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]

Financial Data and Key Metrics Changes - Earnings per share for Q2 was $0.73, a decrease from $0.75 sequentially [5] - Revenue for Q2 increased by 1.1% from the prior quarter to $135 million [5] - Ending AUM (Assets Under Management) was $88.9 billion, up from $87.6 billion in the prior quarter [6] - Operating margin decreased to 33.6% from 34.7% in the prior quarter [6] - Total expenses increased by 2.9% compared to the prior quarter [8] - Liquidity at the end of Q2 was $323 million, compared to $295 million in the prior quarter [10] Business Line Data and Key Metrics Changes - Open-end funds experienced net inflows of $285 million, marking the fourth consecutive quarter of inflows [33] - Closed-end funds had inflows of $103 million [33] - Advisory services had net outflows of $412 million, attributed to account rebalancing [35] - The one unfunded pipeline increased to $776 million, compared to a low watermark of $61 million last quarter [36] Market Data and Key Metrics Changes - Global equities and global listed infrastructure outperformed U.S. equities in the first half of 2025 [18][20] - U.S. REITs saw slightly negative performance, while international REITs performed in line with the market [29] - Global real estate flows were stronger than U.S. real estate flows in Q2 [57] Company Strategy and Development Direction - The company is focused on launching more active ETFs and expanding its wealth management channel [39][43] - There is a strategic emphasis on integrating listed and private real estate allocations into a single portfolio [24] - The company aims to enhance its distribution capabilities and invest in data analysis to support growth [43] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic resiliency and market performance have been impressive, driven by demographics and strong private sector balance sheets [31] - The company expects to see continued interest in real assets as valuations become more attractive [19] - Management highlighted that the era of ultra-low interest rates is over, leading to a need for true diversification in portfolios [20] Other Important Information - The company has successfully launched its first three active ETFs, with strong initial performance [38] - The launch of a tactical listed and private real estate strategy is expected to provide compelling solutions for institutional investors [24] Q&A Session Summary Question: What is the current appetite in the wealth management channel? - Management indicated that there is ongoing investment to reach more independent RIAs, with good progress in gaining allocations in real estate and infrastructure [47] Question: How are the active ETFs performing in the market? - The company reported a strong start for its active ETFs, attracting new investors and existing ones transitioning from open-end funds [50] Question: What drove the outflows in global listed infrastructure? - Outflows were attributed to institutional investors rebalancing their portfolios, although the strategy remains popular [54] Question: How does demand differ geographically, particularly in advisory? - The U.S. remains the largest market, with growing activity in Asia, while Europe is slower and the Middle East has seen reduced activity [62]

Financial Data and Key Metrics Changes - Earnings per share for Q2 was reported at $0.73, a decrease from $0.75 sequentially [5] - Revenue for Q2 increased by 1.1% from the prior quarter to $135 million [5] - Ending assets under management (AUM) rose to $88.9 billion from $87.6 billion in the previous quarter [6] - The effective fee rate remained stable at 59 basis points, while the operating margin decreased to 33.6% from 34.7% [6] Business Line Data and Key Metrics Changes - Net inflows into open-end funds were positive for the last four consecutive quarters, although institutional net outflows offset these gains [7] - Total expenses increased by 2.9% compared to the prior quarter, driven by higher compensation and benefits [8] - Compensation ratio remained at 40.5%, consistent with previous guidance [10] Market Data and Key Metrics Changes - The second quarter saw 89% of AUM outperforming benchmarks, with 94% outperforming on a one-year basis [14] - Global equities and listed infrastructure outperformed U.S. equities, with global strategies showing stronger performance [30][31] Company Strategy and Development Direction - The company is focused on launching active ETFs and expanding its wealth management channel, particularly in the independent RIA segment [49][50] - A new tactical listed and private real estate strategy was launched, aimed at integrating listed and private real estate allocations [24][42] - The company plans to continue investing in talent acquisition and data analysis to support growth initiatives [44] Management's Comments on Operating Environment and Future Outlook - Management noted that the market environment has been resilient, with strong private sector balance sheets and liquidity [31] - The outlook for real estate is favorable, with valuations seen as attractive for new investors [19][22] - The company expects G&A expenses to increase by 7% to 8% for the full year 2025 compared to 2024 [11] Other Important Information - The company moved into a new Hong Kong office, completing its planned foreign office upgrades [12] - Liquidity at the end of Q2 was reported at $323 million, an increase from $295 million in the prior quarter [11] Q&A Session Summary Question: What is the temperature of the wealth management channel? - The wealth channel is important, with progress in gaining allocations from sophisticated RIAs, although gross sales were about 10% lower than recent trends [48][49] Question: How are active ETFs performing? - Early results show good flows, with RIAs who only allocate to ETFs making allocations, indicating a positive start for the active ETFs [51][52] Question: What drove the outflows in global listed infrastructure? - Outflows were driven by institutional investors rebalancing their portfolios, although the strategy remains popular [55] Question: What is the demand for global real estate? - There has been stronger demand for global real estate, with more global allocators in the pipeline, although U.S. real estate remains the largest market [58][59] Question: Any geographical differences in advisory demand? - The U.S. remains the largest market, with growing activity in Asia, while Europe is slower and the Middle East has seen reduced activity [63]

Core Insights - Active ETF assets have grown over 600% in the past five years, reaching $631 billion in 2024, indicating a significant expansion in this investment vehicle [1] - The whitepaper titled "Active ETFs: Achieving Escape Velocity" outlines strategic imperatives for asset managers to successfully launch and scale active ETFs [1][2] Industry Trends - In 2024, a record 660 active ETFs were launched, yet they only account for 6% of total active AUM, suggesting substantial growth potential [2] - The top 10 active asset managers control 77% of active ETF assets, highlighting a concentration challenge within the industry [7] Strategic Principles for Asset Managers - **Go with the Flow**: Success relies on strong distribution, particularly through Registered Investment Advisor (RIA) channels, which dominate active ETF assets [3] - **Pick a Lane**: Successful managers leverage unique investment strategies, proprietary distribution channels, and strong brand identity, focusing on their inherent strengths [4] - **Less is More**: Engaging with high-potential advisors who already utilize active ETFs can enhance conversion rates and sales, emphasizing the importance of advisor scoring and segmentation [5] Future Projections - Active ETF assets are projected to grow to $1.2 trillion by 2027, up from $81 billion in 2019, indicating a robust growth trajectory [7] - Only 11% of active ETFs launched in the past three years raised over $100 million in their first year, which is a critical success indicator [7]

Lazard (LAZ) 2025 Conference Summary Company Overview - **Company**: Lazard (LAZ) - **Event**: 2025 Conference - **Date**: June 10, 2025 Key Points Industry and Company Strategy - **Lazard 2030 Vision**: The company aims to double revenues and improve returns, with a focus on board engagement and strategic refreshment [6][8] - **Board Composition**: New board members are being added to enhance active engagement and oversight [4][5] - **Cultural Shift**: A commercial and collegial culture is being emphasized, which has positively impacted hiring and productivity [7][8] Financial Advisory Performance - **Productivity Target**: Lazard is ahead of schedule in achieving a productivity target of $8.5 million per managing director (MD) [8] - **Hiring Strategy**: Continued hiring in key sectors such as consumer retail, sports media, healthcare, and private capital is planned for 2024 and 2025 [7][8] - **Geographic Diversification**: The company is benefiting from a diversified geographic presence, particularly in North America and Europe, as global investment sentiment shifts [10][11] Asset Management Insights - **Growth Opportunities**: Both organic and inorganic growth opportunities are being pursued, particularly in active ETFs and global diversification strategies [16][17] - **Investor Sentiment**: There is a noted shift in investor preference towards non-US assets, with 90% of a specific mandate being in strategies outside the US [18][19] - **Performance Metrics**: The asset management business is seeing improved performance compared to the previous year, with a focus on global strategies [20][21] M&A Advisory Environment - **Client Sentiment**: There is an acceleration in discussions around M&A, influenced by recent developments in tariff regulations and a more accommodating regulatory environment [28][29] - **Market Dynamics**: The company is observing a diverse range of activities across geographies, with a notable increase in European deal-making [32][33] - **Regulatory Landscape**: A shift back to a more traditional regulatory perspective is expected, which may facilitate M&A activity [35][37] Private Capital and Restructuring - **Private Capital Activity**: The share of revenue from private capital is around 40%, indicating significant growth potential in this area [39][40] - **Restructuring Services**: Elevated activity in restructuring and liability management is anticipated due to high interest rates and market volatility [41][42] Financial Metrics and Shareholder Returns - **Compensation Ratio**: The current comp ratio is 65.5%, with a goal to reduce it to 60% depending on market conditions [45] - **Total Shareholder Return (TSR)**: Lazard aims for an average TSR of 10-15% per year, with a strong focus on executing their growth plan [50][51] Final Remarks - **Cultural Foundation**: The company emphasizes a strong cultural foundation that combines business insight with geopolitical awareness, positioning Lazard for future growth [54] Additional Insights - **AI Focus**: Lazard is committed to leveraging AI advancements across both financial advisory and asset management sectors [11][54] - **Recruitment Success**: The company is successfully attracting talent, with plans to add 10-15 MDs annually [46][47] This summary encapsulates the key insights and strategic directions discussed during the Lazard 2025 Conference, highlighting the company's focus on growth, diversification, and adapting to market dynamics.

Financial Data and Key Metrics Changes - Assets under management decreased by 1% to $373.2 billion, partially offset by $2 billion of positive net flows and favorable currency adjustments [6][9] - Adjusted diluted EPS increased by 11% to $0.79 compared to Q1 2024 [9][27] - Adjusted revenue decreased by 14% compared to the prior quarter but increased by 14% year-over-year due to higher management fees [22][27] Business Line Data and Key Metrics Changes - Net inflows for the quarter were $2 billion, a significant improvement from net outflows of $3 billion a year ago, driven by a 44% increase in gross sales [13][19] - Fixed income net inflows were $5.6 billion, compared to $5.2 billion in the prior quarter, with active fixed income ETFs leading the positive flows [19][20] - Equity flows were negative $4.2 billion, reflecting a challenging environment for active equities [19] Market Data and Key Metrics Changes - The U.S. intermediary channel experienced positive net flows for the seventh consecutive quarter, with contributions from various strategies including active ETFs and U.S. mid-cap growth [15][16] - Asia Pacific intermediary net flows were positive for the third consecutive quarter, marking the best result in over three years [17] - Institutional net inflows were $800 million, including $600 million of ETF net inflows [17] Company Strategy and Development Direction - The company announced a multifaceted strategic partnership with Guardian Life Insurance Company, managing a $45 billion investment-grade public fixed income portfolio [4][41] - The strategic vision focuses on protecting and growing core businesses, amplifying strengths, and diversifying where clients provide opportunities [31][32] - The company aims to leverage M&A as a means to amplify and diversify its business, with a focus on high-growth areas [33][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged tumultuous market conditions but expressed confidence in navigating uncertainty due to a global footprint and diverse client base [5][6] - The long-term investment performance remains solid, with over 65% of assets beating benchmarks over three, five, and ten-year periods [8][12] - Management emphasized the importance of active management in capitalizing on market dislocations and opportunities [8][46] Other Important Information - The company announced a 3% increase in the quarterly dividend and a new share buyback authorization of up to $200 million through April 2026 [9][29] - Adjusted operating expenses decreased by 9% to $330 million compared to the prior quarter, reflecting cost discipline [23][25] - The company expects to maintain a tax rate on adjusted net income in the range of 23% to 25% [27] Q&A Session Summary Question: Thoughts on CLO ETF capacity and liquidity - Management noted that they hold about 80% market share in the CLO ETF category and have seen stable flows despite market volatility [52][54] Question: Next steps for institutional channel performance - Management highlighted a significant increase in RFP activity and consultant support, indicating a positive outlook for institutional flows [58][60] Question: Opportunities with the Guardian partnership - Management expressed optimism about enhancing Guardian's investment capabilities and leveraging their distribution platform for growth [66][70] Question: M&A interest and market conditions - Management indicated a very active M&A environment and a disciplined approach to potential acquisitions, with a narrowing bid-ask spread [72][74] Question: Organic growth expectations for the Guardian AUM - Management expects continued growth in the $45 billion AUM from Guardian, aligning with their growth trajectory [78][80] Question: Active management opportunities in 2025 - Management sees significant opportunities for active management amidst market dislocation, emphasizing their global reach and investment expertise [86][90] Question: Regional demand differences in intermediary and institutional channels - Management noted stability in the institutional channel and ongoing strength in Asia and Latin America, despite some concerns in EMEA and the U.S. [95][96]