity and a $37.9 million increase in net income before noncontrolling interest resulting from higher revenues due to the increase in average AUM.
Cash Flows For the Years Ended December 31, 2025 2024 2023 (in millions) Cash and cash equivalents as of January 1, $ 268.2 $ 178.5 $ 143.3 Net cash provided by operating activities 172.0 372.8 253.1 Net cash provided by (used in) investing activities 35.3 (24.9) (38.2) Net cash used in financing activities (183.0) (254.2) (175.0) Net impact of deconsolidation of consolidated investment products (37.0) (4.0) (4.7) Cash and cash equivalents as of December 31, $ 255.5 $ 268.2 $ 178.5 Year Ended December 31, 2025, Compared to Year Ended December 31, 2024 Net cash provided by operating activities decreased $200.8 million during the year ended December 31, 2025, compared to the year ended December 31, 2024.
Across our institutional, intermediary and retail channels, we generally consider approximately 59% of our AUM as of December 31, 2024 to be attributed to intermediated wealth clients. 40 Table of Contents The following tables set forth the changes in our AUM by vehicle type: Year Ended Artisan Funds & Artisan Global Funds Separate Accounts and Other (1) Total December 31, 2024 (unaudited; in millions) Beginning assets under management $ 72,763 $ 77,404 $ 150,167 Gross client cash inflows 16,486 9,164 25,650 Gross client cash outflows (17,297) (12,052) (29,349) Net client cash flows (2) (811) (2,888) (3,699) Artisan Funds’ distributions not reinvested (3) (1,193) — (1,193) Investment returns and other 6,901 9,032 15,933 Net transfers (4) (46) 46 — Ending assets under management $ 77,614 $ 83,594 $ 161,208 Average assets under management $ 77,518 $ 82,714 $ 160,232 December 31, 2023 Beginning assets under management $ 60,811 $ 67,081 $ 127,892 Gross client cash inflows 15,138 6,257 21,395 Gross client cash outflows (15,079) (10,392) (25,471) Net client cash flows (2) 59 (4,135) (4,076) Artisan Funds’ distributions not reinvested (3) (684) — (684) Investment returns and other 12,592 14,443 27,035 Net transfers (4) (15) 15 — Ending assets under management $ 72,763 $ 77,404 $ 150,167 Average assets under management $ 67,412 $ 71,909 $ 139,321 December 31, 2022 Beginning assets under management $ 84,363 $ 90,391 $ 174,754 Gross client cash inflows 18,632 8,595 27,227 Gross client cash outflows (24,552) (12,488) (37,040) Net client cash flows (2) (5,920) (3,893) (9,813) Artisan Funds’ distributions not reinvested (3) (497) — (497) Investment returns and other (16,834) (19,718) (36,552) Net transfers (4) (301) 301 — Ending assets under management $ 60,811 $ 67,081 $ 127,892 Average assets under management $ 68,080 $ 73,436 $ 141,516 (1) Separate accounts and other consists of AUM we manage in or through vehicles other than Artisan Funds or Artisan Global Funds.
Our institutional channel includes AUM sourced from defined contribution plan clients, which made up approximately 7% of our total AUM as of December 31, 2025. 40 Table of Contents The following tables set forth the changes in our AUM by vehicle type: Year Ended Artisan Funds and Artisan Global Funds Separate Accounts and Other (1) Total December 31, 2025 (unaudited; in millions) Beginning assets under management $ 77,614 $ 83,594 $ 161,208 Gross client cash inflows 19,285 7,749 27,034 Gross client cash outflows (22,447) (17,249) (39,696) Net client cash flows (2) (3,162) (9,500) (12,662) Artisan Funds’ distributions not reinvested (1,982) — (1,982) Investment returns and other 15,360 18,004 33,364 Net transfers (3) 45 (45) — Ending assets under management $ 87,875 $ 92,053 $ 179,928 Average assets under management $ 84,106 $ 88,898 $ 173,004 December 31, 2024 Beginning assets under management $ 72,763 $ 77,404 $ 150,167 Gross client cash inflows 16,486 9,164 25,650 Gross client cash outflows (17,297) (12,052) (29,349) Net client cash flows (2) (811) (2,888) (3,699) Artisan Funds’ distributions not reinvested (1,193) — (1,193) Investment returns and other 6,901 9,032 15,933 Net transfers (3) (46) 46 — Ending assets under management $ 77,614 $ 83,594 $ 161,208 Average assets under management $ 77,518 $ 82,714 $ 160,232 December 31, 2023 Beginning assets under management $ 60,811 $ 67,081 $ 127,892 Gross client cash inflows 15,138 6,257 21,395 Gross client cash outflows (15,079) (10,392) (25,471) Net client cash flows (2) 59 (4,135) (4,076) Artisan Funds’ distributions not reinvested (684) — (684) Investment returns and other 12,592 14,443 27,035 Net transfers (3) (15) 15 — Ending assets under management $ 72,763 $ 77,404 $ 150,167 Average assets under management $ 67,412 $ 71,909 $ 139,321 (1) Separate accounts and other consists of AUM we manage in or through vehicles other than Artisan Funds or Artisan Global Funds.
Other operating expenses Other operating expenses increased $9.0 million for the year ended December 31, 2024, compared to the year ended December 31, 2023, due to increases in third-party distribution expense as a result of an increase in AUM subject to those fees, an increase in occupancy-related charges resulting from abandonment charges in 2024, as well as an increase in travel expense. 49 Table of Contents Non-Operating Income (Expense) Non-operating income (expense) consisted of the following: For the Years Ended December 31, Period-to-Period 2024 2023 $ % (in millions) Interest expense $ (8.6) $ (8.6) $ — — % Interest income on cash and cash equivalents and other 9.6 6.3 3.3 52 % Net investment gain (loss) of consolidated investment products 52.0 62.7 (10.7) (17) % Net gain (loss) on the tax receivable agreements (0.5) 0.5 (1.0) (200) % Net investment gain (loss) on nonconsolidated seed investments 7.0 2.7 4.3 159 % Net investment gain (loss) on nonconsolidated franchise capital investments 14.5 16.5 (2.0) (12) % Total non-operating income (expense) $ 74.0 $ 80.1 $ (6.1) 8 % Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments, and net investment gain (loss) on franchise capital investments decreased $8.4 million in the aggregate for the year ended December 31, 2024, compared to the year ended December 31, 2023, predominantly due to market conditions.
Other operating expenses Other operating expenses decreased $3.6 million for the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to a decrease in general and administrative costs, most notably decreases in travel and entertainment costs, occupancy-related abandonment charges and professional fees. 49 Table of Contents Non-Operating Income (Expense) Non-operating income (expense) consisted of the following: For the Years Ended December 31, Period-to-Period 2025 2024 $ % (in millions) Net investment gain (loss) of consolidated investment products $ 47.4 $ 52.0 $ (4.6) (9) % Net investment gain (loss) on nonconsolidated seed investments 8.7 7.0 1.7 24 % Net investment gain (loss) on nonconsolidated franchise capital investments 32.0 14.5 17.5 121 % Total net investment gain (loss) $ 88.1 $ 73.5 14.6 20 % Interest expense (8.6) (8.6) — — % Interest income on cash and cash equivalents and other 9.4 9.6 (0.2) (2) % Net gain (loss) on the tax receivable agreements 0.6 (0.5) 1.1 220 % Total non-operating income (expense) $ 89.5 $ 74.0 $ 15.5 21 % Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments and net investment gain (loss) on franchise capital investments increased $14.6 million in aggregate for the year ended December 31, 2025, compared to the year ended December 31, 2024, predominantly due to market conditions.
There are a number of exceptions to our standard fee schedules, including exceptions based on the nature of a client relationship and the aggregate value of a client’s assets under our management.
There are a number of exceptions to our standard fee schedules, including exceptions based on the nature of a client relationship and the aggregate value of a client’s assets under our management. Some of our strategies are also accessible to certain types of employee benefit plans through Artisan-branded collective investment trusts.
Returns for periods less than one year are not annualized. 36 Table of Contents Composite Inception Strategy AUM Average Annual Total Returns (Gross of Fees) (2) Average Annual Value-Added (3) Since Inception (bps) Investment Team and Strategy Date (in $MM) (1) 1 YR 3 YR 5 YR 10 YR Inception Growth Team Global Opportunities Strategy 2/1/2007 $ 20,591 16.13% 0.60% 10.64% 12.32% 11.05% 430 MSCI All Country World Index 17.49% 5.43% 10.05% 9.22% 6.75% Global Discovery Strategy 9/1/2017 1,808 17.51% 0.14% 11.10% --- 13.55% 677 MSCI All Country World Small Mid Index (4) 8.68% 0.82% 6.61% --- 6.78% U.S.
Returns for periods less than one year are not annualized. 36 Table of Contents Composite Inception Strategy AUM Average Annual Total Returns (Gross of Fees) (2) Average Annual Value-Added (3) Since Inception (bps) Investment Team and Strategy Date (in $MM) (1) 1 YR 3 YR 5 YR 10 YR Inception Growth Team Global Opportunities Strategy 2/1/2007 $ 16,537 10.14% 16.73% 5.25% 12.42% 11.00% 348 MSCI All Country World Index 22.34% 20.63% 11.19% 11.71% 7.52% Global Discovery Strategy 9/1/2017 1,107 13.25% 17.59% 5.33% --- 13.51% 530 MSCI All Country World Small Mid Cap Index 19.29% 14.56% 7.27% --- 8.21% U.S.
General and Administrative General and administrative expenses include professional fees, travel and entertainment, certain state and local taxes, directors’ and officers’ liability insurance, director fees, and other miscellaneous expenses we incur in operating our business. We expect 2025 general and administrative costs to be relatively consistent with 2024.
General and Administrative General and administrative expenses include professional fees, travel and entertainment, certain state and local taxes, directors’ and officers’ liability insurance, director fees and other miscellaneous expenses we incur in operating our business. We expect 2026 Occupancy, Communication and technology and General and administrative expenses in the aggregate to increase by mid-single digits compared to 2025.
The change in value of the award liability is included in compensation expense. The change in value of the underlying investment holdings is included in non-operating income/(expense). We expect to reserve approximately 4% of our management fee revenues each quarter for future franchise capital awards, which we expect to make after the conclusion of each year.
We expect to reserve approximately 4% of our management fee revenues each quarter for future franchise capital awards, which we expect to make after the conclusion of each year.
Growth, International Value, Global Opportunities, Global Equity, Value Equity, Global Value, Sustainable Emerging Markets, Global Discovery, Developing World, Non-U.S. Small-Mid Growth, International Explorer, Select Equity, and Value Income. (2) Fixed Income includes the following investment strategies: High Income, Floating Rate, Emerging Markets Debt Opportunities, and Emerging Markets Local Opportunities.
Mid-Cap Growth, U.S. Small-Cap Growth, U.S. Mid-Cap Value, Non-U.S. Growth, International Value, Global Opportunities, Global Equity, Value Equity, Global Value, Sustainable Emerging Markets, Global Discovery, Developing World, Non-U.S. Small-Mid Growth, International Explorer, Select Equity, Value Income and Franchise.
The deconsolidation of the investment product resulted in a $4.0 million increase in cash and cash equivalents. 56 Table of Contents Critical Accounting Policies and Estimates The accompanying consolidated financial statements were prepared in accordance with GAAP, and related rules and regulations of the SEC.
Critical Accounting Policies and Estimates The accompanying consolidated financial statements were prepared in accordance with GAAP, and related rules and regulations of the SEC.
Interest expense also includes interest on TRA payments, which is incurred between the due date (without extension) for APAM’s federal income tax return and the date on which APAM makes TRA payments. 46 Table of Contents Interest Income on Cash and Cash Equivalents and Other Interest income on cash and cash equivalents and other includes income earned from investing excess operating cash in various money market funds.
Interest expense also includes interest on TRA payments, which is incurred between the due date (without extension) for APAM’s federal income tax return and the date on which APAM makes TRA payments.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Interest rate changes may affect the amount of our interest payments in connection with our revolving credit agreement, and thereby affect future earnings and cash flows. As of December 31, 2024, there were no borrowings outstanding under the revolving credit agreement.
Interest rate changes may affect the amount of our interest payments in connection with our revolving credit agreement, and thereby affect future earnings and cash flows. As of December 31, 2025, there were no borrowings outstanding under the revolving credit agreement.
Management regularly monitors the value of these investments; however, given their nature and relative size, we have not adopted a specific risk management policy to manage the associated market risk. Exchange Rate Risk A substantial portion of the accounts that we advise, or sub-advise, hold investments that are denominated in currencies other than the U.S. dollar.
Management regularly monitors the value of these investments; however, given their nature and relative size, we have not adopted a specific risk management policy to manage the associated market risk. 59 Table of Contents Exchange Rate Risk A substantial portion of the accounts that we advise, or sub-advise, hold investments that are denominated in currencies other than the U.S. dollar.
A 10% increase or decrease in the value of our AUM, if proportionately distributed over all our investment strategies, products and client relationships, would cause an annualized increase or decrease in our revenues of approximately $110.6 million at our current weighted average fee rate of 69 basis points.
A 10% increase or decrease in the value of our AUM, if proportionately distributed over all our investment strategies, products and client relationships, would cause an annualized increase or decrease in our revenues of approximately $124.7 million at our current weighted average fee rate of 69 basis points.
The same 10% increase or decrease in the value of our total AUM, if attributed entirely to a proportionate increase or decrease in the assets of each of the Artisan Funds and Artisan Global Funds, to which we provide a range of services in addition to those provided to separate accounts and therefore charge a higher rate of fee, would cause an annualized increase or decrease in our revenues of approximately $143.0 million at the Artisan Funds and Artisan Global Funds aggregate weighted average fee of 89 basis points.
The same 10% increase or decrease in the value of our total AUM, if attributed entirely to a proportionate increase or decrease in the assets of each of the Artisan Funds and Artisan Global Funds, to which we provide a range of services in addition to those provided to separate accounts and therefore charge a higher rate of fee, would cause an annualized increase or decrease in our revenues of approximately $158.9 million at the Artisan Funds and Artisan Global Funds aggregate weighted average fee of 88 basis points.
If the same 10% increase or decrease in the value of our total AUM was attributable entirely to a proportionate increase or decrease in the assets of each separate account we manage, it would cause an annualized increase or decrease in our revenues of approximately $79.6 million at the current weighted average fee rate across all of our separate accounts of 49 basis points.
If the same 10% increase or decrease in the value of our total AUM was attributable entirely to a proportionate increase or decrease in the assets of each separate account we manage, it would cause an annualized increase or decrease in our revenues of approximately $86.7 million at the current weighted average fee rate across all of our separate accounts of 48 basis points.
As of December 31, 2024, $177.4 million of our available cash was invested in money market funds that invested solely in U.S. Treasuries. Interest rate changes would not have a material impact on the income we earn from these investments. The remaining portion of our cash was held in demand deposit accounts.
As of December 31, 2025, $166.5 million of our available cash was invested in money market funds that invested solely in U.S. Treasuries. Interest rate changes would not have a material impact on the income we earn from these investments. The remaining portion of our cash was held in demand deposit accounts.
In addition, we invested in Artisan investment strategies to hedge our economic exposure to the change in value of our franchise capital awards due to market movements. Assuming a 10% increase or decrease in the values of our total marketable securities, the fair value would increase or decrease by $30.5 million at December 31, 2024.
In addition, we invested in Artisan investment strategies to hedge our economic exposure to the change in value of our franchise capital awards due to market movements. Assuming a 10% increase or decrease in the values of our total marketable securities, the fair value would increase or decrease by $37.1 million at December 31, 2025.
In addition, such a decline could cause our clients to withdraw their funds in favor of investments believed to offer higher returns or lower risk, which would cause our revenues to decline further. The value of our AUM was $161.2 billion as of December 31, 2024.
In addition, such a decline could cause our clients to withdraw their funds in favor of investments believed to offer higher returns or lower risk, which would cause our revenues to decline further. The value of our AUM was $179.9 billion as of December 31, 2025.
We are subject to market risk from a decline in the prices of marketable securities that we own. The total value of marketable securities we owned, including our direct equity investments in consolidated investment products, was $305.3 million as of December 31, 2024.
We are subject to market risk from a decline in the prices of marketable securities that we own. The total value of marketable securities we owned, including our direct equity investments in consolidated investment products, was $371.0 million as of December 31, 2025.
Movements in the rate of exchange between the U.S. dollar and the underlying foreign currency affect the values of assets held in accounts we manage, thereby affecting the amount of revenues we earn. The value of the assets we manage was $161.2 billion as of December 31, 2024.
Movements in the rate of exchange between the U.S. dollar and the underlying foreign currency affect the values of assets held in accounts we manage, thereby affecting the amount of revenues we earn. The value of the assets we manage was $179.9 billion as of December 31, 2025.
The credit strategies managed by our Credit and EMsights Capital Group teams, which had $14.9 billion of AUM as of December 31, 2024, invest in fixed income securities. The values of debt instruments held by these strategies may fall in response to increases in interest rates, which would reduce our revenues.
The credit strategies managed by our Credit team and EMsights Capital Group, which had $19.4 billion of AUM as of December 31, 2025, invest in fixed income securities. The values of debt instruments held by these strategies may fall in response to increases in interest rates, which would reduce our revenues.
As of December 31, 2024, approximately 54% of our AUM were invested in strategies that primarily invest in securities of non-U.S. companies and approximately 45% of our AUM were invested in securities denominated in currencies other than the U.S. dollar.
As of December 31, 2025, approximately 48% of our AUM were invested in strategies that primarily invest in securities of non-U.S. companies and approximately 50% of our AUM were invested in securities denominated in currencies other than the U.S. dollar.
Assuming that 45% of our AUM is invested in securities denominated in currencies other than the U.S. dollar and excluding the impact of any hedging arrangements, a 10% increase or decrease in the value of the U.S. dollar would decrease or increase the fair value of our AUM by $7.3 billion, which would cause an annualized increase or decrease in revenues of approximately $49.8 million at our current weighted average fee rate of 69 basis points. 59 Table of Contents We operate in several foreign countries of which the United Kingdom is the most prominent.
Assuming that 50% of our AUM is invested in securities denominated in currencies other than the U.S. dollar and excluding the impact of any hedging arrangements, a 10% increase or decrease in the value of the U.S. dollar would decrease or increase the fair value of our AUM by $9.0 billion, which would cause an annualized increase or decrease in revenues of approximately $62.3 million at our current weighted average fee rate of 69 basis points.
We incur operating expenses and have foreign currency-denominated assets and liabilities associated with these operations. In addition, we have revenue arrangements that are denominated in non-U.S. currencies. We do not believe these revenue arrangements denominated in foreign currencies or our operations in foreign countries create foreign currency fluctuations that materially affect our results of operations.
We operate in several foreign countries of which the United Kingdom is the most prominent. We incur operating expenses and have foreign currency-denominated assets and liabilities associated with these operations. In addition, we have revenue arrangements that are denominated in non-U.S. currencies.
Interest Rate Risk We generally invest our available cash balances in money market mutual funds that invest primarily in U.S. Treasury or agency-backed money market instruments.
We do not believe these revenue arrangements denominated in foreign currencies or our operations in foreign countries create foreign currency fluctuations that materially affect our results of operations. Interest Rate Risk We generally invest our available cash balances in money market mutual funds that invest primarily in U.S. Treasury or agency-backed money market instruments.

Other APAM 10-K year-over-year comparisons