AMG Assets Hit Record as Alternatives Drive Inflows
Period-end assets under management rose 6.8% to a record $942.4 billion.
Affiliated Managers Group (AMG), the multi-boutique asset-management franchise, lifted period-end assets under management 6.8% QoQ and 22.2% YoY to a record $942.4 billion. Part of the annual increase was driven by about $69 billion from new-Affiliate investments and $56 billion of net client cash flows.
Net inflows slowed to $12.9 billion from the first quarter’s record $22.5 billion, while remaining above $8.1 billion a year earlier. Average AUM rose 4.4% QoQ and 25.0% YoY to $920.9 billion.
Alternatives drove the quarter’s expansion. Private-markets and liquid-alternatives strategies drew a combined $28.9 billion, while differentiated long-only equities lost $14.5 billion and multi-asset and fixed-income strategies lost $1.5 billion. Liquid-alternatives AUM climbed 12.1% QoQ to $293.2 billion, supported by $21.1 billion of inflows and $10.0 billion of market appreciation.
The larger asset base did not translate directly into sequential fee growth. Aggregate fees fell 13.0% QoQ to $1.662 billion despite higher average AUM, though they remained 41.6% above the year-earlier period. Consolidated revenue increased 29.9% YoY to $640.7 million, and compensation plus selling, general and administrative expenses declined to 66.1% of revenue from 72.9%.
Equity-method income nearly doubled to $124.9 million from $65.6 million a year earlier as pre-tax equity-method earnings rose to $156.7 million. Adjusted EBITDA increased 43.8% YoY to $316.0 million, while Economic EPS rose 53.8% to $8.29 and edged above the first quarter’s $8.23.
AMG repurchased $189 million of stock during the quarter, bringing first-half buybacks to $375 million. Average diluted shares declined 14.3% YoY to 26.9 million, reflecting the repurchases and January’s cash settlement of junior convertible securities.
The capital deployment came with a heavier balance sheet. Debt increased 11.6% during the first half to $3.004 billion, while cash declined by $175.0 million to $411.0 million. The company’s capital position remains flexible as it pursues Affiliate investments and buybacks, leaving alternatives flows and new partnerships at the center of AMG’s growth path.