Affiliated Managers (AMG)2025-05-08 20:43Assets Under Management - As of March 31, 2025, the company's aggregate assets under management were approximately $712.2 billion, representing a 2% increase from $699.4 billion as of March 31, 2024[141]. - Average assets under management increased by 5% to $712.1 billion in Q1 2025, compared to $680.0 billion in Q1 2024[141]. - The company anticipates that approximately 28% of total assets under management could potentially earn performance-based fees[149]. - As of March 31, 2025, 42% of equity assets under management outperformed their benchmarks over a 10-year period[146]. Revenue and Fees - Aggregate fees for the three months ended March 31, 2025, were $1,270.4 million, a decrease of 14% from $1,471.6 million in the same period of 2024[150]. - Performance-based fees decreased by $213.4 million or 15% in Q1 2025, primarily due to declines in liquid alternative strategies[150]. - The company reported a 1% increase in asset-based fees, attributed to an increase in average assets under management in private markets and liquid alternative strategies[150]. - Consolidated revenue decreased by $3.3 million or 1% for the three months ended March 31, 2025, due to a $10.9 million or 3% decrease from asset-based fees[156]. - Equity method revenue decreased by $197.9 million or 20%, primarily due to a $221.0 million or 22% decrease from performance-based fees[166]. Income and Expenses - Net income (controlling interest) decreased by $77.4 million or 52% for the three months ended March 31, 2025, primarily due to a $62.4 million increase in intangible amortization and impairments[151]. - Adjusted EBITDA (controlling interest) decreased by $31.6 million or 12% for the same period, primarily due to a $201.2 million or 14% decrease in aggregate fees[153]. - Economic net income (controlling interest) decreased by $28.0 million or 15%, primarily due to a $31.6 million decrease in Adjusted EBITDA[154]. - Total consolidated expenses increased by $75.6 million or 20%, with significant increases in intangible amortization and impairments, which rose by $76.0 million[157]. - Investment and other income decreased by $6.4 million or 36%, primarily due to a $6.3 million decrease in net realized and unrealized gains on investments[170]. Cash Flow and Financing - Cash and cash equivalents as of March 31, 2025, were $816.5 million, primarily generated from operating activities[7]. - Operating cash flow for Q1 2025 was $208.9 million, slightly down from $209.2 million in Q1 2024[8]. - Cash flows used in investing activities for Q1 2025 were $35.6 million, primarily due to $49.5 million in investments in Affiliates[9]. - Cash flows used in financing activities for Q1 2025 totaled $316.9 million, mainly due to $176.2 million in common stock repurchases[10]. - The company has a $1.25 billion revolver maturing on November 15, 2029, with no outstanding borrowings as of March 31, 2025[12]. Share Repurchase and Equity - The company authorized a share repurchase program in July 2024 for up to 5.4 million shares, with 1.0 million shares repurchased at an average price of $171.00 during Q1 2025[14]. - The company entered into an equity distribution program allowing for the issuance and sale of shares of common stock with an aggregate sales price of up to $500.0 million[206]. - No sales had occurred under the equity distribution program as of March 31, 2025[206]. Impairments and Projections - The company recorded an impairment expense of $59.2 million attributable to the controlling interest for indefinite-lived acquired client relationships due to a decline in fair value[212]. - Revenue growth rates over the next five years are projected to range from (21)% to 0%, with long-term revenue growth rates of 0% and a discount rate of 11% used in impairment assessments[212]. - A decrease in revenue growth rates by 200 basis points could result in an additional impairment of approximately $49 million, while a 100 basis point increase in the discount rate could lead to an additional impairment of approximately $91 million[213].