IPO Watch: Artisan Partners Asset Management Files For IPO

We have another asset management firm coming public if the filing makes it that far.  Artisan Partners Asset Management Inc. has filed with the SEC to come public via an Initial Public Offering.  The filing is for “up to $250 million” but that is about all that is known and that figure can change.  Artisan did not say it would file on NYSE or NASDAQ, did not give a price range or a share count, and there is not even a proposed stock ticker.

Artisan has been around since 1994 and has grown quite well through time.  The company is an independent investment management firm offering U.S. and non-U.S. global equity investment strategies.  Through December 31, 2010, all 12 of its investment strategies are said to have outperformed their benchmarks on a gross basis since inception.  It also noted that 11 of 12 of its strategies had outperformed their benchmarks on a net basis since inception.

Assets under management have risen over the last ten years from $11.0 billion at the end of 2000 to about $57.5 billion as of December 31, 2010,.  The company noted that this represents compounded annual growth of about 18.0%.

Artisan generates almost all of its revenues from investment management fees based upon a specified percentage of clients’ assets under management.  From the end of 2001, its revenues have grown from $101.5 million to $382.3 million for 2010.

At the end of 2010 it shows to have managed separate accounts representing $26.1 billion, or 45%, of its assets under management.  That was listed as being only in 155 accounts from only 115 client relationships.  These come from pension and profit-sharing plans, trusts, endowments, foundations, charitable organizations, government entities and private and non-U.S. investment companies, as well as mutual funds, non-U.S. funds and collective trusts that the company sub-advises.  The company also serves as the investment adviser to Artisan Funds, an SEC-registered family of mutual funds that offers shares in multiple classes designed to meet the needs of a range of institutional and other investors, and as investment manager and promoter of Artisan Global Funds, a family of Ireland-based UCITS funds, that began operations in the first quarter of 2011 and offer shares to non-U.S., primarily institutional, investors. Artisan Funds comprised $31.4 billion, or 55%, of its assets under management as of December 31, 2010.

Citi and Goldman Sachs are listed as the joint book-runners and co-managers are listed as BofA Merrill Lynch, Morgan Stanley, and Scotia Capital.

JON C. OGG