• Assets Under Management (AUM): $165.5 billion, increased by 4% in the quarter.

• Public Markets AUM: Increased by $6.3 billion or 4.5%.

• Private Markets AUM: Positive net organic growth of approximately $200 million.

• Total Revenues: $172 million in Q3, up 8% year over year.

• Base Management Fees: $154 million, increased by 5% year over year.

• Adjusted EBITDA: $51.7 million, increased 18% year over year.

• Adjusted EBITDA Margin: 30.1%, up from 27.7% in the same quarter last year.

• Net Earnings: $13 million, up from $11 million in the same quarter last year.

• Adjusted Net Earnings: $29 million or 25 per diluted share, up from 24 million or 18 per share last year.

• SG&A Expenses: $123 million, up 4.4% year over year.

• Free Cash Flow: $95 million over the last 12 months.

• Quarterly Dividend: 21.6 per share, payable on December 19, 2024.

• Warning! GuruFocus has detected 6 Warning Signs with FRRPF.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fiera Capital Corp (FRRPF) reported a 4% increase in assets under management, reaching $165.5 billion, driven by rising equity and fixed income markets.

• The company achieved positive net organic growth in both public and private markets, with private markets seeing new subscriptions of $400 million.

• Public markets assets under management increased by 6.3 billion or 4.5%, with a significant moderation in outflows.

• Private markets delivered positive net organic growth of approximately $200 million, driven by new mandates in private credit and real estate.

• The company reported strong financial performance with total revenues of $172 million in the third quarter, an 8% increase year over year.

Negative Points

• Despite positive market impacts, public markets experienced net outflows of approximately $400 million, excluding Pine Stone.

• Emerging markets strategies faced challenges due to significant upswings in Chinese markets, impacting performance.

• SG&A expenses increased by 4.4% year over year, driven by higher travel, marketing, and compensation costs.

• Net debt increased by $31 million year over year, although the net debt ratio decreased.

• The company faces uncertainty in predicting performance fees due to market volatility and recent geopolitical events.

Q & A Highlights

Q: What is the estimated expense beta for Fiera Capital Corp, considering market-related growth? A: Jean-Guy Desjardins, Chairman of the Board and Global CEO, explained that the revenue sharing agreements can range from 20% to 50%, depending on the nature of the revenue. However, he noted that it's challenging to provide a precise estimate as it varies with the type of revenue and its fluctuations.