Summary of AMG Q2 2026 Earnings Call

1Key Financial Results and Metrics

Adjusted EBITDA: $316 million, up 44% year-over-year.

Economic Earnings per Share: $8.29, a 54% increase year-over-year.

Assets Under Management (AUM): Reached a record $942 billion, a 7% increase from the previous quarter.

Net Inflows: $13 billion in Q2, with alternative strategies attracting $29 billion in net flows.

Fee-Related Earnings: Grew 39% year-over-year, driven by organic growth and investment performance.

Share Repurchases: $189 million in Q2, totaling $375 million for the first half of 2026.

2Strategic Updates and Business Highlights

AMG's business model is increasingly shifting towards alternatives, which now account for over 60% of earnings.

Key growth drivers include secondary strategies, infrastructure, absolute return strategies, and tax-aware investing.

The company has completed investments in BBH Credit Partners, HighBrook Investors, and Garda Capital Partners, with a strong pipeline for future investments.

AMG's diversified affiliate model continues to generate significant cash flow, allowing for both growth investments and share repurchases.

3Forward Guidance and Outlook

For Q3 2026, AMG expects adjusted EBITDA between $315 million and $325 million, with economic earnings per share projected between $8.43 and $8.71.

The company anticipates continued strength in alternative strategies and ongoing organic growth momentum.

Long-term growth expectations remain robust, with a projected compound annual growth rate of economic earnings per share between 15% and 20%.

4Bad News, Challenges, or Points of Concern

Long-Only Strategies: Experienced net outflows of $14 billion, indicating ongoing industry headwinds.

Multi-Asset and Fixed Income: Reported net outflows of $2 billion, primarily due to seasonal factors.

The company acknowledges potential volatility in flows, particularly in long-only businesses, although they expect improvements over the medium to long term.

5Notable Q&A Insights

Tax-Aware Investing: Jay Horgen emphasized the structural shift towards tax-aware strategies, viewing it as a durable trend across the wealth management ecosystem.

Liquid Alternatives Outlook: The demand for liquid alternatives remains strong, with AMG's affiliates seeing net inflows and a positive growth outlook.

Investment Pipeline: There is an increase in new investment opportunities, particularly in private markets, with a focus on maintaining high returns on investments.

Capacity Concerns: Horgen noted that while there are capacity issues in liquid alternatives, AMG's affiliates have a track record of managing these effectively. Overall, AMG reported strong financial results driven by a strategic focus on alternative investments, although challenges remain in traditional long-only strategies. The outlook for continued growth and investment remains positive.