Key Points
Credit and alternative strategies generated $1.1 billion in third-quarter net inflows.
Discrete events caused 75% of quarterly net client asset outflows.
Credit and alternative assets under management reached $26 billion.
On its third-quarter 2026 earnings call, held on Oct. 28, 2026, Artisan Partners (NYSE:APAM) reported that expanding credit and alternative strategies cushioned significant equity asset outflows. Long-term investors care because client asset flows are shifting toward higher-fee private and credit strategies while core equity strategies weather temporary rebalancing.
Three key takeaways stand out for long-term investors.
1. Credit and Alternatives Generate Steady Client Inflows
Credit and alternative strategies give the firm a growth driver that moves independently from traditional stock market cycles. These strategies bring higher fee rates and attract steady institutional capital.
Combined, our credit and alternative strategies generated $1.1 billion in net inflows during the third quarter, and have raised $3.2 billion year to date.
-- Jason A. Gottlieb, Chief Executive Officer and President
2. One-Time Client Redemptions Drove Outflows Without Hurting Fee Rates
Two major client redemptions accounted for most of the quarterly asset decline. These one-time events had little effect on recurring revenue because average fee rates actually increased slightly.
Approximately 75% of the net outflows that contributed to the quarterly AUM decline were attributable to discrete events Jason discussed. Both events had a relatively modest impact on revenues in the quarter.
-- Charles James Daley Jr., Executive Vice President and Chief Financial Officer
3. New Product Wrappers Expand Access to Wealth Clients
Management is launching exchange-traded funds (ETFs), which are investment funds traded on public stock exchanges, to reach wealth management clients. Expanding into new distribution channels helps the business capture fresh capital without discounting its existing fee structure.
In the fourth quarter, we anticipate launching an ETF share class of the Artisan Select Equity Fund and Artisan Focus Fund to broaden investor access in the wealth market.
-- Jason A. Gottlieb, Chief Executive Officer and President
Looking Ahead
Alternative assets under management (AUM), the total market value of client investments managed by the firm, continue to climb across multiple investment franchises, and business momentum is clear.
Over the past 5 years, combined credit and alternative AUM has nearly doubled to more than $26 billion increasing from 8% to 15% of firm wide AUM.
-- Jason A. Gottlieb, Chief Executive Officer and President
Autonomy for investment teams, multi-asset breadth, and expanding wealth distribution channels give the firm long-term pricing power. Leadership is focusing on product innovation and global distribution reach to drive future fee growth.
We believe the opportunity set available to Artisan today is broader than at any point in our history.
-- Jason A. Gottlieb, Chief Executive Officer and President
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