Affiliated Managers Group, Inc. Q1 FY2026 earnings call

AMG reported record first quarter results with adjusted EBITDA of $317 million (+39% YOY), economic earnings per share of $8.23 (+58% YOY). Record quarterly net client cash flows of more than $22 billion, bringing net flows over last 12 months to $52 billion (7% organic growth). Repurchased shares at elevated pace, deploying approx $186 million over quarter. Private markets affiliates manage $148 billion in assets with growth in infrastructure, real estate, secondary solutions. Liquid alternatives affiliates manage over $261 billion in assets with growth in institutional absolute return strategies and tax-aware long-short strategies. 2025 economic earnings per share grew >20%, expect >30% growth this year. First quarter AUM $882 billion, highest ever; net client cash inflows >$22 billion, fourth consecutive quarter of positive and increasing net flows. Private markets affiliates raised $4 billion, liquid alternatives affiliates had $25 billion net inflows, multi-asset and fixed income had $3 billion net inflows, equities had net outflows but differentiated long-only business had pockets of strength.

AMG reported record results for the first quarter, with adjusted EBITDA of approximately $317 million and economic earnings per share of $8.23, representing year-over-year growth of 39% and 58% respectively. AMG's AUM was $882 billion, the highest level in its history. In private markets, affiliates manage $148 billion in assets with strongest momentum in infrastructure, real estate, and secondary solutions. In liquid alternatives, affiliates manage more than $261 billion in assets, benefiting from institutional demand for absolute return strategies and tax-aware long-short strategies. Absolute return strategies account for approximately $180 billion in assets. Tax-aware long-short strategies account for approximately $69 billion of AUM in liquid alternative strategies for about 8% of AMG's business.

Second quarter adjusted EBITDA expected to be in the range of $290 million to $305 million, based on current AUM levels reflecting 5% quarter to date as of April 30th and including seasonably lower net performance fees of up to $10 million. Expected second quarter economic earnings per share to be between $7.60 and $8.01, midpoint represents approx 45% growth versus Q2 2025. Expect to repurchase approximately $500 million of shares for the full year, subject to market conditions and capital allocation activity.

Question from Bill Katz: Asked about AQR and business diversification, response discussed broad-based flows across four growth trends, private markets and liquid alternatives flow profiles. Question from Alex Blaustein: Asked about wealth channel products, response discussed wealth products like P-Build, T-Build, PSEC, education importance, and product pipeline. Question from Dan Fannin: Asked about new investment environment, response discussed active new investment period, public market valuations impact, and competitive environment for AMG. Question from Ryan Riddell: Asked about tax-aware strategy, response discussed contribution to AUM, EBITDA implication, and growth outlook for adding to platforms.