Record AUM and Growth in Private Wealth
AB ended the quarter with record assets under management of $829 billion. Private wealth represents 17% of assets and 35% of base management fees. The private markets platform reached $77 billion in fee-paying AUM, growing 20% year-over-year.
Strong Financial Performance
Adjusted earnings for the second quarter increased by 7% compared to the prior year, with net revenues reaching $844 million, a 2% increase. Base fees saw a 4% increase year-over-year.
Operational Efficiency and Margin Expansion
Operating margin on track to deliver 33% in 2025, above the midpoint of the 2027 target range of 30% to 35%. Non-compensation expenses were better than guidance, projecting $600 million to $620 million for the full year.
Positive Developments in Fixed Income and Alternatives
The Tax Aware Muni SMA grew organically at 14% annualized. Alternatives multi-asset inflows totaled $1.6 billion, driven by private placements and real estate debt platforms.