Related Party Transactions

12 Months Ended

Dec. 31, 2019

Note 17. Related Party Transactions

Several of the current executive officers and directors of APAM, or entities associated with those individuals, are limited partners of Holdings. As a result, certain transactions (such as TRA payments) between Artisan and the limited partners of Holdings are considered to be related party transactions with respect to these persons.

Holdings also makes estimated state tax payments on behalf of certain limited partners, including related parties. These payments are then netted from subsequent distributions to the limited partners. At December 31, 2019 and 2018, accounts receivables included $0.9 million and $0.6 million, respectively, of partnership tax reimbursements due from Holdings’ limited partners, including related parties.

Affiliate transactions—Artisan Funds

Artisan has an agreement to serve as the investment adviser to Artisan Funds, with which certain Artisan employees are affiliated. Under the terms of the agreement, which generally is reviewed and continued by the board of directors of Artisan Funds annually, a fee is paid to Artisan based on an annual percentage of the average daily net assets of each Artisan Fund ranging from 0.625% to 1.05%. Artisan has contractually agreed to waive its management fees or reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by certain of the Artisan Funds to not more than a fixed percentage (ranging from 0.88% to 1.50%) of a fund’s average daily net assets. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Funds for other expenses. The officers and directors of Artisan Funds who are affiliated with Artisan receive no compensation from the funds.

Fees for managing Artisan Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows:


	For the Years Ended December 31,
Artisan Funds	2019		2018		2017
Investment management fees (Gross of fee waivers/expense reimbursements)	$	452,895	$	487,460	$	472,501
Fee waivers / expense reimbursements	$	391	$	419	$	504

Affiliate transactions—Artisan Global Funds

Artisan has an agreement to serve as the investment manager to Artisan Global Funds, with which certain Artisan employees are affiliated. Under the terms of these agreements, a fee is paid based on an annual percentage of the average daily net assets of each fund ranging from 0.75% to 1.85%. Artisan reimburses each sub-fund of Artisan Global Funds to the extent that sub-fund’s annual expenses, not including Artisan’s fee, exceed certain levels, which range from 0.10% to 0.20%. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Global Funds for other expenses. The directors of Artisan Global Funds who are also employees of Artisan receive no compensation from the funds.

Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows:


	For the Years Ended December 31,
Artisan Global Funds	2019		2018		2017
Investment management fees (Gross of fee waivers / expense reimbursements)	$	32,577	$	35,070	$	30,107
Elimination of management fees from consolidated investment products ⁽¹⁾	(67)		(62)		—
Consolidated investment management fees (Gross of fee waivers / expense reimbursements)	$	32,510	$	35,008	$	30,107

Fee waivers / expense reimbursements	$	514	$	386	$	218
Elimination of fee waivers / expense reimbursements from consolidated investment products ⁽¹⁾	(336)		(385)		—
Consolidated fee waivers / expense reimbursements	$	178	$	1	$	218
⁽¹⁾ Investment management fees and expense waivers related to consolidated investment products were eliminated from revenue upon consolidation.

Affiliate transactions - Artisan Private Funds

Pursuant to written agreements, Artisan serves as the investment manager and acts as the general partner for certain Artisan Private Funds. Under the terms of these agreements, Artisan earns a management fee and for certain funds is entitled to receive either an allocation of profits or a performance-based fee. In addition, for a period of time following the formation of each private fund, Artisan has agreed to reimburse the fund to the extent that expenses, excluding Artisan’s management fee, performance fee and transaction related costs, exceed certain levels, which range from 0.10% to 1.00% per annum of the net assets of the fund. Artisan may also voluntarily waive fees or reimburse the funds for other expenses.

Artisan and certain related parties, including employees, officers and members of the Company’s board have invested in one or more of the funds and currently do not pay a management fee, performance fee or incentive allocation.

Fees for managing the Artisan Private Funds and amounts reimbursed to Artisan Private Funds by Artisan are as follows:


	For the Years Ended December 31,
Artisan Private Funds	2019		2018		2017
Investment management fees (Gross of fee waivers / expense reimbursements)	$	3,042	$	739	$	39
Investment performance fees	211		559		50
Elimination of management fees and performance fees from consolidated investment products ⁽¹⁾	(369)		(286)		(89)
Consolidated investment management fees (Gross of fee waivers / expense reimbursements)	$	2,884	$	1,012	$	—

Fee waivers / expense reimbursements	$	219	$	206	$	290
Elimination of fee waivers / expense reimbursements from consolidated investment products ⁽¹⁾	(114)		(206)		(290)
Consolidated fee waivers / expense reimbursements	$	105	$	—	$	—
⁽¹⁾ Investment management fees and expense waivers related to consolidated investment products were eliminated from revenue upon consolidation.