MGRB — Affiliated Managers Group, Inc.

Summary of AMG Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Adjusted EBITDA: $317 million, up 39% year-over-year.
• Economic Earnings Per Share: $8.23, representing a 58% increase year-over-year.
• Assets Under Management (AUM): Reached a record $882 billion.
• Net Client Cash Flows: Exceeded $22 billion for the quarter, with a total of $52 billion over the past 12 months, reflecting a 7% organic growth rate.
• Share Repurchases: Approximately $186 million in Q1, totaling over $700 million in the last 12 months, reducing shares outstanding by 10%.

2. Strategic Updates and Business Highlights:

• AMG's diversified business model has proven resilient amidst market volatility, with strong performance in liquid alternatives and private markets.
• Significant growth areas include:
  • Infrastructure and Real Estate: Strong momentum with over $60 billion managed.
  • Secondary Solutions: Approximately $50 billion managed, addressing liquidity and portfolio management needs.
  • Liquid Alternatives: Over $261 billion in assets, with a focus on absolute return strategies and tax-aware long/short strategies.
• New partnerships and investments include BBH Credit Partners and Highbrook Investors, enhancing AMG's alternative strategies.

3. Forward Guidance and Outlook:

• For Q2 2026, AMG expects adjusted EBITDA between $290 million and $305 million, with economic earnings per share projected between $7.60 and $8.01, indicating approximately 45% growth compared to Q2 2025.
• Continued focus on capital allocation is expected to drive further growth, with a projected $500 million in share repurchases for the full year.

4. Bad News, Challenges, or Points of Concern:

• Equity Outflows: Approximately $9 billion in net outflows from equities, reflecting ongoing industry headwinds.
• Market Volatility: The current environment poses challenges, particularly in private credit markets, which may affect future fundraising and investment opportunities.
• Competitive Pressures: Lower public market valuations may impact M&A activity, although this could also present opportunities for AMG to partner with independent firms.

5. Notable Q&A Insights:

• Diversification of Growth Drivers: Management emphasized the balanced contributions from various growth areas, with no single strategy dominating inflows.
• Wealth Channel Dynamics: There is a positive outlook for products in the wealth channel, particularly in secondaries and differentiated strategies, despite current market turbulence.
• Tax-Aware Strategies: While tax-aware strategies account for less than 8% of AUM, they are growing and are part of a broader trend of increasing focus on after-tax returns.
• Long-Term Capital Deployment: AMG's disciplined capital allocation strategy is expected to shape its growth trajectory, with a focus on leveraging record cash flows for future investments and shareholder returns.

Overall, AMG's strong performance in Q1 2026 reflects its diversified model and strategic focus on alternative investments, although challenges in equity markets and competitive pressures remain areas to monitor.