AFFILIATED MANAGERS GROUP, INC. Q2 FY2025 earnings call

• Jay highlighted strong second quarter results with 15% year-over-year growth in economic earnings per share and over $8 billion in net client cash flows, driven by record alternative strategy inflows. AMG added $55 billion in alternative AUM in H1 2025, with 20% growth in alternative AUM. - Tom discussed net client cash inflows of over $8 billion, a record quarter for net flows in alternatives, private markets AUM growth to $150 billion since 2022, and $12 billion net inflows in liquid alternatives in Q2. - Dava mentioned adjusted EBITDA of $220 million in Q2, Q3 adjusted EBITDA guidance of $230-240 million, Q3 economic EPS guidance of $5.62-5.87, and a strong balance sheet with $273 million year-to-date share repurchases.

In the second quarter, AMG reported strong results with year-over-year growth of 15% in economic earnings per share and over $8 billion in net client cash flows, driven by record inflows into alternative strategies. Alternative assets under management saw significant growth: AMG added approximately $55 billion in alternative AUM in the first half of 2025, increasing total alternative AUM by 20% in 6 months, including a record $33 billion in net inflows into alternatives. Today, more than 15 affiliates manage $331 billion in alternative AUM, contributing approximately 55% of EBITDA on a run rate basis. Private markets AUM has grown by 50% since 2022 to $150 billion, and liquid alternatives generated nearly $12 billion in net inflows in the second quarter.

• Q3 adjusted EBITDA is expected to be in the range of $230 million to $240 million. - Q3 economic earnings per share is expected to be between $5.62 and $5.87. - Expect a step-up in earnings for 2026 due to full-year impact of new partnerships and growth at existing affiliates managing alternative strategies. - For 2025, expect to repurchase approximately $400 million in shares, subject to market conditions and new investment activity.

Q: Dan Fannon asked about AQR and Pantheon's double-digit EBITDA contribution, mix of management vs performance fees.

A: Jay and Dava discussed AQR's $20 billion net inflows in liquid alts, Pantheon's growth in secondaries, and both having management and performance fee opportunities.

Q: Alex Blostein asked about AQR's capacity constraints and competitive advantage.

A: Jay and Tom said AQR has innovation, risk management, first-mover advantage, and significant runway for growth.

Q: Bill Katz asked about portfolio management and buybacks.

A: Jay and Tom discussed allocating to secular growth, Dava talked about balanced capital allocation and share repurchase flexibility.

Q: Brian Bedell asked about private market fundraising consistency.

A: Tom and Dava discussed alignment with client trends, private markets AUM growth, and EBITDA impact of growth.

Q: Patrick Davitt asked about European client reallocation.

A: Tom and Jay said no significant impact seen in Q2 flows, but AMG has diversified European investments.