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Introduction & Market Context
Fiera Capital Corporation (TSX:FSZ) released its Q1 2025 financial results on May 9, 2025, revealing a quarter of contrasting performance across its business segments. The global asset management firm, which saw its stock rise 2.34% to close at $6.55 on May 8, reported an overall decline in assets under management (AUM) while continuing to make progress on its strategic priorities.
The company’s presentation, delivered by Chair and Global CEO Jean-Guy Desjardins and Global CFO Lucas Pontillo, highlighted Fiera’s ongoing transformation with particular emphasis on its growing Private Markets business amid challenges in its larger Public Markets segment.
Quarterly Performance Highlights
Fiera Capital reported total AUM of $161.6 billion as of March 31, 2025, representing a decrease of $5.5 billion (3.3%) quarter-over-quarter and $3.6 billion (2.2%) year-over-year. This decline came despite the company securing gross new mandates of $1.5 billion during the quarter.
The company’s financial performance reflected the AUM decline, with total revenues of $162.9 million, down 3% compared to Q1 2024. Adjusted EBITDA fell 4% to $43.4 million, resulting in an adjusted EBITDA margin of 26.6%. Net earnings reached $21.8 million, translating to diluted earnings per share of $0.17.
As shown in the following comprehensive overview of key metrics:
On a positive note, the company maintained strong investment performance, with 83% of fixed income AUM outperforming benchmarks over a trailing 5-year basis. Fiera also declared a quarterly dividend of $0.108 per share, consistent with its previous distribution.
Segment Performance Analysis
The most striking aspect of Fiera’s Q1 results was the divergent performance between its Private Markets and Public Markets segments. Private Markets AUM increased by $1.4 billion quarter-over-quarter to reach $21.1 billion, while Public Markets AUM declined by $7.0 billion to $140.4 billion.
The AUM changes across both segments are illustrated in this quarter-over-quarter comparison:
The Public Markets decline was primarily driven by PineStone outflows, as detailed in the following breakdown:
In contrast, Private Markets continued its impressive growth trajectory, increasing AUM by approximately 55% since March 2021. This segment received subscriptions of close to $500 million in Q1 2025 and deployed a similar amount, with committed, undeployed capital of $1.5 billion as of March 31, 2025.
The consistent growth in Private Markets is demonstrated in this multi-year trend:
From a geographic perspective, EMEA was the only region showing AUM growth, increasing from $13.9 billion to $15.1 billion. Canada, which represents Fiera’s largest market, saw AUM decline from $111.9 billion to $107.0 billion, while the United States decreased from $37.4 billion to $36.0 billion, and Asia fell from $3.9 billion to $3.5 billion.
Financial Analysis
Fiera’s revenue decline of 3% year-over-year was primarily attributable to lower performance fees and other revenues, which offset a modest increase in base management fees. Base management fees rose by $3 million to $155 million, while performance fees dropped from $3 million to just $0.2 million.
The breakdown of total revenues is illustrated in the following chart:
The company’s revenue composition differed significantly between segments. Private Markets revenues totaled $56 million, down $1 million year-over-year despite a $4 million increase in base management fees. This was offset by a $2 million decrease in performance fees and a $4 million decline in share of earnings from joint ventures and associates.
Public Markets revenues fell $4 million to $107 million, with base management fees down $1 million, performance fees down $1 million, and other revenues down $2 million compared to Q1 2024.
On the expense side, Fiera made progress in cost control, with selling, general and administrative expenses (SG&A) excluding share-based compensation decreasing 9% quarter-over-quarter and 3% year-over-year to $119.5 million.
The company’s adjusted EBITDA and margin trends are shown in the following chart:
Fiera maintained a relatively stable capital structure, with net debt of $703 million and a net debt ratio of 3.63x. The company generated last twelve months (LTM) free cash flow of $87 million, which remained flat from the prior quarter but continued to exceed dividend payments.
The company’s financial leverage ratios are illustrated here:
Strategic Initiatives & Outlook
Fiera Capital outlined its strategic progress for 2025, focusing on five key areas: growing Private Markets, bolstering distribution for organic growth, improving investment performance, commitment to sustainability, and enhancing profitability.
The company’s strategic priorities are summarized in this overview:
Looking ahead, Fiera appears well-positioned to continue growing its Private Markets business, which has been a consistent bright spot. The segment now represents approximately 13% of total AUM but contributes a disproportionately higher percentage of revenues, highlighting its strategic importance.
The company’s diversification across geographies, distribution channels, and asset classes provides some resilience against market fluctuations, as illustrated in this breakdown of AUM:
While Fiera faces challenges in its Public Markets segment, particularly with continued PineStone outflows, its strong investment performance in fixed income and other strategies should help stabilize this larger portion of its business over time. The company’s focus on organic growth through enhanced distribution capabilities could also help offset some of the outflows experienced in recent quarters.
Fiera’s commitment to sustainability and its expanding global footprint, with 858 employees including 224 investment professionals across multiple regions, further supports its long-term growth strategy in an increasingly competitive asset management landscape.
Full presentation:
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