Loading...
01/10 16:16
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong growth in fee-related earnings, AUM, and dividend increases, which are positive indicators. Despite some revenue declines due to retro fees, the company shows robust performance in specialized funds and evergreen platforms. The Q&A reveals confidence in strategic partnerships and potential growth in incentive fees with a favorable macro environment. The market cap suggests moderate sensitivity to these factors, leading to a positive stock price prediction.
Total Asset Footprint $986 billion, a 5% increase year-over-year, driven by market value growth and the addition of technology solutions and back-office mandates.
Assets Under Management (AUM) $141 billion, grew $11 billion or 9% year-over-year, attributed to growth in specialized funds and customized separate accounts.
Assets Under Advisement (AUA) $845 billion, grew $35 billion or 4% year-over-year, primarily due to market value growth and new technology solutions.
Management and Advisory Fees Down 4% year-over-year, primarily due to a significant decrease in retro fees ($21 million in fiscal Q1 2025 vs. $300,000 in the current quarter).
Fee-Related Earnings (FRE) $84 million, up 31% year-over-year, driven by strong fee-related performance revenues and controlled G&A growth.
GAAP EPS $1.28, based on $54 million of GAAP net income.
Non-GAAP EPS $1.31, based on $72 million of adjusted net income.
Dividend $0.54 per share, representing a 10% increase over the last fiscal year.
Fee-Earning AUM $74 billion, grew $6.7 billion or 10% year-over-year, with growth largely driven by specialized fund platforms, particularly semi-liquid evergreen products.
Customized Separate Account Fee-Earning AUM $40 billion, grew $2.1 billion or 5% year-over-year, driven by new client wins and re-up activity from existing clients.
Specialized Funds Fee-Earning AUM $34 billion, grew $4.6 billion or 16% year-over-year, largely driven by the Evergreen platform.
Evergreen Platform AUM $12.5 billion, grew nearly 65% year-over-year, fueled by strong fund performance and global distribution strategy.
Specialized Funds Revenue Decreased by $7 million or 8% year-over-year, due to the retro fee impact.
Customized Separate Accounts Revenue Increased by $1 million or 3% year-over-year, due to new accounts, re-ups, and investment activity.
Reporting, Monitoring, Data, and Analytics Revenue Increased by over $1 million or 20% year-over-year, driven by growth in technology solutions.
Incentive Fees $42 million for the quarter, including $29 million from fee-related performance revenues.
Unrealized Carry Balance $1.3 billion, up 6% year-over-year, despite recognizing $97 million of incentive fees in the last 12 months.
Total Expenses Decreased by $8 million year-over-year, primarily due to lower incentive fee-related compensation.
Evergreen platform: The Evergreen platform has grown significantly, with total AUM reaching $12.5 billion, representing a 65% growth over the last 12 months. The platform also saw $1.2 billion in net inflows this quarter, marking the first time surpassing $1 billion in net inflows.
New product launches: Six new products were launched in the last 12 months, including infrastructure products for U.S. and non-U.S. investors, a multi-strategy product for European investors, a secondaries product for U.S. investors, a dedicated venture and growth product for U.S. investors, and a fund focused solely on Asian private market investments.
Asian market expansion: A new fund focused solely on Asian private market investments was launched, leveraging the company's significant presence in Asia to generate substantial deal flow.
Global distribution strategy: The company continues to execute its global distribution strategy, expanding relationships with wealth managers and leveraging strategic partnerships and technology.
Fee-earning AUM growth: Fee-earning AUM grew by $6.7 billion (10%) year-over-year, driven by specialized fund platforms and Evergreen products. Customized separate account fee-earning AUM grew by $2.1 billion (5%) over the last 12 months.
Revenue from technology solutions: Revenue from reporting, monitoring, data, and analytics offerings increased by over $1 million (20%) compared to the prior year period.
Focus on long-term growth: The company emphasized its strategy of building for long-term growth, describing its approach as a 'marathon, not a sprint.'
Shift towards higher fee rate products: The blended fee rate increased to 64 basis points, driven by a shift towards higher fee rate specialized funds, particularly Evergreen products.
Management and Advisory Fees: Management and advisory fees were down 4% year-over-year, primarily due to a significant decrease in retro fees from $21 million in fiscal Q1 2025 to $300,000 in the current quarter. This decline could impact revenue stability.
Specialized Funds Revenue: Specialized funds revenue decreased by $7 million or 8% compared to the prior year period, driven by the retro fee impact. This decline in revenue could affect financial performance.
Customized Separate Accounts: Fee-based decreases occurred due to exit activity and the migration from committed to invested capital in certain accounts, which could lead to unpredictability in revenue generation.
Unpredictability in SMA Business: The sale and contracting dynamic in the SMA business can lead to unpredictability as to when dollars come on, potentially impacting financial planning and forecasting.
G&A Expenses: General and administrative expenses have increased over time, driven by revenue-related expenses such as third-party commissions. While some cost savings have been achieved, rising expenses could pressure margins.
Economic and Market Conditions: The company’s performance is subject to risks from broader economic and market conditions, which could impact asset growth and fee generation.
Fee-earning AUM Growth: Total fee-earning AUM stood at $74 billion, growing $6.7 billion or 10% year-over-year. Growth is driven by specialized fund platforms, particularly semi-liquid evergreen products. Blended fee rate stands at 64 basis points.
Customized Separate Accounts: Fee-earning AUM at $40 billion, growing $2.1 billion or 5% year-over-year. Growth driven by new client wins across geographies and sub-asset classes, re-ups from existing clients, and investment activity. Large amounts of committed and contractual dry powder remain for deployment.
Specialized Funds: Fee-earning AUM at $34 billion, growing $4.6 billion or 16% year-over-year. Growth driven by Evergreen platform. Series of closings on drawdown funds expected post-summer. Infrastructure fund raised $775 million, expected to remain in market through 2025. Impact fund raised $175 million, expected to remain in market into 2026.
Evergreen Platform: Evergreen AUM at $12.5 billion, growing 65% year-over-year. Net inflows of $1.2 billion for the quarter. Growth driven by strong fund performance, global distribution strategy, and six new product offerings launched in the last 12 months. New products include infrastructure, multi-strategy, secondaries, venture, and growth funds.
Asian Private Market Fund: Launched a first-of-its-kind fund focused on Asian private market investments. Significant Asian presence expected to yield substantial deal flow. Fund is part of a long-term growth strategy.
Dividend per share: $0.54 per share for this quarter
Annual dividend target: $2.16 per share for fiscal year 2026
Dividend growth: 10% increase over last fiscal year
The company reported strong financial performance with 23% growth in fee-related revenue and a 34% increase in fee-related earnings. The Evergreen AUM nearly doubled, and the dividend was increased by 10%. The Q&A section did not reveal significant concerns, and the Guardian and Bloomberg partnerships are expected to contribute positively. Given the market cap of approximately $4.9 billion, these factors suggest a positive stock price movement of 2% to 8% over the next two weeks.
The earnings call presents a mixed picture: strong AUM growth, a dividend increase, and a stable FRE margin outlook are positive, but declining management fees and specialized funds revenue raise concerns. The Q&A section lacks clarity, adding uncertainty. Overall, the positive and negative factors balance out, leading to a neutral sentiment. Given the market cap of approximately $4.9 billion, the stock is likely to experience minimal movement, falling in the neutral range of -2% to 2%.
The earnings call highlights strong growth in fee-related earnings, AUM, and dividend increases, which are positive indicators. Despite some revenue declines due to retro fees, the company shows robust performance in specialized funds and evergreen platforms. The Q&A reveals confidence in strategic partnerships and potential growth in incentive fees with a favorable macro environment. The market cap suggests moderate sensitivity to these factors, leading to a positive stock price prediction.
The earnings report highlights strong financial performance, with significant growth in management and advisory fees, fee-related earnings, and AUM. The dividend increase and stable FRE margin are positive indicators. Although market volatility and competition pose risks, management's focus on capitalizing on opportunities and maintaining margins is reassuring. The Q&A section did not reveal major concerns, and the market cap suggests a moderate reaction. Overall, the positive financial results, dividend increase, and stable outlook support a positive stock price movement prediction of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
