BrightSphere Investment Group Inc. (BSIG) Bundle
A Brief History of BrightSphere Investment Group Inc.
As of 2024, BrightSphere Investment Group Inc. has demonstrated significant growth and resilience in the asset management sector. The company's total assets under management (AUM) reached $120.3 billion as of September 30, 2024, marking an increase of $22.9 billion, or 23.5%, from $97.4 billion a year earlier. This growth was primarily fueled by positive equity market performance and net inflows during the year.
Financial Performance Overview
For the three months ended September 30, 2024, BrightSphere reported:
- Management Fees: $112.1 million, up from $95.3 million in the same period of 2023, representing a 17.6% increase.
- Performance Fees: $10.1 million, a slight decrease from $11.2 million year-over-year.
- Total ENI Revenue: $122.2 million, compared to $106.5 million in 2023, indicating a 14.7% growth.
For the nine months ended September 30, 2024, the financial highlights included:
- Management Fees: $319.8 million, an increase of $41.1 million or 14.7% from $278.7 million.
- Performance Fees: $16.0 million, an increase of $2.1 million from $13.9 million in 2023.
- Total ENI Revenue: $335.8 million, up from $292.6 million, reflecting a 14.8% increase.
Expense Management
BrightSphere's operating expenses for the three months ended September 30, 2024 were detailed as follows:
| Expense Type | 2024 ($ in millions) | 2023 ($ in millions) |
|---|---|---|
| Fixed Compensation & Benefits | 22.7 | 21.5 |
| General and Administrative Expense | 22.7 | 18.0 |
| Total ENI Operating Expenses | 53.9 | 47.4 |
For the nine months ended September 30, 2024, total expenses reached $245.9 million, compared to $224.0 million in 2023.
Cash Flow Analysis
In terms of cash flow, the company reported:
- Cash Provided by Operating Activities: $59.1 million for the nine months ended September 30, 2024, an increase from $35.8 million in 2023.
- Cash Used in Investing Activities: $(48.3) million, compared to $(11.2) million the prior year.
- Cash Used in Financing Activities: $(104.1) million, a significant decrease from $10.2 million provided in 2023.
Market Position and Strategic Developments
BrightSphere's market position has been bolstered by a diversified investment strategy, with approximately $20 billion, or 16% of AUM, in accounts with performance fee features. The company continues to adapt to market changes, enhancing its product offerings and leveraging its investment capabilities to attract and retain clients.
Earnings Per Share (EPS) Metrics
The earnings per share (EPS) for BrightSphere were reported as follows:
| Period | Basic EPS ($) | Diluted EPS ($) |
|---|---|---|
| Three Months Ended September 30, 2024 | 0.46 | 0.45 |
| Three Months Ended September 30, 2023 | 0.47 | 0.46 |
| Nine Months Ended September 30, 2024 | 1.12 | 1.10 |
| Nine Months Ended September 30, 2023 | 1.04 | 1.01 |
Overall, BrightSphere Investment Group Inc. has showcased robust financial health and strategic growth, positioning itself favorably within the competitive asset management landscape as of 2024.
A Who Owns BrightSphere Investment Group Inc. (BSIG)
Ownership Structure
As of September 30, 2024, Paulson & Co. Inc. and related parties hold approximately 24.0% of the common stock of BrightSphere Investment Group Inc. (BSIG).
Stock Performance and Buybacks
For the nine months ended September 30, 2024, BSIG repurchased 4,445,534 shares of common stock at an average price of $21.32 per share, totaling approximately $94.9 million including commissions.
Stockholder Equity
| Category | Amount (in millions) |
|---|---|
| Common Stock | 37.3 |
| Retained Earnings (Deficit) | (14.0) |
| Accumulated Other Comprehensive Loss | (3.9) |
| Total Stockholders' Equity (Deficit) | (3.8) |
| Redeemable Non-controlling Interests in Consolidated Funds | 14.1 |
| Total Equity (Deficit) and Redeemable Non-controlling Interests | (3.8) |
Financial Overview
As of September 30, 2024, the total assets of BSIG were $555.2 million, while total liabilities stood at $559.0 million.
Recent Financial Performance
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income Attributable to Controlling Interests | $16.9 million | $19.6 million |
| Earnings Per Share (Basic) | $0.46 | $0.47 |
| Total Revenue | $123.1 million | $107.3 million |
| Operating Income | $27.0 million | $30.2 million |
Investments and Assets
The fair value of total assets held by BSIG and consolidated Funds as of September 30, 2024, was $139.7 million, with liabilities amounting to $5.8 million.
Major Shareholders
- Paulson & Co. Inc. - 24.0%
- Other institutional investors - Approx. 76.0%
Recent Market Activity
In the first nine months of 2024, BSIG experienced a net income of $46.2 million, showing growth compared to $43.3 million in the same period of 2023.
BrightSphere Investment Group Inc. (BSIG) Mission Statement
BrightSphere Investment Group Inc. (BSIG) is committed to delivering innovative investment solutions and superior client service through a diversified range of investment strategies. The company focuses on leveraging advanced technology and data analytics to enhance investment performance and client outcomes. BSIG operates with a belief in aligning their interests with those of their clients, ensuring transparency and integrity in all interactions.
Financial Overview
As of September 30, 2024, BrightSphere reported total assets of $555.2 million, a decrease from $611.4 million as of December 31, 2023. The company’s liabilities totaled $559.0 million, compared to $561.9 million at the end of the previous year. The total stockholders’ equity was recorded at a deficit of $3.8 million, reflecting a significant change from the $49.5 million equity reported in December 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $555.2 million | $611.4 million |
| Total Liabilities | $559.0 million | $561.9 million |
| Total Stockholders’ Equity | ($3.8 million) | $49.5 million |
Revenue Generation
BrightSphere generates revenue primarily through management fees and performance fees. For the nine months ended September 30, 2024, management fees amounted to $319.8 million, up from $278.7 million in the same period of 2023. Performance fees for the same period were reported at $16.0 million, compared to $13.9 million in 2023.
| Revenue Breakdown | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Management Fees | $319.8 million | $278.7 million |
| Performance Fees | $16.0 million | $13.9 million |
| Total Revenue | $337.8 million | $295.4 million |
Operational Highlights
BrightSphere’s operating expenses for the nine months ended September 30, 2024, totaled $267.3 million, an increase from $225.0 million in the previous year. The operating income for this period was reported at $70.5 million, slightly above the $70.4 million recorded in 2023.
| Operating Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Operating Expenses | $267.3 million | $225.0 million |
| Operating Income | $70.5 million | $70.4 million |
Shareholder Returns
For the nine months ended September 30, 2024, BrightSphere reported a net income attributable to controlling interests of $42.5 million, compared to $43.0 million in the same period of 2023. The company’s earnings per share (EPS) for this period were $1.12, reflecting a slight increase from $1.04 in the previous year.
| Earnings Per Share | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Income | $42.5 million | $43.0 million |
| EPS (Basic) | $1.12 | $1.04 |
Client Engagement and Investment Strategy
BrightSphere focuses on providing tailored investment strategies that cater to the unique needs of its clients. The company emphasizes a data-driven approach to investment management, ensuring that client portfolios are optimized for performance and risk management. This strategy is complemented by a commitment to sustainable investing practices, aligning with broader market trends and client preferences.
How BrightSphere Investment Group Inc. (BSIG) Works
Business Overview
BrightSphere Investment Group Inc. (BSIG) is an asset management firm that operates through various investment strategies. As of September 30, 2024, the company reported total assets under management (AUM) of $120.3 billion, marking an increase of $22.9 billion or 23.5% from $97.4 billion a year earlier .
Financial Performance
For the three months ended September 30, 2024, BSIG generated total revenue of $123.1 million, up from $107.3 million in the same period of 2023. This includes:
- Management fees: $112.1 million (2024) vs. $95.3 million (2023)
- Performance fees: $10.1 million (2024) vs. $11.2 million (2023)
- Consolidated Funds’ revenue: $0.9 million (2024) vs. $0.8 million (2023)
Operating Metrics
Key operating metrics for the nine months ended September 30, 2024, are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Income | $70.5 million | $70.4 million |
| Total Revenue | $337.8 million | $295.4 million |
| Operating Margin | 20.9% | 23.8% |
| Operating Expenses | $266.9 million | $222.3 million |
| Net Income | $46.2 million | $43.3 million |
Assets and Liabilities
As of September 30, 2024, the company reported total assets of $555.2 million and total liabilities of $559.0 million. Key components include:
- Cash and cash equivalents: $17.7 million
- Investments: $68.5 million
- Accounts payable and accrued expenses: $35.5 million
Equity Structure
As of September 30, 2024, BSIG's equity structure indicates:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $37.3 million |
| Retained Earnings (Deficit) | ($14.0 million) |
| Accumulated Other Comprehensive Income (Loss) | ($3.9 million) |
| Total Stockholders’ Equity (Deficit) | ($3.8 million) |
| Redeemable Non-Controlling Interests in Consolidated Funds | $14.1 million |
Investment Performance
For the nine months ended September 30, 2024, BSIG’s net income attributable to controlling interests was $42.5 million, with basic earnings per share of $1.12 .
Market Dynamics
The company experienced net inflows of $0.9 billion for the nine months ended September 30, 2024, driven by market appreciation of $15.7 billion during the same period .
Summary of Key Financials
| Financial Metric | Value |
|---|---|
| Total Revenue (2024) | $337.8 million |
| Operating Income (2024) | $70.5 million |
| Net Income (2024) | $46.2 million |
| Total Assets (2024) | $555.2 million |
| Total Liabilities (2024) | $559.0 million |
| Assets Under Management (AUM) | $120.3 billion |
How BrightSphere Investment Group Inc. (BSIG) Makes Money
Revenue Streams
BrightSphere Investment Group Inc. generates revenue primarily through three main channels: management fees, performance fees, and revenue from consolidated funds.
Management Fees
Management fees are calculated based on assets under management (AUM) and the fee rates charged to clients. For the three months ended September 30, 2024, management fees amounted to $112.1 million, an increase of $16.8 million, or 17.6%, from $95.3 million for the same period in 2023. The increase is attributed to higher average AUM, which rose 15.8% from $100.5 billion to $116.4 billion during the same time frame.
Performance Fees
Performance fees are earned when investment performance exceeds predetermined hurdles. For the three months ended September 30, 2024, performance fees were $10.1 million, a decrease of $1.1 million from $11.2 million in the same period in 2023. For the nine months ended September 30, 2024, performance fees totaled $16.0 million, compared to $13.9 million in 2023, reflecting an increase due to strong investment performance in select strategies.
Revenue from Consolidated Funds
Revenue from consolidated funds for the three months ended September 30, 2024, was $0.9 million, slightly up from $0.8 million during the same period in 2023. For the nine months, consolidated funds' revenue decreased from $2.8 million to $2.0 million.
Financial Performance Overview
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Management Fees | $112.1 million | $95.3 million | $319.8 million | $278.7 million |
| Performance Fees | $10.1 million | $11.2 million | $16.0 million | $13.9 million |
| Revenue from Consolidated Funds | $0.9 million | $0.8 million | $2.0 million | $2.8 million |
| Total Revenue | $123.1 million | $107.3 million | $337.8 million | $295.4 million |
| Net Income | $19.0 million | $19.8 million | $46.2 million | $43.3 million |
Assets Under Management (AUM)
As of September 30, 2024, BrightSphere's total AUM was $120.3 billion, up from $97.4 billion one year earlier, representing an increase of 23.5%. This growth was driven by market appreciation and net inflows. The company recorded net inflows of $0.5 billion for the three months ended September 30, 2024, compared to net outflows of $(0.5) billion in the same period in 2023.
Operating Metrics
BrightSphere's operating margin for the three months ended September 30, 2024, was 21.9%, down from 28.1% in the prior year. The operating expenses totaled $96.1 million for the same period, an increase from $77.1 million in 2023, primarily driven by increased compensation and benefits expenses.
| Operating Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Operating Income | $27.0 million | $30.2 million |
| Total Operating Expenses | $96.1 million | $77.1 million |
| U.S. GAAP Operating Margin | 21.9% | 28.1% |
Client Segments
BrightSphere's clients include a diverse range of institutional and retail investors. The breakdown of AUM by client type is as follows:
| Client Type | AUM (as of September 30, 2024) |
|---|---|
| Sub-advisory | $11.6 billion |
| Institutional | $100.9 billion |
| Retail/Other | $7.0 billion |
BrightSphere's ability to generate revenue is significantly influenced by the performance of its investments, client inflows and outflows, and overall market conditions. The strategic focus on asset management and diversification across client segments positions the firm for continued revenue growth.
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Resources:
- BrightSphere Investment Group Inc. (BSIG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BrightSphere Investment Group Inc. (BSIG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BrightSphere Investment Group Inc. (BSIG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.