Executive Summary

ENI diluted EPS rose to $0.59, up 31.1% year over year (from $0.45) and flat vs Q2, driven by higher management fee revenue on increased AUM and share repurchases; GAAP diluted EPS was $0.45, down slightly vs $0.46 in Q3’23 and up vs $0.29 in Q2’24 .
GAAP revenue increased 14.7% year over year to $123.1M; ENI revenue rose 15% to $122.2M, with ENI operating margin expanding to ~31.7% vs 28.7% last year, reflecting improved operating leverage .
Net client cash flows turned positive at +$0.5B; period-end AUM reached a record $120.3B (+6.8% q/q; +23.5% y/y) on market appreciation and flows; management declared a $0.01 quarterly dividend payable Dec 27, 2024 .
Company announced rebranding to Acadian Asset Management Inc. effective Jan 1, 2025, with ticker change from BSIG to AAMI; Kelly Young to become CEO, positioning the streamlined platform for organic growth and client engagement .
Consensus estimates from S&P Global were unavailable for BSIG this quarter, so formal beat/miss analysis vs Street cannot be provided; monitor timing-of-performance-fee seasonality into Q4 as a potential near-term catalyst .

What Went Well and What Went Wrong

What Went Well

ENI expansion and margin leverage: ENI revenue grew 15% y/y to $122.2M and ENI operating margin increased to ~31.7% (from 28.7%), reflecting higher AUM and discipline on operating expenses .
Positive flows and record AUM: Net client cash flows were +$0.5B and period-end AUM reached $120.3B (+6.8% q/q), aided by market appreciation and diversified inflows across strategies (including small-cap and enhanced low-tracking-error variants) .
Strategic focus and leadership transition: Management completed the journey to a singularly focused asset manager and announced rebranding and CEO transition to Kelly Young: “This evolution to a single asset management company presents an exciting opportunity to focus exclusively on this exceptional business” .

What Went Wrong

GAAP EPS and net income softness y/y: GAAP diluted EPS declined to $0.45 (from $0.46) and GAAP net income attributable to controlling interests fell to $16.9M (from $19.6M), primarily due to higher operating expenses tied to equity plan revaluation and sales-based compensation .
Performance fee variability: Q3 performance fees of $10.1M were down vs $11.2M in Q3’23, with management noting timing variability across quarters; Q2 performance fees were $2.8M, highlighting seasonal concentration in Q4 .
Managed volatility outflows and pockets of risk: Management cited ongoing managed volatility outflows and episodic redemption risk, even as the broader pipeline remains healthy; tone balanced with expectation of positive-to-breakeven flows near term .

Financial Results

Metric	Q3 2023	Q2 2024	Q3 2024
Revenue ($USD Millions)	$107.3	$109.0	$123.1
Diluted EPS ($USD)	$0.46	$0.29	$0.45
Operating Margin (%)	28%	19%	22%
ENI Revenue ($USD Millions)	$106.5	$108.3	$122.2
ENI Diluted EPS ($USD)	$0.45	$0.45	$0.59
ENI Operating Margin (%)	28.7%	27%	31.7%
Adjusted EBITDA ($USD Millions)	$34.0	$32.0	$40.4

Segment breakdown (Quant & Solutions / Acadian):

Segment Metric	Q3 2023	Q2 2024	Q3 2024
Segment ENI ($USD Millions)	$33.2	$31.7	$40.2
Segment Adjusted EBITDA ($USD Millions)	$37.7	$36.3	$44.7
Segment ENI Operating Margin (%)	32.6%	31.2%	35.4%
AUM at Period End ($USD Billions)	$97.4	$112.6	$120.3
Net Flows ($USD Billions)	$(0.5)	$—	$0.5

KPIs and drivers:

KPI	Q3 2023	Q2 2024	Q3 2024
Average AUM ($USD Billions)	$100.5	$110.3	$116.4
Annualized Revenue Impact of Net Flows ($USD Millions)	$(0.3)	$1.4	$6.9
ENI Management Fee Rate (bps)	38	38	38
Management Fees ($USD Millions)	$95.3	$105.5	$112.1
Performance Fees ($USD Millions)	$11.2	$2.8	$10.1

Investment performance (strategies beating benchmarks by revenue):

Period	Q3 2023	Q2 2024	Q3 2024
3-Year (%)	83%	86%	85%
5-Year (%)	88%	92%	93%
10-Year (%)	91%	93%	94%

Non-GAAP per-share reconciliation (select drivers):

Component (per share)	Q3 2023	Q2 2024	Q3 2024
GAAP Net Income per Share ($)	$0.46	$0.29	$0.45
+ Non-cash equity/profit interest revaluation	$(0.03)	$0.15	$0.25
+ Seed/Co-investment gains and financing	—	$(0.01)	$(0.08)
+ Tax benefit of goodwill/intangibles	$0.01	$0.01	$0.01
+ Discontinued ops/restructuring	$0.01	$0.04	—
+ ENI tax normalization	—	$0.02	$0.01
– Tax effect of above	—	$(0.05)	$(0.05)
ENI Diluted EPS ($)	$0.45	$0.45	$0.59

Notes: ENI adjustments are detailed further in company reconciliations .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
ENI Operating Expense Ratio	FY 2024	Not disclosed	~45%–49% (subject to AUM/fee mix)	Introduced
Variable Compensation Ratio	FY 2024	Not disclosed	~44%–48%	Introduced
Affiliate Key Employee Distribution Ratio	FY 2024	Not disclosed	~7%–8%	Introduced
Dividend per Share	Q4 2024	Not disclosed	$0.01 payable Dec 27, 2024; record Dec 13, 2024	Maintained quarterly payout cadence

Management reiterated capital deployment priorities: support organic growth (seeding) and opportunistic share repurchases .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2024)	Trend
Systematic Credit and Equity Alternatives	Q1: Seeded U.S. HY (Nov ’23) and Global HY (Apr ’24); Equity Alternatives multi-strategy seeded Q4’22 . Q2: Seeded U.S. IG (Jul ’24); strategies building track records .	All three credit strategies building “nice track records”; seeded Global Equity Extension in Sept ’24 .	Execution progressing; product set broadening.
Flows and Pipeline	Q1: NCCF +$0.4B with offsets; pipeline healthy across stages . Q2: Breakeven NCCF amid lumpy gross flows; pipeline healthy .	NCCF +$0.5B; pipeline “pretty healthy and robust” across strategies/geographies .	Improving to positive flows.
Managed Volatility Outflows	Q1/Q2: Ongoing pressure; derisking and LDI shifts toward fixed income .	Continued pockets of outflows from managed volatility .	Persistent headwind.
Operating Leverage and Expenses	Q1/Q2: Expense discipline, scalability investments; leverage as revenue grows .	Expect operating leverage; may not see expense growth as revenue grows; inflation pressures abating .	Favorable leverage.
Capital Allocation	Q1/Q2: Minimum cash ~$20–25M; opportunistic buybacks; seeding .	Cash used for seeding and buybacks; opportunistic prioritization into ’25 .	Consistent priorities.
Strategic Alternatives & Rebranding	Q1/Q2: Not highlighted.	Rebranding to AAMI; CEO transition; open to strategic alternatives if value-creating .	Structural simplification; governance transition.

Management Commentary

“For the third quarter of 2024, the Company produced ENI earnings per share of $0.59… driven by higher management fee revenue due to higher AUM… and improved operating leverage… additionally driven by the Company’s $100 million of share repurchases since December 2023” .
“We reported net client cash flows of $0.5 billion… Acadian’s Systematic Credit platform… U.S. High Yield… Global High Yield… and U.S. Investment Grade… continue to build good track records” .
“Effective 1Q ’25, we will rebrand BrightSphere as Acadian Asset Management… ticker BSIG will change to AAMI… These steps… complete our transition from a multi-boutique conglomerate to a streamlined and singularly focused asset manager” .
“We may not see expense growth necessarily as our revenue grows… we would see the benefit of operating leverage going forward” .
“This evolution to a single asset management company presents an exciting opportunity to focus exclusively on this exceptional business… Kelly… is best positioned to lead the Company going forward” .

Q&A Highlights

Expense trajectory and leverage: Management expects operating leverage as revenue grows, following infrastructure investments and easing inflationary cost pressures; absolute expense reductions are unlikely, but growth should be muted vs revenue .
Capital deployment: Two primary uses remain seeding and buybacks; prioritization will be opportunistic based on client product needs and market conditions; into ’25 expect some allocation to both .
Pipeline breadth: Healthy across geographies and strategies, including enhanced low-tracking-error offerings resonating with clients near passive; some managed volatility outflows present pockets of risk; outlook for positive to breakeven flows in coming quarters .
Product expansion: Focus remains on executing existing credit and equity alternatives initiatives; opportunistic about new strategies, but disciplined execution is the near-term priority .
Strategic alternatives: Company remains open to value-creating combinations, while optimized to operate as an independent public company; no change in stance .

Estimates Context

S&P Global consensus for Q3 2024 was unavailable for BSIG due to missing company mapping, so we cannot provide formal beat/miss vs Wall Street estimates for EPS and revenue this quarter. Monitor variability in performance fees (often seasonal to Q4) and positive NCCF/AUM trends for estimate revisions going forward .
Values retrieved from S&P Global were unavailable; therefore, no estimates are presented.

Key Takeaways for Investors

ENI strength with margin expansion signals improving operating leverage as AUM rises; GAAP EPS compression y/y reflects higher compensation tied to equity plan revaluation—focus on ENI metrics for economic performance .
Flows inflected positive and AUM reached a record, supported by diversified strategy interest and enhanced products; watch sustainability of inflows and mix shifts (small-cap, non-U.S., EM small-cap) .
Performance fee timing remains variable; seasonal concentration toward Q4 could provide near-term earnings upside if investment performance persists .
Capital allocation remains balanced between seeding and buybacks; with net leverage at ~1.4x and cash of ~$53.6M, the company retains flexibility to support growth and repurchases .
Rebranding to AAMI and CEO transition to Kelly Young is a governance and branding catalyst; expect continued client-centered engagement and quant capability extensions (credit, equity alternatives) .
Managed volatility outflows and episodic redemptions are ongoing risks; pipeline breadth and enhanced offerings partially offset; monitor derisking trends among institutional allocators .
Dividend maintained at $0.01 per share; while modest, signals continued free-cash-flow generation; buybacks remain the primary capital return lever .

Citations: Earnings call transcript Q3 2024 ; 8-K and earnings materials Oct 31, 2024 ; Q1/Q2 transcripts ; Rebranding 8-K Oct 1, 2024 .

BrightSphere Investment Group Inc. (BSIG)·Q3 2024 Earnings Summary