Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $251 million for Q3 2025, reflecting a 17% year-over-year increase [20] - Economic earnings per share grew 27% year-over-year to $6.10, benefiting from share repurchases [21] - The company anticipates fourth-quarter adjusted EBITDA to range between $325 million and $370 million, with expected economic earnings per share between $8.10 and $9.26 [21][22] Business Line Data and Key Metrics Changes - The company achieved $9 billion in net client cash inflows for Q3 2025, bringing year-to-date total net inflows to $17 billion, representing a 3% annualized organic growth rate [12][20] - Affiliates generated $18 billion in net inflows in alternatives, offsetting $9 billion in outflows from active equities [13] - Liquid alternatives saw record net inflows of $14 billion, driven by tax-aware solutions [13][56] Market Data and Key Metrics Changes - The company’s affiliates manage $353 billion in alternative assets under management (AUM), contributing 55% of EBITDA on a run-rate basis [6] - Approximately $76 billion in alternative AUM was added through organic growth and new affiliate investments, marking a nearly 30% increase in total alternative AUM [5][6] Company Strategy and Development Direction - The company is focused on expanding its investment in growth by partnering with new and existing affiliates, particularly in alternative strategies [7][10] - A strategic collaboration with Brown Brothers Harriman aims to develop innovative products and deliver structured credit solutions to the wealth channel [8][17] - The company has committed over $1 billion across five new growth investments in 2025, enhancing its participation in areas of secular growth [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate long-term earnings growth, driven by strong organic growth and capital allocation strategies [10][22] - The company anticipates a meaningful increase in full-year economic earnings per share in 2026, supported by strong organic growth and new investments [7][22] - Management highlighted the ongoing demand for alternative strategies and the potential for margin expansion at key affiliates [22][46] Other Important Information - The company repurchased approximately $77 million in shares during Q3 2025, with year-to-date repurchases totaling approximately $350 million [24] - The company expects to repurchase at least $500 million in shares for the full year, subject to market conditions [24] Q&A Session Summary Question: Inquiry about franchise momentum and BBH collaboration - Management acknowledged the strong momentum in both organic and inorganic growth, highlighting the strategic collaboration with BBH as a significant opportunity [28][30] Question: Contextualizing growth expectations for 2026 - Management indicated that the combination of new investments, share repurchases, and net inflows from alternatives will significantly impact 2026 earnings per share [42][45] Question: Details on liquid alternatives flows and AQR strategies - Management noted that AQR's diverse strategies and focus on after-tax outcomes have contributed to strong inflows, with a significant opportunity for future growth [51][60]

Core Viewpoint - The strategic collaboration between AMG and BBH aims to expand BBH's structured and alternative credit investment strategies into the U.S. wealth marketplace, leveraging both firms' strengths in product development and distribution [1][3][5] Group 1: Strategic Collaboration Details - BBH has established a new subsidiary, BBH Credit Partners, to manage its taxable fixed income and structured credit business, with AMG providing seed capital and making a minority investment in this subsidiary [2][3] - The collaboration will utilize BBH's $55 billion taxable fixed income franchise and AMG's product development and distribution capabilities to launch innovative credit solutions tailored for U.S. wealth clients [3][4] Group 2: Expected Outcomes and Benefits - The partnership is expected to enhance BBH's presence in the U.S. wealth market, complementing its existing institutional presence globally, and will focus on meeting the evolving needs of clients in this sector [4][5] - AMG's investment is anticipated to be finalized in the first quarter of 2026, subject to customary closing conditions, further solidifying its role as a leading sponsor of alternative strategies for the U.S. wealth market [4][5] Group 3: Company Backgrounds - AMG is a strategic partner to independent investment management firms, with approximately $771 billion in assets under management as of June 30, 2025, focusing on high-quality partner-owned firms [6] - BBH, founded in 1818, has a long history of providing financial services and operates through two main business lines: Investor Services and Capital Partners [7]