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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 20222023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO



Commission file number: 001-35826
Artisan Partners Asset Management Inc.
(Exact name of registrant as specified in its charter)
Delaware45-0969585
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
875 E. Wisconsin Avenue, Suite 80053202
Milwaukee,WI53202
(Address of principal executive offices)(Zip Code)
(414) 390-6100
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A common stock, par value $0.01 per shareAPAMNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The number of outstanding shares of the registrant’s Class A common stock, par value $0.01 per share, Class B common stock, par value $0.01 per share, and Class C common stock, par value $0.01 per share, as of October 28, 202231, 2023 were 67,911,057, 2,589,38868,479,386, 2,456,534 and 9,111,117,9,024,947, respectively.



Table of Contents
TABLE OF CONTENTS
Page
Part IFinancial Information
Item 1.Unaudited Consolidated Financial Statements
Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 20222023 and 20212022
Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 20222023 and 20212022
Item 2.
Item 3.
Item 4.
Part IIOther Information
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Except where the context requires otherwise, in this report, references to the “Company”, “Artisan”, “we”, “us” or “our” refer to Artisan Partners Asset Management Inc. (“APAM”) and its direct and indirect subsidiaries, including Artisan Partners Holdings LP (“Artisan Partners Holdings” or “Holdings”). On March 12, 2013, APAM closed its initial public offering and related corporate reorganization. Prior to that date, APAM was a subsidiary of Artisan Partners Holdings.
Forward-Looking Statements
This report contains, and from time to time our management may make, forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements regarding future events and our future performance, as well as management’s current expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “intends”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue”, the negative of these terms and other comparable terminology. Forward-looking statements are only predictions based on current expectations and projections about future events. Forward-looking statements are subject to a number of risks and uncertainties, and there are important factors that could cause actual results, level of activity, performance, actions or achievements to differ materially from the results, level of activity, performance, actions or achievements expressed or implied by the forward-looking statements. These factors include: the loss of key investment professionals or senior management, adverse market or economic conditions, poor performance of our investment strategies, change in the legislative and regulatory environment in which we operate, operational or technical errors or other damage to our reputation the long-term impact of the COVID-19 pandemic and other factors disclosed in the Company’s filings with the Securities and Exchange Commission, including those factors listed under the caption entitled “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021,2022, filed with the SEC on February 22, 2022,27, 2023, as such factors may be updated from time to time. Our periodic and current reports are accessible on the SEC’s website at www.sec.gov. We undertake no obligation to publicly update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this report, except as required by law.
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Forward-looking statements include, but are not limited to, statements about:
our anticipated future results of operations;
our potential operating performance and efficiency, including our ability to operate under different and unique circumstances;
our expectations with respect to future business initiatives;
our expectations with respect to the performance of our investment strategies;
our expectations with respect to future levels of assets under management, including the capacity of our strategies and client cash inflows and outflows;
our expectations with respect to industry trends and how those trends may impact our business;
our financing plans, cash needs and liquidity position;
our intention to pay dividends and our expectations about the amount of those dividends;
our expected levels of compensation of our employees, including equity- and cash-based long-term incentive compensation;
our expectations with respect to future expenses and the level of future expenses;
our expected tax rate, and our expectations with respect to deferred tax assets; and
our estimates of future amounts payable pursuant to our tax receivable agreements.
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Part I — Financial Information
Item 1. Unaudited Consolidated Financial Statements

ARTISAN PARTNERS ASSET MANAGEMENT INC.
Unaudited Condensed Consolidated Statements of Financial Condition
(U.S. dollars in thousands, except per share amounts)
September 30,
2022
December 31,
2021
September 30,
2023
December 31,
2022
ASSETSASSETSASSETS
Cash and cash equivalentsCash and cash equivalents$168,123 $189,226 Cash and cash equivalents$198,308 $114,832 
Accounts receivableAccounts receivable103,434 115,850 Accounts receivable96,062 98,634 
Investment securitiesInvestment securities78,240 47,878 Investment securities139,630 85,415 
Property and equipment, netProperty and equipment, net47,398 35,313 Property and equipment, net46,896 48,104 
Deferred tax assetsDeferred tax assets484,756 497,902 Deferred tax assets446,491 477,024 
Restricted cash629 629 
Prepaid expenses and other assetsPrepaid expenses and other assets19,493 20,282 Prepaid expenses and other assets18,986 20,053 
Operating lease assetsOperating lease assets104,774 88,642 Operating lease assets91,662 101,410 
Assets of consolidated investment productsAssets of consolidated investment productsAssets of consolidated investment products
Cash and cash equivalentsCash and cash equivalents18,870 10,916 Cash and cash equivalents32,221 28,416 
Accounts receivable and otherAccounts receivable and other52,865 6,408 Accounts receivable and other10,993 4,977 
Investment assets, at fair valueInvestment assets, at fair value264,302 195,001 Investment assets, at fair value336,429 255,743 
Total assetsTotal assets$1,342,884 $1,208,047 Total assets$1,417,678 $1,234,608 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITYLIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITYLIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITY
Accounts payable, accrued expenses, and otherAccounts payable, accrued expenses, and other$26,276 $28,992 Accounts payable, accrued expenses, and other$23,872 $24,414 
Accrued incentive compensationAccrued incentive compensation105,971 7,521 Accrued incentive compensation126,453 29,762 
BorrowingsBorrowings199,007 199,444 Borrowings199,226 199,050 
Operating lease liabilitiesOperating lease liabilities123,476 100,303 Operating lease liabilities110,524 120,847 
Amounts payable under tax receivable agreementsAmounts payable under tax receivable agreements398,247 425,427 Amounts payable under tax receivable agreements363,860 398,789 
Liabilities of consolidated investment productsLiabilities of consolidated investment productsLiabilities of consolidated investment products
Accounts payable, accrued expenses, and otherAccounts payable, accrued expenses, and other84,862 20,185 Accounts payable, accrued expenses, and other37,379 26,358 
Investment liabilities, at fair valueInvestment liabilities, at fair value21,051 19,179 Investment liabilities, at fair value13,314 20,751 
Total liabilitiesTotal liabilities958,890 801,051 Total liabilities874,628 819,971 
Commitments and contingenciesCommitments and contingenciesCommitments and contingencies
Redeemable noncontrolling interestsRedeemable noncontrolling interests128,881 111,035 Redeemable noncontrolling interests219,726 135,280 
Common stockCommon stockCommon stock
Class A common stock ($0.01 par value per share, 500,000,000 shares authorized, 67,911,928 and 66,699,872 shares outstanding at September 30, 2022 and December 31, 2021, respectively)679 667 
Class B common stock ($0.01 par value per share, 200,000,000 shares authorized, 2,589,388 and 3,206,580 shares outstanding at September 30, 2022 and December 31, 2021, respectively)26 32 
Class C common stock ($0.01 par value per share, 400,000,000 shares authorized, 9,111,117 and 9,128,617 shares outstanding at September 30, 2022 and December 31, 2021, respectively)91 91 
Class A common stock ($0.01 par value per share, 500,000,000 shares authorized, 68,481,220 and 67,982,025 shares outstanding at September 30, 2023 and December 31, 2022, respectively)Class A common stock ($0.01 par value per share, 500,000,000 shares authorized, 68,481,220 and 67,982,025 shares outstanding at September 30, 2023 and December 31, 2022, respectively)685 680 
Class B common stock ($0.01 par value per share, 200,000,000 shares authorized, 2,456,534 and 2,583,884 shares outstanding at September 30, 2023 and December 31, 2022, respectively)Class B common stock ($0.01 par value per share, 200,000,000 shares authorized, 2,456,534 and 2,583,884 shares outstanding at September 30, 2023 and December 31, 2022, respectively)25 26 
Class C common stock ($0.01 par value per share, 400,000,000 shares authorized, 9,024,947 and 9,040,147 shares outstanding at September 30, 2023 and December 31, 2022, respectively)Class C common stock ($0.01 par value per share, 400,000,000 shares authorized, 9,024,947 and 9,040,147 shares outstanding at September 30, 2023 and December 31, 2022, respectively)90 90 
Additional paid-in capitalAdditional paid-in capital163,769 141,835 Additional paid-in capital187,764 171,416 
Retained earningsRetained earnings78,641 134,889 Retained earnings112,266 93,088 
Accumulated other comprehensive income (loss)Accumulated other comprehensive income (loss)(4,289)(1,310)Accumulated other comprehensive income (loss)(3,246)(3,079)
Total Artisan Partners Asset Management Inc. stockholders’ equityTotal Artisan Partners Asset Management Inc. stockholders’ equity238,917 276,204 Total Artisan Partners Asset Management Inc. stockholders’ equity297,584 262,221 
Noncontrolling interests - Artisan Partners HoldingsNoncontrolling interests - Artisan Partners Holdings16,196 19,757 Noncontrolling interests - Artisan Partners Holdings25,740 17,136 
Total stockholders’ equityTotal stockholders’ equity$255,113 $295,961 Total stockholders’ equity323,324 279,357 
Total liabilities, redeemable noncontrolling interests, and stockholders’ equityTotal liabilities, redeemable noncontrolling interests, and stockholders’ equity$1,342,884 $1,208,047 Total liabilities, redeemable noncontrolling interests, and stockholders’ equity$1,417,678 $1,234,608 

The accompanying notes are an integral part of the consolidated financial statements.
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ARTISAN PARTNERS ASSET MANAGEMENT INC.
Unaudited Consolidated Statements of Operations
(U.S. dollars in thousands, except per share amounts)
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
RevenuesRevenuesRevenues
Management feesManagement fees$234,191 $316,176 $766,901 $901,011 Management fees$248,691 $234,191 $725,980 $766,901 
Performance feesPerformance fees121 398 397 11,189 Performance fees31 121 154 397 
Total revenuesTotal revenues$234,312 $316,574 $767,298 $912,200 Total revenues248,722 234,312 $726,134 $767,298 
Operating ExpensesOperating ExpensesOperating Expenses
Compensation and benefitsCompensation and benefits122,033 142,235 389,359 419,713 Compensation and benefits130,648 122,033 392,593 389,359 
Distribution, servicing and marketingDistribution, servicing and marketing5,593 8,131 18,952 23,707 Distribution, servicing and marketing6,153 5,593 17,786 18,952 
OccupancyOccupancy7,127 5,560 20,407 16,260 Occupancy7,244 7,127 21,506 20,407 
Communication and technologyCommunication and technology11,945 10,873 35,833 31,150 Communication and technology12,974 12,441 38,395 37,704 
General and administrativeGeneral and administrative8,888 6,717 28,622 18,700 General and administrative9,548 8,392 28,690 26,751 
Total operating expensesTotal operating expenses155,586 173,516 493,173 509,530 Total operating expenses166,567 155,586 498,970 493,173 
Total operating incomeTotal operating income78,726 143,058 274,125 402,670 Total operating income82,155 78,726 227,164 274,125 
Non-operating income (expense)Non-operating income (expense)Non-operating income (expense)
Interest expenseInterest expense(2,428)(2,711)(7,853)(8,116)Interest expense(2,297)(2,428)(6,520)(7,853)
Net gain (loss) on the tax receivable agreementsNet gain (loss) on the tax receivable agreements431 358 913 358 Net gain (loss) on the tax receivable agreements505 431 505 913 
Net investment gain (loss) of consolidated investment productsNet investment gain (loss) of consolidated investment products(3,936)2,824 (14,605)18,068 Net investment gain (loss) of consolidated investment products9,787 (3,936)38,189 (14,605)
Other net investment gain (loss)Other net investment gain (loss)(5,563)(2,109)(23,729)2,022 Other net investment gain (loss)(2,152)(5,563)11,329 (23,729)
Total non-operating income (expense)Total non-operating income (expense)(11,496)(1,638)(45,274)12,332 Total non-operating income (expense)5,843 (11,496)43,503 (45,274)
Income before income taxesIncome before income taxes67,230 141,420 228,851 415,002 Income before income taxes87,998 67,230 270,667 228,851 
Provision for income taxesProvision for income taxes14,750 28,054 46,761 78,137 Provision for income taxes14,570 14,750 51,663 46,761 
Net income before noncontrolling interestsNet income before noncontrolling interests52,480 113,366 182,090 336,865 Net income before noncontrolling interests73,428 52,480 219,004 182,090 
Less: Net income attributable to noncontrolling interests - Artisan Partners HoldingsLess: Net income attributable to noncontrolling interests - Artisan Partners Holdings10,999 24,796 37,150 74,064 Less: Net income attributable to noncontrolling interests - Artisan Partners Holdings11,319 10,999 35,493 37,150 
Less: Net income (loss) attributable to noncontrolling interests - consolidated investment productsLess: Net income (loss) attributable to noncontrolling interests - consolidated investment products(2,754)2,157 (9,007)10,903 Less: Net income (loss) attributable to noncontrolling interests - consolidated investment products8,954 (2,754)25,978 (9,007)
Net income attributable to Artisan Partners Asset Management Inc.Net income attributable to Artisan Partners Asset Management Inc.$44,235 $86,413 $153,947 $251,898 Net income attributable to Artisan Partners Asset Management Inc.$53,155 $44,235 $157,533 $153,947 
Basic earnings per shareBasic earnings per share$0.65 $1.30 $2.17 $3.84 Basic earnings per share$0.76 $0.65 $2.27 $2.17 
Diluted earnings per shareDiluted earnings per share$0.65 $1.30 $2.17 $3.84 Diluted earnings per share$0.76 $0.65 $2.27 $2.17 
Basic weighted average number of common shares outstandingBasic weighted average number of common shares outstanding62,623,43459,965,54962,329,75659,519,634Basic weighted average number of common shares outstanding63,520,40262,623,43463,419,58762,329,756
Diluted weighted average number of common shares outstandingDiluted weighted average number of common shares outstanding62,632,66059,982,77462,353,27559,535,894Diluted weighted average number of common shares outstanding63,563,04462,632,66063,449,80462,353,275
Dividends declared per Class A common shareDividends declared per Class A common share$0.60 $1.00 $3.11 $3.16 Dividends declared per Class A common share$0.61 $0.60 $2.01 $3.11 

The accompanying notes are an integral part of the consolidated financial statements.
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ARTISAN PARTNERS ASSET MANAGEMENT INC.
Unaudited Consolidated Statements of Comprehensive Income
(U.S. dollars in thousands)
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
Net income before noncontrolling interestsNet income before noncontrolling interests$52,480 $113,366 $182,090 $336,865 Net income before noncontrolling interests$73,428 $52,480 $219,004 $182,090 
Other comprehensive income (loss)Other comprehensive income (loss)Other comprehensive income (loss)
Foreign currency translation gain (loss)Foreign currency translation gain (loss)(1,518)(595)(3,476)(358)Foreign currency translation gain (loss)(770)(1,518)144 (3,476)
Total other comprehensive income (loss)Total other comprehensive income (loss)(1,518)(595)(3,476)(358)Total other comprehensive income (loss)(770)(1,518)144 (3,476)
Comprehensive incomeComprehensive income50,962 112,771 178,614 336,507 Comprehensive income72,658 50,962 219,148 178,614 
Comprehensive income attributable to noncontrolling interests - Artisan Partners HoldingsComprehensive income attributable to noncontrolling interests - Artisan Partners Holdings10,800 24,697 36,654 74,028 Comprehensive income attributable to noncontrolling interests - Artisan Partners Holdings11,204 10,800 35,727 36,654 
Comprehensive income (loss) attributable to noncontrolling interests - consolidated investment productsComprehensive income (loss) attributable to noncontrolling interests - consolidated investment products(2,754)2,157 (9,007)10,903 Comprehensive income (loss) attributable to noncontrolling interests - consolidated investment products8,954 (2,754)25,978 (9,007)
Comprehensive income attributable to Artisan Partners Asset Management Inc.Comprehensive income attributable to Artisan Partners Asset Management Inc.$42,916 $85,917 $150,967 $251,576 Comprehensive income attributable to Artisan Partners Asset Management Inc.$52,500 $42,916 $157,443 $150,967 

The accompanying notes are an integral part of the consolidated financial statements.
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ARTISAN PARTNERS ASSET MANAGEMENT INC.
Unaudited Consolidated Statements of Changes in StockholdersEquity
(U.S. dollars in thousands)
Three months ended September 30, 2022Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Three months ended September 30, 2023Three months ended September 30, 2023Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Balance at July 1, 2022$674 $31 $91 $153,134 $75,443 $(2,971)$16,892 $243,294 $127,078 
Balance at July 1, 2023Balance at July 1, 2023$685 $25 $90 $181,484 $101,243 $(2,531)$25,741 $306,737 $206,288 
Net incomeNet income— — — — 44,235 — 10,999 55,234 (2,754)Net income— — — — 53,155 — 11,319 64,474 8,954 
Other comprehensive income - foreign currency translationOther comprehensive income - foreign currency translation— — — — — (1,294)(224)(1,518)— Other comprehensive income - foreign currency translation— — — — — (655)(115)(770)— 
Cumulative impact of changes in ownership of Artisan Partners Holdings LPCumulative impact of changes in ownership of Artisan Partners Holdings LP— — — 889 — (24)(865)— — Cumulative impact of changes in ownership of Artisan Partners Holdings LP— — — (532)— (60)592 — — 
Amortization of equity-based compensationAmortization of equity-based compensation— — — 8,660 — — 1,499 10,159 — Amortization of equity-based compensation— — — 6,781 — — 1,114 7,895 — 
Deferred tax assets, net of amounts payable under tax receivable agreementsDeferred tax assets, net of amounts payable under tax receivable agreements— — — 1,378 — — — 1,378 — Deferred tax assets, net of amounts payable under tax receivable agreements— — — 32 — — — 32 — 
Issuance of Class A common stock, net of issuance costsIssuance of Class A common stock, net of issuance costs— — — (7)— — — (7)— Issuance of Class A common stock, net of issuance costs— — — (1)— — — (1)— 
Forfeitures and employee/partner terminationsForfeitures and employee/partner terminations— — — — — — — — — Forfeitures and employee/partner terminations— — — — — — — — — 
Issuance of restricted stock awardsIssuance of restricted stock awards— — — — — — — — — 
Employee net share settlementEmployee net share settlement— — — (285)(1)— (48)(334)— Employee net share settlement— — — — — — — — — 
Exchange of subsidiary equityExchange of subsidiary equity(5)— — — — — — — Exchange of subsidiary equity— — — — — — — — — 
Capital contributions, netCapital contributions, net— — — — — — — — 4,557 Capital contributions, net— — — — — — — — 23,013 
Impact of deconsolidation of CIPsImpact of deconsolidation of CIPs— — — — — — — — (18,529)
DistributionsDistributions— — — — — — (12,026)(12,026)— Distributions— — — — — — (12,883)(12,883)— 
DividendsDividends— — — — (41,036)— (31)(41,067)— Dividends— — — — (42,132)— (28)(42,160)— 
Balance at September 30, 2022$679 $26 $91 $163,769 $78,641 $(4,289)$16,196 $255,113 $128,881 
Balance at September 30, 2023Balance at September 30, 2023$685 $25 $90 $187,764 $112,266 $(3,246)$25,740 $323,324 $219,726 
Three months ended September 30, 2021Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Three months ended September 30, 2022Three months ended September 30, 2022Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Balance at July 1, 2021$648 $36 $106 $119,855 $100,429 $(817)$20,207 $240,464 $90,458 
Balance at July 1, 2022Balance at July 1, 2022$674 $31 $91 $153,134 $75,443 $(2,971)$16,892 $243,294 $127,078 
Net incomeNet income— — — — 86,413 — 24,795 111,208 2,157 Net income— — — — 44,235 — 10,999 55,234 (2,754)
Other comprehensive income - foreign currency translationOther comprehensive income - foreign currency translation— — — — — (489)(106)(595)— Other comprehensive income - foreign currency translation— — — — — (1,294)(224)(1,518)— 
Cumulative impact of changes in ownership of Artisan Partners Holdings LPCumulative impact of changes in ownership of Artisan Partners Holdings LP— — — (412)— (7)419 — — Cumulative impact of changes in ownership of Artisan Partners Holdings LP— — — 889 — (24)(865)— — 
Amortization of equity-based compensationAmortization of equity-based compensation— — — 8,029 — — 1,716 9,745 — Amortization of equity-based compensation— — — 8,660 — — 1,499 10,159 — 
Deferred tax assets, net of amounts payable under tax receivable agreementsDeferred tax assets, net of amounts payable under tax receivable agreements— — — 1,154 — — — 1,154 — Deferred tax assets, net of amounts payable under tax receivable agreements— — — 1,378 — — — 1,378 — 
Issuance of Class A common stock, net of issuance costsIssuance of Class A common stock, net of issuance costs— — — (5)— — — (5)— Issuance of Class A common stock, net of issuance costs— — — (7)— — — (7)— 
Forfeitures and employee/partner terminationsForfeitures and employee/partner terminations— — — — — — — — — Forfeitures and employee/partner terminations— — — — — — — — — 
Issuance of restricted stock awardsIssuance of restricted stock awards— — — — — — — — — 
Employee net share settlementEmployee net share settlement— — — (285)(1)— (48)(334)— 
Exchange of subsidiary equityExchange of subsidiary equity— (4)— — — — — — Exchange of subsidiary equity(5)— — — — — — — 
Capital contributions, netCapital contributions, net— — — — — — — — 4,776 Capital contributions, net— — — — — — — — 4,557 
Impact of deconsolidation of CIPsImpact of deconsolidation of CIPs— — — — — — — — — 
DistributionsDistributions— — — — — — (25,629)(25,629)— Distributions— — — — — — (12,026)(12,026)— 
DividendsDividends— — — — (65,345)— (44)(65,389)— Dividends— — — — (41,036)— (31)(41,067)— 
Balance at September 30, 2021$652 $36 $102 $128,621 $121,497 $(1,313)$21,358 $270,953 $97,391 
Balance at September 30, 2022Balance at September 30, 2022$679 $26 $91 $163,769 $78,641 $(4,289)$16,196 $255,113 $128,881 
The accompanying notes are an integral part of the consolidated financial statements.The accompanying notes are an integral part of the consolidated financial statements.The accompanying notes are an integral part of the consolidated financial statements.
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Nine months ended September 30, 2022Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Balance at January 1, 2022$667 $32 $91 $141,835 $134,889 $(1,310)$19,757 $295,961 $111,035 
Net income— — — — 153,947 — 37,150 191,097 (9,007)
Other comprehensive income - foreign currency translation— — — — — (2,950)(526)(3,476)— 
Cumulative impact of changes in ownership of Artisan Partners Holdings LP— — — (262)— (29)291 — — 
Amortization of equity-based compensation— — — 27,026 — — 4,587 31,613 — 
Deferred tax assets, net of amounts payable under tax receivable agreements— — — 1,708 — — — 1,708 — 
Issuance of Class A common stock, net of issuance costs— — — (9)— — — (9)— 
Forfeitures and employee/partner terminations— — — — — — — — — 
Issuance of restricted stock awards— — (8)— — — — — 
Employee net share settlement(2)— — (6,521)(26)— (1,205)(7,754)— 
Exchange of subsidiary equity(6)— — — — — — — 
Capital contributions, net— — — — — — — — 36,126 
Impact of deconsolidation of CIPs— — — — — — — — (9,273)
Distributions— — — — — — (43,721)(43,721)— 
Dividends— — — — (210,169)— (137)(210,306)— 
Balance at September 30, 2022$679 $26 $91 $163,769 $78,641 $(4,289)$16,196 $255,113 $128,881 
Nine months ended September 30, 2021Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Balance at January 1, 2021$631 $45 $110 $107,738 $72,944 $(991)$10,565 $191,042 $93,753 
Net income— — — — 251,898 — 74,064 325,962 10,903 
Other comprehensive income - foreign currency translation— — — — — (301)(57)(358)— 
Cumulative impact of changes in ownership of Artisan Partners Holdings LP— — — (1,256)— (21)1,277 — — 
Amortization of equity-based compensation— — — 24,798 — — 5,301 30,099 — 
Deferred tax assets, net of amounts payable under tax receivable agreements— — — 4,994 — — — 4,994 — 
Issuance of Class A common stock, net of issuance costs10 — — 46,651 — — — 46,661 — 
Forfeitures and employee/partner terminations(1)— — — — — — — 
Issuance of restricted stock awards— — (7)— — — — — 
Employee net share settlement(2)— — (7,380)— — (1,777)(9,159)— 
Exchange of subsidiary equity(2)(5)— — — — — — 
Purchase of equity and subsidiary equity— (7)(3)(46,918)— — — (46,928)— 
Capital contributions, net— — — — — — — — 59,818 
Impact of deconsolidation of CIPs— — — — — — — — (67,083)
Distributions— — — — — — (67,889)(67,889)— 
Dividends— — — — (203,345)— (126)(203,471)— 
Balance at September 30, 2021$652 $36 $102 $128,621 $121,497 $(1,313)$21,358 $270,953 $97,391 
The accompanying notes are an integral part of the consolidated financial statements.
Nine months ended September 30, 2023Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Balance at January 1, 2023$680 $26 $90 $171,416 $93,088 $(3,079)$17,136 $279,357 $135,280 
Net income— — — — 157,533 — 35,493 193,026 25,978 
Other comprehensive income - foreign currency translation— — — — — (90)234 144 — 
Cumulative impact of changes in ownership of Artisan Partners Holdings LP— — — (696)— (77)773 — — 
Amortization of equity-based compensation— — — 22,489 — — 3,523 26,012 — 
Deferred tax assets, net of amounts payable under tax receivable agreements— — — 421 — — — 421 — 
Issuance of Class A common stock, net of issuance costs— — — (85)— — — (85)— 
Forfeitures and employee/partner terminations— — — — — — — — — 
Issuance of restricted stock awards— — (6)— — — — — 
Employee net share settlement(2)— — (5,775)— — (981)(6,758)— 
Exchange of subsidiary equity(1)— — — — — — — 
Capital contributions, net— — — — — — — — 76,997 
Impact of deconsolidation of CIPs— — — — — — — — (18,529)
Distributions— — — — — — (30,341)(30,341)— 
Dividends— — — — (138,355)— (97)(138,452)— 
Balance at September 30, 2023$685 $25 $90 $187,764 $112,266 $(3,246)$25,740 $323,324 $219,726 


Nine months ended September 30, 2022Class A Common StockClass B Common StockClass C Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Noncontrolling Interests - Artisan Partners HoldingsTotal Stockholders’ EquityRedeemable Noncontrolling Interests
Balance at January 1, 2022$667 $32 $91 $141,835 $134,889 $(1,310)$19,757 $295,961 $111,035 
Net income— — — — 153,947 — 37,150 191,097 (9,007)
Other comprehensive income - foreign currency translation— — — — — (2,950)(526)(3,476)— 
Cumulative impact of changes in ownership of Artisan Partners Holdings LP— — — (262)— (29)291 — — 
Amortization of equity-based compensation— — — 27,026 — — 4,587 31,613 — 
Deferred tax assets, net of amounts payable under tax receivable agreements— — — 1,708 — — — 1,708 — 
Issuance of Class A common stock, net of issuance costs— — — (9)— — — (9)— 
Forfeitures and employee/partner terminations— — — — — — — — — 
Issuance of restricted stock awards— — (8)— — — — — 
Employee net share settlement(2)— — (6,521)(26)— (1,205)(7,754)— 
Exchange of subsidiary equity(6)— — — — — — — 
Capital contributions, net— — — — — — — — 36,126 
Impact of deconsolidation of CIPs— — — — — — — — (9,273)
Distributions— — — — — — (43,721)(43,721)— 
Dividends— — — — (210,169)— (137)(210,306)— 
Balance at September 30, 2022$679 $26 $91 $163,769 $78,641 $(4,289)$16,196 $255,113 $128,881 
The accompanying notes are an integral part of the consolidated financial statements.
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ARTISAN PARTNERS ASSET MANAGEMENT INC.
Unaudited Consolidated Statements of Cash Flows
(U.S. dollars in thousands)
 For the Nine Months Ended September 30, For the Nine Months Ended September 30,
2022202120232022
Cash flows from operating activitiesCash flows from operating activitiesCash flows from operating activities
Net income before noncontrolling interestsNet income before noncontrolling interests$182,090 $336,865 Net income before noncontrolling interests$219,004 $182,090 
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortizationDepreciation and amortization5,618 5,081 Depreciation and amortization6,896 5,618 
Deferred income taxesDeferred income taxes21,697 28,411 Deferred income taxes32,286 21,697 
Noncash lease expense1,271 (1,272)
Noncash lease expense (benefit)Noncash lease expense (benefit)(158)1,271 
Net investment (gain) loss on nonconsolidated investment securitiesNet investment (gain) loss on nonconsolidated investment securities23,777 (2,230)Net investment (gain) loss on nonconsolidated investment securities(7,551)23,777 
Net (gain) loss on the tax receivable agreementsNet (gain) loss on the tax receivable agreements(913)(358)Net (gain) loss on the tax receivable agreements(505)(913)
(Gain) loss on disposal of property and equipment(Gain) loss on disposal of property and equipment38 (Gain) loss on disposal of property and equipment38 
Amortization of debt issuance costsAmortization of debt issuance costs329 304 Amortization of debt issuance costs333 329 
Share-based compensationShare-based compensation31,613 30,099 Share-based compensation26,012 31,613 
Net investment (gain) loss of consolidated investment productsNet investment (gain) loss of consolidated investment products14,605 (18,068)Net investment (gain) loss of consolidated investment products(38,189)14,605 
Purchase of investments by consolidated investment productsPurchase of investments by consolidated investment products(319,093)(190,614)Purchase of investments by consolidated investment products(325,922)(319,093)
Proceeds from sale of investments by consolidated investment productsProceeds from sale of investments by consolidated investment products151,198 127,863 Proceeds from sale of investments by consolidated investment products224,288 151,198 
Change in assets and liabilities resulting in an increase (decrease) in cash:Change in assets and liabilities resulting in an increase (decrease) in cash:Change in assets and liabilities resulting in an increase (decrease) in cash:
Accounts receivableAccounts receivable12,416 (22,260)Accounts receivable2,232 12,416 
Prepaid expenses and other assetsPrepaid expenses and other assets2,527 (4,214)Prepaid expenses and other assets431 2,527 
Accounts payable and accrued expensesAccounts payable and accrued expenses94,611 113,355 Accounts payable and accrued expenses100,060 94,611 
Net change in operating assets and liabilities of consolidated investment products84,838 1,205 
Net change in operating assets and liabilities of consolidated investment products including net investment incomeNet change in operating assets and liabilities of consolidated investment products including net investment income23,583 84,838 
Net cash provided by operating activitiesNet cash provided by operating activities306,622 404,168 Net cash provided by operating activities262,802 306,622 
Cash flows from investing activitiesCash flows from investing activitiesCash flows from investing activities
Acquisition of property and equipmentAcquisition of property and equipment(5,284)(1,791)Acquisition of property and equipment(585)(5,284)
Leasehold improvementsLeasehold improvements(11,007)(3,338)Leasehold improvements(5,690)(11,007)
Proceeds from sale of investment securitiesProceeds from sale of investment securities5,164 12,813 Proceeds from sale of investment securities5,226 5,164 
Purchase of investment securitiesPurchase of investment securities(49,337)(33,820)Purchase of investment securities(35,483)(49,337)
Net cash used in investing activitiesNet cash used in investing activities(60,464)(26,136)Net cash used in investing activities(36,532)(60,464)
Cash flows from financing activitiesCash flows from financing activitiesCash flows from financing activities
Partnership distributionsPartnership distributions(43,721)(67,889)Partnership distributions(30,341)(43,721)
Dividends paidDividends paid(210,306)(203,471)Dividends paid(138,451)(210,306)
Payment of debt issuance costsPayment of debt issuance costs(543)— Payment of debt issuance costs— (543)
Proceeds from issuance of notes payableProceeds from issuance of notes payable90,000 — Proceeds from issuance of notes payable— 90,000 
Principal payments on notes payablePrincipal payments on notes payable(90,000)— Principal payments on notes payable— (90,000)
Payment under the tax receivable agreements(33,109)(31,250)
Net proceeds from issuance of common stock— 46,928 
Payment of costs directly associated with the issuance of Class A common stock— (244)
Purchase of equity and subsidiary equity— (46,928)
Payments under the tax receivable agreementsPayments under the tax receivable agreements(35,757)(33,109)
Taxes paid related to employee net share settlementTaxes paid related to employee net share settlement(7,754)(9,159)Taxes paid related to employee net share settlement(6,758)(7,754)
Capital contributions to consolidated investment products, netCapital contributions to consolidated investment products, net36,126 59,818 Capital contributions to consolidated investment products, net76,997 36,126 
Net cash used in financing activitiesNet cash used in financing activities(259,307)(252,195)Net cash used in financing activities(134,310)(259,307)
Net increase (decrease) in cash, cash equivalents, and restricted cashNet increase (decrease) in cash, cash equivalents, and restricted cash(13,149)125,837 Net increase (decrease) in cash, cash equivalents, and restricted cash91,960 (13,149)
Net cash impact of deconsolidation of CIPsNet cash impact of deconsolidation of CIPs— (34,823)Net cash impact of deconsolidation of CIPs(4,679)— 
Cash, cash equivalents and restricted cashCash, cash equivalents and restricted cashCash, cash equivalents and restricted cash
Beginning of periodBeginning of period200,771 199,450 Beginning of period143,248 200,771 
End of periodEnd of period$187,622 $290,464 End of period$230,529 $187,622 
Cash, cash equivalents and restricted cash as of the end of the periodCash, cash equivalents and restricted cash as of the end of the periodCash, cash equivalents and restricted cash as of the end of the period
Cash and cash equivalentsCash and cash equivalents$168,123 $273,253 Cash and cash equivalents$198,308 $168,123 
Restricted cashRestricted cash629 629 Restricted cash— 629 
Cash and cash equivalents of consolidated investment productsCash and cash equivalents of consolidated investment products18,870 16,582 Cash and cash equivalents of consolidated investment products32,221 18,870 
Cash, cash equivalents and restricted cashCash, cash equivalents and restricted cash$187,622 $290,464 Cash, cash equivalents and restricted cash$230,529 $187,622 
Supplementary informationSupplementary informationSupplementary information
Noncash activity:Noncash activity:Noncash activity:
Establishment of deferred tax assetsEstablishment of deferred tax assets$8,327 $28,548 Establishment of deferred tax assets$3,214 $8,327 
Establishment of amounts payable under tax receivable agreementsEstablishment of amounts payable under tax receivable agreements5,929 23,206 Establishment of amounts payable under tax receivable agreements828 5,929 
Increase in investment securities due to deconsolidation of CIPsIncrease in investment securities due to deconsolidation of CIPs9,970 20,900 Increase in investment securities due to deconsolidation of CIPs19,612 9,970 
Operating lease assets obtained in exchange for operating lease liabilitiesOperating lease assets obtained in exchange for operating lease liabilities32,070 2,434 Operating lease assets obtained in exchange for operating lease liabilities78 32,070 
Settlement of franchise capital liability via transfer of investment securitiesSettlement of franchise capital liability via transfer of investment securities3,204 — 
The accompanying notes are an integral part of the consolidated financial statements.
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ARTISAN PARTNERS ASSET MANAGEMENT INC.
Notes to Unaudited Consolidated Financial Statements
(U.S. currencies in thousands, except share and per share amounts and as otherwise indicated)
Note 1. Nature of Business and Organization
Nature of Business
Artisan Partners Asset Management Inc. (“APAM”), through its subsidiaries, is an investment management firm focused on providing high-value added, active investment strategies to sophisticated clients globally. APAM and its subsidiaries are hereafter referred to collectively as “Artisan” or the “Company".“Company.”
Artisan’s autonomous investment teams manage a broad range of U.S., non-U.S. and global investment strategies that are diversified by asset class, market cap and investment style. Strategies are offered through multiple investment vehicles to accommodate a broad range of client mandates. Artisan offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons.
Organization
On March 12, 2013, APAM completed its initial public offering (the “IPO”). APAM was formed for the purpose of becoming the general partner of Artisan Partners Holdings LP (“Artisan Partners Holdings” or “Holdings”) in connection with the IPO. Holdings is a holding company for the investment management business conducted under the name “Artisan Partners”.Partners.” The reorganization (“IPO Reorganization”) established the necessary corporate structure to complete the IPO while at the same time preserving the ability of the firm to conduct operations through Holdings and its subsidiaries.
As its sole general partner, APAM controls the business and affairs of Holdings. As a result, APAM consolidates Holdings’ financial statements and records a noncontrolling interest for the equity interests in Holdings held by the limited partners of Holdings. At September 30, 2022,2023, APAM held approximately 85%86% of the equity ownership interest in Holdings.
Holdings, together with its wholly owned subsidiary, Artisan Investments GP LLC, controls a 100% interest in Artisan Partners Limited Partnership (“APLP”), a multi-product investment management firm that is the principal operating subsidiary of Artisan Partners Holdings. APLP is registered as an investment adviser with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. APLP provides investment advisory services to traditional separate accounts and pooled investment vehicles, including Artisan Partners Funds, Inc. (“Artisan Funds”), Artisan Partners Global Funds plc (“Artisan Global Funds”), and Artisan sponsored private funds (“Artisan Private Funds”). Artisan Funds are a series of open-end mutual funds registered under the Investment Company Act of 1940, as amended. Artisan Global Funds is a family of Ireland-domiciled UCITS funds. Artisan Private Funds consist of a number of Artisan-sponsored unregistered pooled investment vehicles.

Note 2. Summary of Significant Accounting Policies
Basis of presentation
The accompanying financial statements are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of such consolidated financial statements have been included. Such interim results are not necessarily indicative of full year results.
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and accordingly they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes.
The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. As a result, the interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in APAM’s latest annual report on Form 10-K.
The accompanying financial statements were prepared in accordance with U.S. GAAP and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions.

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Principles of consolidation
Artisan’s policy is to consolidate all subsidiaries or other entities in which it has a controlling financial interest. The consolidation guidance requires an analysis to determine if an entity should be evaluated for consolidation using the voting interest entity (“VOE”) model or the variable interest entity (“VIE”) model. Under the VOE model, controlling financial interest is generally defined as a majority ownership of voting interests. Under the VIE model, controlling financial interest is defined as (i) the power to direct activities that most significantly impact the economic performance of the entity and (ii) the right to receive potentially significant benefits or the obligation to absorb potentially significant losses.
Artisan generally consolidates VIEs in which it meets the power criteria and holds an equity ownership interest of greater than 10%. The consolidated financial statements include the accounts of APAM and all subsidiaries or other entities in which APAM has a direct or indirect controlling financial interest. All material intercompany balances have been eliminated in consolidation.
Artisan serves as the investment adviser to Artisan Funds, Artisan Global Funds and Artisan Private Funds. Artisan Funds and Artisan Global Funds are corporate entities, the business and affairs of which are managed by their respective boards of directors. The shareholders of the funds retain voting rights, including rights to elect and reelect members of their respective boards of directors. Each series of Artisan Funds is a VOE and is separately evaluated for consolidation under the VOE model. The shareholders of Artisan Global Funds lack simple majority liquidation rights, and as a result, each sub-fund of Artisan Global Funds is evaluated for consolidation under the VIE model. Artisan Private Funds are also evaluated for consolidation under the VIE model because third-party equity holders of the funds generally lack the ability to divest Artisan of its control of the funds.
From time to time, the Company makes investments in Artisan Funds, Artisan Global Funds, and Artisan Private Funds. If the investment results in a controlling financial interest, APAM consolidates the fund, and the underlying activity of the entire fund is included in Artisan’s unaudited consolidated financial statements. As of September 30, 2022,2023, Artisan had a controlling financial interest in twoone series of Artisan Funds, five sub-funds of Artisan Global Funds, and two Artisan Private Funds and, as a result, these funds are included in Artisan’s unaudited consolidated financial statements. Because these consolidated investment products meet the definition of investment companies under U.S. GAAP, Artisan has retained the specialized industry accounting principles for investment companies in the consolidated financial statements. See Note 6, “Variable Interest Entities and Consolidated Investment Products” for additional details.
Reclassification
In conjunction with annual reporting on Form 10-K for the year ended December 31, 2022, the Company changed the presentation of its Consolidated Statements of Operations to recategorize expenditures for computers and mobile devices from “General and administrative” to “Communication and technology.” Amounts for the comparative period in fiscal 2022 presented herein have been reclassified to conform to the current presentation. The reclassification had no impact on previously reported operating income, net income, or financial position. Management believes the revised presentation is more useful to readers of its financial statements.
Recent accounting pronouncements
None.
Note 3. Investment Securities
The disclosures below include details of Artisan’s investments, excluding money market funds and consolidated investment products. Investments held by consolidated investment products are described in Note 6, “Variable Interest Entities and Consolidated Investment Products”.Products.”
As of September 30, 2022As of December 31, 2021As of September 30, 2023As of December 31, 2022
Investments in equity securitiesInvestments in equity securities$69,540 $37,179 Investments in equity securities$128,822 $76,156 
Investments in equity securities accounted for under the equity methodInvestments in equity securities accounted for under the equity method8,700 10,699 Investments in equity securities accounted for under the equity method10,808 9,259 
Total investment securitiesTotal investment securities$78,240 $47,878 Total investment securities$139,630 $85,415 
Artisan’s investments in equity securities consist of investments in Artisan Funds, Artisan Global Funds and Artisan Private Funds. As of September 30, 20222023 and December 31, 2021,2022, Artisan held investment securities of $57.3$96.6 million and $36.5$63.3 million, respectively, related to funded long-term incentive compensation plans. plans (excluding investments in consolidated investment products).
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Unrealized gain (loss) related to investment securities held at the end of the periods indicated below were as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
2022202120222021
Unrealized gain (loss) on investment securities held at the end of the period$(6,675)$(2,098)$(24,145)$1,516 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
2023202220232022
Unrealized gain (loss) on investment securities held at the end of the period$(3,901)$(6,675)$6,458 $(24,145)

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Other net investment gain (loss) is presented within the non-operating income (expense) section of the Consolidated Statements of Operations. The components of other net investment gain (loss) are as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
2022202120222021
Net investment gain (loss) on nonconsolidated seed investments$(1,649)$(1,741)$(4,585)$113 
Net investment gain (loss) on franchise capital investments(3,987)(357)(19,192)2,117 
Other73 (11)48 (208)
Other net investment gain (loss)$(5,563)$(2,109)$(23,729)$2,022 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
2023202220232022
Net investment gain (loss) on nonconsolidated seed investments$214 $(1,649)$1,424 $(4,585)
Net investment gain (loss) on franchise capital investments(4,454)(3,987)6,127 (19,192)
Interest income on cash and cash equivalents and other2,088 73 3,778 48 
Other net investment gain (loss)$(2,152)$(5,563)$11,329 $(23,729)

Note 4. Fair Value Measurements
The table below presents information about Artisan’s assets and liabilities that are measured at fair value and the valuation techniques Artisan utilized to determine such fair value. The financial instruments held by consolidated investment products are excluded from the table below and are presented in Note 6, “Variable Interest Entities and Consolidated Investment Products”.Products.”
In accordance with ASC 820, fair value is defined as the price that Artisan would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value:
Level 1 – Observable inputs such as quoted (unadjusted) market prices in active markets for identical securities.
Level 2 – Other significant observable inputs (including but not limited to quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Significant unobservable inputs (including Artisan’s own assumptions in determining fair value).
The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments as of September 30, 20222023 and December 31, 2021:2022:
Assets and Liabilities at Fair ValueAssets and Liabilities at Fair Value
TotalNAV Practical Expedient (No Fair Value Level)Level 1Level 2Level 3TotalNAV Practical Expedient (No Fair Value Level)Level 1Level 2Level 3
September 30, 2022
September 30, 2023September 30, 2023
AssetsAssetsAssets
Money market funds$19,556 $— $19,556 $— $— 
Money market funds 1
Money market funds 1
$167,310 $— $167,310 $— $— 
Equity securitiesEquity securities78,240 8,296 69,944 — — Equity securities139,630 10,306 129,324 — — 
December 31, 2021
December 31, 2022December 31, 2022
AssetsAssetsAssets
Money market funds$37,861 $— $37,861 $— $— 
Money market funds 1
Money market funds 1
$3,297 $— $3,297 $— $— 
Equity securitiesEquity securities47,878 9,975 37,903 — — Equity securities85,415 8,835 76,580 — — 
1 Money market funds are included within the cash and cash equivalents line of the Unaudited Condensed Consolidated Statements of Financial Condition.
1 Money market funds are included within the cash and cash equivalents line of the Unaudited Condensed Consolidated Statements of Financial Condition.


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Fair values determined based on Level 1 inputs utilize quoted market prices for identical assets. Level 1 assets generally consist of money market funds, open-end mutual funds and UCITS funds. Equity securities without a fair value level consist of the Company’s investments in Artisan Private Funds, which are measured at the underlying fund’s net asset value (“NAV”), using the ASC 820 practical expedient. The NAV is provided by the fund and is derived from the fair values of the underlying investments as of the reporting date. Cash maintained in demand deposit accounts is excluded from the table above.
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Note 5. Borrowings
Artisan’s borrowings consist of the following as of September 30, 20222023 and December 31, 2021:2022:
MaturityAs of September 30, 2022As of December 31, 2021Interest Rate Per Annum
Maturity(1)
As of September 30, 2023As of December 31, 2022Interest Rate Per Annum
Revolving credit agreementRevolving credit agreementAugust 2027$— $— NARevolving credit agreementAugust 2027$— $— NA
Senior notesSenior notesSenior notes
Series CAugust 2022— 90,000 5.82 %
Series DSeries DAugust 202560,000 60,000 4.29 %Series DAugust 202560,000 60,000 4.29 %
Series ESeries EAugust 202750,000 50,000 4.53 %Series EAugust 202750,000 50,000 4.53 %
Series FSeries FAugust 203290,000 — 3.10 %Series FAugust 203290,000 90,000 3.10 %
Total gross borrowingsTotal gross borrowings$200,000 $200,000 Total gross borrowings$200,000 $200,000 
Debt issuance costsDebt issuance costs$(993)$(556)Debt issuance costs$(774)$(950)
Total borrowingsTotal borrowings$199,007 $199,444 Total borrowings$199,226 $199,050 
(1) The Company is not required to make principal payments on any of the outstanding obligations prior to contractual maturity.
(1) The Company is not required to make principal payments on any of the outstanding obligations prior to contractual maturity.
The fair value of borrowings was approximately $176.9$176.4 million as of September 30, 2022.2023. Fair value was determined based on future cash flows, discounted to present value using current market interest rates. The inputs are categorized as Level 2 in the fair value hierarchy, as defined in Note 4, “Fair Value Measurements”.
On August 16, 2022, Artisan Partners Holdings issued $90.0 million of 3.10% Series F notes pursuant to an agreement executed in December 2021 and used the proceeds to repay the $90.0 million of 5.82% Series C notes that matured on August 16, 2022. In addition, Holdings amended and extended its $100.0 million revolving credit facility for an additional five-year period. The Company incurred debt issuance costs related to the notes and revolving credit facility of $0.6 million and $1.1 million, respectively, which are amortized as interest expense over the life of the instrument.Measurements.”
The fixed interest rate on each series of unsecured notes is subject to a one percentage point increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received.
As of September 30, 2023, there were no borrowings outstanding under the $100.0 million revolving credit facility and the interest rate on the unused commitment was 0.15%.
Interest expense incurred on the unsecured notes and revolving credit agreement was $2.3$1.9 million and $2.6$2.3 million for the three months ended September 30, 20222023 and 2021,2022, respectively, and $7.4$5.8 million and $7.7$7.4 million for the nine months ended September 30, 20222023 and 2021,2022, respectively.
As of September 30, 2022, the aggregate maturities of debt obligations, based on their contractual terms, are as follows:
2022$— 
2023— 
2024— 
202560,000 
2026— 
Thereafter140,000 
Total$200,000 

Note 6. Variable Interest Entities and Consolidated Investment Products
Artisan serves as the investment adviser for various types of investment products, consisting of both VIEs and VOEs. Artisan consolidates an investment product if it has a controlling financial interest in the entity. See Note 2, ”Summary of Significant Accounting Policies”.Policies.” Any such entities are collectively referred to herein as consolidated investment products or CIPs.
As of September 30, 2022,2023, Artisan is considered to have a controlling financial interest in twoone series of Artisan Funds, five sub-funds of Artisan Global Funds and two Artisan Private Funds, with an aggregate direct equity investment in the consolidated investment products of $101.2$109.2 million.


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Artisan’s maximum exposure to loss in connection with the assets and liabilities of CIPs is limited to its direct equity investment, while the potential benefit is limited to the management and performance fees received and the return on its equity investment. With the exception of Artisan’s direct equity investment, the assets of CIPs are not available to Artisan’s creditors, nor are they available to Artisan for general corporate purposes. In addition, third-party investors in the CIPs have no recourse to the general credit of the Company.
Management and performance fees earned from CIPs are eliminated from revenue upon consolidation. See Note 15,14, “Related Party Transactions” for additional information on management and performance fees earned from CIPs.
Third-party investors’ ownership interest in CIPs is presented as redeemable noncontrolling interests in the unaudited condensed consolidated statements of financial condition as third-party investors have the right to withdraw their capital, subject to certain conditions. Net income attributable to third-party investors is reported as net income (loss) attributable to noncontrolling interests - consolidated investment products in the unaudited consolidated statements of operations.

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During the nine months ended September 30, 2022,2023, the Company determined that it no longer had a controlling financial interest in one series fund of Artisan Funds as a result of third party capital contributions. Upon loss of control, the fund was deconsolidated and the related assets, liabilities, and equity of the fund were derecognized from the Company’s unaudited condensed consolidated statements of financial condition. There was no net impact to the unaudited consolidated statementsstatement of operations for the nine months ended September 30, 2022.2023. Artisan generally does not recognize a gain or loss upon deconsolidation of investment products as the assets and liabilities of CIPs are carried at fair value. Artisan’s $9.6$19.6 million direct equity investment was reclassified from investment assets of consolidated investment products to investment securities.
As of September 30, 2022,2023, Artisan held direct equity investments of $8.7$10.8 million in VIEs for which the Company does not hold a controlling financial interest. These direct equity investments consisted of seed investments in sub-funds of Artisan Global Funds and Artisan Private Funds, both of which are accounted for under the equity method of accounting because Artisan has significant influence over the funds.
Fair Value Measurements - Consolidated Investment Products
Investments held by CIPs are reflected at fair value. Short and long positions on equity securities are valued based upon closing prices of the security on the exchange or market designated by the accounting agent or pricing vendor as the principal exchange. The closing price may represent last sale price, official closing price, a closing auction or other information depending on market convention. Short and long positions on fixed income instruments are valued at market value. Market values are generally evaluations based on the judgment ofprices provided by independent pricing vendors, which may consider, among other factors, the prices at which securities actually trade, broker-dealer quotations, pricing formulas, estimates of market values obtained from yield data relating to investments or securities with similar characteristics and/or discounted cash flow models that might be applicable. Short term investments are comprised of repurchase agreements and U.S. Treasury obligations. Repurchase agreements are valued at cost plus accrued interest and U.S. treasury obligations are valued using the same principles as fixed income securities. Derivative assets and liabilities are generally comprised of put and call options on securities and indices and forward foreign currency contracts. Put and call options are valued at the mid price (average of bid price and ask price) as provided by the pricing vendor at the close of trading on the contract’s principal exchange. Open forward foreign currency contracts are valued using the market spot rate.
The following tables present the fair value hierarchy levels of assets and liabilities held by CIPs measured at fair value as of September 30, 20222023 and December 31, 2021:2022:
Assets and Liabilities at Fair ValueAssets and Liabilities at Fair Value
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
September 30, 2022
September 30, 2023September 30, 2023
AssetsAssetsAssets
Money market fundsMoney market funds$18,077 $18,077 $— $— Money market funds$26,682 $26,682 $— $— 
Equity securities - long positionEquity securities - long position40,885 38,625 2,260 — Equity securities - long position35,007 32,632 2,074 301 
Fixed income instruments - long positionFixed income instruments - long position222,889 — 218,417 4,472 Fixed income instruments - long position293,274 — 288,729 4,545 
Derivative assetsDerivative assets528 210 318 — Derivative assets843 — 843 — 
Short term investmentsShort term investments7,305 — 7,305 — 
LiabilitiesLiabilitiesLiabilities
Equity securities - short position$2,322 $2,322 $— $— 
Fixed income instruments - short positionFixed income instruments - short position17,173 — 17,173 — Fixed income instruments - short position$10,410 $364 $10,046 $— 
Derivative liabilitiesDerivative liabilities1,556 1,433 123 — Derivative liabilities2,904 — 2,904 — 
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Assets and Liabilities at Fair Value
TotalLevel 1Level 2Level 3
December 31, 2021
Assets
Money market funds$7,908 $7,908 $— $— 
Equity securities - long position33,583 31,838 1,745 — 
Fixed income instruments - long position161,177 — 156,240 4,937 
Derivative assets241 — 241 — 
Liabilities
Equity securities - short position$3,427 $3,427 $— $— 
Fixed income instruments - short position15,570 — 15,570 — 
Derivative liabilities182 178 — 

Assets and Liabilities at Fair Value
TotalLevel 1Level 2Level 3
December 31, 2022
Assets
Money market funds$25,140 $25,140 $— $— 
Equity securities - long position32,388 30,179 2,209 — 
Fixed income instruments - long position216,638 — 212,368 4,270 
Derivative assets951 74 877 — 
Short term investments5,766 — 5,766 — 
Liabilities
Equity securities - short position$256 $256 $— $— 
Fixed income instruments - short position17,273 — 17,273 — 
Derivative liabilities3,222 2,462 760 — 
CIP balances included in the Company’s unaudited condensed consolidated statements of financial condition were as follows:
As of September 30, 2022As of December 31, 2021As of September 30, 2023As of December 31, 2022
Net CIP assets included in the table aboveNet CIP assets included in the table above$261,328 $183,730 Net CIP assets included in the table above$349,797 $260,132 
Net CIP assets/(liabilities) not included in the table aboveNet CIP assets/(liabilities) not included in the table above(31,204)(10,769)Net CIP assets/(liabilities) not included in the table above(20,847)(18,105)
Total Net CIP assetsTotal Net CIP assets230,124 172,961 Total Net CIP assets328,950 242,027 
Less: redeemable noncontrolling interestsLess: redeemable noncontrolling interests128,881 111,035 Less: redeemable noncontrolling interests219,726 135,280 
Artisan’s direct equity investment in CIPsArtisan’s direct equity investment in CIPs$101,243 $61,926 Artisan’s direct equity investment in CIPs$109,224 $106,747 
Note 7. Noncontrolling Interests - Holdings
Net income attributable to noncontrolling interests - Artisan Partners Holdings in the unaudited consolidated statements of operations represents the portion of earnings or loss attributable to the equity ownership interests in Holdings held by the limited partners of Holdings. As of September 30, 2022,2023, APAM held approximately 85%86% of the equity ownership interests in Holdings.
Limited partners of Artisan Partners Holdings are entitled to exchange partnership units (along with a corresponding number of shares of Class B or C common stock of APAM) for shares of Class A common stock from time to time (the “Holdings Common Unit Exchanges”). The Holdings Common Unit Exchanges increase APAM’s equity ownership interest in Holdings and result in an increase to deferred tax assets and amounts payable under the tax receivable agreements. See Note 11, “Income Taxes and Related Payments”.Payments.”
In order to maintain the one-to-one correspondence of the number of Holdings partnership units and APAM common shares, Holdings will issue one general partner (“GP”) unit to APAM for each share of Class A common stock issued by APAM. For the nine months ended September 30, 2022,2023, APAM’s equity ownership interest in Holdings increased as a result of the following transactions:
Holdings GP UnitsLimited Partnership UnitsTotalAPAM Ownership %Holdings GP UnitsLimited Partnership UnitsTotalAPAM Ownership %
Balance at December 31, 202166,699,872 12,335,197 79,035,069 84 %
Balance at December 31, 2022Balance at December 31, 202267,982,025 11,624,031 79,606,056 85 %
Holdings Common Unit Exchanges(1)Holdings Common Unit Exchanges(1)634,692 (634,692)— %Holdings Common Unit Exchanges(1)142,550 (142,550)— — %
Issuance of APAM Restricted Shares (1)
Issuance of APAM Restricted Shares (1)
787,372 — 787,372 — %
Issuance of APAM Restricted Shares (1)
515,702 — 515,702 %
Delivery of Shares Underlying RSUs (1)
1,060 — 1,060 — %
Delivery of Shares Underlying RSUs and PSUs (1)
Delivery of Shares Underlying RSUs and PSUs (1)
46,146 — 46,146 — %
Restricted Share Award Net Share Settlement (1)
Restricted Share Award Net Share Settlement (1)
(195,319)— (195,319)— %
Restricted Share Award Net Share Settlement (1)
(187,287)— (187,287)— %
Forfeitures from Employee Terminations (1)
Forfeitures from Employee Terminations (1)
(15,749)— (15,749)— %
Forfeitures from Employee Terminations (1)
(17,916)— (17,916)— %
Balance at September 30, 202267,911,928 11,700,505 79,612,433 85 %
Balance at September 30, 2023Balance at September 30, 202368,481,220 11,481,481 79,962,701 86 %
(1) The impact of the transaction on APAM’s ownership percentage was less than 1%.
(1) The impact of the transaction on APAM’s ownership percentage was less than 1%.
(1) The impact of the transaction on APAM’s ownership percentage was less than 1%.
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Changes in ownership of Holdings are accounted for as equity transactions because APAM continues to have a controlling interest in Holdings. Additional paid-in capital and noncontrolling interests - Artisan Partners Holdings in the unaudited condensed consolidated statements of financial condition are adjusted to reallocate Holdings’ historical equity to reflect the change in APAM’s ownership of Holdings.
The reallocation of equity had the following impact on the unaudited condensed consolidated statements of financial condition:
Statements of Financial ConditionStatements of Financial Condition For the Nine Months Ended September 30,Statements of Financial Condition For the Nine Months Ended September 30,
2022202120232022
Additional paid-in capitalAdditional paid-in capital$(262)$(1,256)Additional paid-in capital$(696)$(262)
Noncontrolling interests - Artisan Partners HoldingsNoncontrolling interests - Artisan Partners Holdings291 1,277 Noncontrolling interests - Artisan Partners Holdings773 291 
Accumulated other comprehensive income (loss)Accumulated other comprehensive income (loss)(29)(21)Accumulated other comprehensive income (loss)(77)(29)
Net impact to financial conditionNet impact to financial condition$— $— Net impact to financial condition$— $— 
In addition to the reallocation of historical equity, the change in ownership resulted in an increase to deferred tax assets and additional paid-in capital of $0.5$0.2 million and $0.8$0.5 million for the nine months ended September 30, 20222023 and 2021,2022, respectively.
Note 8. Stockholders’ Equity
APAM - Stockholders’ Equity
APAM had the following authorized and outstanding equity as of September 30, 20222023 and December 31, 2021,2022, respectively:
OutstandingOutstanding
AuthorizedAs of September 30, 2022As of December 31, 2021
Voting Rights (1)
Economic RightsAuthorizedAs of September 30, 2023As of December 31, 2022
Voting Rights (1)
Economic Rights
Common sharesCommon sharesCommon shares
Class A, par value $0.01 per shareClass A, par value $0.01 per share500,000,000 67,911,928 66,699,872 1 vote per shareProportionateClass A, par value $0.01 per share500,000,000 68,481,220 67,982,025 1 vote per shareProportionate
Class B, par value $0.01 per shareClass B, par value $0.01 per share200,000,000 2,589,388 3,206,580 1 vote per shareNoneClass B, par value $0.01 per share200,000,000 2,456,534 2,583,884 1 vote per shareNone
Class C, par value $0.01 per shareClass C, par value $0.01 per share400,000,000 9,111,117 9,128,617 1 vote per shareNoneClass C, par value $0.01 per share400,000,000 9,024,947 9,040,147 1 vote per shareNone
(1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of September 30, 2022, Artisan’s employees held 5,302,997 restricted shares of Class A common stock and all 2,589,388 outstanding shares of Class B common stock, all of which were subject to the agreement.
(1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of September 30, 2023, Artisan’s employees held 5,242,987 restricted shares of Class A common stock and all 2,456,534 outstanding shares of Class B common stock, all of which were subject to the agreement.
(1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of September 30, 2023, Artisan’s employees held 5,242,987 restricted shares of Class A common stock and all 2,456,534 outstanding shares of Class B common stock, all of which were subject to the agreement.
APAM is dependent on cash generated by Holdings to fund any dividends. Generally, Holdings will make distributions to all of its partners, including APAM, based on the proportionate share of ownership each has in Holdings. APAM will fund dividends to its stockholders from its proportionate share of those distributions after provision for its taxes and other obligations. APAM declared and paid the following dividends per share during the three and nine months ended September 30, 20222023 and 2021:2022:
Type of DividendType of DividendClass of StockFor the Three Months Ended September 30,For the Nine Months Ended September 30,Type of DividendClass of StockFor the Three Months Ended September 30,For the Nine Months Ended September 30,
20222021202220212023202220232022
QuarterlyQuarterlyClass A Common$0.60 $1.00 $2.39 $2.85 QuarterlyClass A Common$0.61 $0.60 $1.66 $2.39 
Special AnnualSpecial AnnualClass A Common$— $— $0.72 $0.31 Special AnnualClass A Common$— $— $0.35 $0.72 
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The following table summarizes APAM’s stock transactions for the nine months ended September 30, 2022:2023:
Total Stock Outstanding
Class A Common Stock(1)
Class B Common StockClass C Common StockTotal Stock Outstanding
Class A Common Stock(1)
Class B Common StockClass C Common Stock
Balance at December 31, 202179,035,069 66,699,872 3,206,580 9,128,617 
Balance at December 31, 2022Balance at December 31, 202279,606,056 67,982,025 2,583,884 9,040,147 
Holdings Common Unit ExchangesHoldings Common Unit Exchanges— 634,692 (617,192)(17,500)Holdings Common Unit Exchanges— 142,550 (127,350)(15,200)
Restricted Share Award GrantsRestricted Share Award Grants787,372 787,372 — — Restricted Share Award Grants515,702 515,702 — — 
Restricted Share Award Net Share SettlementRestricted Share Award Net Share Settlement(195,319)(195,319)— — Restricted Share Award Net Share Settlement(187,287)(187,287)— — 
Delivery of Shares Underlying RSUs1,060 1,060 — — 
Delivery of Shares Underlying RSUs and PSUsDelivery of Shares Underlying RSUs and PSUs46,146 46,146 — — 
Employee/Partner TerminationsEmployee/Partner Terminations(15,749)(15,749)— — Employee/Partner Terminations(17,916)(17,916)— — 
Balance at September 30, 202279,612,433 67,911,928 2,589,388 9,111,117 
Balance at September 30, 2023Balance at September 30, 202379,962,701 68,481,220 2,456,534 9,024,947 
(1) There were 367,392 and 327,713 restricted stock units outstanding at September 30, 2022 and December 31, 2021, respectively. In addition, there were 231,170 and 135,230 performance share units outstanding at September 30, 2022 and December 31, 2021 respectively. Based on the quarter-end status of the market and performance conditions, the 231,170 unvested performance share units would ultimately result in the issuance of 231,173 shares of Class A common stock if all other vesting conditions were met. Restricted stock units and performance share units are not reflected in the table because they are not considered outstanding or issued stock.
(1) There were 415,112 and 367,392 restricted stock units outstanding at September 30, 2023 and December 31, 2022, respectively. In addition, there were 216,170 and 231,170 performance share units outstanding at September 30, 2023 and December 31, 2022, respectively. Based on the quarter-end status of the market and performance conditions, the 216,170 unvested performance share units would ultimately result in the issuance of 264,143 shares of Class A common stock if all other vesting conditions were met. Restricted stock units and performance share units are not reflected in the table because they are not considered outstanding or issued stock.
(1) There were 415,112 and 367,392 restricted stock units outstanding at September 30, 2023 and December 31, 2022, respectively. In addition, there were 216,170 and 231,170 performance share units outstanding at September 30, 2023 and December 31, 2022, respectively. Based on the quarter-end status of the market and performance conditions, the 216,170 unvested performance share units would ultimately result in the issuance of 264,143 shares of Class A common stock if all other vesting conditions were met. Restricted stock units and performance share units are not reflected in the table because they are not considered outstanding or issued stock.
Each Class A, Class B, Class D and Class E common unit of Holdings (together with the corresponding share of Class B or Class C common stock) is exchangeable for one share of Class A common stock. The corresponding shares of Class B and Class C common stock are immediately canceled upon any such exchange.
Upon termination of employment with Artisan, an employee-partner’s Class B common units are exchanged for Class E common units and the corresponding shares of Class B common stock are canceled. APAM issues the former employee-partner a number of shares of Class C common stock equal to the former employee-partner’s number of Class E common units. Class E common units are exchangeable for Class A common stock subject to the same restrictions and limitations on exchange applicable to the other common units of Holdings.
Artisan Partners Holdings - Partners’ Equity
Holdings makes distributions of its net income to the holders of its partnership units for income taxes as required under the terms of the partnership agreement and also makes additional distributions under the terms of the partnership agreement as required. The distributions are recorded in the financial statements on the declaration date, or on the payment date in lieu of a declaration date. Holdings’ partnership distributions for the three and nine months ended September 30, 20222023 and 20212022 were as follows:
For the Three Months Ended September 30,For the Nine Months Ended September 30,For the Three Months Ended September 30,For the Nine Months Ended September 30,
20222021202220212023202220232022
Holdings Partnership Distributions to Limited PartnersHoldings Partnership Distributions to Limited Partners$12,026 $25,629 $43,721 $67,889 Holdings Partnership Distributions to Limited Partners$12,883 $12,026 $30,341 $43,721 
Holdings Partnership Distributions to APAMHoldings Partnership Distributions to APAM64,441 110,555 227,165 285,007 Holdings Partnership Distributions to APAM72,419 64,441 169,102 227,165 
Total Holdings Partnership DistributionsTotal Holdings Partnership Distributions$76,467 $136,184 $270,886 $352,896 Total Holdings Partnership Distributions$85,302 $76,467 $199,443 $270,886 
The distributions are recorded as a reduction to consolidated stockholders’ equity, with the exception of distributions made to APAM, which are eliminated upon consolidation.










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Note 9. Revenue From Contracts with Customers
The following table presents a disaggregation of investment advisory revenue by type and vehicle for the three and nine months ended September 30, 20222023 and 2021:2022:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
2023202220232022
Management fees
   Artisan Funds$145,269 $135,919 $420,244 $445,260 
   Artisan Global Funds11,220 10,423 32,388 33,192 
   Separate accounts and other (1)
92,202 87,849 273,348 288,449 
Performance fees
   Separate accounts and other (1)
31 121 154 397 
Total revenues (2)
$248,722 $234,312 $726,134 $767,298 
(1) Separate accounts and other revenue consists of management fees and performance fees earned from vehicles other than Artisan Funds or Artisan Global Funds, and therefore includes revenue earned from traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds.
(2) All management fees and performance fees from consolidated investment products were eliminated upon consolidation and therefore are omitted from this table. See Note 14, “Related Party Transactions.”
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
2022202120222021
Management fees
   Artisan Funds$135,919 $186,254 $445,260 $528,924 
   Artisan Global Funds10,423 12,822 33,192 35,568 
   Separate accounts and other (1)
87,849 117,100 288,449 336,519 
Performance fees
   Separate accounts and other (1)
121 398 397 11,189 
Total revenues (2)
$234,312 $316,574 $767,298 $912,200 
(1) Separate accounts and other revenue consists of management fees and performance fees earned from vehicles other than Artisan Funds or Artisan Global Funds, and therefore includes revenue earned from traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds.
(2) All management fees and performance fees from consolidated investment products were eliminated upon consolidation and therefore are omitted from this table. See Note 15, “Related Party Transactions”.
The following table presents the balances of receivables related to contracts with customers:
CustomerAs of September 30, 2022As of December 31, 2021
   Artisan Funds$4,087 $5,874 
   Artisan Global Funds4,065 5,433 
   Separate accounts and other70,867 98,568 
Total receivables from contracts with customers$79,019 $109,875 
Non-customer receivables24,415 5,975 
Accounts receivable$103,434 $115,850 
CustomerAs of September 30, 2023As of December 31, 2022
   Artisan Funds$6,096 $5,597 
   Artisan Global Funds4,578 4,453 
   Separate accounts and other77,976 74,936 
Total receivables from contracts with customers$88,650 $84,986 
Non-customer receivables7,412 13,648 
Accounts receivable$96,062 $98,634 
Artisan Funds and Artisan Global Funds are billed on the last day of each month. Artisan Funds and Artisan Global Funds make payments on the same day the invoice is received for the majority of the invoiced amount. The remainder of the invoice is generally paid in the month following receipt of the invoice. Separate accounts and other clients are generally billed on a monthly or quarterly basis, with payments due within 30 days of billing.
Artisan had no other contract assets or liabilities from contracts with customers as of September 30, 20222023 or December 31, 2021.2022.
Non-customer receivables includesinclude state tax payments made on behalf of certain limited partners, which are then netted from subsequent distributions or payments to the limited partners, and seed principalas well as redemptions of investments related to franchise capital that have not yet been collected.
Note 10. Compensation and Benefits
Total compensation and benefits consistsconsist of the following:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
Salaries, incentive compensation and benefits (1)
Salaries, incentive compensation and benefits (1)
$109,563 $130,831 $352,221 $385,106 
Salaries, incentive compensation and benefits (1)
$118,271 $109,563 $350,147 $352,221 
Long-term cash incentive compensation expenseLong-term cash incentive compensation expense2,453 1,806 7,065 4,941 Long-term cash incentive compensation expense4,625 2,453 17,969 7,065 
Restricted share-based award compensation expenseRestricted share-based award compensation expense10,017 9,598 30,073 29,666 Restricted share-based award compensation expense7,752 10,017 24,477 30,073 
Long-term incentive compensation expenseLong-term incentive compensation expense12,470 11,404 37,138 34,607 Long-term incentive compensation expense12,377 12,470 42,446 37,138 
Total compensation and benefitsTotal compensation and benefits$122,033 $142,235 $389,359 $419,713 Total compensation and benefits$130,648 $122,033 $392,593 $389,359 
(1) Excluding long-term incentive compensation expense
(1) Excluding long-term incentive compensation expense
(1) Excluding long-term incentive compensation expense

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Incentive compensation
Cash incentive compensation paid to members of Artisan’s investment teams and members of its distribution teamsteam is generally based on formulas that are tied directly to revenues. The majority of this incentive compensation is earned on a quarterly basis and paid in the quarter following the quarter in which the incentiveit was earned with the exception of fourth quarter incentivesincentive compensation which is earned which are alsoand paid in the fourth quarter of the year. Cash incentive compensation paid to most other employees is discretionary and subjectively determined based on individual performance and Artisan’s overall results during the applicable year and is generally paid on an annual basis.
Long-term incentive compensation awards consist of both APAM restricted share-based awards and long-term cash awards, which are referred to as franchise capital awards. These awards are described in more detail below.
Restricted share-based awards
Artisan has registered 14,000,000 shares of Class A common stock for issuance under the 2013 Omnibus Incentive Compensation Plan (the “Plan”). Pursuant to the Plan, APAM has granted a combination of restricted stock awards, restricted stock units, and performance share units (collectively referred to as “restricted share-based awards” or "awards"“awards”) of Class A common stock to employees.
Standard Restricted Shares. Standard restricted shares are generally subject to a pro rata five-year service vesting condition.
Career Shares. Career shares are generally subject to both (i) a pro rata five-year service vesting condition and (ii) a qualifying retirement (as defined in the award agreement) condition.
Franchise Shares. Like career shares, franchise shares are generally subject to both (i) a pro rata five-year service vesting condition and (ii) a qualifying retirement condition. In addition, franchise shares, which are only granted to investment team members, are subject to a Franchise Protection Clause, which provides that the number of shares that ultimately vest depends on whether certain conditions relating to client cash flows are met. If such conditions are not met, compensation cost related to unvested shares will be reversed for any shares that do not vest.reversed.
Performance Share Units (PSUs). PSUs are generally subject to (i) a three-year service vesting condition, (ii) certain performance conditions related to the Company's adjusted operating margin and total shareholder return compared to a peer group during a three-year performance period, and (iii) for one-half of the PSUs eligible to vest at the end of the performance period, a qualifying retirement condition. The number of shares of Class A common stock that are ultimately issued in connection with each PSU award will depend upon the outcome of the performance, market and qualified retirement conditions. For the portion of a PSU award with a "performance condition" under ASC 718, expense is recognized over the service period if it is probable that the performance condition will be achieved.
Compensation expense is recognized based on the estimated grant date fair value on a straight-line basis over the requisite service period of the award. The initial requisite service period is generally five years for restricted stock awards and restricted stock units, and three years for performance share units.PSUs. The fair value of each award is equal to the market price of the Company's common stock on the grant date, except for performance share unitsPSUs with a "market condition" performance metric under ASC 718, which have a grant-date fair value based on a Monte Carlo valuation model.
Unvested restricted share-based awards are subject to forfeiture. Grantees are generally entitled to dividends or dividend equivalents on unvested and vested awards. 2,964,6606,400,000 shares of Class A common stock were reserved and available for issuance under the Artisan Partners Asset Management, Inc. 2023 Omnibus Incentive Compensation Plan (the "Plan") as of September 30, 2022.2023, which includes 3,945,902 shares registered in the nine months ended September 30, 2023.
During the nine months ended September 30, 2022,2023, Artisan granted 787,372515,702 restricted stock awards 1,331and 1,684 restricted stock units, and 95,940 performance share units of Class A common stock to employees of the Company. Total compensation expense associated with the 2022 grant is expected to be approximately $38.0 million.units.
The following tables summarize the restricted share-based award activity for the nine months ended September 30, 2022:
Weighted-Average Grant Date Fair ValueRestricted Stock Awards and Restricted Stock Units
Unvested at January 1, 2022$38.18 5,245,394 
Granted41.86 788,703 
Forfeited39.99 (15,749)
Vested35.09 (605,550)
Unvested at September 30, 2022$39.06 5,412,798 
2023:
Weighted-Average Grant Date Fair ValueRestricted Stock Awards and Restricted Stock Units
Unvested at January 1, 2023$39.09 5,396,343 
Granted34.99 517,386 
Forfeited43.40 (17,916)
Vested37.55 (542,487)
Unvested at September 30, 2023$38.84 5,353,326 
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Weighted-Average Grant Date Fair ValuePerformance Share UnitsWeighted-Average Grant Date Fair ValuePerformance Share Units
Unvested at January 1, 2022$61.42 135,230 
Unvested at January 1, 2023Unvested at January 1, 2023$58.13 231,170 
GrantedGranted53.50 95,940 Granted— — 
ForfeitedForfeited— — Forfeited— — 
Vested(1)Vested(1)— — Vested(1)34.97 (15,000)
Unvested at September 30, 2022$58.13 231,170 
Unvested at September 30, 2023Unvested at September 30, 2023$54.89 216,170 
(1) During the nine months ended September 30, 2023, the 60,000 PSUs granted in 2020 met the requisite three-year performance conditions, resulting in the potential vesting of 150% of the PSUs, or 90,000 shares of Class A common stock. 45,000 shares of Class A common stock were promptly delivered at that time, while the remaining 45,000 PSUs remain subject to the qualified retirement vesting condition.
(1) During the nine months ended September 30, 2023, the 60,000 PSUs granted in 2020 met the requisite three-year performance conditions, resulting in the potential vesting of 150% of the PSUs, or 90,000 shares of Class A common stock. 45,000 shares of Class A common stock were promptly delivered at that time, while the remaining 45,000 PSUs remain subject to the qualified retirement vesting condition.
Based on the quarter-end status of the market and performance conditions, the 231,170216,170 unvested performance share unitsPSUs would ultimately result in the issuance of 231,173264,143 shares of Class A common stock if all other vesting conditions were met.
The unrecognized compensation expense for the unvested restricted stock awards and restricted stock units as of September 30, 20222023 was $81.8$68.1 million with a weighted average recognition period of 3.53.2 years remaining. The unrecognized compensation expense for the unvested performance share unitsPSUs as of September 30, 20222023 was $7.5$4.1 million with a weighted average recognition period of 2.62.0 years remaining.
During the nine months ended September 30, 2022,2023, the Company withheld a total of 195,319187,287 restricted shares and paid a total of $7.8$6.8 million as a result of net share settlements to satisfy employee tax withholding obligations. These net share settlements had the effect of shares repurchased and retired by the Company, as they reduced the number of shares outstanding.
Long-term cash awards (franchise capital awards)
During the nine months ended September 30, 2022,2023, Artisan granted $48.6$39.0 million of franchise capital awards to investment team members in lieu of certain additional restricted share-based awards. The franchise capital awards are subject to the same long-term vesting and forfeiture provisions as restricted share-based awards. Prior to vesting, franchise capital awards are generally allocated to one or more of the investment strategies managed by the award recipient's investment team. During the vesting period, the value of the awards will increase or decrease based on the investment returns of the strategies into which the awards are invested.allocated. Compensation expense, including the appreciation or depreciation related to investment returns, is recognized on a straight-line basis over the required service period, which is generally five years. Because the awards will generally be paid out in cash upon vesting, the fair value of unvested awards is recorded as a liability based on the percentage of the service requirement that has been completed.
The companyCompany hedges its economic exposure to the change in value of these awards due to market movements by investing the cash reserved for the awards in the underlying investments. The franchise capital award liability and the underlying investment holdings are marked to market each quarter. The change in value of the award liability is recognized as a compensation expense on a straight-line basis over the required service period. The change in value of the underlying investment holdings is recognized in non-operating income (expense) in the period of change. While there is a timing difference between the recognition of the compensation expense and the offsetting investment gain or loss, the compensation expense and investment income will net to zero at the end of the multi-year vesting period for all awards that ultimately vest.
The change in value of the investments had the following impact on the unaudited consolidated statements of operations:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
Statement of Operations SectionStatement of Operations Line Item2022202120222021
Operating expenses (benefit)Compensation and benefits$(1,490)$83 $(4,138)$297 
Non-operating income (expense)Other net investment gain (loss)(3,987)(356)(19,192)2,117 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
Statement of Operations SectionStatement of Operations Line Item2023202220232022
Operating expenses (benefit)Compensation and benefits$(1,230)$(1,490)$1,216 $(4,138)
Non-operating income (expense)Other net investment gain (loss)(4,454)(3,987)6,127 (19,192)
The franchise capital award liability was $9.8$23.6 million and $6.9$14.5 million as of September 30, 20222023 and December 31, 2021,2022, respectively, and is included in accrued incentive compensation in the unaudited consolidated statements of financial condition. The unrecognized compensation expense for the unvested franchise capital awards as of September 30, 20222023 was $51.4$80.6 million with a weighted average recognition period of 4.23.8 years remaining.


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Note 11. Income Taxes and Related Payments
APAM is subject to U.S. federal, state and local income taxation on APAM’s allocable portion of Holdings’ income as well as foreign income taxes payable by Holdings’ subsidiaries. APAM’s effective income tax rate was lower than the U.S. federal statutory rate of 21% primarily due to a rate benefit attributable to the fact that, for the nine months ended September 30, 2022,2023, approximately 17%16% of Artisan Partners Holdings’ full year projected taxable earnings were attributable to other partners and not subject to corporate-level taxes. The effective tax rate was also lower than the statutory rate due to tax deductible dividends paid on unvested restricted share-based awards and favorable tax deductions related to the vesting of restricted share-based awards.
APAM’s effective tax rate was 20.4%19.1% and 18.8%20.4% for the nine months ended September 30, 20222023 and 2021,2022, respectively.
Components of the provision for income taxes consist of the following:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
Current:Current:Current:
FederalFederal$5,934 $15,097 $19,606 $38,414 Federal$4,240 $5,934 $14,546 $19,606 
State and localState and local1,380 4,339 5,051 10,906 State and local950 1,380 4,128 5,051 
ForeignForeign129 152 407 406 Foreign337 129 703 407 
TotalTotal7,443 19,588 25,064 49,726 Total5,527 7,443 19,377 25,064 
Deferred:Deferred:Deferred:
FederalFederal6,212 7,198 18,458 24,155 Federal7,687 6,212 27,448 18,458 
State and localState and local1,095 1,268 3,239 4,256 State and local1,356 1,095 4,838 3,239 
TotalTotal7,307 8,466 21,697 28,411 Total9,043 7,307 32,286 21,697 
Income tax expense (benefit)Income tax expense (benefit)$14,750 $28,054 $46,761 $78,137 Income tax expense (benefit)$14,570 $14,750 $51,663 $46,761 
In connection with the IPO, APAM entered into two tax receivable agreements (“TRAs”). The first TRA generally provides for the payment by APAM to a private equity fund (the “Pre-H&F Corp Merger Shareholder”) or its assignees of 85% of the applicable cash savings, if any, of U.S. federal, state and local income taxes that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) the tax attributes of the preferred units APAM acquired in the merger of a wholly-owned subsidiary of the Pre-H&F Corp Merger Shareholder into APAM in March 2013 and (ii) tax benefits related to imputed interest.
The second TRA generally provides for the payment by APAM to current or former limited partners of Holdings or their assignees of 85% of the applicable cash savings, if any, of U.S. federal, state and local income taxes that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) certain tax attributes of their partnership units sold to APAM or exchanged (for shares of Class A common stock, convertible preferred stock or other consideration) and that are created as a result of such sales or exchanges and payments under the TRAs and (ii) tax benefits related to imputed interest. Under both agreements, APAM generally will retain the benefit of the remaining 15% of the applicable tax savings.
For purposes of the TRAs, cash savings of income taxes are calculated by comparing APAM’s actual income tax liability to the amount it would have been required to pay had it not been able to utilize any of the tax benefits subject to the TRAs, unless certain assumptions apply. The TRAs will continue in effect until all such tax benefits have been utilized or expired, unless APAM exercises its right to terminate the agreements or payments under the agreements are accelerated in the event that APAM materially breaches any of its material obligations under the agreements.
The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of sales or exchanges by the holders of limited partnership units, the price of the Class A common stock at the time of such sales or exchanges, whether such sales or exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest or depreciable basis or amortizable basis.




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Payments under the TRAs, if any, will be made pro rata among all TRA counterparties entitled to payments on an annual basis to the extent APAM has sufficient taxable income to utilize the increased depreciation and amortization charges and imputed interest deductions. Artisan expects to make one or more payments under the TRAs, to the extent they are required, prior to or within 125 days after APAM’s U.S. federal income tax return is filed for each fiscal year. Interest on the TRA payments will accrue at a rate equal to one-year LIBOR plus 100 basis points from the due date (without extension) of such tax return until such payments are made. Amounts payable under the TRAs are estimates which may be impacted by factors, including but not limited to, expected tax rates, projected taxable income, and projected ownership levels and are subject to change. Changes in the estimates of amounts payable under tax receivable agreements are recorded as non-operating income (loss) in the unaudited consolidated statements of operations.
The change in the Company’s deferred tax assets related to the tax benefits described above and the change in corresponding amounts payable under the TRAs for the nine months ended September 30, 20222023 is summarized as follows:
Deferred Tax Asset - Amortizable BasisAmounts Payable Under TRAsDeferred Tax Asset - Amortizable BasisAmounts Payable Under TRAs
December 31, 2021$459,893 $425,427 
December 31, 2022December 31, 2022$426,468 $398,789 
2022 Holdings Common Unit Exchanges8,050 6,842 
2023 Holdings Common Unit Exchanges2023 Holdings Common Unit Exchanges1,567 1,333 
AmortizationAmortization(31,581)— Amortization(32,885)— 
Payments under TRAsPayments under TRAs— (33,109)Payments under TRAs— (35,757)
Change in estimateChange in estimate10 (913)Change in estimate(2)(505)
September 30, 2022$436,372 $398,247 
September 30, 2023September 30, 2023$395,148 $363,860 
Net deferred tax assets comprise the following:
As of September 30, 2022As of December 31, 2021As of September 30, 2023As of December 31, 2022
Deferred tax assets:Deferred tax assets:Deferred tax assets:
Amortizable basis (1)
Amortizable basis (1)
$436,372 $459,893 
Amortizable basis (1)
$395,148 $426,468 
Other (2)
Other (2)
48,384 38,009 
Other (2)
51,343 50,556 
Total deferred tax assetsTotal deferred tax assets484,756 497,902 Total deferred tax assets446,491 477,024 
Less: valuation allowance (3)
Less: valuation allowance (3)
— — 
Less: valuation allowance (3)
— — 
Net deferred tax assetsNet deferred tax assets$484,756 $497,902 Net deferred tax assets$446,491 $477,024 
(1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements.
(1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements.
(1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements.
(2) Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets. These future tax benefits are not subject to the TRA agreements.
(2) Represents the net deferred tax assets associated with Artisan’s investment in Holdings, related primarily to incentive compensation plan deduction timing differences. These future tax benefits are not subject to the TRA agreements.
(2) Represents the net deferred tax assets associated with Artisan’s investment in Holdings, related primarily to incentive compensation plan deduction timing differences. These future tax benefits are not subject to the TRA agreements.
(3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required.
(3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required.
(3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required.
Accounting standards establish a minimum threshold for recognizing, and a process for measuring, the benefits of income tax return positions in financial statements. The Company's gross liability for unrecognized tax benefits was $0.2 million and $1.3$0.1 million as of September 30, 20222023 and December 31, 2021,2022, respectively. The total amount of unrecognized tax benefits is not expected to significantly increase or decrease within the next twelve months.
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Accrued interest on unrecognized tax benefits was $24 thousand and $238 thousandless than $0.1 million as of September 30, 20222023 and December 31, 2021, respectively.2022. The gross unrecognized tax benefit is recorded within accounts payable, accrued expenses, and other in the Company’s unaudited condensed consolidated statements of financial condition.
In the normal course of business, Artisan is subject to examination by federal and certain state, local and foreign tax regulators. As of September 30, 2022,2023, U.S. federal income tax returns filed for the years 20192020 through 20212022 are open and therefore subject to examination. State, local, and foreign income tax returns filed are generally subject to examination from 20182019 to 2021.2022.




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Note 12. Earnings Per Share
Basic earnings per share is computed under the two-class method by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Unvested restricted share-based awards are excluded from the number of Class A common shares outstanding for the basic earnings per share calculation because the shares have not yet been earned by employees. Income available to Class A common stockholders is computed by reducing net income attributable to APAM by earnings (both distributed and undistributed) allocated to participating securities, according to their respective rights to participate in those earnings. Except for certain performance share units, unvested share-based awards are participating securities because the awards include non-forfeitable dividend rights during the vesting period. Class B and Class C common shares do not share in profits of APAM and therefore are not reflected in the calculations.
Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The weighted average number of Class A common shares outstanding during the period is increased by the assumed conversion of nonparticipating unvested share-based awards into Class A common stock using the treasury stock method.
The computation of basic and diluted earnings per share for the three and nine months ended September 30, 20222023 and 20212022 were as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
Basic and Diluted Earnings Per ShareBasic and Diluted Earnings Per Share2022202120222021Basic and Diluted Earnings Per Share2023202220232022
Numerator:Numerator:Numerator:
Net income attributable to APAMNet income attributable to APAM$44,235 $86,413 $153,947 $251,898 Net income attributable to APAM$53,155 $44,235 $157,533 $153,947 
Less: Allocation to participating securitiesLess: Allocation to participating securities3,651 8,226 18,675 23,260 Less: Allocation to participating securities4,691 3,651 13,799 18,675 
Net income available to common stockholdersNet income available to common stockholders$40,584 $78,187 $135,272 $228,638 Net income available to common stockholders$48,464 $40,584 $143,734 $135,272 
Denominator:Denominator:Denominator:
Basic weighted average shares outstandingBasic weighted average shares outstanding62,623,434 59,965,549 62,329,756 59,519,634 Basic weighted average shares outstanding63,520,402 62,623,434 63,419,587 62,329,756 
Dilutive effect of nonparticipating share-based awardsDilutive effect of nonparticipating share-based awards9,226 17,225 23,519 16,260 Dilutive effect of nonparticipating share-based awards42,642 9,226 30,217 23,519 
Diluted weighted average shares outstandingDiluted weighted average shares outstanding62,632,660 59,982,774 62,353,275 59,535,894 Diluted weighted average shares outstanding63,563,044 62,632,660 63,449,804 62,353,275 
Earnings per share - BasicEarnings per share - Basic$0.65 $1.30 $2.17 $3.84 Earnings per share - Basic$0.76 $0.65 $2.27 $2.17 
Earnings per share - DilutedEarnings per share - Diluted$0.65 $1.30 $2.17 $3.84 Earnings per share - Diluted$0.76 $0.65 $2.27 $2.17 
Allocation to participating securities in the table above primarily represents dividends paid to holders of unvested restricted share-based awards, which reduces net income available to common stockholders.
The Holdings limited partnership units are anti-dilutive primarily due to the impact of public company expenses. Unvested restricted share-based awards with non-forfeitable dividend rights during the vesting period are considered participating securities and are therefore anti-dilutive. The following table summarizes the weighted-average shares outstanding that are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
Anti-Dilutive Weighted Average Shares OutstandingAnti-Dilutive Weighted Average Shares Outstanding2022202120222021Anti-Dilutive Weighted Average Shares Outstanding2023202220232022
Holdings limited partnership unitsHoldings limited partnership units11,928,838 14,146,934 12,145,755 14,486,932 Holdings limited partnership units11,487,400 11,928,838 11,517,987 12,145,755 
Unvested restricted share-based awardsUnvested restricted share-based awards5,668,508 5,417,353 5,587,842 5,438,556 Unvested restricted share-based awards5,586,181 5,668,508 5,571,819 5,587,842 
TotalTotal17,597,346 19,564,287 17,733,597 19,925,488 Total17,073,581 17,597,346 17,089,806 17,733,597 
Note 13. Indemnifications
In the normal course of business, APAM enters into agreements that include indemnities in favor of third parties. Holdings has also agreed to indemnify APAM as its general partner, Artisan Investment Corporation (“AIC”) as its former general partner, the directors and officers of APAM, the directors and officers of AIC as its former general partner, the members of its former Advisory Committee, and its partners, directors, officers, employees and agents. Holdings’ subsidiaries may also have similar agreements to indemnify their respective general partner(s), directors, officers, directors and officers of their general partner(s), partners, members, employees, and agents. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. APAM maintains insurance policies that may provide coverage against certain claims under these indemnities.

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Note 14. Leases
Operating lease expense was as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
Lease TypeClassification2022202120222021
Parking leasesCompensation and benefits$131 $130 $393 $388 
Office leasesOccupancy4,157 3,664 13,256 10,862 
Variable lease cost (1)
Occupancy410 14 486 44 
Short-term lease cost (1)
Occupancy268 97 699 257 
Sublease incomeOccupancy— (100)(133)(167)
Office equipment leasesCommunication and technology34 59 134 190 
Total operating lease expense$5,000 $3,864 $14,835 $11,574 
(1) Variable and short-term lease costs are excluded from the measurement of operating lease liabilities.
The table below presents the maturity of operating lease liabilities:
As of September 30, 2022
2022 (excluding the nine months ended September 30, 2022)$3,787 
202318,428 
202418,595 
202518,524 
202617,783 
Thereafter70,519 
Total undiscounted lease payments$147,636 
Adjustment to discount to present value(24,160)
Operating lease liabilities$123,476 
As of September 30, 2022, none of the options to extend lease terms were reasonably certain of being exercised. Other information related to leases was as follows:
 For the Nine Months Ended September 30,
20222021
Weighted average discount rate4.1 %4.6 %
Weighted average remaining lease term9.1 years6.7 years
Operating cash flows for operating leases$12,392 $12,779 

Note 15.14. Related Party Transactions
Several of the current executive officers and directors of APAM or entities associated with those individuals, are limited partners of Holdings. As a result, certain transactions (such as TRA payments) between Artisan and the limited partners of Holdings are considered to be related party transactions with respect to these persons.
Holdings also makes estimated state tax payments on behalf of certain limited partners, including related parties. These payments are then netted from subsequent distributions or payments to the limited partners. At September 30, 20222023 and December 31, 2021,2022, accounts receivable included $16.7$4.3 million and $1.5$6.5 million, respectively, of partnership tax reimbursements due from Holdings’ limited partners, including related parties.

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Affiliate transactions—Artisan Funds
Artisan has an agreement to serve as the investment adviser to Artisan Funds, with which certain Artisan employees are affiliated. Under the terms of the agreement, which generally is reviewed and continued by the board of directors of Artisan Funds annually, a fee is paid to Artisan based on an annual percentage of the average daily net assets of each Artisan Fund ranging from 0.60% to 1.05%. Artisan has contractually agreed to reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by certain of the Artisan Funds to not more than a fixed percentage (ranging from 0.88%0.83% to 1.50%) of a fund’s average daily net assets. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Funds for other expenses. The officers and directors of Artisan Funds who are affiliated with Artisan receive no compensation from the funds.
Investment advisory fees for managing Artisan Funds and amounts reimbursed by Artisan for fees and expenses (including management fees) are as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
Artisan FundsArtisan Funds2022202120222021Artisan Funds2023202220232022
Investment advisory fees (Gross of expense reimbursements)Investment advisory fees (Gross of expense reimbursements)$136,216 $186,434 $446,417 $529,441 Investment advisory fees (Gross of expense reimbursements)$145,738 $136,216 $421,459 $446,417 
Elimination of fees from consolidated investment products (1)
Elimination of fees from consolidated investment products (1)
(73)— (137)— 
Elimination of fees from consolidated investment products (1)
(67)(73)(265)(137)
Consolidated investment advisory fees (Gross of expense reimbursements)Consolidated investment advisory fees (Gross of expense reimbursements)$136,143 $186,434 $446,280 $529,441 Consolidated investment advisory fees (Gross of expense reimbursements)$145,671 $136,143 $421,194 $446,280 
Expense reimbursementsExpense reimbursements$352 $180 $1,320 $517 Expense reimbursements$517 $352 $1,400 $1,320 
Elimination of expense reimbursements from consolidated investment products (1)
Elimination of expense reimbursements from consolidated investment products (1)
(128)— (300)— 
Elimination of expense reimbursements from consolidated investment products (1)
(115)(128)(450)(300)
Consolidated expense reimbursementsConsolidated expense reimbursements$224 $180 $1,020 $517 Consolidated expense reimbursements$402 $224 $950 $1,020 
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
Affiliate transactions—Artisan Global Funds
Artisan has an agreement to serve as the investment manager to Artisan Global Funds, with which certain Artisan employees are affiliated. Under the terms of these agreements, a fee is paid based on an annual percentage of the average daily net assets of each fund ranging from 0.70%0.50% to 1.85%. Artisan reimburses each sub-fund of Artisan Global Funds to the extent that sub-fund’s annual expenses, not including Artisan’s fee, exceed certain levels, which range from 0.10% to 0.20%. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Global Funds for other expenses. The directors of Artisan Global Funds who are also employees of Artisan receive no compensation from the funds.
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Investment advisory fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
Artisan Global Funds2022202120222021
Investment advisory fees (Gross of expense reimbursements)$10,471 $12,873 $33,301 $35,672 
Elimination of fees from consolidated investment products(1)
(58)(19)(94)(56)
Consolidated investment advisory fees (Gross of expense reimbursements)$10,413 $12,854 $33,207 $35,616 
Expense reimbursements$103 $147 $293 $334 
Elimination of expense reimbursements from consolidated investment products (1)
(113)(115)(278)(286)
Consolidated expense reimbursements$(10)$32 $15 $48 
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
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For the Three Months Ended September 30,For the Nine Months Ended September 30,
Artisan Global Funds2023202220232022
Investment advisory fees (Gross of expense reimbursements)$11,331 $10,471 $32,663 $33,301 
Elimination of fees from consolidated investment products(1)
(123)(58)(287)(94)
Consolidated investment advisory fees (Gross of expense reimbursements)$11,208 $10,413 $32,376 $33,207 
Expense reimbursements$127 $103 $308 $293 
Elimination of expense reimbursements from consolidated investment products (1)
(139)(113)(320)(278)
Consolidated expense reimbursements$(12)$(10)$(12)$15 
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
Affiliate transactions—Artisan Private Funds
Pursuant to written agreements, Artisan serves as the investment manager, and acts as the general partner, for certain Artisan Private Funds. Under the terms of these agreements, Artisan earns a management fee and, for certain funds, is entitled to receive either an allocation of profits or a performance-based fee. In addition, Artisan has agreed to reimburse certain funds to the extent that expenses, excluding Artisan’s management fee, performance fee and transaction related costs, exceed certain levels, which range from 0.10% to 1.00% per annum of the net assets of the fund. Artisan may also voluntarily waive fees or reimburse the funds for other expenses. The directors of Artisan Private Funds and the officers of the general partners of the Artisan Private Funds who are affiliated with Artisan receive no compensation from the funds.
Artisan and certain related parties, including employees, officers and members of the Company’s Board, have invested in one or more of the Artisan Private Funds and, currentlyfor certain of those investments, do not pay a management fee, performance fee or incentive allocation.
Investment advisory fees for managing the Artisan Private Funds and amounts reimbursed to Artisan Private Funds by Artisan are as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
Artisan Private FundsArtisan Private Funds2022202120222021Artisan Private Funds2023202220232022
Investment advisory fees (Gross of expense reimbursements)Investment advisory fees (Gross of expense reimbursements)$3,592 $3,785 $11,651 $9,269 Investment advisory fees (Gross of expense reimbursements)$2,781 $3,592 $9,170 $11,651 
Elimination of fees from consolidated investment products (1)
Elimination of fees from consolidated investment products (1)
(147)(117)(430)(332)
Elimination of fees from consolidated investment products (1)
(311)(147)(702)(430)
Consolidated investment advisory fees (Gross of expense reimbursements)Consolidated investment advisory fees (Gross of expense reimbursements)$3,445 $3,668 $11,221 $8,937 Consolidated investment advisory fees (Gross of expense reimbursements)$2,470 $3,445 $8,468 $11,221 
Expense reimbursementsExpense reimbursements$46 $67 $178 $221 Expense reimbursements$82 $46 $194 $178 
Elimination of expense reimbursements from consolidated investment products (1)
Elimination of expense reimbursements from consolidated investment products (1)
(19)(56)(94)(126)
Elimination of expense reimbursements from consolidated investment products (1)
(35)(19)(82)(94)
Consolidated expense reimbursementsConsolidated expense reimbursements$27 $11 $84 $95 Consolidated expense reimbursements$47 $27 $112 $84 
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation.




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Note 16.15. Subsequent Events
Distributions and dividends
APAM, acting as the general partner of Artisan Partners Holdings, declared, effective November 1, 2022,October 31, 2023, a distribution by Artisan Partners Holdings of $12.5$18.8 million to holders of Artisan Partners Holdings partnership units, including APAM. The board of directors of APAM declared, effective November 1, 2022,October 31, 2023, a quarterly dividend of $0.56$0.65 per share of Class A common stock. The APAM dividend is payable on November 30, 2022,2023, to stockholders of record as of November 16, 2022.2023.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview and Recent Highlights
We are an investment management firm focused on providing high-value added, active investment strategies in growing asset classes to sophisticated clients around the world. As of September 30, 2022,2023, our 10 autonomous investment teams managed a total of 25 investment strategies across multiple asset classes and investment styles.
We focus on attracting, retaining and developing talented investment professionals and creating an environment in which each investment team is provided ample resources and support, transparent and direct financial incentives, a high degree of investment autonomy, and a long-term time horizon. We create new investment strategies when we identify opportunities to add value for clients, oftentimes through the use of a broad array of securities, instruments, and techniques (which we call degrees of freedom) to differentiate returns and manage risk.
We focusoffer our distribution efforts oninvestment management capabilities primarily to sophisticated investors and asset allocators, including institutions and intermediaries that operate with institutional-likeinstitutional decision-making processes.processes and longer-term investment horizons. We offeremploy knowledgeable and investment focused relationship managers who are directly aligned with our investment strategiesteams, and we pair them with regional and distribution channel experts. We provide access to clients and investorsour investment strategies through multiple investment vehicles, including separate accounts and different types of pooled vehicles. As of September 30, 2022,2023, approximately 77%76% of our assets under management were managed for clients and investors domiciled in the U.S. and 23%24% of our assets under management were managed for clients and investors domiciled outside of the U.S.
As a high-value added investment manager we expect that long-term investment performance will be the primary driver of our long-term business and financial results. If we maintain and evolve existing investment strategies and launch new investment strategies that meet the needs of and generate attractive outcomes for sophisticated asset allocators, we believe that we will continue to generate strong business and financial results.
Over shorter time periods, changes in our business and financial results are largely driven by market conditions and fluctuations in our assets under management that may not necessarily be the result of our long-term investment performance or the long-term demand for our strategies. For this reason, we expect that our business and financial results will be lumpy over time.
We strive to maintain a financial model that is transparent and predictable. Currently, we derive nearly all of our revenues from investment management fees, most of which are based on a specified percentage of clients’ average assets under management. A majority of our expenses, including most of our compensation expense, vary directly with changes in our revenues. We invest thoughtfully to support our investment teams and future growth, while also paying out to stockholders and partners a majority of the cash that we generate from operations through dividends and distributions. We expect to continue to invest in the growth of the business, with a focus on adding new investment capabilities and more degrees of freedom in areas where both opportunity and client demand exist, and in which we can differentiate our active management and add value for clients.
Business highlights for the quarter included:
Our newest autonomous investment team, the EMsights Capital Group, launched its third strategy—the Emerging Markets Local Opportunities strategy—in July 2022.

Financial highlights for the quarter included:included the following:
During the three months ended September 30, 2022,2023, our assets under management declined to $120.6$136.5 billion, a decrease of $9.9$6.5 billion, or 8%5%, compared to $130.5$143.0 billion at June 30, 2022, as a result of $8.82023, primarily due to $5.1 billion of negative investment returnsmarket depreciation and $1.1 billion of net client cash outflows.outflows of $1.3 billion.
Average assets under management for the three months ended September 30, 20222023 were $132.9$142.2 billion, a 25% decrease7% increase from the average of $177.6$132.9 billion for the three months ended September 30, 2021.2022. Average assets under management for the three months ended September 30, 2022, decreased 8%2023 increased 2% from the average of $143.9$139.3 billion for the three months ended June 30, 2022.2023.
We earned $234.3$248.7 million in revenue for the three months ended September 30, 2022, a decrease2023, an increase of 26%6% from revenues of $316.6$234.3 million for the three months ended September 30, 2021.2022. Performance fees of $0.1 million were recognized in the three months ended September 30, 2022, compared to $0.4 million in the three months ended September 30, 2021.2023 and 2022.
Our GAAP operating margin was 33.0% for the three months ended September 30, 2023, compared to 33.6% for the three months ended September 30, 2022, compared to 45.2%2022. Adjusted operating margin was 32.5% for the three months ended September 30, 2021. Adjusted operating margin was2023, compared to 32.9% for the three months ended September 30, 2022, compared to 45.2% for the three months ended September 30, 2021.2022.
We generated $0.65$0.76 of earnings per basic and diluted share and $0.70$0.75 of adjusted EPS.
We declared and distributed dividends of $0.60$0.61 per share of Class A common stock during the three months ended September 30, 2022.2023.
We declared, effective November 1, 2022,October 31, 2023, a quarterly dividend with respect to the three months ended September 30, 2022,2023, of $0.56$0.65 per share of Class A common stock.



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Organizational Structure
Organizational Structure
Our operations are conducted through Artisan Partners Holdings LP (“Holdings”) and its subsidiaries. On March 12, 2013, Artisan Partners Asset Management Inc. (“APAM”) and Holdings completed a series of transactions (“the IPO(the "IPO Reorganization”) to reorganize their capital structures in connection with the initial public offering (“IPO”) of APAM’s Class A common stock. The IPO Reorganization and IPO were completed on March 12, 2013. The IPO Reorganization was designed to create a capital structure that preserves our ability to conduct our business through Holdings, while permitting us to raise additional capital and provide access to liquidity through a public company.
Limited partners of Holdings, some of whom are employees, held approximately 15%14% of the equity interests in Holdings as of September 30, 2022. As a result, our2023. Our results reflect that significant noncontrolling interest.
We operate our business in a single segment.
Holdings Unit Exchanges
During the nine months ended September 30, 2022,2023, certain limited partners of Holdings exchanged 634,692142,550 common units (along with a corresponding number of shares of Class B or Class C common stock of APAM) for 634,692142,550 shares of Class A common stock. In connection with the exchanges, APAM received 634,692142,550 GP units of Holdings.
APAM’s equity ownership interest in Holdings increased from 84%85% at December 31, 20212022 to 85%86% at September 30, 2022,2023, as a result of these transactions and other equity transactions during the period.
Financial Overview
Economic Environment
Global market conditions materially affect our financial performance. Global markets continued to be volatile during the three months ended September 30, 2022 amid continued concernsConcerns about elevated inflation, interest rate increases, prolonged effects of the war in Ukrainegeopolitical tensions, conflicts and wars, and other global economic conditions. Thisconditions continued volatilityinto the three months ended September 30, 2023. Volatility and uncertainty in global financial markets has impactedimpact the value of our assets under management. Because the revenue we earn is based on the value of our assets under management (AUM), fluctuations in our AUM will result in corresponding fluctuations in our revenues and earnings.
The following table presents the total returns of relevant market indices for the three and nine months ended September 30, 20222023 and 2021:2022:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
S&P 500 total returnsS&P 500 total returns(4.9)%0.6 %(23.9)%15.9 %S&P 500 total returns(3.3)%(4.9)%13.1 %(23.9)%
MSCI All Country World total returnsMSCI All Country World total returns(6.8)%(1.1)%(25.6)%11.1 %MSCI All Country World total returns(3.4)%(6.8)%10.1 %(25.6)%
MSCI EAFE total returnsMSCI EAFE total returns(9.4)%(0.4)%(27.1)%8.3 %MSCI EAFE total returns(4.1)%(9.4)%7.1 %(27.1)%
Russell Midcap® total returns
Russell Midcap® total returns
(3.4)%(0.9)%(24.3)%15.2 %
Russell Midcap® total returns
(4.7)%(3.4)%3.9 %(24.3)%
MSCI Emerging Markets IndexMSCI Emerging Markets Index(11.6)%(8.1)%(27.2)%(1.2)%MSCI Emerging Markets Index(2.9)%(11.6)%1.8 %(27.2)%
ICE BofA U.S. High Yield Master II Total Return Index(0.7)%0.9 %(14.6)%4.7 %
ICE BofA US High Yield IndexICE BofA US High Yield Index0.5 %(0.7)%6.0 %(14.6)%

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Key Performance Indicators
When we review our business and financial performance we consider, among other things, the following:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
(unaudited; dollars in millions)(unaudited; dollars in millions)
Assets under management at period endAssets under management at period end$120,607 $173,623 $120,607 $173,623 Assets under management at period end$136,495 $120,607 $136,495 $120,607 
Average assets under management (1)
Average assets under management (1)
$132,946 $177,557 $146,244 $170,380 
Average assets under management (1)
$142,199 $132,946 $138,982 $146,244 
Net client cash flows (2)
Net client cash flows (2)
$(1,073)$11 $(4,621)$2,463 
Net client cash flows (2)
$(1,339)$(1,073)$(3,678)$(4,621)
Total revenuesTotal revenues$234.3 $316.6 $767.3 $912.2 Total revenues$248.7 $234.3 $726.1 $767.3 
Weighted average management fee (3)
Weighted average management fee (3)
70.0  bps70.7  bps70.2  bps70.8  bps
Weighted average management fee (3)
69.5  bps70.0  bps70.0  bps70.2  bps
Operating marginOperating margin33.6 %45.2 %35.7 %44.1 %Operating margin33.0 %33.6 %31.3 %35.7 %
Adjusted operating margin (4)
Adjusted operating margin (4)
32.9 %45.2 %35.1 %44.2 %
Adjusted operating margin (4)
32.5 %32.9 %31.5 %35.1 %
(1) We compute average assets under management by averaging day-end assets under management for the applicable period.
(1) We compute average assets under management by averaging day-end assets under management for the applicable period.
(1) We compute average assets under management by averaging day-end assets under management for the applicable period.
(2) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(2) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(2) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(3) We compute our weighted average management fee by dividing annualized investment management fees (which excludes performance fees) by average assets under management for the applicable period.
(3) We compute our weighted average management fee by dividing annualized investment management fees (which excludes performance fees) by average assets under management for the applicable period.
(3) We compute our weighted average management fee by dividing annualized investment management fees (which excludes performance fees) by average assets under management for the applicable period.
(4) Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in “Supplemental Non-GAAP Financial Information” below.
(4) Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in “Supplemental Non-GAAP Financial Information” below.
(4) Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in “Supplemental Non-GAAP Financial Information” below.
Investment advisory fees and assetsAssets under management within our consolidated investment products, and investment advisory fees earned thereon, are excluded from theour weighted average fee calculations and from total revenues, since any such revenues are eliminated upon consolidation. Assets under management within Artisan Private Funds are included in the reported firmwide, separate accounts and other, and institutional assets under management figures reported below.
Assets Under Management and Investment Performance
Changes to our operating results from one period to another are primarily caused by changes in the amount of our assets under management. Changes in the relative composition of our assets under management among our investment strategies and vehicles and the effective fee rates on our products also impact our operating results.
The amount and composition of our assets under management are, and will continue to be, influenced by a variety of factors including, among others:
investment performance, including fluctuations in both the financial markets and foreign currency exchange rates and the quality of our investment decisions;
flows of client assets into and out of our various strategies and investment vehicles;
our decision to close strategies or limit the growth of assets in a strategy or a vehicle when we believe it is in the best interest of our clients, as well as our decision to re-open strategies, in part or entirely;
our ability to attract and retain qualified investment, management, and marketing and client service professionals;
industry trends towards products, strategies, vehicles, or services that we do not offer;
competitive conditions in the investment management and broader financial services sectors; and
investor sentiment and confidence.
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The table below sets forth changes in our total assets under management:
 For the Three Months Ended September 30,Period-to-Period For the Three Months Ended September 30,Period-to-Period
20222021$%20232022$%
(unaudited; in millions)(unaudited; in millions)
Beginning assets under managementBeginning assets under management$130,547 $175,214 $(44,667)(25.5)%Beginning assets under management$142,989 $130,547 $12,442 9.5 %
Gross client cash inflowsGross client cash inflows6,898 6,942 (44)(0.6)%Gross client cash inflows5,601 6,898 (1,297)(18.8)%
Gross client cash outflowsGross client cash outflows(7,971)(6,931)(1,040)(15.0)%Gross client cash outflows(6,940)(7,971)1,031 12.9 %
Net client cash flows (1)
Net client cash flows (1)
(1,073)11 (1,084)(9,854.5)%
Net client cash flows (1)
(1,339)(1,073)(266)(24.8)%
Artisan Funds' distributions not reinvested (2)
Artisan Funds' distributions not reinvested (2)
(81)(39)(42)(107.7)%
Artisan Funds' distributions not reinvested (2)
(75)(81)7.4 %
Investment returns and other (3)
Investment returns and other (3)
(8,786)(1,563)(7,223)(462.1)%
Investment returns and other (3)
(5,080)(8,786)3,706 42.2 %
Ending assets under managementEnding assets under management$120,607 $173,623 $(53,016)(30.5)%Ending assets under management$136,495 $120,607 $15,888 13.2 %
Average assets under managementAverage assets under management$132,946 $177,557 $(44,611)(25.1)%Average assets under management$142,199 $132,946 $9,253 7.0 %
 For the Nine Months Ended September 30,Period-to-Period For the Nine Months Ended September 30,Period-to-Period
20222021$%20232022$%
(unaudited; in millions)(unaudited; in millions)
Beginning assets under managementBeginning assets under management$174,754 $157,776 $16,978 10.8 %Beginning assets under management$127,892 $174,754 $(46,862)(26.8)%
Gross client cash inflowsGross client cash inflows22,397 25,814 (3,417)(13.2)%Gross client cash inflows15,889 22,397 (6,508)(29.1)%
Gross client cash outflowsGross client cash outflows(27,018)(23,351)(3,667)(15.7)%Gross client cash outflows(19,567)(27,018)7,451 27.6 %
Net client cash flows (1)
Net client cash flows (1)
(4,621)2,463 (7,084)(287.6)%
Net client cash flows (1)
(3,678)(4,621)943 20.4 %
Artisan Funds' distributions not reinvested (2)
Artisan Funds' distributions not reinvested (2)
(169)(114)(55)(48.2)%
Artisan Funds' distributions not reinvested (2)
(190)(169)(21)(12.4)%
Investment returns and other (3)
Investment returns and other (3)
(49,357)13,498 (62,855)(465.7)%
Investment returns and other (3)
12,471 (49,357)61,828 125.3 %
Ending assets under managementEnding assets under management$120,607 $173,623 $(53,016)(30.5)%Ending assets under management$136,495 $120,607 $15,888 13.2 %
Average assets under managementAverage assets under management$146,244 $170,380 $(24,136)(14.2)%Average assets under management$138,982 $146,244 $(7,262)(5.0)%
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(3) Includes the impact of translating the value of assets under management denominated in non-USD currencies into U.S. dollars. The impact was immaterial for the periods presented.
(3) Includes the impact of translating the value of assets under management denominated in non-USD currencies into U.S. dollars. The impact was immaterial for the periods presented.
(3) Includes the impact of translating the value of assets under management denominated in non-USD currencies into U.S. dollars. The impact was immaterial for the periods presented.
During the quarter, our AUM declined by $9.9$6.5 billion primarily due to $8.8$5.1 billion of negative investment returnsmarket depreciation and $1.1 billion of net client cash outflows.outflows of $1.3 billion. For the quarter, 1516 of our 25 investment strategies had net outflows totaling $2.1$3.3 billion, which were partially offset by $1.0$1.9 billion of net inflows toacross the remaining 109 strategies.
Over the long-term, we expect to generate the majority of our AUM growth through investment returns, which has been our historical experience.
We monitor the availability of attractive investment opportunities relative to the amount of assets we manage in each of our investment strategies and the velocity at which the strategies are experiencing inflows. When appropriate, we will close a strategy to new investors or otherwise take action to slow or restrict its growth, even though our aggregate assets under management may be negatively impacted in the short term. We may also re-open a strategy, widely or selectively, to fill available capacity or manage the diversification of our client base in that strategy. We believe that management of our investment capacity protects our ability to manage assets successfully, which protects the interests of our clients and, in the long term, protects our ability to retain client assets and maintain our profit margins.
As of the date of this filing, the Artisan High Income Fund, Artisan International Value Fund and Artisan International Small-Mid Fund are closed to most new investors and their respective strategies have limited availability to most new client relationships. In addition, we are actively managing the capacity of our U.S. Small-Cap Growth strategy with respect to new client relationships.
When we close or otherwise restrict the growth of a strategy, we typically continue to allow additional investments in the strategy by existing clients and certain related entities. We may also permit new investments by other eligible investors in our discretion. As a result, during a given period we may have net client cash inflows in a closed strategy. However, when a strategy is closed or its growth is restricted we expect there to be periods of net client cash outflows.
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By
In November 30, 2022,2023, we expect the Artisan Funds to have completed their annual income and capital gain distributions.distributions for their equity mutual funds. Based on our current estimates and assumptions, we expect fourth quarter distributions to result in approximately $300$400 million of net client cash outflows from investors who choose not to reinvest their distributions. The November 20222023 distribution (estimates of which we expect Artisan Funds will disclose in advance of the record dates) may cause increased mutual fund redemptions.
The unaudited table on the following page sets forth the average annual total returns for each composite (gross of fees) and its respective broad-based benchmark (and style benchmark, if applicable) over a multi-horizon time period as of September 30, 2022.2023. Returns for periods less than one year are not annualized.
We measure investment performance based upon the results of our “composites”, which represent the aggregate performance of all discretionary client accounts, including pooled investment vehicles, invested in the same strategy except those accounts with respect to which we believe client-imposed investment restrictions may have a material impact on portfolio construction and those accounts managed in a currency other than U.S. dollars. The results of these excluded accounts, which represented approximately 12%14% of our assets under management at September 30, 2022,2023, are maintained in separate composites the results of which are not included below.
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Average Annual
Value-Added(1)
Since Inception
(bps)
Average Annual
Value-Added(1)
Since Inception
(bps)
Composite Inception
Strategy AUM (2)
Average Annual Total Returns (Gross) (%)Composite Inception
Strategy AUM (2)
Average Annual Total Returns (Gross) (%)
Investment Team and StrategyInvestment Team and StrategyDate (in $MM)1 YR3 YR5 YR10 YRInceptionInvestment Team and StrategyDate (in $MM)1 YR3 YR5 YR10 YRInception
Growth TeamGrowth TeamGrowth Team
Global Opportunities StrategyGlobal Opportunities Strategy2/1/2007$18,077 (30.08)%6.00%7.46%10.95%9.73%505Global Opportunities Strategy2/1/2007$18,957 16.18%(0.42)%7.95%10.35%10.10%452
MSCI All Country World IndexMSCI All Country World Index(20.66)%3.74%4.44%7.28%4.68%MSCI All Country World Index20.80%6.89%6.46%7.55%5.58%
Global Discovery StrategyGlobal Discovery Strategy9/1/2017$1,513 (32.62)%6.93%10.34%---10.45%569Global Discovery Strategy9/1/2017$1,364 17.91%1.14%9.53%---11.65%441
MSCI All Country World IndexMSCI All Country World Index(20.66)%3.74%4.44%---4.76%MSCI All Country World Index20.80%6.89%6.46%---7.24%
U.S. Mid-Cap Growth StrategyU.S. Mid-Cap Growth Strategy4/1/1997$10,789 (35.70)%7.37%10.10%11.59%14.09%532U.S. Mid-Cap Growth Strategy4/1/1997$11,927 13.87%(1.27)%8.46%9.86%14.08%500
Russell Midcap® IndexRussell Midcap® Index(19.39)%5.18%6.48%10.29%9.58%Russell Midcap® Index13.45%8.09%6.38%8.98%9.73%
Russell Midcap® Growth IndexRussell Midcap® Growth Index(29.50)%4.26%7.62%10.85%8.77%Russell Midcap® Growth Index17.47%2.61%6.97%9.94%9.08%
U.S. Small-Cap Growth StrategyU.S. Small-Cap Growth Strategy4/1/1995$3,140 (37.41)%3.63%9.42%11.55%10.22%315U.S. Small-Cap Growth Strategy4/1/1995$3,033 7.72%(5.30)%4.36%9.14%10.13%298
Russell 2000® IndexRussell 2000® Index(23.50)%4.28%3.55%8.55%8.41%Russell 2000® Index8.93%7.16%2.39%6.64%8.42%
Russell 2000® Growth IndexRussell 2000® Growth Index(29.27)%2.93%3.59%8.80%7.07%Russell 2000® Growth Index9.59%1.09%1.55%6.71%7.15%
Global Equity TeamGlobal Equity TeamGlobal Equity Team
Global Equity StrategyGlobal Equity Strategy4/1/2010$440 (30.68)%1.12%5.75%9.26%9.90%299Global Equity Strategy4/1/2010$375 18.61%(0.04)%5.80%8.53%10.52%264
MSCI All Country World IndexMSCI All Country World Index(20.66)%3.74%4.44%7.28%6.91%MSCI All Country World Index20.80%6.89%6.46%7.55%7.88%
Non-U.S. Growth StrategyNon-U.S. Growth Strategy1/1/1996$12,092 (28.06)%(3.35)%0.53%4.57%8.53%466Non-U.S. Growth Strategy1/1/1996$12,461 22.73%1.00%3.56%4.41%9.01%443
MSCI EAFE IndexMSCI EAFE Index(25.13)%(1.83)%(0.84)%3.67%3.87%MSCI EAFE Index25.65%5.75%3.24%3.82%4.58%
Non-U.S. Small-Mid Growth StrategyNon-U.S. Small-Mid Growth Strategy1/1/2019$6,193 (31.69)%3.53%---8.38%662Non-U.S. Small-Mid Growth Strategy1/1/2019$6,629 13.03%(1.13)%---9.34%400
MSCI All Country World Index Ex USA Small Mid CapMSCI All Country World Index Ex USA Small Mid Cap(28.85)%(1.28)%---1.76%MSCI All Country World Index Ex USA Small Mid Cap19.95%3.24%---5.34%
China Post-Venture StrategyChina Post-Venture Strategy4/1/2021$161 (37.59)%---(28.73)%367China Post-Venture Strategy4/1/2021$161 4.19%---(17.05)%330
MSCI China SMID Cap IndexMSCI China SMID Cap Index(39.51)%---(32.40)%MSCI China SMID Cap Index1.89%---(20.35)%
U.S. Value TeamU.S. Value TeamU.S. Value Team
Value Equity StrategyValue Equity Strategy7/1/2005$3,374 (15.37)%6.65%5.92%9.05%7.89%105Value Equity Strategy7/1/2005$3,722 29.94%16.06%9.39%9.90%8.99%175
Russell 1000® IndexRussell 1000® Index(17.22)%7.94%8.99%11.60%8.77%Russell 1000® Index21.19%9.53%9.62%11.62%9.42%
Russell 1000® Value IndexRussell 1000® Value Index(11.36)%4.36%5.28%9.17%6.84%Russell 1000® Value Index14.44%11.05%6.22%8.44%7.24%
U.S. Mid-Cap Value StrategyU.S. Mid-Cap Value Strategy4/1/1999$2,743 (14.28)%5.05%4.64%8.49%11.49%261U.S. Mid-Cap Value Strategy4/1/1999$2,642 17.50%13.85%6.08%7.13%11.73%276
Russell Midcap® IndexRussell Midcap® Index(19.39)%5.18%6.48%10.29%8.79%Russell Midcap® Index13.45%8.09%6.38%8.98%8.97%
Russell Midcap® Value IndexRussell Midcap® Value Index(13.56)%4.49%4.75%9.43%8.88%Russell Midcap® Value Index11.05%10.98%5.18%7.91%8.97%
Value Income StrategyValue Income Strategy3/1/2022$---(16.34)%89Value Income Strategy3/1/2022$11 11.71%---(4.18)%(459)
S&P 500 Market IndexS&P 500 Market Index---(17.23)%S&P 500 Market Index21.62%---0.41%
International Value TeamInternational Value TeamInternational Value Team
International Value StrategyInternational Value Strategy7/1/2002$26,602 (17.39)%3.96%2.51%7.64%10.34%565International Value Strategy7/1/2002$36,401 33.22%14.98%8.74%7.72%11.32%573
MSCI EAFE IndexMSCI EAFE Index(25.13)%(1.83)%(0.84)%3.67%4.69%MSCI EAFE Index25.65%5.75%3.24%3.82%5.59%
International ExplorerInternational Explorer11/1/2020$45 (22.68)%---7.82%932International Explorer11/1/2020$201 22.30%---12.58%748
MSCI All Country World Index Ex USA Small CapMSCI All Country World Index Ex USA Small Cap(28.93)%---(1.50)%MSCI All Country World Index Ex USA Small Cap19.01%---5.10%
Global Value TeamGlobal Value TeamGlobal Value Team
Global Value StrategyGlobal Value Strategy7/1/2007$19,745 (20.21)%1.52%2.13%7.86%6.84%261Global Value Strategy7/1/2007$22,398 29.51%12.35%6.39%8.00%8.11%293
MSCI All Country World IndexMSCI All Country World Index(20.66)%3.74%4.44%7.28%4.23%MSCI All Country World Index20.80%6.89%6.46%7.55%5.18%
Select Equity StrategySelect Equity Strategy3/1/2020$319 (22.12)%---2.93%(658)Select Equity Strategy3/1/2020$308 26.13%9.65%---8.94%(382)
S&P 500 Market IndexS&P 500 Market Index(15.47)%---9.51%S&P 500 Market Index21.62%10.15%---12.76%
Sustainable Emerging Markets TeamSustainable Emerging Markets TeamSustainable Emerging Markets Team
Sustainable Emerging Markets StrategySustainable Emerging Markets Strategy7/1/2006$854 (33.62)%(3.58)%(1.78)%2.13%3.75%34Sustainable Emerging Markets Strategy7/1/2006$796 20.95%(0.87)%2.30%4.17%4.67%79
MSCI Emerging Markets IndexMSCI Emerging Markets Index(28.11)%(2.06)%(1.81)%1.05%3.41%MSCI Emerging Markets Index11.70%(1.73)%0.55%2.07%3.88%
Credit TeamCredit TeamCredit Team
High Income StrategyHigh Income Strategy4/1/2014$6,856 (10.35)%2.98%4.09%---5.75%281High Income Strategy4/1/2014$8,387 11.59%4.72%5.22%---6.34%266
ICE BofA US High Yield Master II Total Return Index(14.06)%(0.67)%1.41%---2.94%
ICE BofA US High Yield IndexICE BofA US High Yield Index10.19%1.82%2.80%---3.68%
Credit Opportunities StrategyCredit Opportunities Strategy7/1/2017$133 (1.71)%14.89%11.22%---11.59%1,027Credit Opportunities Strategy7/1/2017$199 18.64%15.04%12.96%---12.69%1,087
ICE BofA US Dollar LIBOR 3-month Constant Maturity Index0.41%0.73%1.32%---1.32%
ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity IndexICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity Index4.54%1.70%1.86%---1.82%
Floating Rate StrategyFloating Rate Strategy1/1/2022$47 ---(2.96)%35Floating Rate Strategy1/1/2022$52 14.36%---6.14%123
Credit Suisse Leveraged Loan Total Return IndexCredit Suisse Leveraged Loan Total Return Index---(3.31)%Credit Suisse Leveraged Loan Total Return Index12.47%---4.91%
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Developing World TeamDeveloping World TeamDeveloping World Team
Developing World StrategyDeveloping World Strategy7/1/2015$3,649 (47.70)%2.21%3.49%---6.43%547Developing World Strategy7/1/2015$3,223 23.82%(8.56)%10.00%---8.40%620
MSCI Emerging Markets IndexMSCI Emerging Markets Index(28.11)%(2.06)%(1.81)%---0.96%MSCI Emerging Markets Index11.70%(1.73)%0.55%---2.20%
Antero Peak GroupAntero Peak GroupAntero Peak Group
Antero Peak StrategyAntero Peak Strategy5/1/2017$2,953 (19.55)%8.01%14.11%---16.32%654Antero Peak Strategy5/1/2017$2,055 10.26%4.17%9.57%---15.36%382
S&P 500 Market IndexS&P 500 Market Index(15.47)%8.15%9.23%---9.78%S&P 500 Market Index21.62%10.15%9.91%---11.54%
Antero Peak Hedge StrategyAntero Peak Hedge Strategy11/1/2017$807 (16.64)%6.01%---10.30%141Antero Peak Hedge Strategy11/1/2017$400 5.36%1.72%7.14%---9.45%(149)
S&P 500 Market IndexS&P 500 Market Index(15.47)%8.15%---8.89%S&P 500 Market Index21.62%10.15%9.91%---10.94%
EMsights Capital GroupEMsights Capital GroupEMsights Capital Group
Global Unconstrained StrategyGlobal Unconstrained Strategy4/1/2022$15 ---3.00%243Global Unconstrained Strategy4/1/2022$296 12.66%---10.43%708
ICE BofA 3-month Treasury Bill IndexICE BofA 3-month Treasury Bill Index---0.57%ICE BofA 3-month Treasury Bill Index4.47%---3.35%
Emerging Markets Debt Opportunities StrategyEmerging Markets Debt Opportunities Strategy5/1/2022$41 ---(0.18)%766Emerging Markets Debt Opportunities Strategy5/1/2022$81 17.56%---11.96%1,025
J.P. Morgan EMB Hard Currency/Local currency 50-50 IndexJ.P. Morgan EMB Hard Currency/Local currency 50-50 Index---(7.84)%J.P. Morgan EMB Hard Currency/Local currency 50-50 Index11.15%---1.71%
Emerging Markets Local Opportunities StrategyEmerging Markets Local Opportunities Strategy8/1/2022$10 ---(3.81)%119Emerging Markets Local Opportunities Strategy8/1/2022$416 15.77%---9.66%332
J.P. Morgan GBI-EM Global DiversifiedJ.P. Morgan GBI-EM Global Diversified---(5.00)%J.P. Morgan GBI-EM Global Diversified13.10%---6.34%
Total Assets Under ManagementTotal Assets Under Management$120,607 Total Assets Under Management$136,495 
1 Value-added is the amount, in basis points, by which the average annual gross composite return of each of our strategies has outperformed or underperformed its respective benchmark. The High Income strategy holds loans and other security types that are not included in its benchmark, which, at times, causes material differences in relative performance. The Credit Opportunities strategy is benchmark agnostic and has been compared to the 3-month LIBOR for reference purposes only. The Antero Peak and Antero Peak Hedge strategies' investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio’s return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future.
2 AUM for certain strategies include the following amounts for which Artisan Partners provides investment models to managed account sponsors (reported on a one-month lag): Artisan Sustainable Emerging Markets $76 million.
1 Value-added is the amount, in basis points, by which the average annual gross composite return of each strategy has outperformed or underperformed its respective benchmark.
1 Value-added is the amount, in basis points, by which the average annual gross composite return of each strategy has outperformed or underperformed its respective benchmark.
2 AUM for certain strategies include the following amounts for which Artisan Partners provides investment models to managed account sponsors (reported on a one-month lag): Artisan Sustainable Emerging Markets $55 million.
2 AUM for certain strategies include the following amounts for which Artisan Partners provides investment models to managed account sponsors (reported on a one-month lag): Artisan Sustainable Emerging Markets $55 million.
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The tables below set forth changes in our assets under management by investment team:
By Investment TeamBy Investment Team
Three Months EndedThree Months EndedGrowthGlobal EquityU.S. ValueInternational ValueGlobal ValueSustainable Emerging MarketsCreditDeveloping WorldAntero Peak GroupEMsights Capital GroupTotalThree Months EndedGrowthGlobal EquityU.S. ValueInternational ValueGlobal ValueSustainable Emerging MarketsCreditDeveloping WorldAntero Peak GroupEMsights Capital GroupTotal
September 30, 2022(unaudited; in millions)
September 30, 2023September 30, 2023(unaudited; in millions)
Beginning assets under managementBeginning assets under management$33,964 $21,643 $6,775 $29,391 $22,390 $1,003 $7,085 $4,136 $4,126 $34 $130,547 Beginning assets under management$38,586 $21,109 $6,648 $36,786 $23,974 $873 $8,198 $3,572 $3,129 $114 $142,989 
Gross client cash inflowsGross client cash inflows2,996 549 65 1,257 834 27 712 235 192 31 6,898 Gross client cash inflows1,181 311 84 1,957 376 17 799 131 43 702 5,601 
Gross client cash outflowsGross client cash outflows(2,319)(1,807)(296)(1,185)(936)(62)(655)(378)(333)— (7,971)Gross client cash outflows(2,755)(662)(212)(1,123)(952)(58)(422)(228)(527)(1)(6,940)
Net client cash flows (1)
Net client cash flows (1)
677 (1,258)(231)72 (102)(35)57 (143)(141)31 (1,073)
Net client cash flows (1)
(1,574)(351)(128)834 (576)(41)377 (97)(484)701 (1,339)
Artisan Funds' distributions not reinvested (2)
Artisan Funds' distributions not reinvested (2)
— — — (33)— — (48)— — — (81)
Artisan Funds' distributions not reinvested (2)
— — — — — — (75)— — — (75)
Investment returns and otherInvestment returns and other(1,122)(1,499)(418)(2,783)(2,224)(114)(58)(344)(225)(8,786)Investment returns and other(1,731)(1,132)(145)(1,018)(692)(36)138 (252)(190)(22)(5,080)
Ending assets under managementEnding assets under management$33,519 $18,886 $6,126 $26,647 $20,064 $854 $7,036 $3,649 $3,760 $66 $120,607 Ending assets under management$35,281 $19,626 $6,375 $36,602 $22,706 $796 $8,638 $3,223 $2,455 $793 $136,495 
Average assets under managementAverage assets under management$36,491 $21,362 $6,937 $29,231 $22,203 $963 $7,241 $4,231 $4,229 $58 $132,946 Average assets under management$37,406 $20,762 $6,655 $37,286 $23,780 $874 $8,474 $3,488 $2,917 $557 $142,199 
September 30, 2021
September 30, 2022September 30, 2022
Beginning assets under managementBeginning assets under management$53,517 $34,166 $7,929 $29,720 $26,515 $998 $7,785 $10,314 $4,270 $— $175,214 Beginning assets under management$33,964 $21,643 $6,775 $29,391 $22,390 $1,003 $7,085 $4,136 $4,126 $34 $130,547 
Gross client cash inflowsGross client cash inflows1,125 955 68 1,943 885 86 819 733 328 — 6,942 Gross client cash inflows2,996 549 65 1,257 834 27 712 235 192 31 6,898 
Gross client cash outflowsGross client cash outflows(2,631)(1,143)(150)(874)(816)(7)(383)(770)(157)— (6,931)Gross client cash outflows(2,319)(1,807)(296)(1,185)(936)(62)(655)(378)(333)— (7,971)
Net client cash flows (1)
Net client cash flows (1)
(1,506)(188)(82)1,069 69 79 436 (37)171 — 11 
Net client cash flows (1)
677 (1,258)(231)72 (102)(35)57 (143)(141)31 (1,073)
Artisan Funds' distributions not reinvested (2)
Artisan Funds' distributions not reinvested (2)
— — — — — — (39)— — — (39)
Artisan Funds' distributions not reinvested (2)
— — — (33)— — (48)— — — (81)
Investment returns and otherInvestment returns and other1,169 (161)(68)(814)(811)(95)76 (944)85 — (1,563)Investment returns and other(1,122)(1,499)(418)(2,783)(2,224)(114)(58)(344)(225)(8,786)
Ending assets under managementEnding assets under management$53,180 $33,817 $7,779 $29,975 $25,773 $982 $8,258 $9,333 $4,526 $— $173,623 Ending assets under management$33,519 $18,886 $6,126 $26,647 $20,064 $854 $7,036 $3,649 $3,760 $66 $120,607 
Average assets under managementAverage assets under management$54,948 $34,706 $7,944 $30,320 $26,200 $1,010 $8,041 $9,732 $4,656 $— $177,557 Average assets under management$36,491 $21,362 $6,937 $29,231 $22,203 $963 $7,241 $4,231 $4,229 $58 $132,946 
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
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By Investment TeamBy Investment Team
Nine Months EndedNine Months EndedGrowthGlobal EquityU.S. ValueInternational ValueGlobal ValueSustainable Emerging MarketsCreditDeveloping WorldAntero Peak GroupEMsights Capital GroupTotalNine Months EndedGrowthGlobal EquityU.S. ValueInternational ValueGlobal ValueSustainable Emerging MarketsCreditDeveloping WorldAntero Peak GroupEMsights Capital GroupTotal
September 30, 2023September 30, 2023(unaudited; in millions)
Beginning assets under managementBeginning assets under management$33,977 $20,623 $6,088 $30,210 $21,767 $873 $7,140 $3,466 $3,676 $72 $127,892 
Gross client cash inflowsGross client cash inflows2,905 1,196 195 6,149 1,304 63 2,542 488 311 736 15,889 
Gross client cash outflowsGross client cash outflows(5,093)(2,870)(556)(3,222)(3,130)(217)(1,506)(1,277)(1,695)(1)(19,567)
Net client cash flows (1)
Net client cash flows (1)
(2,188)(1,674)(361)2,927 (1,826)(154)1,036 (789)(1,384)735 (3,678)
Artisan Funds' distributions not reinvested (2)
Artisan Funds' distributions not reinvested (2)
— — — — — — (190)— — — (190)
Investment returns and otherInvestment returns and other3,492 677 648 3,465 2,765 77 652 546 163 (14)12,471 
Net transfers(3)
Net transfers(3)
— — — — — — — — — — $— 
Ending assets under managementEnding assets under management$35,281 $19,626 $6,375 $36,602 $22,706 $796 $8,638 $3,223 $2,455 $793 $136,495 
Average assets under managementAverage assets under management$36,812 $21,167 $6,489 $35,210 $23,203 $882 $8,118 $3,593 $3,260 $248 $138,982 
September 30, 2022September 30, 2022(unaudited; in millions)September 30, 2022
Beginning assets under managementBeginning assets under management$52,434 $32,998 $8,053 $31,816 $26,744 $1,173 $8,157 $8,102 $5,277 $— $174,754 Beginning assets under management$52,434 $32,998 $8,053 $31,816 $26,744 $1,173 $8,157 $8,102 $5,277 — $174,754 
Gross client cash inflowsGross client cash inflows6,008 2,805 450 5,906 2,404 243 2,111 1,431 974 65 22,397 Gross client cash inflows6,008 2,805 450 5,906 2,404 243 2,111 1,431 974 65 22,397 
Gross client cash outflowsGross client cash outflows(6,771)(7,232)(814)(3,798)(2,698)(133)(2,169)(2,451)(952)— (27,018)Gross client cash outflows(6,771)(7,232)(814)(3,798)(2,698)(133)(2,169)(2,451)(952)— (27,018)
Net client cash flows (1)
Net client cash flows (1)
(763)(4,427)(364)2,108 (294)110 (58)(1,020)22 65 (4,621)
Net client cash flows (1)
(763)(4,427)(364)2,108 (294)110 (58)(1,020)22 65 (4,621)
Artisan Funds' distributions not reinvested (2)
Artisan Funds' distributions not reinvested (2)
— — — (33)— — (136)— — — (169)
Artisan Funds' distributions not reinvested (2)
— — — (33)— — (136)— — — (169)
Investment returns and otherInvestment returns and other(18,152)(9,685)(1,563)(7,244)(6,386)(429)(927)(3,433)(1,539)(49,357)Investment returns and other(18,152)(9,685)(1,563)(7,244)(6,386)(429)(927)(3,433)(1,539)(49,357)
Net transfers(3)
Net transfers(3)
— — — — — — — — — — $— 
Ending assets under managementEnding assets under management$33,519 $18,886 $6,126 $26,647 $20,064 $854 $7,036 $3,649 $3,760 $66 $120,607 Ending assets under management$33,519 $18,886 $6,126 $26,647 $20,064 $854 $7,036 $3,649 $3,760 $66 $120,607 
Average assets under management (3)
$39,888 $25,249 $7,405 $30,858 $24,306 $1,030 $7,674 $5,289 $4,514 $45 $146,244 
September 30, 2021
Beginning assets under management$52,685 $32,056 $7,149 $24,123 $22,417 $679 $6,338 $8,853 $3,476 $— $157,776 
Gross client cash inflows5,324 3,625 257 5,990 3,781 367 2,643 2,811 1,016 — 25,814 
Gross client cash outflows(9,180)(3,789)(918)(3,138)(2,938)(33)(1,021)(2,002)(332)— (23,351)
Net client cash flows (1)
(3,856)(164)(661)2,852 843 334 1,622 809 684 — 2,463 
Artisan Funds' distributions not reinvested (2)
— — — — — — (114)— — — (114)
Investment returns and other4,351 1,925 1,291 3,000 2,513 (31)412 (329)366 — 13,498 
Ending assets under management$53,180 $33,817 $7,779 $29,975 $25,773 $982 $8,258 $9,333 $4,526 $— $173,623 
Average assets under management$53,250 $33,738 $7,785 $28,377 $25,096 $874 $7,370 $9,691 $4,199 $— $170,380 
Average assets under management (4)
Average assets under management (4)
$39,888 $25,249 $7,405 $30,858 $24,306 $1,030 $7,674 $5,289 $4,514 $45 $146,244 
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(3) For the EMsights Capital Group, average assets under management is for the period beginning March 31, 2022, when the team’s first strategy began investment operations.
(3) Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle or account and into another strategy, vehicle or account.
(3) Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle or account and into another strategy, vehicle or account.
(4) For the EMsights Capital Group, average assets under management is for the period beginning March 31, 2022, when the team’s first strategy began investment operations.
(4) For the EMsights Capital Group, average assets under management is for the period beginning March 31, 2022, when the team’s first strategy began investment operations.
The goal of our marketing, distribution and client services efforts is to establish and maintain a client base that is diversified by investment strategy, client type and distribution channel. As distribution channels have evolved to have more institutional-like decision making processes and longer-term investment horizons, we have expanded our distribution efforts into those areas.
The table below sets forth our assets under management by distribution channel (1):
As of September 30, 2022As of September 30, 2021As of September 30, 2023As of September 30, 2022
$ in Millions% of Total$ in Millions% of Total$ in Millions% of Total$ in Millions% of Total
(unaudited)(unaudited)(unaudited)(unaudited)
InstitutionalInstitutional$76,780 63.6 %$109,721 63.2 %Institutional$85,770 62.8 %$76,780 63.6 %
IntermediaryIntermediary38,561 32.0 %55,912 32.2 %Intermediary45,435 33.3 %38,561 32.0 %
RetailRetail5,266 4.4 %7,990 4.6 %Retail5,290 3.9 %5,266 4.4 %
Ending Assets Under ManagementEnding Assets Under Management$120,607 100.0 %$173,623 100.0 %Ending Assets Under Management$136,495 100.0 %$120,607 100.0 %
(1) The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment.
(1) The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment.
(1) The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment.
Our institutional channel includes assets under management sourced from defined contribution plan clients, which made up approximately 10%9% of our total assets under management as of September 30, 2022.

2023.
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The following tables set forth the changes in our assets under management by vehicle type:
Three Months EndedThree Months EndedArtisan Funds & Artisan Global Funds
Separate Accounts and Other (1)
TotalThree Months EndedArtisan Funds & Artisan Global Funds
Separate Accounts and Other (1)
Total
September 30, 2022(unaudited; in millions)
September 30, 2023September 30, 2023(unaudited; in millions)
Beginning assets under managementBeginning assets under management$63,033 $67,514 $130,547 Beginning assets under management$69,144 $73,845 $142,989 
Gross client cash inflowsGross client cash inflows3,784 3,114 6,898 Gross client cash inflows3,313 2,288 5,601 
Gross client cash outflowsGross client cash outflows(4,607)(3,364)(7,971)Gross client cash outflows(3,440)(3,500)(6,940)
Net client cash flows (2)
Net client cash flows (2)
(823)(250)(1,073)
Net client cash flows (2)
(127)(1,212)(1,339)
Artisan Funds' distributions not reinvested (3)
Artisan Funds' distributions not reinvested (3)
(81)— (81)
Artisan Funds' distributions not reinvested (3)
(75)— (75)
Investment returns and otherInvestment returns and other(4,141)(4,645)(8,786)Investment returns and other(2,297)(2,783)(5,080)
Net transfers (4)
Net transfers (4)
(149)149 — 
Net transfers (4)
(15)15 — 
Ending assets under managementEnding assets under management$57,839 $62,768 $120,607 Ending assets under management$66,630 $69,865 $136,495 
Average assets under managementAverage assets under management$63,978 $68,968 $132,946 Average assets under management$69,042 $73,157 $142,199 
September 30, 2021
September 30, 2022September 30, 2022
Beginning assets under managementBeginning assets under management$85,687 $89,527 $175,214 Beginning assets under management$63,033 $67,514 $130,547 
Gross client cash inflowsGross client cash inflows5,293 1,649 6,942 Gross client cash inflows3,784 3,114 6,898 
Gross client cash outflowsGross client cash outflows(4,089)(2,842)(6,931)Gross client cash outflows(4,607)(3,364)(7,971)
Net client cash flows (2)
Net client cash flows (2)
1,204 (1,193)11 
Net client cash flows (2)
(823)(250)(1,073)
Artisan Funds' distributions not reinvested (3)
Artisan Funds' distributions not reinvested (3)
(39)— (39)
Artisan Funds' distributions not reinvested (3)
(81)— (81)
Investment returns and otherInvestment returns and other(1,236)(327)(1,563)Investment returns and other(4,141)(4,645)(8,786)
Net transfers (4)
Net transfers (4)
(224)224 — 
Net transfers (4)
(149)149 — 
Ending assets under managementEnding assets under management$85,392 $88,231 $173,623 Ending assets under management$57,839 $62,768 $120,607 
Average assets under managementAverage assets under management$86,819 $90,738 $177,557 Average assets under management$63,978 $68,968 $132,946 
Nine months endedArtisan Funds & Artisan Global Funds
Separate Accounts and Other (1)
Total
Nine Months EndedNine Months EndedArtisan Funds & Artisan Global Funds
Separate Accounts and Other (1)
Total
September 30, 2023September 30, 2023(unaudited; in millions)
Beginning assets under managementBeginning assets under management$60,811 $67,081 $127,892 
Gross client cash inflowsGross client cash inflows11,294 4,595 15,889 
Gross client cash outflowsGross client cash outflows(11,074)(8,493)(19,567)
Net client cash flows (2)
Net client cash flows (2)
220 (3,898)(3,678)
Artisan Funds' distributions not reinvested (3)
Artisan Funds' distributions not reinvested (3)
(190)— (190)
Investment returns and otherInvestment returns and other5,804 6,667 12,471 
Net transfers (4)
Net transfers (4)
(15)15 — 
Ending assets under managementEnding assets under management$66,630 $69,865 $136,495 
Average assets under managementAverage assets under management$67,110 $71,872 $138,982 
September 30, 2022September 30, 2022(unaudited; in millions)September 30, 2022
Beginning assets under managementBeginning assets under management$84,363 $90,391 $174,754 Beginning assets under management$84,363 $90,391 $174,754 
Gross client cash inflowsGross client cash inflows15,067 7,330 22,397 Gross client cash inflows15,067 7,330 22,397 
Gross client cash outflowsGross client cash outflows(17,843)(9,175)(27,018)Gross client cash outflows(17,843)(9,175)(27,018)
Net client cash flows (2)
Net client cash flows (2)
(2,776)(1,845)(4,621)
Net client cash flows (2)
(2,776)(1,845)(4,621)
Artisan Funds' distributions not reinvested (3)
Artisan Funds' distributions not reinvested (3)
(169)— (169)
Artisan Funds' distributions not reinvested (3)
(169)— (169)
Investment returns and otherInvestment returns and other(23,366)(25,991)(49,357)Investment returns and other(23,366)(25,991)(49,357)
Net transfers (4)
Net transfers (4)
(213)213 — 
Net transfers (4)
(213)213 — 
Ending assets under managementEnding assets under management$57,839 $62,768 $120,607 Ending assets under management$57,839 $62,768 $120,607 
Average assets under managementAverage assets under management$70,544 $75,700 $146,244 Average assets under management$70,544 $75,700 $146,244 
September 30, 2021
Beginning assets under management$74,746 $83,030 $157,776 
Gross client cash inflows18,560 7,254 25,814 
Gross client cash outflows(13,115)(10,236)(23,351)
Net client cash flows (2)
5,445 (2,982)2,463 
Artisan Funds' distributions not reinvested (3)
(114)— (114)
Investment returns and other5,617 7,881 13,498 
Net transfers (4)
(302)302 — 
Ending assets under management$85,392 $88,231 $173,623 
Average assets under management$82,721 $87,659 $170,380 
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(1) Separate accounts and other consists of AUM we manage in or through vehicles other than Artisan Funds or Artisan Global Funds. This AUM includes assets we manage in traditional separate accounts, as well as assets we manage in Artisan-branded collective investment trusts and in Artisan Private Funds. As of September 30, 2022, AUM for certain strategies include the following amountsFunds, as well as assets under advisement related to investment models for which Artisan Partners provideswe provide consulting advice but do not have discretionary investment models to managed account sponsors (reported on a one-month lag): Artisan Sustainable Emerging Markets $76 million.authority.
(2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested.
(3) Artisan Funds’ distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(4) Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle or account and into another strategy, vehicle or account.

The following table sets forth our assets under management by asset class:
Three Months Ended
Equity (1)
Fixed Income (1)
Alternative (1)
Total
September 30, 2023(unaudited; in millions)
Beginning assets under management$131,384 $8,103 $3,502 $142,989 
Gross client cash inflows4,056 1,225 320 5,601 
Gross client cash outflows(5,990)(422)(528)(6,940)
Net client cash flows (2)
(1,934)803 (208)(1,339)
Artisan Funds' distributions not reinvested (3)
— (75)— (75)
Investment returns and other(5,002)104 (182)(5,080)
Net transfers (4)
— — — — 
Ending assets under management$124,448 $8,935 $3,112 $136,495 
Average assets under management$130,084 $8,787 $3,328 $142,199 
September 30, 2022
Beginning assets under management$119,101 $6,974 $4,472 $130,547 
Gross client cash inflows5,962 738 198 6,898 
Gross client cash outflows(6,983)(653)(335)(7,971)
Net client cash flows (2)
(1,021)85 (137)(1,073)
Artisan Funds' distributions not reinvested (3)
(33)(48)— (81)
Investment returns and other(8,464)(57)(265)(8,786)
Net transfers (4)
— — — — 
Ending assets under management$109,583 $6,954 $4,070 $120,607 
Average assets under management$121,231 $7,148 $4,567 $132,946 
Nine Months Ended
Equity (1)
Fixed Income (1)
Alternative (1)
Total
September 30, 2023(unaudited; in millions)
Beginning assets under management$116,832 $7,059 $4,001 $127,892 
Gross client cash inflows12,299 2,962 628 15,889 
Gross client cash outflows(16,365)(1,504)(1,698)(19,567)
Net client cash flows (2)
(4,066)1,458 (1,070)(3,678)
Artisan Funds' distributions not reinvested (3)
— (190)— (190)
Investment returns and other11,682 608 181 12,471 
Net transfers (4)
— — — — 
Ending assets under management$124,448 $8,935 $3,112 $136,495 
Average assets under management$127,181 $8,165 $3,636 $138,982 
September 30, 2022
Beginning assets under management$161,083 $8,037 $5,634 $174,754 
Gross client cash inflows19,235 2,135 1,027 22,397 
Gross client cash outflows(23,895)(2,158)(965)(27,018)
Net client cash flows (2)
(4,660)(23)62 (4,621)
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Artisan Funds' distributions not reinvested (3)
(33)(136)— (169)
Investment returns and other(46,807)(924)(1,626)(49,357)
Net transfers (4)
— — — — 
Ending assets under management$109,583 $6,954 $4,070 $120,607 
Average assets under management$133,827 $7,562 $4,855 $146,244 
(1) Equity includes the following investment strategies: Mid-Cap Growth, Small-Cap Growth, Mid-Cap Value, Non-U.S. Growth, International Value, Global Opportunities, Global Equity, Value Equity, Global Value, Sustainable Emerging Markets, Global Discovery, Developing World, Non-U.S. Small-Mid Growth, International Explorer, Select Equity, and Value Income. Fixed Income includes the following investment strategies: High Income, Floating Rate, Emerging Markets Debt Opportunities, and Emerging Markets Local Opportunities. Alternative includes the following investment strategies: Antero Peak, Antero Peak Hedge, China Post-Venture, Credit Opportunities, and Global Unconstrained.
(2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested.
(3) Artisan Funds’ distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds.
(4) Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle or account and into another strategy, vehicle or account.
Results of Operations
Three months ended September 30, 2022,2023, compared to Three months ended September 30, 20212022
For the Three Months Ended September 30,For the Period-to-PeriodFor the Three Months Ended September 30,For the Period-to-Period
20222021$%20232022$%
Statements of operations data:Statements of operations data:(unaudited; in millions, except share and per-share data)Statements of operations data:(unaudited; in millions, except share and per-share data)
RevenuesRevenues$234.3 $316.6 $(82.3)(26)%Revenues$248.7 $234.3 $14.4 %
Operating ExpensesOperating ExpensesOperating Expenses
Total compensation and benefitsTotal compensation and benefits122.1 142.2 (20.1)(14)%Total compensation and benefits130.7 122.1 8.6 %
Other operating expensesOther operating expenses33.5 31.3 2.2 %Other operating expenses35.8 33.5 2.3 %
Total operating expensesTotal operating expenses155.6 173.5 (17.9)(10)%Total operating expenses166.5 155.6 10.9 %
Total operating incomeTotal operating income78.7 143.1 (64.4)(45)%Total operating income82.2 78.7 3.5 %
Non-operating income (expense)Non-operating income (expense)Non-operating income (expense)
Interest expenseInterest expense(2.5)(2.7)0.2 %Interest expense(2.3)(2.5)0.2 %
Other non-operating income (expense)Other non-operating income (expense)(8.9)1.0 (9.9)(990)%Other non-operating income (expense)8.1 (8.9)17.0 191 %
Total non-operating income (expense)Total non-operating income (expense)(11.4)(1.7)(9.7)(571)%Total non-operating income (expense)5.8 (11.4)17.2 151 %
Income before income taxesIncome before income taxes67.3 141.4 (74.1)(52)%Income before income taxes88.0 67.3 20.7 31 %
Provision for income taxesProvision for income taxes14.8 28.0 (13.2)(47)%Provision for income taxes14.6 14.8 (0.2)(1)%
Net income before noncontrolling interestsNet income before noncontrolling interests52.5 113.4 (60.9)(54)%Net income before noncontrolling interests73.4 52.5 20.9 40 %
Less: Noncontrolling interests - Artisan Partners HoldingsLess: Noncontrolling interests - Artisan Partners Holdings11.0 24.8 (13.8)(56)%Less: Noncontrolling interests - Artisan Partners Holdings11.3 11.0 0.3 %
Less: Noncontrolling interests - consolidated investment productsLess: Noncontrolling interests - consolidated investment products(2.7)2.2 (4.9)(223)%Less: Noncontrolling interests - consolidated investment products9.0 (2.7)11.7 433 %
Net income attributable to Artisan Partners Asset Management Inc.Net income attributable to Artisan Partners Asset Management Inc.$44.2 $86.4 $(42.2)(49)%Net income attributable to Artisan Partners Asset Management Inc.$53.1 $44.2 $8.9 20 %
Share DataShare DataShare Data
Basic earnings per shareBasic earnings per share$0.65 $1.30 Basic earnings per share$0.76 $0.65 
Diluted earnings per shareDiluted earnings per share$0.65 $1.30 Diluted earnings per share$0.76 $0.65 
Basic weighted average number of common shares outstandingBasic weighted average number of common shares outstanding62,623,434 59,965,549 Basic weighted average number of common shares outstanding63,520,402 62,623,434 
Diluted weighted average number of common shares outstandingDiluted weighted average number of common shares outstanding62,632,660 59,982,774 Diluted weighted average number of common shares outstanding63,563,044 62,632,660 
Investment Advisory Revenues
Essentially all of our revenues consist of fees earned from managing clients’ assets. Our investmentInvestment advisory fees, which are comprised of management fees and performance fees, fluctuate based on a number of factors, including the total value of our assets under management, the composition of assets under management among investment vehicles and our investment strategies, changes in the investment management fee rates on our products, the extent to which we enter into fee arrangements that differ from our standard fee schedules, which can be affected by custom and the competitive landscape in the relevant market, and, for the accounts on which we earn performance fees, the investment performance of those accounts.
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The different fee structures associated with Artisan Funds, Artisan Global Funds and separate accounts and other pooled vehicles, and the different fee schedules applicable to each of our investment strategies, make the composition of our assets under management an important determinant of the investment management fees we earn. Historically, we have received higher effective rates of investment management fees from Artisan Funds and Artisan Global Funds than from traditional separate accounts, reflecting, among other things, the different and broader array of services we provide to Artisan Funds and Artisan Global Funds. Investment management fees for non-U.S. funds may also be higher because they include fees to offset higher distribution costs. Our investment management fees also differ by investment strategy, with higher-capacity strategies having lower standard fee rates than strategies with more limited capacity.
Certain separate account clients pay us fees based on the performance of their accounts relative to agreed-upon benchmarks, which typically results in a lower base fee but allows us to earn higher fees if the performance we achieve for that client is superior to the performance of the agreed-upon benchmark. We may also receive performance fees or incentive allocations from Artisan Private Funds. Approximately 3% of our $120.6$136.5 billion of assets under management as of September 30, 20222023 have performance fee billing arrangements. Performance fees of $0.1 million were recognized in each of the three months ended September 30, 2022, compared to $0.4 million in the three months ended September 30, 2021.

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2023 and 2022.
The decreaseincrease in revenues of $82.3$14.4 million, or 26%6%, for the three months ended September 30, 2022,2023, compared to the three months ended September 30, 2021,2022, was driven primarily by a $44.6$9.3 billion, or 25% decrease7% increase in our average assets under management. The weighted average investment management fee, which excludes performance fees, was 69.5 basis points for the three months ended September 30, 2023, compared to 70.0 basis points for the three months ended September 30, 2022, compared to 70.7 basis points for the three months ended September 30, 2021.2022.
The following table sets forth the investment advisory fees and the weighted average management fee earned by investment vehicle. The weighted average management fee for Artisan Funds and Artisan Global Funds reflects the additional services we provide to these pooled vehicles.
Separate Accounts and Other (1)
Artisan Funds and Artisan Global Funds
Separate Accounts and Other (1)
Artisan Funds and Artisan Global Funds
For the Three Months Ended September 30, For the Three Months Ended September 30,2022202120222021 For the Three Months Ended September 30,2023202220232022
(unaudited; dollars in millions)(unaudited; dollars in millions)
Investment advisory feesInvestment advisory fees$87.9 $117.5 $146.4 $199.1 Investment advisory fees$92.3 $87.9 $156.4 $146.4 
Weighted average management fee (2)
Weighted average management fee (2)
50.6 bps51.3 bps90.8 bps91.0 bps
Weighted average management fee (2)
50.1 bps50.6 bps90.1 bps90.8 bps
Percentage of ending AUMPercentage of ending AUM52 %51 %48 %49 %Percentage of ending AUM52 %52 %48 %48 %
(1) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have discretionary investment authority.
(1) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have discretionary investment authority.
(1) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have discretionary investment authority.
(2) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period.
(2) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period.
(2) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period.
Operating Expenses
Our operatingOperating expenses decreased $17.9increased $10.9 million for the three months ended September 30, 2022,2023, compared to the three months ended September 30, 2021,2022, due to a declinean $8.6 million increase in incentivetotal compensation and third-party distribution expense asbenefits and a result of lower revenues, partially offset by increased travel, occupancy and technology costs and higher fixed compensation costs reflecting annual merit increases and the hiring of additional associates.$2.3 million increase in other operating expenses.
Compensation and Benefits
 For the Three Months Ended September 30,Period-to-Period For the Three Months Ended September 30,Period-to-Period
20222021$%20232022$%
(unaudited; in millions)(unaudited; in millions)
Salaries, incentive compensation and benefits(1)
Salaries, incentive compensation and benefits(1)
$109.7 $130.8 $(21.1)(16)%
Salaries, incentive compensation and benefits(1)
$118.3 $109.7 $8.6 %
Long-term incentive compensation awardsLong-term incentive compensation awards12.4 11.4 1.0 %Long-term incentive compensation awards12.4 12.4 0.0 %
Total compensation and benefitsTotal compensation and benefits$122.1 $142.2 $(20.1)(14)%Total compensation and benefits$130.7 $122.1 $8.6 %
(1) Excluding long-term incentive compensation awards
(1) Excluding long-term incentive compensation awards
(1) Excluding long-term incentive compensation awards
The decreaseincrease in salaries, incentive compensation and benefits was driven primarily by a $24.1 million decreasean increase in quarterly incentive compensation for our investment and marketing professionals as a result of the decrease in revenue, partially offset by an increase inhigher fixed compensation and benefits expense related tocosts reflecting annual merit increases and increased headcount in 2022, including members of our newest investment team.
During the first quarter of 2022, the Company's board of directors approved a grant of $86.8 million of long-term incentive awards consisting of $38.2 million of restricted share-based awards and $48.6 million of long-term cash awards, which we refer to as franchise capital awards. Long-term incentive compensation award expense for all outstanding awards is expected to be approximately $14 millionan increase in the fourth quarternumber of 2022, excluding the impact of investment returns on the franchise capital awards.full time associates.
Total compensation and benefits was 52%53% and 45%52% of our revenues for the three months ended September 30, 2023, and 2022, and 2021, respectively.


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Other operating expenses
Other operating expenses increased $2.2$2.3 million for the three months ended September 30, 20222023, compared to the three months ended September 30, 2021,2022, primarily due to an increase in travel and occupancy expenses, and higher technology expenses as a result of firm initiatives.
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expenses.
Non-Operating Income (Expense)
Non-operating income (expense) consisted of the following:
 For the Three Months Ended September 30,Period-to-Period For the Three Months Ended September 30,Period-to-Period
20222021$%20232022$%
(unaudited; in millions)(unaudited; in millions)
Interest expenseInterest expense$(2.5)$(2.7)$0.2 (7)%Interest expense$(2.3)$(2.5)$0.2 (8)%
Net investment gain (loss) of consolidated investment productsNet investment gain (loss) of consolidated investment products(3.9)2.7 (6.6)(244)%Net investment gain (loss) of consolidated investment products9.8 (3.9)13.7 351 %
Net gain (loss) on the tax receivable agreementsNet gain (loss) on the tax receivable agreements0.5 0.4 0.1 25 %Net gain (loss) on the tax receivable agreements0.5 0.5 0.0 %
Other investment gain (loss)(5.5)(2.1)(3.4)(162)%
Net investment gain (loss) on nonconsolidated seed investmentsNet investment gain (loss) on nonconsolidated seed investments0.2 (1.6)1.8 113 %
Net investment gain (loss) on franchise capital investmentsNet investment gain (loss) on franchise capital investments(4.5)(4.0)(0.5)(13)%
Interest income on cash and cash equivalents and otherInterest income on cash and cash equivalents and other2.1 0.1 2.0 2,000 %
Total non-operating income (expense)Total non-operating income (expense)$(11.4)$(1.7)$(9.7)(571)%Total non-operating income (expense)$5.8 $(11.4)$17.2 151 %
Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments, and net investment gain (loss) on franchise capital investments increased $15.0 million in the aggregate for the three months ended September 30, 2023, compared to the three months ended September 30, 2022, predominately due to market conditions. Interest income on cash and cash equivalents and other increased $2.0 million for thethree months ended September 30, 2023, as a result of higher yields.
Provision for Income Taxes
The provision for income taxes primarily represents APAM’s U.S. federal, state and local income taxes on its allocable portion of Holdings’ income, as well as foreign income taxes payable by Holdings’ subsidiaries. APAM’s effective income tax rate for the three months ended September 30, 2023 and 2022 was 16.6% and 2021 was 21.8% and 19.8%, respectively. Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 17%16% and 20%17% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the three months ended September 30, 20222023 and 2021,2022, respectively. Thus, income before income taxes includes amounts that are attributable to noncontrolling interests and not taxable to APAM and its subsidiaries, which reduces the effective tax rate. As APAM’s equity ownership in Holdings increases, the effective tax rate will likewise increase as more income will be subject to corporate-level taxes. The effective tax rate was favorably impacted in both periods due to tax deductible dividends paid on unvested restricted share-based awards.
Earnings Per Share
Weighted average basic and diluted shares of Class A common stock outstanding were higher for the three months ended September 30, 2022,2023, compared to the three months ended September 30, 2021,2022, as a result of unit exchanges and equity award grants. See Note 12, “Earnings Per Share” in the Notes to the unaudited consolidated financial statements for further discussion of earnings per share.
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Nine months ended September 30, 2022,2023, compared to Nine months ended September 30, 20212022
For the Nine Months Ended September 30,Period-to-PeriodFor the Nine Months Ended September 30,Period-to-Period
20222021$%20232022$%
Statements of operations data:Statements of operations data:(unaudited; in millions, except share and per share data)Statements of operations data:(unaudited; in millions, except share and per share data)
RevenuesRevenues$767.3 $912.2 $(144.9)(16)%Revenues$726.1 $767.3 $(41.2)(5)%
Operating ExpensesOperating ExpensesOperating Expenses
Total compensation and benefitsTotal compensation and benefits389.4 419.7 (30.3)(7)%Total compensation and benefits392.6 389.4 3.2 %
Other operating expensesOther operating expenses103.8 89.8 14.0 16 %Other operating expenses106.3 103.8 2.5 %
Total operating expensesTotal operating expenses493.2 509.5 (16.3)(3)%Total operating expenses498.9 493.2 5.7 %
Total operating incomeTotal operating income274.1 402.7 (128.6)(32)%Total operating income227.2 274.1 (46.9)(17)%
Non-operating income (expense)Non-operating income (expense)Non-operating income (expense)
Interest expenseInterest expense(7.9)(8.1)0.2 %Interest expense(6.5)(7.9)1.4 18 %
Other non-operating income (expense)Other non-operating income (expense)(37.3)20.4 (57.7)(283)%Other non-operating income (expense)50.0 (37.3)87.3 234 %
Total non-operating income (expense)Total non-operating income (expense)(45.2)12.3 (57.5)(467)%Total non-operating income (expense)43.5 (45.2)88.7 196 %
Income before income taxesIncome before income taxes228.9 415.0 (186.1)(45)%Income before income taxes270.7 228.9 41.8 18 %
Provision for income taxesProvision for income taxes46.8 78.1 (31.3)(40)%Provision for income taxes51.7 46.8 4.9 10 %
Net income before noncontrolling interestsNet income before noncontrolling interests182.1 336.9 (154.8)(46)%Net income before noncontrolling interests219.0 182.1 36.9 20 %
Less: Noncontrolling interests - Artisan Partners HoldingsLess: Noncontrolling interests - Artisan Partners Holdings37.2 74.1 (36.9)(50)%Less: Noncontrolling interests - Artisan Partners Holdings35.5 37.2 (1.7)(5)%
Less: Noncontrolling interests - consolidated investment productsLess: Noncontrolling interests - consolidated investment products(9.0)10.9 (19.9)(183)%Less: Noncontrolling interests - consolidated investment products26.0 (9.0)35.0 389 %
Net income attributable to Artisan Partners Asset Management Inc.Net income attributable to Artisan Partners Asset Management Inc.$153.9 $251.9 $(98.0)(39)%Net income attributable to Artisan Partners Asset Management Inc.$157.5 $153.9 $3.6 %
Share DataShare DataShare Data
Basic earnings per shareBasic earnings per share$2.17 $3.84 Basic earnings per share$2.27 $2.17 
Diluted earnings per shareDiluted earnings per share$2.17 $3.84 Diluted earnings per share$2.27 $2.17 
Basic weighted average number of common shares outstandingBasic weighted average number of common shares outstanding62,329,756 59,519,634 Basic weighted average number of common shares outstanding63,419,587 62,329,756 
Diluted weighted average number of common shares outstandingDiluted weighted average number of common shares outstanding62,353,275 59,535,894 Diluted weighted average number of common shares outstanding63,449,804 62,353,275 
Investment Advisory Revenues
The decrease in revenues of $144.9$41.2 million, or 16%5%, for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021,2022, was driven primarily by a $24.1$7.2 billion, or 14%5%, decrease in our average assets under management, in addition to a $10.8 million decrease in performance fee revenue.management. The weighted average management fee, which excludes performance fees, was 70.0 basis points for the nine months ended September 30, 2023, compared to 70.2 basis points for the nine months ended September 30, 2022 compared to 70.8 basis points for the nine months ended September 30, 2021.2022. Performance fees of $0.4$0.2 million were recognized in the nine months ended September 30, 2022,2023, compared to $11.2$0.4 million in the nine months ended September 30, 2021.2022.
The following table sets forth the investment advisory fees and weighted average management fee earned by investment vehicle.vehicles. The weighted average management fee for Artisan Funds and Artisan Global Funds reflects the additional services we provide to these pooled vehicles.
Separate Accounts and Other (2)
Artisan Funds and Artisan Global Funds
Separate Accounts and Other (1)
Artisan Funds and Artisan Global Funds
For the Nine Months Ended September 30, For the Nine Months Ended September 30,2022202120222021 For the Nine Months Ended September 30,2023202220232022
(unaudited; dollars in millions)(unaudited; dollars in millions)
Investment advisory feesInvestment advisory fees$288.8 $347.7 $478.5 $564.5 Investment advisory fees$273.5 $288.8 $452.6 $478.5 
Weighted average management fee(1)(2)
Weighted average management fee(1)(2)
51.0 bps51.4 bps90.7 bps91.2 bps
Weighted average management fee(1)(2)
51.0 bps51.0 bps90.3 bps90.7 bps
Percentage of ending AUMPercentage of ending AUM52 %51 %48 %49 %Percentage of ending AUM52 %52 %48 %48 %
(1) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period.
(2) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have full discretionary investment authority.
(1) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have discretionary investment authority.
(1) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have discretionary investment authority.
(2) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period.
(2) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period.

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Operating Expenses
Operating expenses decreased $16.3increased $5.7 million for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021,2022, due to a decline$3.2 million increase in incentivetotal compensation and third-party distribution expense asbenefits and a result of lower revenues, partially offset by increased travel, occupancy and technology costs and higher fixed compensation costs reflecting annual merit increases and the hiring of additional associates, including members of our newest investment team.$2.5 million increase in other operating expenses.
Compensation and Benefits
 For the Nine Months Ended September 30,Period-to-Period For the Nine Months Ended September 30,Period-to-Period
20222021$%20232022$%
(unaudited; in millions)(unaudited; in millions)
Salaries, incentive compensation and benefits (1)
Salaries, incentive compensation and benefits (1)
$352.3 $385.1 $(32.8)(9)%
Salaries, incentive compensation and benefits (1)
$350.1 $352.3 $(2.2)(1)%
Long-term incentive compensation awardsLong-term incentive compensation awards37.1 34.6 2.5 %Long-term incentive compensation awards42.5 37.1 5.4 15 %
Total compensation and benefitsTotal compensation and benefits$389.4 $419.7 $(30.3)(7)%Total compensation and benefits$392.6 $389.4 $3.2 %
(1) Excluding long-term incentive compensation awards
(1) Excluding long-term incentive compensation awards
(1) Excluding long-term incentive compensation awards
The decrease in salaries, incentive compensation and benefits was driven primarily by a $46.9$12.2 million decrease in incentive compensation paid to our investment and marketingdistribution professionals as a result of the decrease in revenue, partially offset by higher fixed compensation and benefits costs reflecting annual merit increases and a 6% increase in the hiringnumber of additional associates, including members of our newest investment team.full time associates.
Long-term incentive compensation award expense increased $2.5$5.4 million as the awards granted during 2021 and 2022 had a higher value than the awards that became fully vested in 2021 and 2022. The award amortization expense increase of $6.9 million for the nine months ended September 30, 2022 compareddue to the nine months ended September 30, 2021, was partially offset by a $4.4 million decrease from the impact of investment returns on the cashcash-based awards.
During the first quarter of 2023, the Company's board of directors approved a grant of $57.1 million of long-term incentive awards consisting of $18.1 million of restricted share-based awards and $39.0 million of cash-based long-term incentive awards, which we refer to as franchise capital awards. Long-term incentive compensation award value.expense for all outstanding awards is expected to be approximately $14 million per quarter in fiscal 2023, excluding the impact of investment returns on the franchise capital awards.
Total compensation and benefits was 51%54% and 46%51% of our revenues for the nine months ended September 30, 2022,2023, and 2021,2022, respectively.
Other operating expenses
Other operating expenses increased $14.0$2.5 million for the nine months ended September 30, 20222023, compared to the nine months ended September 30, 2021,2022, primarily due to an increase in travel expenses and occupancy expenses, and higher technology expenses ascosts, offset by a result of firm initiatives.

decrease in distribution fees due to lower revenues.
Non-Operating Income (Expense)
Non-operating income (expense) consisted of the following:
 For the Nine Months Ended September 30,Period-to-Period For the Nine Months Ended September 30,Period-to-Period
20222021$%20232022$%
(unaudited; in millions)(unaudited; in millions)
Interest expenseInterest expense$(7.9)$(8.1)$0.2 (2)%Interest expense$(6.5)$(7.9)$1.4 (18)%
Net investment gain (loss) of consolidated investment productsNet investment gain (loss) of consolidated investment products(14.6)18.0 (32.6)(181)%Net investment gain (loss) of consolidated investment products38.2 (14.6)52.8 362 %
Net gain (loss) on the tax receivable agreementsNet gain (loss) on the tax receivable agreements1.0 0.4 0.6 150 %Net gain (loss) on the tax receivable agreements0.5 1.0 (0.5)(50)%
Other investment gain (loss)(23.7)2.0 (25.7)(1,285)%
Net investment gain (loss) on nonconsolidated seed investmentsNet investment gain (loss) on nonconsolidated seed investments1.4 (4.6)6.0 130 %
Net investment gain (loss) on franchise capital investmentsNet investment gain (loss) on franchise capital investments6.1 (19.2)25.3 132 %
Interest income on cash and cash equivalents and otherInterest income on cash and cash equivalents and other3.8 0.1 3.7 3,700 %
Total non-operating income (expense)Total non-operating income (expense)$(45.2)$12.3 $(57.5)(467)%Total non-operating income (expense)$43.5 $(45.2)$88.7 196 %
Net investment gain (loss) of consolidated investment products, net investment gain (loss) on nonconsolidated seed investments, and net investment gain (loss) on franchise capital investments increased $84.1 million in the aggregate for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, predominately due to market conditions. The increase in interest income on cash and cash equivalents and other increased $3.7 million for thenine months ended September 30, 2023, as a result of higher yields.

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Provision for Income Taxes
The provision for income taxes primarily represents APAM’s U.S. federal, state and local income taxes on its allocable portion of Holdings’ income, as well as foreign income taxes payable by Holdings’ subsidiaries. APAM’s effective income tax rate was 20.4%19.1% and 18.8%20.4% for the nine months ended September 30, 20222023 and 2021,2022, respectively.
Several factors contribute to the effective tax rate, including a rate benefit attributable to the fact that approximately 17%16% and 20%17% of Holdings’ full year projected taxable earnings were not subject to corporate-level taxes for the nine months ended September 30, 20222023 and 2021,2022, respectively. Thus, income before income taxes includes amounts that are attributable to noncontrolling interests and not taxable to APAM and its subsidiaries, which reduces the effective tax rate. As APAM’s equity ownership in Holdings increases, the effective tax rate will likewise increase as more income will be subject to corporate-level taxes. The effective tax rate was favorably impacted in both periods due to tax deductible dividends paid on unvested restricted share-based awards and by the tax deduction related to the vesting of restricted share-based awards.
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Earnings Per Share
Weighted average basic and diluted shares of Class A common stock outstanding were higher for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021,2022, as a result of stock offerings, unit exchanges, and equity award grants. See Note 12, “Earnings Per Share” in the Notes to the unaudited consolidated financial statements for further discussion of earnings per share.
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Supplemental Non-GAAP Financial Information
Our management uses non-GAAP measures (referred to as “adjusted” measures) of net income to evaluate the profitability and efficiency of the underlying operations of our business and as a factor when considering net income available for distributions and dividends. These adjusted measures remove the impact of (1) net gain (loss) on the tax receivable agreements (if any), (2) compensation expense (reversal) related to market valuation changes in compensation plans, and (3) net investment gain (loss) of investment products. These adjustments also remove the non-operational complexities of our structure by adding back noncontrolling interests and assuming all income of Artisan Partners Holdings is allocated to APAM. Management believes these non-GAAP measures provide more meaningful information to analyze our profitability and efficiency between periods and over time. We have included these non-GAAP measures to provide investors with the same financial metrics used by management to manage the Company.
Non-GAAP measures should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. Our non-GAAP measures may differ from similar measures used by other companies, even if similar terms are used to identify such measures. Our non-GAAP measures are as follows:
Adjusted net income represents net income excluding the impact of (1) net gain (loss) on the tax receivable agreements (if any), (2) compensation expense (reversal) related to market valuation changes in compensation plans, and (3) net investment gain (loss) of investment products. Adjusted net income also reflects income taxes assuming the vesting of all unvested Class A share-based awards and as if all outstanding limited partnership units of Artisan Partners Holdings had been exchanged for Class A common stock of APAM on a one-for-one basis. Assuming full vesting and exchange, all income of Artisan Partners Holdings is treated as if it were allocated to APAM, and the adjusted provision for income taxes represents an estimate of income tax expense at an effective rate reflecting APAM's current federal, state, and local income statutory tax rates. The adjusted tax rate was 24.7% for all periods presented.
Adjusted net income per adjusted share is calculated by dividing adjusted net income by adjusted shares. The number of adjusted shares is derived by assuming the vesting of all unvested Class A share-based awards and the exchange of all outstanding limited partnership units of Artisan Partners Holdings for Class A common stock of APAM on a one-for-one basis.
Adjusted operating income represents the operating income of the consolidated company excluding compensation expense related to market valuation changes in compensation plans.
Adjusted operating margin is calculated by dividing adjusted operating income by total revenues.
Adjusted EBITDA represents adjusted net income before interest expense, income taxes, depreciation and amortization expense.
Net gain (loss) on the tax receivable agreements represents the income (expense) associated with the change in estimate of amounts payable under the tax receivable agreements entered into in connection with APAM’s initial public offering and related reorganization.
Compensation expense (reversal) related to market valuation changes in compensation plans represents the expense (income) associated with the change in the long termlong-term incentive award liability resulting from investment returns of the underlying investment products. Because the compensation expense impact of the investment market exposure is economically hedged, management believes it is useful to reflect the expected net income offset in the calculation of adjusted operating income, adjusted net income, and adjusted EBITDA. The related investment gain (loss) on the underlying investments is included in the adjustment for net investment gain (loss) of investment products.
Net investment gain (loss) of investment products represents the non-operating income (expense) related to the Company’s investments, in both consolidated investment products and nonconsolidated investment products, including investments held to economically hedge compensation plans. Excluding these non-operating market gains or losses on investments provides greater transparency to evaluate the profitability and efficiency of the underlying operations of the business. Interest income generated on cash and cash equivalents is considered part of normal operations, and therefore, is not excluded from adjusted net income.
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The following table sets forth, for the periods indicated, a reconciliation from GAAP financial measures to non-GAAP measures:
 For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Three Months Ended September 30, For the Nine Months Ended September 30,
20222021202220212023202220232022
(unaudited; in millions, except per share data)(unaudited; in millions, except per share data)
Reconciliation of non-GAAP financial measures:Reconciliation of non-GAAP financial measures:Reconciliation of non-GAAP financial measures:
Net income attributable to Artisan Partners Asset Management Inc. (GAAP)Net income attributable to Artisan Partners Asset Management Inc. (GAAP)$44.2 $86.4 $153.9 $251.9 Net income attributable to Artisan Partners Asset Management Inc. (GAAP)$53.1 $44.2 $157.5 $153.9 
Add back: Net income attributable to noncontrolling interests - Artisan Partners HoldingsAdd back: Net income attributable to noncontrolling interests - Artisan Partners Holdings11.0 24.8 37.2 74.1 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings11.3 11.0 35.5 37.2 
Add back: Provision for income taxesAdd back: Provision for income taxes14.8 28.0 46.8 78.1 Add back: Provision for income taxes14.6 14.8 51.7 46.8 
Add back: Compensation expense (reversal) related to market valuation changes in compensation plansAdd back: Compensation expense (reversal) related to market valuation changes in compensation plans(1.6)0.1 (4.4)0.3 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans(1.3)(1.6)1.2 (4.4)
Add back: Net (gain) loss on the tax receivable agreementsAdd back: Net (gain) loss on the tax receivable agreements(0.5)(0.4)(1.0)(0.4)Add back: Net (gain) loss on the tax receivable agreements(0.5)(0.5)(0.5)(1.0)
Add back: Net investment (gain) loss of investment products attributable to APAMAdd back: Net investment (gain) loss of investment products attributable to APAM7.1 1.6 30.0 (8.9)Add back: Net investment (gain) loss of investment products attributable to APAM3.6 7.1 (19.2)30.0 
Less: Adjusted provision for income taxesLess: Adjusted provision for income taxes18.6 34.7 64.9 97.6 Less: Adjusted provision for income taxes20.0 18.6 55.9 64.9 
Adjusted net income (Non-GAAP)Adjusted net income (Non-GAAP)$56.4 $105.8 $197.6 $297.5 Adjusted net income (Non-GAAP)$60.8 $56.4 $170.3 $197.6 
Average shares outstandingAverage shares outstandingAverage shares outstanding
Class A common sharesClass A common shares62.6 60.0 62.3 59.5 Class A common shares63.5 62.6 63.4 62.3 
Assumed vesting or exchange of:Assumed vesting or exchange of:Assumed vesting or exchange of:
Unvested Class A restricted share-based awardsUnvested Class A restricted share-based awards5.8 5.4 5.7 5.5 Unvested Class A restricted share-based awards5.7 5.8 5.7 5.7 
Artisan Partners Holdings units outstanding (noncontrolling interests)Artisan Partners Holdings units outstanding (noncontrolling interests)11.9 14.2 12.2 14.5 Artisan Partners Holdings units outstanding (noncontrolling interests)11.5 11.9 11.5 12.2 
Adjusted sharesAdjusted shares80.3 79.6 80.2 79.5 Adjusted shares80.7 80.3 80.6 80.2 
Basic earnings per share (GAAP)Basic earnings per share (GAAP)$0.65 $1.30 $2.17 $3.84 Basic earnings per share (GAAP)$0.76 $0.65 $2.27 $2.17 
Diluted earnings per share (GAAP)Diluted earnings per share (GAAP)$0.65 $1.30 $2.17 $3.84 Diluted earnings per share (GAAP)$0.76 $0.65 $2.27 $2.17 
Adjusted net income per adjusted share (Non-GAAP)Adjusted net income per adjusted share (Non-GAAP)$0.70 $1.33 $2.47 $3.74 Adjusted net income per adjusted share (Non-GAAP)$0.75 $0.70 $2.11 $2.47 
Operating income (GAAP)Operating income (GAAP)$78.7 $143.1 $274.1 $402.7 Operating income (GAAP)$82.2 $78.7 $227.2 $274.1 
Add back: Compensation expense (reversal) related to market valuation changes in compensation plansAdd back: Compensation expense (reversal) related to market valuation changes in compensation plans(1.6)0.1 (4.4)0.3 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans(1.3)(1.6)1.2 (4.4)
Adjusted operating income (Non-GAAP)Adjusted operating income (Non-GAAP)$77.1 $143.2 $269.7 $403.0 Adjusted operating income (Non-GAAP)$80.9 $77.1 $228.4 $269.7 
Operating margin (GAAP)Operating margin (GAAP)33.6 %45.2 %35.7 %44.1 %Operating margin (GAAP)33.0 %33.6 %31.3 %35.7 %
Adjusted operating margin (Non-GAAP)Adjusted operating margin (Non-GAAP)32.9 %45.2 %35.1 %44.2 %Adjusted operating margin (Non-GAAP)32.5 %32.9 %31.5 %35.1 %
Net income attributable to Artisan Partners Asset Management Inc. (GAAP)Net income attributable to Artisan Partners Asset Management Inc. (GAAP)$44.2 $86.4 $153.9 $251.9 Net income attributable to Artisan Partners Asset Management Inc. (GAAP)$53.1 $44.2 $157.5 $153.9 
Add back: Net income attributable to noncontrolling interests - Artisan Partners HoldingsAdd back: Net income attributable to noncontrolling interests - Artisan Partners Holdings11.0 24.8 37.2 74.1 Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings11.3 11.0 35.5 37.2 
Add back: Compensation expense (reversal) related to market valuation changes in compensation plansAdd back: Compensation expense (reversal) related to market valuation changes in compensation plans(1.6)0.1 (4.4)0.3 Add back: Compensation expense (reversal) related to market valuation changes in compensation plans(1.3)(1.6)1.2 (4.4)
Add back: Net (gain) loss on the tax receivable agreementsAdd back: Net (gain) loss on the tax receivable agreements(0.5)(0.4)(1.0)(0.4)Add back: Net (gain) loss on the tax receivable agreements(0.5)(0.5)(0.5)(1.0)
Add back: Net investment (gain) loss of investment products attributable to APAMAdd back: Net investment (gain) loss of investment products attributable to APAM7.1 1.6 30.0 (8.9)Add back: Net investment (gain) loss of investment products attributable to APAM3.6 7.1 (19.2)30.0 
Add back: Interest expenseAdd back: Interest expense2.5 2.7 7.9 8.1 Add back: Interest expense2.3 2.5 6.5 7.9 
Add back: Provision for income taxesAdd back: Provision for income taxes14.8 28.0 46.8 78.1 Add back: Provision for income taxes14.6 14.8 51.7 46.8 
Add back: Depreciation and amortizationAdd back: Depreciation and amortization2.0 1.8 5.5 5.1 Add back: Depreciation and amortization2.4 2.0 6.9 5.5 
Adjusted EBITDA (Non-GAAP)Adjusted EBITDA (Non-GAAP)$79.5 $145.0 $275.9 $408.3 Adjusted EBITDA (Non-GAAP)$85.5 $79.5 $239.6 $275.9 
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Liquidity and Capital Resources
Our working capital needs, including accrued incentive compensation payments, have been and are expected to be met primarily through cash generated by our operations. The assets and liabilities of consolidated investment products attributable to third-party investors do not impact our liquidity and capital resources. We have no right to the benefits from, nor do we bear the risks associated with, the assets and liabilities of consolidated investment products, beyond our direct equity investment and any investment advisory fees earned. Accordingly, assets and liabilities of consolidated investment products attributable to third-party investors are excluded from the amounts and discussions below. The following table shows our liquidity position as of September 30, 20222023 and December 31, 2021:2022:
September 30, 2022December 31, 2021September 30, 2023December 31, 2022
(unaudited; in millions)(unaudited; in millions)
Cash and cash equivalentsCash and cash equivalents$168.1 $189.2 Cash and cash equivalents$198.3 $114.8 
Accounts receivableAccounts receivable$103.4 $115.9 Accounts receivable$96.1 $98.6 
Seed investments(1)
Seed investments(1)
$118.0 $71.9 
Seed investments(1)
$144.6 $124.8 
Undrawn commitment on revolving credit facilityUndrawn commitment on revolving credit facility$100.0 $100.0 Undrawn commitment on revolving credit facility$100.0 $100.0 
(1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated Artisan-sponsored investment products. The balance excludes $61.5 million of investments made related to funded long-term incentive compensation plans.
(1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated Artisan-sponsored investment products. The balance excludes $104.2 million of investments made related to long-term incentive compensation plans.
(1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated Artisan-sponsored investment products. The balance excludes $104.2 million of investments made related to long-term incentive compensation plans.
We manage our cash balances in order to fund our day-to-day operations. The Company did not have any deposits with financial institutions directly impacted by events within the banking industry earlier this year. We continue to mitigate concentration risk through the diversification of financial institutions holding daily operating cash balances and by investing excess operating cash in various money market funds. $167.3 million of our cash and cash equivalents balance was invested in money market funds as of September 30, 2023.
Accounts receivable primarily represent investment advisory fees that have been earned, but not yet received from our clients. We perform a review of our receivables on a monthly basis to assess collectability. As of September 30, 2022,2023, none of our receivables were considered uncollectible.
We utilize cash to make seed investments in Artisan-sponsored investment products to support the development of new investment strategies and vehicles. As of September 30, 2022,2023, the balance of all seed investments, including investments in consolidated investment products, was $118.0$144.6 million. Subject to certain restrictions on the timing of redemptions, the seed investments are generally redeemable at our discretion. We monitor for opportunities to redeem existing seed investments as sufficient scale in those strategies and vehicles is achieved.
During the nine months ended September 30, 2022,2023, we also made investments of $48.6$39.0 million related to funded long-term incentive compensation plans. As of September 30, 2022,2023, the value of investments held related toin connection with funded long-term incentive compensation plans was $61.5$104.2 million.
We expect our investment portfolio to continue to grow as we grant additional annual franchise capital awards and make additional seed capital investments in new investment strategies and vehicles.vehicles to support our growth.
We have $200 million in unsecured notes outstanding and a $100 million revolving credit facility with a five-year term ending August 2027. The notes are comprised of three series, Series D, Series E, and Series F, each with a balloon payment at maturity. The $100 million revolving credit facility was unused as of and for the nine months ended September 30, 2022.
On August 16, 2022, Artisan Partners Holdings issued $90.0 million of 3.10% Series F notes pursuant to an agreement executed in December 2021 and used the proceeds to repay the $90.0 million of 5.82% Series C notes that matured on August 16, 2022. In addition, Holdings amended and extended its $100.0 million revolving credit facility for an additional five-year period.2023.
The fixed interest rate on each series of unsecured notes is subject to a 100 basis point increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received.
These borrowings contain various covenants. Our failure to comply with any of the covenants could result in an event of default under the agreements, giving our lenders the ability to accelerate repayment of our obligations. We were in compliance with all debt covenants as of September 30, 2022.2023.
Distributions and Dividends
Artisan Partners Holdings’ distributions, including distributions to APAM for the three and nine months ended September 30, 20222023 and 2021,2022, were as follows:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2022202120222021
(unaudited, in millions)
Holdings Partnership Distributions to Limited Partners$12.0 $25.6 $43.7 $67.9 
Holdings Partnership Distributions to APAM64.5 110.6 227.2 285.0 
Total Holdings Partnership Distributions$76.5 $136.2 $270.9 $352.9 
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For the Three Months Ended September 30,For the Nine Months Ended September 30,
2023202220232022
(unaudited, in millions)
Holdings Partnership Distributions to Limited Partners$12.9 $12.0 $30.3 $43.7 
Holdings Partnership Distributions to APAM72.4 64.5 169.1 227.2 
Total Holdings Partnership Distributions$85.3 $76.5 $199.4 $270.9 
On November 1, 2022,October 31, 2023, we, acting as the general partner of Artisan Partners Holdings, declared a distribution of $12.5$18.8 million, payable by Artisan Partners Holdings to holders of its partnership units, including APAM.
APAM declared and paid the following dividends per share during the three and nine months ended September 30, 20222023 and 2021:2022:
Type of DividendType of DividendClass of StockFor the Three Months Ended September 30,For the Nine Months Ended September 30,Type of DividendClass of StockFor the Three Months Ended September 30,For the Nine Months Ended September 30,
20222021202220212023202220232022
QuarterlyQuarterlyClass A Common$0.60 $1.00 $2.39 $2.85 QuarterlyClass A Common$0.61 $0.60 $1.66 $2.39 
Special AnnualSpecial AnnualClass A Common$— $— $0.72 $0.31 Special AnnualClass A Common$— $— $0.35 $0.72 
Our board of directors declared, effective November 1, 2022,October 31, 2023, a variable quarterly dividend of $0.56$0.65 per share of Class A common stock with respect to the September quarter of 2022,2023, payable on November 30, 20222023 to stockholders of record as of the close of business on November 16, 2022.2023. The variable quarterly dividend represents approximately 80% of the cash generated in the September quarter of 20222023 and a pro-rata portion of 20222023 tax savings related to our tax receivable agreements.
Subject to Board approval each quarter, we currently expect to pay a quarterly dividend of approximately 80% of the cash the Company generates each quarter. We expect our quarterly cash generation to approximate adjusted net income plus long-term incentive compensation award expense, less cash reserved for future franchise capital awards (which we generally expect will approximate 4% of investment management revenues each quarter) with additional adjustments made for certain other sources and uses of cash, including capital expenditures. After the end of the year, our Board will consider paying a special dividend after determining the amount of cash needed for general corporate purposes and investments in growth and strategic initiatives. Although we expect to pay dividends according to our dividend policy, we may not pay dividends according to our policy or at all.
Tax Receivable Agreements (“TRAs”)
In addition to funding our normal operations, we will be required to fund amounts payable under the TRAs that we entered into in connection with the IPO, which resulted in the recognition of a $398.2$363.9 million liability as of September 30, 2022.2023. The liability generally represents 85% of the tax benefits APAM expects to realize as a result of the merger of an entity into APAM as part of the IPO Reorganization, our purchase of partnership units from limited partners of Holdings and the exchange of partnership units (for shares of Class A common stock or other consideration). The estimated liability assumes no material changes in the relevant tax law and that APAM earns sufficient taxable income to realize all tax benefits subject to the TRAs. An increase or decrease in future tax rates will increase or decrease, respectively, the expected tax benefits APAM would realize and the amounts payable under the TRAs. Changes in the estimate of expected tax benefits APAM would realize and the amounts payable under the TRAs as a result of change in tax rates have been and will be recorded in net income.
The liability will increase upon future purchases or exchanges of limited partnership units with the increase representing amounts payable under the TRAs equal to 85% of the estimated future tax benefits, if any, resulting from such purchases or exchanges. We intend to fund the payment of amounts due under the TRAs out of the reduced tax payments that APAM realizes in respect of the tax attributes to which the TRAs relate.
The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of sales or exchanges by the holders of limited partnership units, the price of the Class A common stock at the time of such sales or exchanges, whether such sales or exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest or depreciable basis or amortizable basis. In certain cases, payments under the TRAs may be accelerated and/or significantly exceed the actual benefits we realize in respect of the tax attributes subject to the TRAs. In such cases, we intend to fund those payments with cash on hand, although we may have to borrow funds depending on the amount and timing of the payments. During the nine months ended September 30, 2022,2023, we made payments oftotaling approximately $33.1$35.8 million related to the TRAs. We do not intend to make any additional TRA payments in 2022.2023. In 2023,2024, we expect to make payments of approximately $36.2$37.2 million related to the TRAs.
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Cash Flows
 For the Nine Months Ended September 30, For the Nine Months Ended September 30,
2022202120232022
(unaudited; in millions)(unaudited; in millions)
Cash, cash equivalents and restricted cash as of January 1Cash, cash equivalents and restricted cash as of January 1$200.8 $199.5 Cash, cash equivalents and restricted cash as of January 1$143.2 $200.8 
Net cash provided by operating activitiesNet cash provided by operating activities306.6 404.2 Net cash provided by operating activities262.8 306.6 
Net cash used in investing activitiesNet cash used in investing activities(60.5)(26.2)Net cash used in investing activities(36.5)(60.5)
Net cash used in financing activitiesNet cash used in financing activities(259.3)(252.2)Net cash used in financing activities(134.3)(259.3)
Net impact of deconsolidation of consolidated investment productsNet impact of deconsolidation of consolidated investment products— (34.8)Net impact of deconsolidation of consolidated investment products(4.7)— 
Cash, cash equivalents and restricted cash as of September 30Cash, cash equivalents and restricted cash as of September 30$187.6 $290.5 Cash, cash equivalents and restricted cash as of September 30$230.5 $187.6 
Net cash provided by operating activities decreased $97.6$43.8 million for the nine months ended September 30, 20222023, compared to the nine months ended September 30, 2021,2022, primarily due to a decrease in operating income resulting from lower revenues. For the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021,2022, our operating income, excluding share-based relatedshare based compensation expense, decreased $128.1 million. The decrease in operating cash flows$52.6 million, and was partially offset by a $31.5 million increasechanges in cash provided by consolidatedworking capital.
Investing activities consist primarily of acquiring property and equipment, leasehold improvements and the purchase and sale of investment products.
securities. Net cash used in investmentinvesting activities increased $34.3decreased $24.0 million for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021,2022, primarily due to a $23.2 million increasedecrease in the net purchasespurchase of investment securities relating to franchise capital awards and fewer investments in non-consolidated investment products in fiscal 2023, compared to fiscal 2022.
Financing activities consist primarily relatedof partnership distributions to investments madenon-controlling interests, dividend payments to holders of our Class A common stock, proceeds from the issuance of Class A common stock in connection withfollow-on offerings, payments to purchase Holdings partnership units, and payments of amounts owed under the funding of a long-term incentive compensation plan, and a $11.1 million increase in the acquisition of property and equipment and leasehold improvements.
tax receivable agreements. Net cash used byin financing activities increased $7.1decreased $125.0 million for the nine months ended September 30, 2022,2023, compared to the nine months ended September 30, 2021,2022, primarily due to a $23.7$71.9 million decrease in dividends and a $13.4 million decrease in distributions paid to shareholders and limited partners, respectively, as well as a $40.9 million increase in contributions from noncontrolling interests in our consolidated investment products, a $6.8 million increase in dividends paid, partially offset by a $24.2 million decrease in distributions to limited partners.products.
During the nine months ended September 30, 2021,2023, the Company determined that it no longer had a controlling financial interest in an investment product that was previously consolidated. The deconsolidation of the investment product resulted in a $34.8$4.7 million decrease in cash, cash equivalents and restricted cash.
Certain Contractual Obligations
As of September 30, 2022,2023, there have been no material changes to our contractual obligations outside the ordinary course of business from those listed in the “Contractual Obligations” table and related notes to the table in our Annual Report on Form 10-K for the year ended December 31, 2021,2022, filed with the SEC on February 22, 2022,27, 2023, except for the changes in the TRA liability during the year.
As previously discussed in this report, the TRA liability decreased from $425.4$398.8 million at December 31, 20212022 to $398.2$363.9 million at September 30, 2022.2023. Amounts payable under the TRAs will increase upon exchanges of Holdings units for our Class A common stock or sales of Holdings units to us, with the increase representing 85% of the estimated future tax benefits, if any, resulting from such exchanges or sales and decrease when payments are made. The actual amount and timing of payments associated with our existing payable under the TRAs or future exchanges or sales, and associated tax benefits, will vary depending upon a number of factors as described under “Liquidity and Capital Resources”.Resources.” As a result, the timing of payments by period is currently unknown. During the nine months ended September 30, 2022,2023, we made payments of $33.1approximately $35.8 million related to the TRAs. We do not intend to make any additional TRA payments in 2022.2023. In 2023,2024, we expect to make payments of approximately $36.2$37.2 million related to the TRAs.
Critical Accounting Policies and Estimates
There have been no updates to our critical accounting policies from those disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K for the year ended December 31, 2021.2022.
New or Revised Accounting Standards
None.
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Item 3. Qualitative and Quantitative Disclosures Regarding Market Risk
There have been no material changes in our Quantitative and Qualitative Disclosures Regarding Market Risk from those previously reported in our Form 10-K for the year ended December 31, 2021.2022.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate, to allow for timely decisions regarding required disclosure.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at September 30, 2022.2023. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective.
Changes in Internal Control over Financial Reporting
During the quarter ended September 30, 2022, we completed the implementation of a new general ledger system and reporting application. The new system was implemented to increase the efficiency of our financial reporting process and not in response to any actual or perceived deficiencies in internal control over financial reporting.
There have been no other changes in internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act), during the quarter ended September 30, 20222023 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.
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Part II — Other Information
Item 1. Legal Proceedings
In the normal course of business, we may be subject to various legal and administrative proceedings. Currently, there are no legal or administrative proceedings that management believes may have a material adverse effect on our consolidated financial position, cash flows or results of operations.
Item 1A. Risk Factors
For a discussion of related and other potential risks and uncertainties, see the information under the heading “Risk Factors” in our latest annual report on Form 10-K, which is accessible on the SEC’s website at www.sec.gov.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Unregistered Sales of Equity Securities
As described in Note 8, “Stockholders’ Equity”, to the unaudited consolidated financial statements included in Part I of this report, upon termination of employment with Artisan, an employee-partner’s Class B common units are exchanged for Class E common units and the corresponding shares of APAM Class B common stock are canceled. APAM issues the former employee-partner a number of shares of APAM Class C common stock equal to the former employee-partner’s number of Class E common units. Class E common units are exchangeable for Class A common stock subject to the same restrictions and limitations on exchange applicable to the other common units of Holdings. There were no such issuances during the three months ended September 30, 2022.2023.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable
Item 5. Other Information
(a) None.
(b) None.
(c) None.

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Item 6. Exhibits
Exhibit No.DescriptionFormFile No.ExhibitFiling DateFiled or Furnished Herewith
10.18-K001-3582610.1August 17, 2022
31.1X
31.2X
32.1X
32.2X
101
The following Extensible Business Reporting Language (XBRL) documents are collectively included herewith as Exhibit 101: (i) the Unaudited Condensed Consolidated Statements of Financial Condition as of September 30, 2022 and December 31, 2021; (ii) the Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021; (iii) the Unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021; (iv) the Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021; (v) the Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (vi) the Notes to Unaudited Consolidated Financial Statements as of and for the three and nine months ended September 30, 2022 and 2021.
X
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)X
Exhibit No.DescriptionFormFile No.ExhibitFiling DateFiled or Furnished Herewith
31.1X
31.2X
32.1X
32.2X
101
The following Extensible Business Reporting Language (XBRL) documents are collectively included herewith as Exhibit 101: (i) the Unaudited Condensed Consolidated Statements of Financial Condition as of September 30, 2023 and December 31, 2022; (ii) the Unaudited Consolidated Statements of Operations for the nine months ended September 30, 2023 and 2022; (iii) the Unaudited Consolidated Statements of Comprehensive Income for the nine months ended September 30, 2023 and 2022; (iv) the Unaudited Consolidated Statements of Changes in Stockholders’ Equity for thenine months ended September 30, 2023 and 2022; (v) the Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (vi) the Notes to Unaudited Consolidated Financial Statements as of and for the nine months ended September 30, 2023 and 2022.
X
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)X
(1) Indicates a management contract or compensatory plan or arrangement.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Artisan Partners Asset Management Inc.
Dated: November 3, 20222, 2023
By:/s/ Eric R. Colson
Eric R. Colson
Chief Executive Officer
(principal executive officer)
/s/ Charles J. Daley, Jr.
Charles J. Daley, Jr.
Executive Vice President, Chief Financial Officer and Treasurer
(principal financial and accounting officer)


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