MGRB — Affiliated Managers Group, Inc.

Summary of AMG Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: $317 million, up 39% year-over-year.
• Economic Earnings per Share: $8.23, a 58% increase from the previous year.
• Net Client Cash Flows: Over $22 billion for the quarter, totaling $52 billion in the last 12 months, reflecting a 7% organic growth rate.
• Assets Under Management (AUM): Reached a record $882 billion.
• Share Repurchases: Approximately $186 million in Q1, with a total of over $700 million in the last 12 months, reducing shares outstanding by 10%.

2. Strategic Updates and Business Highlights

• AMG's diversified model has shown resilience amid market volatility, with strong growth in liquid alternatives and private markets.
• Significant demand for infrastructure and secondary solutions, with $148 billion in private market assets managed across 11 affiliates.
• Continued focus on alternative strategies, with $261 billion in liquid alternatives, driven by institutional demand for absolute return strategies and tax-aware long/short strategies.
• Recent partnerships include investments in BBH Credit Partners and Highbrook Investors, enhancing AMG's capabilities in fixed income and private markets.

3. Forward Guidance and Outlook

• Q2 2026 Guidance: Expected adjusted EBITDA between $290 million and $305 million, with economic earnings per share projected between $7.60 and $8.01, representing approximately 45% growth compared to Q2 2025.
• AMG anticipates continued organic growth in alternatives and a positive outlook for private markets, driven by strong institutional relationships and diversified strategies.

4. Bad News, Challenges, or Points of Concern

• Equity Outflows: Approximately $9 billion in net outflows from equities, reflecting ongoing industry headwinds.
• Market Volatility: The current environment poses risks, particularly in private credit and equity markets, which could impact future fundraising and performance.
• Competitive Pressures: The firm acknowledges increased competition in the M&A market due to lower public market valuations, which may affect future investment opportunities.

5. Notable Q&A Insights

• Diversification: Management emphasized AMG's diversified business model, with no single affiliate or strategy dominating inflows, which helps mitigate risks.
• Tax-Aware Strategies: While tax-aware strategies account for less than 8% of AUM, they are growing and are seen as a long-term opportunity. Management noted that these strategies are part of a broader balanced growth story.
• Wealth Channel: There is ongoing demand for innovative products in the wealth channel, particularly in credit secondaries, despite some market turbulence.
• Capital Deployment: AMG's disciplined capital allocation strategy remains a focus, with expectations of generating significant cash flow that will be reinvested in growth and returned to shareholders.

Overall, AMG reported strong financial results and strategic momentum, with a positive outlook for continued growth in alternative investments, despite facing challenges in equity markets and competitive pressures.