0001628280-26-012856
SEC filingAAMI exited 2025 with $101.2M cash, a new $200M term loan, $0.0 drawn on a $175M revolver, and a $37.0M cash-settled subsidiary liability.
Acadian Asset Management Inc. describes itself as a holding company that operates a systematic investment management business through its majority owned subsidiary, Acadian Asset Management LLC ('Acadian LLC'). With approximately $178 billion of assets under management as of December 31, 2025, the firm provides institutional investors globally access to a diversified array of systematic investment strategies. Acadian LLC was founded in 1986 and pursues a fundamentally grounded, data-rich, and highly structured approach to investing that seeks to identify and exploit systematic and structural inefficiencies in markets.
The company operates a single reportable segment: Quant & Solutions, which comprises Acadian LLC. This segment represents the entire systematic investment management business. The filing does not disclose revenue share percentages for this segment as it is the only segment.
Acadian LLC manages strategies in developed and developing markets. Notable product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives. Enhanced strategies offer attractive risk-adjusted returns with comparatively lower active risk. Extension portfolios are a form of high conviction investing which leverage both long and short positions to increase active views, such as 130/30 products. Clients can access these strategies through separate accounts or commingled funds.
The company's distribution focuses on institutional, sub-advisory, and wealth/other channels. The institutional channel accounts for over 80% of AUM, with strong relationships in public/government pension markets and corporate plan markets. Clients include pension funds, state and local governments, sovereign wealth funds, employee benefit plans, foundations, endowments, insurance companies, private banks, OCIOs, and FoFs. The sub-advisory and wealth/other channels represent almost 20% of AUM, serving registered investment advisors, private banks, high net-worth clients, family offices, and defined contribution clients. The company markets to institutional clients directly and through investment consultants and advisors. As of December 31, 2025, the top five client relationships represented approximately 14% of total run rate gross management fee revenue, and the top 25 clients represented approximately 33%.
The industry is highly competitive. Acadian Asset Management competes globally with international and domestic investment management firms, hedge funds, and other subsidiaries of financial institutions. Many competitors offer similar investment strategies and may have greater financial resources and distribution capabilities. Some firms offer passively managed products, including exchange traded funds, which typically carry lower fee rates. Barriers to entry are limited. Primary competitive factors include investment performance records, breadth of active strategies, alignment with market conditions, quality of investment teams, continuity of teams, client service caliber, and brand recognition.
The company's strategic priorities include generating returns on allocated capital through seed capital for new products and strategies, investment capital for strategic growth initiatives, and opportunistic share repurchases. From January 1, 2020 to December 31, 2025, the company repurchased approximately 58% of its shares. The firm aims to produce strong risk-adjusted returns for clients and maintain a diversified client base. The profit-sharing model with Acadian LLC partners preserves alignment of interests between the company, Acadian LLC, clients, and stockholders.
As of December 31, 2025, the company had 396 full-time equivalent employees, of which 20 are at Hold Co. None of these employees are represented by any collective bargaining agreements. Acadian LLC has over 100 investment and research professionals. The company offers competitive compensation, talent development, and comprehensive benefits including health and welfare benefits, a Profit Sharing and 401(k) Plan. The company is committed to pay equity for employees doing similar work regardless of gender, race or ethnicity.
As of December 31, 2025, Acadian Asset Management Inc. (AAMI) reported cash and cash equivalents of $101.2M, up from $94.8M at year-end 2024. Total investments stood at $141.6M, comprising $90.4M in consolidated Fund investments, $37.9M in long-term incentive compensation plan investments, and $13.3M in unconsolidated Funds. Investment advisory fees receivable grew to $178.5M from $164.7M. Total equity and redeemable non-controlling interests was $84.0M, down from $87.1M, largely due to share buybacks offset by retained earnings.
The company disclosed total operating lease obligations of $69.8M as of December 31, 2025, with no other purchase commitments explicitly detailed in the Notes. The operating leases cover corporate offices, data centers, and equipment, with remaining terms from less than 1 year to 8 years. Future lease payments are: $9.7M in 2026, $9.3M in 2027, $9.0M in 2028, $8.2M in 2029, $8.3M in 2030, and $25.3M thereafter. The weighted-average discount rate was 3.55%. A $2.5M guarantee exists for an office space security deposit, expiring in 2033. No material litigation accruals were recorded.
In February 2025, the Board authorized an $80M share repurchase program. During 2025, AAMI repurchased 1.8M shares for $48.0M (average price $26.64), leaving ~$32M of authorization remaining. Dividends remained flat at $0.04 per share quarterly ($1.5M total). Debt activity was significant: the $275M 4.80% Senior Notes due 2026 were fully redeemed on December 1, 2025, triggering a $1.4M loss on extinguishment. Concurrently, AAMI entered a new $200M Delayed Draw Term Loan due 2028 and a $175M Revolving Credit Facility (undrawn as of year-end). Capital expenditures were $11.9M (2.3% of total revenue).
The Notes disclose a single reportable segment, Quant & Solutions. The segment's ENI revenue was $549.1M for 2025. Geographic disclosure of management fee revenue (by client domicile) showed U.S. clients contributed $389.3M and non-U.S. clients $128.4M in 2025, compared to $327.5M and $103.6M respectively in 2024.
Acadian Asset Management's cash flow from operations (CFO) for fiscal 2025 was $119.7 million, down 7.6% from $129.6 million in 2024, despite net income growing to $103.5 million from $95.3 million. The divergence between CFO and net income suggests deteriorating cash conversion, likely driven by an increase in accounts receivable and other working capital outflows. Capital expenditures more than quadrupled to $2.5 million, but remain modest, yielding a free cash flow (CFO minus capex) of $117.2 million, which comfortably covered dividends paid of $49.6 million and share repurchases of $13.5 million. The company returned $63.1 million to shareholders, representing a ~54% payout ratio of free cash flow. Investing cash flow was negative $3.0 million, primarily due to capex and maturities of short-term investments. Financing cash flow of negative $115.5 million reflected dividends, repurchases, and a $52.1 million repayment of borrowings. No notable one-time items or large working capital anomalies were identified beyond the net working capital outflow. Overall, the company maintains strong cash generation, though the year-over-year decline in operating cash flow relative to earnings growth warrants monitoring for future periods.