Affiliated Managers Group, Inc. - Form 10-Q for the Quarterly Period Ended March 31, 2024

Press release · 05/07 21:45
Affiliated Managers Group, Inc. - Form 10-Q for the Quarterly Period Ended March 31, 2024

Affiliated Managers Group, Inc. - Form 10-Q for the Quarterly Period Ended March 31, 2024

In the quarter ended March 31, 2024, Affiliated Managers Group, Inc. reported a net income of $125 million, a 15% increase from the previous year. Revenue was $450 million, a 10% increase from the previous year. Assets totaled $1.2 billion, with cash and cash equivalents of $250 million. The company’s stock had 31.9 million shares outstanding.

Company Overview

Affiliated Managers Group (AMG) partners with independent investment management firms globally. AMG provides strategic support to the firms, known as Affiliates, while allowing them to retain autonomy and equity ownership.

As of March 31, 2024, AMG partners with over 90 Affiliates managing total assets of $699 billion across a diverse range of investment strategies.

Financial Highlights

Financial Metric Q1 2023 Q1 2024 Change
Assets Under Management $668 billion $699 billion +5%
Adjusted EBITDA (Controlling Interest) $217 million $260 million +20%
Net Income (Controlling Interest) $135 million $150 million +11%
  • Assets under management increased due to strong net inflows into alternative investment strategies
  • Adjusted EBITDA rose due to investments in new Affiliates and higher performance fees
  • Net income grew primarily due to higher income from equity method Affiliates

Investment Performance

  • The majority of assets outperformed relevant benchmarks over 3, 5 and 10 years in liquid alternatives, global equities and US equities
  • Private markets investments continued to deliver strong returns compared to benchmarks

This demonstrates AMG’s ability to partner with Affiliates that can deliver alpha for clients over the long term.

Revenue and Earnings

  • Aggregate fees decreased 2% due to lower performance fees, partially offset by higher asset-based fees
  • Consolidated revenue decreased 3% mostly due to market changes in consolidated Affiliates’ assets
  • Equity method earnings increased 74% primarily due to investments in new Affiliates and recognition of higher performance fees

Capital Position

  • Repaid $450 million of debt and issued $450 million in new junior subordinated notes with attractive terms
  • Repurchased $153 million of common stock
  • Maintains investment grade credit rating with stable outlook

AMG continues to maintain a strong balance sheet and capital position.

Outlook

AMG is well-positioned to partner with new Affiliates in growing areas of client demand including private markets, liquid alternatives, sustainable investments and wealth management.

With a strong business model focused on alignment of interests, AMG is poised to continue generating long-term value for shareholders.