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Artisan partners aum6/29/2023 ![]() Investment talent can add significant value, and clients are willing to pay a premium fee for a premium outcome. We see large and growing investment opportunity sets and sustainable long-term demand. ![]() In each of these areas, we see tremendous opportunity to extend the compounding power of our existing business and add new business. Three areas of long-term investment stand out: differentiated credit, private investing and China. We continue to make long-term, strategic investments in our platform. And we have a compelling track record of success in compounding capital for our clients over the long term. Our economic model is transparent and competitive with-or superior to-other homes for talent. Our existing teams and strategies have been adding investment flexibility (degrees of freedom)-increasing the ways they can add value for existing and future clients. Our operating platform is broad and getting broader, with the ability to execute across an array of high value-added strategies. We provide a unique home for differentiated investment talent. These are all characteristics of Artisan Partners. And there is better, more direct alignment between portfolio management teams and end clients. Talent and clients are enthusiastic about broader opportunity sets and more degrees of freedom to be different. The power of talent is reemerging out of rigid structures, seeking autonomy and flexibility to invest creatively and establish an identity. Industry convergence creates tremendous opportunity for Artisan Partners. And hedge funds are expanding degrees of freedom and extending the duration of their capital. Venture and private equity firms are reorienting their businesses to invest in the public markets. "Public" managers are investing in private markets. Within high value-added investing, old categories are increasingly breaking down and blurring-with growing demand for active managers who can invest broadly to generate return and manage risk. On the other end, there are high value-added investments where skill and talent matter, total capacity is limited, and clients are willing to pay a premium fee for premium performance. ![]() On one end, there are exposure, passive, index and other products where scale, marketing and price are the keys to success. The myriad categories of investing are converging into two broad categories at either end of a spectrum. Today, we are at a number of inflection points, both for the investment management industry and for our firm. Our purpose is to generate and compound wealth for clients over the long term. We identified and recruited people who think differently, are passionate about what they do and are willing to take entrepreneurial risk to partner with us and build something new.Īrtisan Partners is a high value-added investment firm designed for investment talent to thrive in a thoughtful growth environment. We added teams and strategies that fit our commitment to high value-added investing with expanding degrees of freedom. ![]() In addition to growth through compounding, over the last decade, we have added new teams and strategies that in 2021 generated $279 million in revenue, representing 36% of our total revenue growth over the last 10 years. Growth driven by established, stable, high-quality investment teams consistently compounding client capital through market cycles. Over that period, 64% of our revenue growth was generated by investment teams and strategies in existence a decade ago. We have focused on building business value, not engineering financial outcomes. We have taken a long-term view, thinking in terms of decades, not quarters. We have generated that growth through a disciplined application of our business model and philosophy-and a steady commitment to thoughtful growth. Over the last decade, we have grown our firm's revenues from $455 million to $1.23 billion, a compound annual growth rate of 10%. ![]()
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