Affiliated Managers Group, Inc.

What they do

AMG invests in high-quality independent investment management firms, which it calls Affiliates, and provides them with growth capital, product strategy, capital formation support, succession planning, and strategic advisory while allowing management teams to retain autonomy and significant equity ownership. Affiliates manage strategies across private markets, liquid alternatives, and differentiated long-only equities and fixed income. AMG generally holds meaningful equity interests in each Affiliate and typically consolidates some Affiliates while using the equity method for others, depending on ownership stake.

Revenue drivers

• Asset-based fees — AMG's financial results depend on Affiliates' receipt of asset- and performance-based fees; asset-based fees are tied to AUM levels and the mix of strategies and clients, and different assets generate different fee ratios.
• Performance-based fees — Products using performance-based fee structures can vary significantly period to period based on investment performance, and some include benchmarks such as high-watermark provisions.
• Alternative strategies — AMG has deliberately evolved toward alternatives, including private markets and liquid alternatives, which generated record net inflows of approximately $29 billion in Q2 2026 and approximately $58 billion in the first half.

Recent performance

For the second quarter of 2026, AMG reported diluted EPS of $6.95 and Economic EPS of $8.29, up 54% year over year, with net income (controlling interest) of $186 million and Economic net income (controlling interest) of $221 million. AUM reached a record $942.4 billion at June 30, 2026, up from $771.0 billion a year earlier, and net client cash flows were $12.9 billion in the quarter and $35.5 billion in the first half. Aggregate fees were $1.66 billion in the quarter versus $1.17 billion a year ago. Adjusted EBITDA (controlling interest) was $316.0 million in the quarter, up 44% year over year.

Strategy

AMG's strategy is to generate long-term value by investing in high-quality independent partner-owned firms and allocating resources to areas of highest growth and return. The company focuses growth investments on partnering with new Affiliates in areas of durable client demand, investing alongside existing Affiliates including seeding new products, and building its own strategic capabilities. In 2025 and early 2026, AMG completed minority investments in NorthBridge, Verition, Montefiore, and Qualitas Energy, announced a partnership with Brown Brothers Harriman for BBH Credit Partners, and invested further in Garda and HighBrook. AMG also deploys cash flow toward share repurchases, having repurchased approximately $375 million of common stock in the first half of 2026.

Risks

• Dependence on Affiliate fees — AMG's financial results depend on Affiliates' receipt of asset- and performance-based fees, which can vary substantially from year to year based on investment performance, fee levels, and product mix.
• Shift to passive products — Investor demand for passively managed products such as index and exchange traded funds, which typically carry lower fee rates, could pressure Affiliate fee levels.
• AUM composition risk — A change in the composition of AUM, either within an Affiliate or among Affiliates, could reduce aggregate fees even if total AUM remains unchanged or increases.
• Investment performance risk — Performance-based fees may vary significantly by period depending on the investment performance of particular products, and some include high-watermark provisions.

Outlook

Management said it sees increasing opportunities to invest in growth through both new and existing Affiliates, further expanding participation in areas of secular demand. AMG cited its increasing cash flow generation, flexible capital position, and reputation as a collaborative strategic partner as positioning it to capitalize on attractive growth opportunities and drive durable earnings growth.