BrightSphere Investment Group Inc. (BSIG) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, BSIG's total revenue increased to $123.1 million, up from $107.3 million in the same period of 2023, driven primarily by a rise in management fees, which reached $112.1 million compared to $95.3 million a year earlier. However, operating income decreased to $27.0 million from $30.2 million, and net income fell slightly to $19.0 million from $19.8 million. Net income attributable to controlling interests also declined to $16.9 million from $19.6 million, resulting in a basic earnings per share of $0.46, down from $0.47.

For the nine months ended September 30, 2024, total revenue rose to $337.8 million from $295.4 million, with management fees increasing to $319.8 million from $278.7 million. Net income for this period was $46.2 million, compared to $43.3 million in 2023, while net income attributable to controlling interests slightly decreased to $42.5 million from $43.0 million. Basic earnings per share improved to $1.12 from $1.04.

The company’s assets under management (AUM) grew significantly, reaching $120.3 billion as of September 30, 2024, compared to $97.4 billion a year prior. This increase was attributed to both market appreciation and net client inflows, which were $0.5 billion for the quarter and $0.9 billion for the nine months, a turnaround from net outflows in the previous year.

Strategically, BSIG made significant changes to its credit facilities, replacing a $125 million revolving credit facility with a new $140 million facility on August 29, 2024, extending the maturity date to August 29, 2027. The company also repurchased 4.4 million shares of common stock for approximately $94.9 million during the nine months, retiring all repurchased shares.

On the expense side, total operating expenses for the three months ended September 30, 2024, increased to $95.9 million from $76.3 million, reflecting higher compensation and benefits costs, which rose to $69.6 million from $53.0 million. The increase was driven by new hires and higher variable compensation linked to improved earnings.

Overall, while BSIG experienced revenue growth and an increase in AUM, profitability metrics showed mixed results, with declines in net income and operating income for the quarter, alongside strategic adjustments in its credit facilities and share repurchase activities.