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]

Financial Data and Key Metrics Changes - The company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][23] - Adjusted EBITDA for the second quarter was $220 million, a 1% increase year-over-year, with fee-related earnings growing 4% [21][23] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [11][21] Business Line Data and Key Metrics Changes - Alternative assets under management (AUM) increased by approximately $55 billion, a 20% rise in just six months, with record net inflows of $33 billion into alternatives [5][20] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [13][20] - Liquid alternatives generated nearly $12 billion in net inflows, supported by tax-aware solutions [15][20] Market Data and Key Metrics Changes - The company experienced $11 billion in outflows from active equities, reflecting industry performance headwinds [11][12] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][20] Company Strategy and Development Direction - The company is focusing on evolving its business mix towards secular growth areas, particularly in alternative asset classes [11][20] - AMG aims to increase the contribution from alternatives to more than two-thirds of its business over the medium term [57][60] - The company is actively pursuing new partnerships and investments in private markets and liquid alternatives [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, anticipating substantial value creation for shareholders [10][20] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [21][26] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [9][20] - AMG repurchased approximately $100 million in shares during the second quarter, with plans to repurchase about $400 million for the full year [26][66] 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 [29][31] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing for significant growth potential [46][48] Question: Portfolio Management and Buybacks - The company does not actively manage its portfolio but focuses on long-term partnerships with affiliates [60][62] - Share repurchases are viewed as a flexible tool for returning capital to shareholders while pursuing growth investments [66][67] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with $8 billion raised in the last quarter, driven by multiple affiliates [70][76] Question: European Market Trends - Management noted no significant impact from reallocations to European managers in Q2, but they are monitoring the situation closely [82][86]

Company Overview - AMG has partnered with leading investment specialists for over 30 years[2] - AMG has approximately $771 billion in Assets Under Management (AUM)[2, 63] - AMG's strategy supports compounding of earnings growth at an industry-leading rate[9] Asset Allocation and Growth - Liquid Alternatives AUM is approximately $182 billion[6] - Differentiated Long-Only AUM is approximately $440 billion[6] - Private Markets AUM is approximately $149 billion[6] - Over 50% of EBITDA is from High-Growth Areas[8] Financial Performance - The company has approximately $2 billion in 2024 Annual Economic Net Income[46] - Approximately $2.8 billion in excess capital was returned over the last 5 years[52] - The company has repurchased approximately 10% of shares annually over the last 5 years[52] - The average repurchase price over the last 5 years was $140[52] - Adjusted EBITDA increased from $795 million in 2020 to $973 million in 2024[56]

Core Insights - Affiliated Managers Group Inc. (AMG) reported second-quarter 2025 economic earnings of $5.39 per share, exceeding the Zacks Consensus Estimate of $5.26 and reflecting a 15.4% increase from the prior-year quarter [1][8] - The company's total assets under management (AUM) rose by 10% to $771 billion, with net client cash inflows of $8.1 billion contributing to this growth [4][8] - Despite the positive AUM growth, total revenues declined by 1.4% year over year to $493.2 million, missing the Zacks Consensus Estimate of $510.2 million, while total consolidated expenses increased by 14.8% to $412.7 million [3][8] Financial Performance - Economic net income for the quarter was $159.2 million, up 2.1% year over year, surpassing the estimate of $151.5 million [2] - Adjusted EBITDA increased by 1% to $219.7 million, slightly above the projected $214.8 million [3] - The company's cash and cash equivalents decreased to $361 million from $950 million as of December 31, 2024, while total debt remained stable at $2.62 billion [5] Shareholder Actions - During the second quarter, AMG repurchased shares worth $100 million, indicating a commitment to returning value to shareholders [6] Market Position - AMG is positioned for growth due to successful partnerships, global distribution capabilities, and a diverse product mix, although concerns remain regarding substantial intangible assets and a challenging operating environment [7]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Affiliated Managers shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 8.2%. What's Next for Affiliated Managers? Affiliated Managers Group (AMG) came out with quarterly earnings of $5.39 per share, beating the Zacks Consensus Estimate of $5.26 per share. This compares to ...

[Financial and Operating Highlights](index=1&type=section&id=Financial%20and%20Operating%20Highlights) AMG achieved strong Q2 2025 results with a **15%** Economic EPS increase, record alternative strategy inflows, and four new partnerships - Economic Earnings per share (EPS) for Q2 2025 was **$5.39**, a **15% increase** compared to the same quarter in the previous year[2](index=2&type=chunk)[5](index=5&type=chunk) - The company experienced net client cash flows of **over $8 billion** in Q2 2025, primarily driven by record inflows into alternative strategies, including private markets and liquid alternatives[2](index=2&type=chunk) - In 2025, AMG has announced **four new partnerships** with firms managing a collective **$24 billion** in alternative strategies, including a new partnership with Montefiore Investment[3](index=3&type=chunk)[5](index=5&type=chunk) Q2 & H1 2025 Financial Highlights | (in millions, except per share data) | Three Months Ended 6/30/2025 | Three Months Ended 6/30/2024 | Six Months Ended 6/30/2025 | Six Months Ended 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | **AUM (at period end, in billions)** | $771.0 | $701.0 | $771.0 | $701.0 | | **Net client cash flows (in billions)** | $8.1 | $0.9 | $7.7 | $(2.9) | | **Net income (controlling interest, in millions)** | $84.3 | $76.0 | $156.6 | $225.8 | | **Earnings per share (diluted, in dollars)** | $2.80 | $2.26 | $5.01 | $6.49 | | **Adjusted EBITDA (controlling interest, in millions)** | $219.7 | $217.5 | $447.9 | $477.3 | | **Economic earnings per share (in dollars)** | $5.39 | $4.67 | $10.58 | $10.06 | [Capital Management](index=2&type=section&id=Capital%20Management) The company returned capital to shareholders through **$100 million** in Q2 stock repurchases and a **$0.01** per share quarterly dividend - In Q2 2025, the company repurchased approximately **$100 million** of its common stock[6](index=6&type=chunk) - Total share repurchases for the first half of 2025 amounted to approximately **$273 million**[6](index=6&type=chunk) - A cash dividend of **$0.01 per share** of common stock was announced for the second quarter, payable on August 25, 2025[6](index=6&type=chunk) [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) This section presents AMG's detailed financial position and performance, including AUM changes, income statements, and the consolidated balance sheet [Assets Under Management (AUM)](index=3&type=section&id=ASSETS%20UNDER%20MANAGEMENT%20-%20STATEMENTS%20OF%20CHANGES) This section details the changes in Assets Under Management, highlighting total AUM and net client cash flows across various investment strategies - Total AUM increased to **$771.0 billion** as of June 30, 2025, from **$712.2 billion** at the end of Q1 2025[11](index=11&type=chunk) Q2 2025 Net Client Cash Flows by Strategy | Strategy | Private Markets (in billions) | Liquid Alternatives (in billions) | Equities (in billions) | Multi-Asset & Fixed Income (in billions) | Total (in billions) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Flows** | $7.8 | $11.5 | $(10.5) | $(0.7) | $8.1 | Year-to-Date 2025 Net Client Cash Flows by Strategy | Strategy | Private Markets (in billions) | Liquid Alternatives (in billions) | Equities (in billions) | Multi-Asset & Fixed Income (in billions) | Total (in billions) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Flows** | $11.2 | $21.7 | $(24.2) | $(1.0) | $7.7 | [Consolidated Statements of Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) This section presents the company's consolidated income statements for quarterly and semi-annual periods, detailing revenue, expenses, and net income Q2 2025 vs Q2 2024 Income Statement Highlights | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | **Consolidated revenue** | $493.2 | $500.3 | | **Total consolidated expenses** | $412.7 | $359.4 | | **Net income (controlling interest, in millions)** | $84.3 | $76.0 | | **Earnings per share (diluted, in dollars)** | $2.80 | $2.26 | H1 2025 vs H1 2024 Income Statement Highlights | Metric | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | | **Consolidated revenue** | $989.8 | $1,000.3 | | **Total consolidated expenses** | $869.6 | $740.7 | | **Net income (controlling interest, in millions)** | $156.6 | $225.8 | | **Earnings per share (diluted, in dollars)** | $5.01 | $6.49 | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025 Balance Sheet Highlights | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total assets** | $8,807.6 | $8,830.9 | | **Cash and cash equivalents** | $361.0 | $950.0 | | **Debt** | $2,621.2 | $2,620.2 | | **Total equity** | $4,138.7 | $4,298.2 | [Supplemental Information and Reconciliations](index=4&type=section&id=Supplemental%20Information%20and%20Reconciliations) This section reconciles GAAP to non-GAAP measures like Economic Net Income and Adjusted EBITDA, explaining adjustments and diluted EPS calculations [Reconciliation of Supplemental Performance Measures](index=4&type=section&id=RECONCILIATIONS%20OF%20SUPPLEMENTAL%20PERFORMANCE%20MEASURES) This section provides detailed reconciliations of GAAP net income to non-GAAP Economic Net Income for quarterly and semi-annual periods Q2 Reconciliation of Net Income to Economic Net Income | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | **Net income (controlling interest, in millions)** | $84.3 | $76.0 | | Intangible amortization and impairments (in millions) | $31.0 | $65.6 | | Intangible-related deferred taxes (in millions) | $14.6 | $14.7 | | Other economic items (in millions) | $29.3 | $(0.4) | | **Economic net income (controlling interest, in millions)** | $159.2 | $155.9 | H1 Reconciliation of Net Income to Economic Net Income | Metric | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | | **Net income (controlling interest, in millions)** | $156.6 | $225.8 | | Intangible amortization and impairments (in millions) | $116.8 | $91.2 | | Intangible-related deferred taxes (in millions) | $13.9 | $30.9 | | Other economic items (in millions) | $30.6 | $(5.3) | | **Economic net income (controlling interest, in millions)** | $317.9 | $342.6 | - For Q2 and H1 2025, results include a one-time expense of **$30.5 million** from a modification of Affiliate equity, which is added back for non-GAAP calculations of Economic Net Income and Adjusted EBITDA[24](index=24&type=chunk) [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Financial%20Statements) This section explains the company's use of non-GAAP measures, their adjustments, and the methodology for diluted earnings per share calculation - The company uses non-GAAP measures like **Adjusted EBITDA** and **Economic Net Income** to assess performance, excluding certain non-cash expenses from acquisitions, and to improve comparability. Economic Net Income is a principal performance benchmark for determining executive compensation[20](index=20&type=chunk) - **Economic Net Income** adjusts **GAAP Net Income** for items such as pre-tax intangible amortization and impairments, related deferred taxes, gains/losses from Affiliate Transactions, and other economic items like unrealized gains/losses on seed capital[21](index=21&type=chunk) - The calculation for **diluted EPS** applies the if-converted method to junior convertible securities and adjusts for the potential issuance of shares to settle Redeemable non-controlling interests[18](index=18&type=chunk)[19](index=19&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section provides disclaimers for forward-looking statements, noting potential material differences due to market and economic risks - The press release contains forward-looking statements that are subject to risks and uncertainties, including changes in financial markets, economic conditions, and the performance of Affiliates. The company undertakes no obligation to update these statements[25](index=25&type=chunk)

Core Insights - AMG reported a 15% growth in Economic Earnings per share for Q2 2025 compared to the same quarter last year, driven by effective capital allocation and strong business momentum [2][5] - The firm experienced net client cash flows exceeding $8 billion, primarily due to record inflows into alternative investments, reflecting robust private market fundraising and increasing demand for liquid alternative strategies [2][5] - AMG's Affiliates managing private markets and liquid alternative strategies generated approximately $33 billion in net client inflows in the first half of 2025, highlighting ongoing demand for specialized strategies [3][5] Financial Highlights - As of June 30, 2025, AMG's Assets Under Management (AUM) reached approximately $771 billion, up from $701 billion a year earlier [4][8] - For the three months ended June 30, 2025, AMG reported net income of $84.3 million, an increase from $76.0 million in the same period of 2024 [4][14] - Economic earnings per share for Q2 2025 were $5.39, reflecting a 15% increase from $4.67 in Q2 2024 [4][15] Capital Management - In Q2 2025, AMG repurchased approximately $100 million in common stock, bringing total share repurchases to about $273 million for the first half of the year [5][6] - The company announced a cash dividend of $0.01 per share, payable on August 25, 2025, to stockholders of record as of August 11, 2025 [6] Strategic Partnerships - AMG formed a new partnership with Montefiore, a leading European private equity firm, further diversifying its business and enhancing its presence in private markets [3][5] - In 2025, AMG announced four new partnerships with firms managing approximately $24 billion in alternative strategies, underscoring the demand for AMG's unique approach [3]

Group 1 - The company, AMG Critical Materials N.V., has declared an interim dividend of €0.20 per ordinary share, which remains unchanged from the previous year [1][2] - The interim dividend is for the period from January 1, 2025, to June 30, 2025, and will be payable on August 15, 2025, to shareholders of record as of August 7, 2025 [2] - The ex-dividend date is set for August 6, 2025, and a Dutch withholding tax of 15% will be deducted from the dividend [2] Group 2 - AMG's mission focuses on providing critical materials and related process technologies to promote a less carbon-intensive world, emphasizing energy storage materials like lithium, vanadium, and tantalum [4] - The company is a leader in recycling vanadium from oil refining residues and operates in various segments including lithium, vanadium, and advanced metallurgy for aerospace engines [5] - AMG has a global presence with approximately 3,600 employees and production facilities in multiple countries including Germany, the United States, and China [6]