AMG’s overall portfolio is split into two main segments, each making up 50% of the whole: alternative assets and differentiated long-only assets. The former contains both private market and liquid alternative assets, while the latter aims mainly at equities. Per the company’s 2Q25 financial report, the private market and liquid alternatives are showing high momentum, and were the primary drivers of the firm’s $8 billion positive net client cash flow in the quarter.The company’s affiliates, while part of the ...

Core Insights - Affiliated Managers Group (AMG) is a global asset management company that collaborates with investment management firms to provide a variety of investment strategies [1] - Zacks Investment Research is assessing whether AMG is undervalued, utilizing their Zacks Rank system which emphasizes earnings estimates and revisions [2] - AMG's current stock price is $231.92, reflecting a slight decrease of $0.04 or approximately -1.72% [3] - The company's market capitalization is around $6.59 billion, indicating its size and market value [4] Stock Performance - AMG's stock has experienced volatility, trading between a low of $139.22 and a high of $235 over the past year [3] - Today's trading volume for AMG on the NYSE is 43,804 shares, providing insights into the stock's liquidity and investor interest [4] Executive Transactions - Wojcik Thomas M, the President and COO of AMG, sold 16,000 shares at a price of $231.03 each, retaining 158,710 shares post-transaction [1][5] Investment Potential - Zacks has developed a Style Scores system, particularly in the "Value" category, to assist investors in identifying stocks with strong potential, with AMG being highlighted as a stock to monitor closely for value investing opportunities [4]

Key Takeaways The investment management industry has witnessed solid growth in the past year.TROW, AMG, FHI, JHG and HLNE carry strong upside potential for the rest of 2025.Growing AUM, strategic deals, and global distribution drive revenue and earnings expectations.The investment management industry, which consists of companies that manage securities and funds for clients to meet specified investment goals, has seen strong growth in the past year. The Zacks-defined Financial – Investment Management Industr ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

About AMG AMG (NYSE: AMG) is a strategic partner to leading independent investment management firms globally. AMG's strategy is to generate long-term value by investing in high-quality independent partner-owned firms, through a proven partnership approach, and allocating resources across AMG's unique opportunity set to the areas of highest growth and return. Through its distinctive approach, AMG magnifies its Affiliates' existing advantages and actively supports their independence and ownership culture. As ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the period ended June 30, 2025, show a slight increase in net income for the quarter but a significant decrease for the six-month period year-over-year, primarily driven by a large intangible impairment charge, with total assets remaining stable and cash decreasing due to investing and financing activities [Consolidated Statements of Income](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Consolidated revenue saw a slight decrease, while total expenses significantly increased for the six-month period due to higher intangible amortization and impairments, leading to a notable decline in year-to-date net income Consolidated Income Statement Highlights (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | YTD 2025 | YTD 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Consolidated Revenue** | $493.2 | $500.3 | -1.4% | $989.8 | $1,000.3 | -1.1% | | **Total Consolidated Expenses** | $412.7 | $359.4 | +14.8% | $869.6 | $740.7 | +17.4% | | **Net Income** | $135.9 | $135.0 | +0.7% | $235.1 | $333.8 | -29.6% | | **Net Income (controlling interest)** | $84.3 | $76.0 | +11.0% | $156.6 | $225.8 | -30.6% | | **Earnings per share (diluted)** | $2.80 | $2.26 | +23.9% | $5.01 | $6.49 | -22.8% | - For the six months ended June 30, 2025, total consolidated expenses increased significantly to **$869.6 million** from **$740.7 million** in the prior year, largely due to a substantial rise in 'Intangible amortization and impairments' from **$14.5 million** to **$89.6 million**[16](index=16&type=chunk) [Consolidated Statements of Comprehensive Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Comprehensive income for Q2 2025 increased significantly year-over-year, primarily driven by a substantial foreign currency translation gain, offsetting a slight increase in net income Consolidated Comprehensive Income (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $135.9 | $135.0 | $235.1 | $333.8 | | **Other Comprehensive Income (Loss)** | $63.7 | $(2.1) | $58.9 | $4.2 | | **Comprehensive Income** | $199.6 | $132.9 | $294.0 | $338.0 | | **Comprehensive Income (controlling interest)** | $135.0 | $70.1 | $195.2 | $229.7 | - A significant driver of Other Comprehensive Income in Q2 and YTD 2025 was a foreign currency translation gain of **$63.3 million** and **$57.6 million**, respectively, compared to a loss in Q2 2024[18](index=18&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows a significant decrease in cash and cash equivalents, while goodwill increased and total assets remained relatively stable Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $361.0 | $950.0 | $(589.0) | | **Goodwill** | $2,537.6 | $2,504.9 | $32.7 | | **Acquired client relationships (net)** | $1,716.1 | $1,777.8 | $(61.7) | | **Total Assets** | $8,807.6 | $8,830.9 | $(23.3) | | **Debt** | $2,621.2 | $2,620.2 | $1.0 | | **Total Stockholders' Equity** | $3,238.7 | $3,345.3 | $(106.6) | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash and cash equivalents experienced a significant net decrease for the six months ended June 30, 2025, primarily due to substantial investing and financing activities Consolidated Cash Flow Summary - Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Activities** | $439.7 | $454.4 | | **Investing Activities** | $(529.3) | $314.8 | | **Financing Activities** | $(518.4) | $(716.1) | | **Net (Decrease) Increase in Cash** | $(595.0) | $51.6 | - The significant decrease in cash for the first six months of 2025 was driven by a **$510.1 million** investment in Affiliates and **$277.5 million** in common stock repurchases[36](index=36&type=chunk) [Notes to the Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(unaudited)) Key notes highlight a significant impairment charge on client relationships, strategic minority investments, and an increase in compensation expense due to equity award modifications - In Q1 2025, the company recorded a **$70.0 million** impairment charge on indefinite-lived acquired client relationships due to declines in assets under management for certain mutual fund assets[100](index=100&type=chunk) - The company completed minority investments in NorthBridge Partners and Verition Fund Management during the first half of 2025[102](index=102&type=chunk)[103](index=103&type=chunk) - In Q2 2025, a modification to certain equity awards at an Affiliate led to a reclassification from equity to liability, resulting in an incremental compensation expense of **$30.5 million** attributable to the controlling interest[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 10% year-over-year increase in assets under management (AUM) to **$771 billion**, driven by new investments and market appreciation, with aggregate fees rising 7% in Q2 2025, though YTD fees are down 5% due to lower performance fees earlier in the year, while net income for the controlling interest was impacted by a significant intangible impairment and increased affiliate equity compensation, with the company remaining active in strategic M&A and maintaining strong liquidity [Executive Overview](index=26&type=section&id=Executive%20Overview) The company's strategy focuses on partnering with independent investment firms, providing strategic capabilities while maintaining their autonomy, and has been actively engaged in M&A activities - AMG's strategy focuses on partnering with high-quality independent investment firms (Affiliates), providing them with strategic capabilities while allowing management to retain autonomy and significant equity[150](index=150&type=chunk) - The company has been active in M&A, completing investments in NorthBridge and Verition, agreeing to acquire an interest in Qualitas Energy and Montefiore, and divesting its interest in Peppertree while agreeing to sell a portion of its interest in Comvest[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) [Operating Performance Measures](index=27&type=section&id=Operating%20Performance%20Measures) Assets under management (AUM) increased by 10% year-over-year to **$771 billion**, driven by new investments and market changes, with aggregate fees also showing a 7% increase in Q2 2025 Key Aggregate Operating Performance Measures | Metric (in billions, except % change) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Assets under management** | $771.0 | $701.0 | 10% | | **Average assets under management** | $736.6 | $693.1 | 6% | | **Aggregate fees (in millions)** | $1,173.5 | $1,098.1 | 7% | Assets Under Management Roll-Forward (Q2 2025, in billions) | Category | March 31, 2025 | Net Client Flows | New Investments | Market Changes & Other | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total AUM** | $712.2 | $8.1 | $12.4 | $38.3 | $771.0 | - Client demand for alternative strategies remains strong, with positive net inflows, while equity strategies experienced net outflows, consistent with industry trends[160](index=160&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Consolidated revenue slightly decreased, while expenses rose significantly due to increased affiliate equity compensation and a substantial intangible impairment charge, though equity method income improved due to the absence of a prior-year impairment - Consolidated revenue decreased **1%** for both the three and six months ended June 30, 2025, primarily due to changes in the composition of assets under management[180](index=180&type=chunk)[181](index=181&type=chunk) - Compensation and related expenses increased **22%** for Q2 2025, mainly due to a **$41.0 million** increase in Affiliate equity compensation expense from a modification of certain equity awards[184](index=184&type=chunk) - Intangible amortization and impairments for the six-month period increased significantly to **$89.6 million** from **$14.5 million** in the prior year, driven by a **$77.0 million** impairment charge on indefinite-lived acquired client relationships[182](index=182&type=chunk)[189](index=189&type=chunk)[99](index=99&type=chunk) - Equity method income (net) increased to **$65.6 million** in Q2 2025 from **$18.1 million** in Q2 2024, largely because the prior year period included a **$39.9 million** impairment charge that did not recur[196](index=196&type=chunk)[201](index=201&type=chunk) [Supplemental Financial Performance Measures](index=33&type=section&id=Supplemental%20Financial%20Performance%20Measures) Non-GAAP performance measures show a slight increase in Adjusted EBITDA and Economic net income for Q2 2025, with Economic earnings per share also rising Non-GAAP Performance Measures (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA (controlling interest)** | $219.7 | $217.5 | $447.9 | $477.3 | | **Economic net income (controlling interest)** | $159.2 | $155.9 | $317.9 | $342.6 | | **Economic earnings per share** | $5.39 | $4.67 | $10.58 | $10.06 | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents significantly decreased due to investments and share repurchases, while the company repaid maturing senior notes and maintained access to its revolving credit facility - Cash and cash equivalents decreased from **$950.0 million** at year-end 2024 to **$361.0 million** as of June 30, 2025, primarily due to investments in new Affiliates and share repurchases[223](index=223&type=chunk) - During the six months ended June 30, 2025, the company repurchased **1.6 million shares** of its common stock for **$277.5 million**[232](index=232&type=chunk)[36](index=36&type=chunk) - The company's **$350.0 million** 3.50% senior notes matured and were fully repaid on August 1, 2025, with the nearest term non-senior bank debt maturity now in June 2030[234](index=234&type=chunk) - As of June 30, 2025, the company had no outstanding borrowings under its **$1.25 billion** revolving credit facility, though **$100.0 million** was subsequently borrowed on July 30, 2025[235](index=235&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk disclosures for the first six months of 2025, as detailed in its 2024 Annual Report on Form 10-K - There have been no material changes to the company's market risk disclosures during the first six months of 2025[251](index=251&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[252](index=252&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[253](index=253&type=chunk) [PART II—OTHER INFORMATION](index=42&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased **592,682 shares** at an average price of **$168.72** per share, with approximately **3.7 million shares** remaining available under the current authorization Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 316,538 | $157.17 | | May 2025 | 142,418 | $175.46 | | June 2025 | 133,726 | $188.90 | | **Total** | **592,682** | **$168.72** | - As of June 30, 2025, **3.7 million shares** were still available for repurchase under the share repurchase program authorized in July 2024[255](index=255&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in XBRL format - The exhibits filed with this report include certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, as well as XBRL data files[256](index=256&type=chunk)[261](index=261&type=chunk)

Core Viewpoint - Affiliated Managers Group, Inc. (AMG) has agreed to sell its interest in Comvest Partners' private credit business to Manulife Financial Corporation for nearly $285 million in an all-cash transaction, expected to close in Q4 2025, subject to customary conditions [1][8]. Group 1: AMG's Strategic Move - Comvest is a prominent investment firm specializing in private equity and direct lending, with a 25-year history of providing capital to middle-market companies in North America [2]. - AMG's partnership with Comvest facilitated significant growth, increasing Comvest's assets under management from $2 billion to $14 billion over five years [2][8]. - As part of the transaction, AMG will realize a substantial gain on its investment while retaining interests in certain existing private credit funds and its stake in Comvest's private equity business [3][8]. Group 2: AMG's Capital Reallocation Strategy - AMG's CEO, Jay C. Horgen, expressed satisfaction with the partnership's positive impact on Comvest's growth and stakeholder outcomes [4]. - This divestiture aligns with AMG's strategy to reallocate capital into more lucrative investment opportunities, following the recent sale of its stake in Peppertree Capital Management for $240 million [4]. - In 2022, AMG also divested stakes in Veritable LP and Baring Private Equity Asia, indicating a trend of strategic divestitures [4]. Group 3: AMG's Market Performance - Over the past six months, AMG shares have increased by 21.6%, contrasting with a 0.7% decline in the industry [5]. - Currently, AMG holds a Zacks Rank of 3 (Hold), reflecting its market position [6].

Core Insights - AMG has entered into an agreement to sell its interest in Comvest Partners' private credit business to Manulife Financial Corporation, highlighting the value of AMG's partnership model in supporting affiliates' long-term objectives [1][3] Company Overview - AMG is a strategic partner to independent investment management firms globally, focusing on generating long-term value through investments in high-quality, partner-owned firms [5] - As of June 30, 2025, AMG's aggregate assets under management were approximately $771 billion across various investment strategies [5] Partnership Impact - Comvest Partners has experienced significant growth, increasing its assets under management from $2 billion to $14 billion over five years, aided by AMG's strategic engagement [2][3] - AMG's collaboration has enhanced Comvest's business growth and competitive positioning, contributing to a successful outcome for all stakeholders involved [3] Financial Details - AMG is expected to receive approximately $285 million in cash consideration from the transaction, representing a significant gain on its investment [3] - AMG will retain an interest in the carry from certain existing private credit funds and a share of Comvest's invested capital in these funds, as well as its interest in Comvest's private equity business [3] Transaction Timeline - The transaction is anticipated to close in the fourth quarter of 2025, pending customary closing conditions [4]

Core Insights - AMG has entered into an agreement to sell its interest in Comvest Partners' private credit business to Manulife Financial Corporation, marking a significant strategic move for the company [1][4] - The partnership between AMG and Comvest has led to substantial growth in Comvest's assets under management, increasing from $2 billion to $14 billion over five years [2][3] - AMG is expected to receive approximately $285 million in cash consideration from the transaction, reflecting a significant gain on its investment [3] Company Overview - AMG is a strategic partner to independent investment management firms globally, focusing on generating long-term value through investments in high-quality, partner-owned firms [5] - As of June 30, 2025, AMG's aggregate assets under management were approximately $771 billion, covering a diverse range of investment strategies [5]

Financial Data and Key Metrics Changes - In the second quarter of 2025, the company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][21] - Adjusted EBITDA for the quarter was $220 million, reflecting a 1% year-over-year increase, with fee-related earnings growing 4% year-over-year [21] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [10][20] Business Line Data and Key Metrics Changes - The company added approximately $55 billion in alternative assets under management (AUM), increasing total alternative AUM by 20% in just six months [5][12] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [12][15] - Liquid alternatives generated nearly $12 billion in net inflows during the quarter, with strong demand for tax-aware solutions [13][14] Market Data and Key Metrics Changes - The company experienced $19 billion in client cash inflows into alternatives, offsetting $11 billion in outflows from active equities [10][11] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][12] - The company’s strategic engagement with affiliates is enhancing access to the rapidly expanding wealth marketplace [6][18] Company Strategy and Development Direction - The company is focused on evolving its business mix towards secular growth areas, particularly in alternative asset classes [10][18] - The strategic partnerships with affiliates are aimed at capitalizing on growth opportunities in private markets and liquid alternatives [7][18] - The company anticipates a meaningful increase in economic earnings per share in 2026 due to the growth in alternative AUM and new affiliate partnerships [5][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, highlighting substantial value creation potential for shareholders [9][24] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [20][24] - Management noted that the ongoing demand for alternative strategies is expected to drive further growth across affiliates [6][18] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [8] - The company repurchased approximately $100 million in shares during the second quarter, with a full-year repurchase expectation of around $400 million [24][65] - The company is actively pursuing new investment opportunities, having announced four new partnerships in 2025 [7][8] Q&A Session Summary Question: Contribution from AQR and Pantheon - Management expects both Pantheon and AQR to be double-digit contributors to earnings this year, with AQR focusing on tax-aware solutions benefiting high net worth individuals [28][40] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing it to sustain growth despite potential capacity constraints [43][46] Question: Portfolio Management and Buybacks - The company is focused on long-term partnerships with affiliates rather than actively trading stakes, and buybacks are viewed as a flexible tool for returning capital to shareholders [52][60][63] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with a diverse range of fundraising sources contributing to a more consistent flow of capital [70][75] Question: European Market Trends - Management has not observed significant reallocations from U.S. to European managers impacting their second-quarter numbers, but they are monitoring the situation closely [80][84]