Affiliated Managers Group, Inc. Q3 FY2025 earnings call

• AMG had record net inflows in alternative strategies and strong capital deployment in growth investments. Third quarter EBITDA up 17% y-o-y, economic EPS up 27% y-o-y. - Organic growth in alternatives driven by $9B firm-wide net inflows in Q3, year-to-date total net inflows $17B (3% annualized organic growth rate). - Added ~$76B in alternative AUM, with affiliates managing $353B in alternative AUM contributing 55% of EBITDA. - Strategic collaborations like with Brown Brothers Harriman to develop innovative products and structured/alternative credit solutions. - Sale of minority stake in Comvest private credit business, with significant return of capital. - Entered 4 new investment partnerships with alternative firms aligned with secular growth trends. - Liquid alternatives had $14B net inflows in Q3, a record quarter; private markets affiliates raised $4B in Q3.

AMG's third quarter results show a 17% year-over-year increase in EBITDA and 27% growth in economic earnings per share. Alternative strategies contributed significantly, with $9 billion in firm-wide net inflows in the third quarter, bringing year-to-date total net inflows to $17 billion, representing a 3% annualized organic growth rate. Through the third quarter, AMG added approximately $76 billion in alternative assets under management, with alternatives contributing 55% of EBITDA on a run rate basis. Affiliates manage $353 billion in alternative AUM, including $51 billion in net inflows into alternatives.

• Fourth quarter adjusted EBITDA expected to be in range of $325M - $370M, with net performance fees $75M - $120M. Fourth quarter economic EPS expected between $8.10 - $9.26. - Anticipate meaningful increase in full-year 2026 adjusted EBITDA and economic EPS, driven by strong organic growth and capital allocation. - Increased full-year share repurchase guidance to at least $500M, subject to market conditions. - Proceeds from affiliate transactions enhance financial flexibility for growth investments and returning capital to shareholders.

Q: Bill Katz asked about BBH collaboration and pipeline.

A: Jay and Tom discussed that BBH collaboration aligns with AMG's strategy in alternatives and U.S. wealth, and AMG's capital formation capabilities were key. Pipeline remains strong with focus on secular growth areas, disciplined capital allocation, and potential to invest in new/existing affiliates.

Q: Alex Blostein asked about 2026 guidance.

A: Jay and Dava mentioned 2026 expected to be impacted by new investments, share repurchases, and net inflows from alternatives, with EBITDA impact from growth in alternatives and margin expansion at AQR and Pantheon.

Q: Rick Roy asked about liquid alts flows and private markets raises.

A: Tom discussed flow drivers including alignment with client demand, business mix evolution, and AMG's support to affiliates. Liquid alts had record $14B net inflows in Q3, private markets affiliates raised $4B, with diversity in offerings across private market solutions, credit, etc.