MGRE — 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, with a 7% organic growth rate.
• Assets Under Management (AUM): Reached a record $882 billion.
• Share Repurchases: $186 million in Q1, with a total of over $700 million in the past year, reducing shares outstanding by 10%.

2. Strategic Updates and Business Highlights:

• AMG's diversified business model proved resilient amid market volatility, with significant contributions from liquid alternatives and private markets.
• Strong demand for liquid alternative strategies and private market fundraising, particularly in infrastructure and secondary solutions, which are driving organic growth.
• Recent partnerships include investments in BBH Credit Partners and Highbrook Investors, enhancing AMG’s capabilities in fixed income and real estate.
• The company is evolving its product offerings, particularly in tax-aware long/short strategies, which are gaining traction among wealth clients.

3. Forward Guidance and Outlook:

• For Q2 2026, adjusted EBITDA is expected to be between $290 million and $305 million, with economic earnings per share projected between $7.60 and $8.01, representing approximately 45% growth versus Q2 2025.
• AMG anticipates continued strong demand in its key growth areas, including infrastructure and absolute return strategies, and expects to generate significantly higher levels of capital over the next five years.

4. Bad News, Challenges, or Points of Concern:

• Equities Performance: The company reported net outflows of approximately $9 billion in equities, reflecting ongoing industry challenges and performance headwinds.
• Market Volatility: While AMG has shown resilience, the broader market remains volatile, which could impact future performance and client sentiment.
• Competitive Pressures: There are concerns about the competitive landscape in the private credit market, with lower valuations potentially affecting M&A opportunities.

5. Notable Q&A Insights:

• Management emphasized the diversification of AMG's business, with strong flows across multiple strategies, mitigating the impact of any single affiliate's performance.
• There was discussion on the growing importance of tax-aware strategies, although they currently represent less than 8% of AUM and EBITDA.
• The management team expressed confidence in the long-term growth of their products, particularly in the wealth channel, despite current market turbulence.
• They highlighted the importance of education for clients regarding new product offerings, particularly in evergreen structures that provide access to institutional-quality alternatives.

Overall, AMG's strong financial performance and strategic positioning in alternative investments provide a solid foundation for future growth, despite facing challenges in certain areas.