Alternative investments such as private equity and private credit were once typically only available to institutional investors and high net worth individuals via private funds with high investment thresholds. However, these assets are becoming more widely available, partly due to the accessibility of online investment platforms that offer products with exposure to alternative assets. Feeder funds are one avenue through which retail investors can gain exposure to alternative investment strategies. What A ...

Company Overview - AMG has ~$804 billion in Assets Under Management [2] - AMG partners with ~40 independent Affiliates [2] - Liquid Alternatives AUM is ~$205 billion, Differentiated Long-Only AUM is ~$451 billion, and Private Markets AUM is ~$148 billion [5] Financial Performance & Growth - AMG's LTM EBITDA contribution by strategy shows Differentiated Long-Only at 48%, Alternatives at 52% (Liquid Alternatives 29% and Private Markets 23%) [7] - The company has a mid-teens annualized long-term earnings growth opportunity [10] - The company has returned ~$28 billion in excess capital over the last 5 years [54] - The company has repurchased ~10% of shares annually over the last 5 years at an average repurchase price of $146 [54] - Adjusted EBITDA increased from $795 million in 2020 to $973 million in 2024 [57] - Economic Earnings Per Share increased from $1330 in 2020 to $2136 in 2024 [57] Investment Performance - 91% of products outperformed benchmarks over 3 years, 99% over 5 years, and 89% over 10 years [15] - Private Markets IRR for the latest vintage is 86%, and for the last three vintages is 84% [15]

Alternative Asset Classes Overview - Explores the comparison of alternative asset classes (private equity, real estate, hedge funds, private credit, infrastructure, and commodities) with traditional investments [1] - Focuses on how plan administrators can incorporate alternative asset classes into retirement options [1]

Core Viewpoint - Franklin Resources, Inc. (BEN) has shown resilience in its stock performance, gaining 6.2% over the past three months, contrasting with the industry's decline of 8.1% and the S&P 500 Index's dip of 2.7% [1] Group 1: Factors Driving Growth - Strategic acquisitions have expanded Franklin's investment capabilities, notably the acquisition of Putnam Investments in January 2024, which increased its defined contribution AUM to over $100 billion [5] - The acquisition of Lexington Partners in 2022 has enhanced Franklin's exposure to private equity and alternative investments, diversifying revenue streams and reducing reliance on traditional investment management fees [6] - Franklin has recorded a compound annual growth rate (CAGR) of 3.1% in AUM over the past five fiscal years, with growth continuing in the first half of fiscal 2025 [7] - Increasing client demand for alternative asset classes is expected to drive AUM expansion, supported by a regionally focused distribution model that has strengthened non-U.S. business [8] Group 2: Financial Position - As of March 31, 2025, Franklin has $5 billion in liquidity, including cash and cash equivalents, ensuring financial flexibility and no short-term debt, which reduces immediate financial strain [9] - The company announced a repurchase authorization of 27.2 million shares in December 2023, with 29.2 million shares remaining available for repurchase as of March 31, 2025, and a 3.2% increase in its common stock dividend [10][11] Group 3: Near-Term Challenges - Investment management fees, constituting 79.3% of total revenue, have shown volatility, with fluctuations influenced by AUM levels and market conditions [12] - Franklin's cost base has increased at a CAGR of 7.2% over the last three fiscal years, driven by investments in technology and talent, which may pressure bottom-line growth [14] Group 4: Valuation and Estimates - Franklin is trading at a forward 12-month price-to-earnings (P/E) multiple of 10.14X, below the industry average of 16.42X, but at a premium compared to peers Invesco and Grupo Aval [15][18] - Sales estimates for the current year (2025) are projected at $8.29 billion, reflecting a year-over-year decline of 2.27% [21] - Earnings estimates for 2025 and 2026 have been revised downward, indicating a cautious outlook from analysts [22]