AllianceBernstein Holding LP Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Bill Katz - Cowen and Company LLC - Analyst : Maybe just coming back to the margin discussion for a moment. I appreciate the affirmation of the 33% guide. It does look like either on a end-of-period number now, even think through the averages that you're running a bit ahead of where you were at the end of the year. So maybe a two-part question. How do you think about the incremental margin as we look out to the second half of the year? And since you're already running at the midpoint of the '27 guidance, how do we think about the trajectory into '26 and beyond?

Question: Bill Katz - Cowen and Company LLC - Analyst : Okay. And then maybe one for Onur or Seth. I'm just curious, since you're generating significant incremental yield or cash flows through the financial advisers, but not sort of disclosing it in a way that's sort of comparable to what your peers do. What's the holdback to sort of shifting the organic growth calculation, part one? And then part two, just in terms of you mentioned you could scale up 2x to 3x in terms of financial advisers. Is that just on the existing book of the platform, if you will? And then seems to be a lot of pressure we're hearing from some of your peers around private equity sponsored players for recruitment. Could you speak a little bit about what you're seeing in terms of transition assistance as you think about scaling beyond your sort of de novo focus?

Question: Benjamin Budish - Barclays Services Corp - Analyst : You've talked about the wealth business and sort of adding new advisers over the years. I was wondering if you could talk more specifically about some of the more recent news about seeking more inorganic growth opportunities in that channel. Just curious if you can comment on why now, what's changing? And what are your broader ambitions? It seems like this is a focus on the ultra-high net worth channel. Any other color there? And given we see a lot of other wealth managers that compete in this way, there's a little bit of a different level of capital intensity given TA payments and things like that. How do you think about the sort of capital needs of these ambitions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 24, 2025 / 2:00PM, AB.N - Q2 2025 AllianceBernstein Holding LP Earnings Call

Question: Bill Katz - Cowen and Company LLC - Analyst : Just thinking just strategically now, to the extent that you continue to scale up your alternative platform and performance fees become a larger percentage of the overall revenue pie, how should we think about the comp ratio in particular? Is there any leverage to the platform? Or conversely, the payouts on performance fees a little bit higher than the sort of the overall rate?