Affiliated Managers Group, Inc. Q3 FY2025 earnings call

• 2025 has been a landmark year for AMG with record net inflows in alternative strategies and substantial capital deployed in growth investments. • Third quarter results showed a 17% year-over-year increase in EBITDA and a 27% growth in economic earnings per share. • The organic growth profile improved in the third quarter, driven by alternative strategies with $9 billion in firm-wide net inflows in Q3, and year-to-date total net inflows reaching $17 billion (3% annualized organic growth rate). • Affiliates like Pantheon and AQR are significant contributors, leveraging their scale, innovative cultures, and differentiated expertise. • A strategic collaboration with Brown Brothers Harriman was announced for developing structured and alternative credit solutions in the U.S. wealth channel. • The minority stake in Comvest private credit business was sold, realizing a significant return. • Four new investment partnerships with alternative firms aligned with secular growth trends were entered. • In Q3, AMG had $9 billion in net client cash inflows, $17 billion year-to-date, with $18 billion net inflows in alternatives offsetting $9 billion outflows in active equities. • Liquid alternatives saw $14 billion in net inflows, and private markets affiliates raised $4 billion.

In the third quarter, AMG witnessed a 17% year-over-year rise in EBITDA. Affiliates under AMG's management hold $353 billion in alternative AUM, which contributes 55% of EBITDA on a run rate basis. The organic growth was propelled by alternative strategies, with $9 billion in firm-wide net inflows during the third quarter. Year-to-date, the total net inflows stand at $17 billion, representing a 3% annualized organic growth rate. Throughout the third quarter, AMG added approximately $76 billion to its alternative assets under management, with $51 billion coming in as net inflows into alternatives.

• For the fourth quarter of 2025, adjusted EBITDA is expected to be in the range of $325 million to $370 million, including net performance fees of $75 million to $120 million. • Fourth quarter economic earnings per share is anticipated to be between $8.10 and $9.26, assuming an adjusted weighted average share count of 28.9 million for the quarter. • There is an expectation of a meaningful increase in full-year adjusted EBITDA and economic earnings per share in 2026, primarily driven by strong organic growth and the capital allocation strategy. • The full-year share repurchase guidance has been increased to at least $500 million, subject to market conditions and capital allocation activity.

Q: Bill Katz from TD Cowen inquired about the BBH collaboration and the pipeline.

A: Jay Horgen and Tom Wojcik stated that the BBH collaboration aligns with AMG's strategy in the U.S. wealth alternatives space, with BBH being a highly respected partner. The pipeline remains strong, focusing on areas of secular growth, with disciplined capital allocation and the potential to return capital through share repurchases.\nQ: Alex Blostein from Goldman Sachs asked about guidance for 2026.

A: Jay Horgen and Dava Ritchea mentioned that 2026 expectations are driven by new investments, share repurchases, and net inflows from alternatives, with EBITDA impact from growth and margin expansion at AQR and Pantheon.\nQ: Rick Roy on behalf of Dan Fannon asked about liquid alts flows, AQR, and private markets fund raises.

A: Thomas Wojcik and Jay Horgen discussed that liquid alts had record inflows, AQR has a diverse business with tax-aware strategies and growth driven by performance, and private markets affiliates have strong fundraising with diverse offerings