Artio Global Investors (NYSE:ART), Julius Baer's US-based asset management business, is expected to price its IPO this week. According to Reuters "Switzerland's largest specialized wealth manager had often said it was planning to list Artio once equity markets firmed and that an initial public offering (IPO) could come in the third quarter."
Business Overview (from prospectus)
We are an asset management company that provides investment management services to institutional and mutual fund clients. We are best known for our International Equity strategies, which represented 84% of our assets under management as of June 30, 2009. We also offer a broad range of other investment strategies, including High Grade Fixed Income, High Yield and Global Equity. As of June 30, 2009, all the composites of these strategies had outperformed their benchmarks since inception. In addition, since 2006, we have further expanded our investment offerings by launching a series of U.S. equity strategies. Our superior investment performance has enabled us to attract a diverse group of clients and to increase our assets under management from $7.5 billion as of December 31, 2003 to $53.3 billion as of August 31, 2009, representing a compound annual growth rate, or CAGR, of 41%. This has driven a similar growth in our total revenues and other operating income, from $106.3 million to $422.0 million for the years ended December 31, 2004 and 2008, respectively, representing a CAGR of 41%. Our revenues consist almost entirely of investment management fees which are based primarily on the fair value of our assets under management rather than investment performance-based fees. We believe that our record of investment excellence and range of investment strategies position us well for continued growth.
Offering: 23.4 million shares at $24-$26 per share. Net proceeds of approximately $552.2 million will be used to repurchase and retire an aggregate of 21.0 million shares of Class C common stock and to and to repurchase 1.2 million shares of Class A common stock from Richard Pell and 1.2 million shares of Class A common stock from Rudolph-Riad Younes in order to enable the company's parent and Principals to liquidate a portion of their respective shareholdings.
Net client cash inflows for the six months ended June 30, 2009 were 81% lower than net client cash inflows for the six months ended June 30, 2008, declining from $5.0 billion to $1.0 billion. Gross client cash inflows across all investment vehicles declined 43% or $4.7 billion for the six months ended June 30, 2009 as compared to the six months ended June 30, 2008... Net client cash inflows in proprietary funds were 43% lower than net client cash inflows for the six months ended June 30, 2009, declining from $0.8 billion to $0.5 billion. The main reason for the decline was a reduction of $0.8 billion in net client cash inflows in the Artio International Equity Fund II, partially offset by reduced net client cash outflows of $0.2 billion in the Artio International Equity Fund for the six months ended June 30, 2009 as compared to the same period of 2008....Total revenues and other operating income decreased by $109.6 million, or 45%, to $133.3 million for the six months ended June 30, 2009 from $242.9 million for the six months ended June 30, 2008, primarily due to a 42% decline in average assets under management and, to a lesser extent, a decrease in the effective fee rate from 66.3 basis points to 61.8 basis points. The decline of the fee rate is the result of a lower proportion of assets in the International Equity strategies, our highest margin products.