Affiliated Managers Group, Inc. is a strategic partner and long-term investor in independent investment firms globally. It focuses on generating long-term value ...
Affiliated Managers Group, Inc. (AMG) is a strategic partner and long-term investor in independent investment firms globally. The company was founded in December 1993 by William J. Nutt in Boston, Massachusetts, with the vision of providing succession planning solutions to independent investment firms. AMG's business model revolves around investing in ...Affiliated Managers Group, Inc. (AMG) is a strategic partner and long-term investor in independent investment firms globally. The company was founded in December 1993 by William J. Nutt in Boston, Massachusetts, with the vision of providing succession planning solutions to independent investment firms. AMG's business model revolves around investing in a diverse array of high-quality, independent, partner-owned firms, offering them growth capital, distribution, and operational expertise while preserving their entrepreneurial cultures and investment-centric focus.
AMG operates through a network of approximately 40 affiliate firms managing over 500 investment strategies, with assets under management (AUM) reaching approximately $942 billion as of June 30, 2026. The company generates revenue primarily through management fees and performance fees from its affiliates, which are typically based on a percentage of AUM. In the trailing twelve months, AMG reported a revenue of $2.5 billion, with a gross profit margin of 79.9% and a net profit margin of 33.9%, reflecting the scalability and profitability of its asset management model.
Financially, AMG maintains a strong balance sheet with total assets of $15.8 billion, including $1.2 billion in working capital and $4.5 billion in shareholders' equity. The company has a market capitalization of $5.92 billion and trades at a price-to-earnings ratio of 11.86, indicating a value-oriented valuation. AMG pays a dividend, with a last dividend of $1.47 per share, and has a dividend payout ratio of 0.1%, suggesting a conservative approach to returning capital to shareholders.
Leadership plays a crucial role in AMG's success. Jay C. Horgen, who has been with the company since 2008 and served in various leadership roles, was appointed President and Chief Executive Officer in 2021. Under his leadership, AMG continues to expand its global footprint, with a presence in major financial centers including New York, London, Singapore, and Sydney. The company's commitment to its partnership model has enabled it to attract and retain top-tier investment talent, driving long-term value for shareholders and clients alike.
Despite challenges in the asset management industry, such as fee compression and market volatility, AMG's diversified business model and strong affiliates have positioned it for sustained growth. The company continues to explore new partnerships and strategic initiatives to enhance its offerings, including digital asset management and sustainable investing, ensuring its relevance in an evolving financial landscape.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.3B
+13.6%
-23.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$716.7M
+40.1%
+68.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+62.0%
+12.4%
-22.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+34.0%
-7.4%
+260.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+30.9%
+23.3%
+118.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.0B
+6.5%
-100.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+43.3%
-6.3%
-100.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
83.8%
+6.0%
-2.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
—
—
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Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Greetings, and welcome to the AMG Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Patricia Figueroa, Head of Investor Relations. Please go ahead.
Patricia Figueroa : Good morning, and thank you for joining us today to discuss AMG's results for the second quarter of 2026, Before we begin, I'd like to remind you that during this call, we may make a number of forward-looking statements, which could differ from our actual results materially due to a number of factors, including those described in today's earnings press release and our most recent Form 10-K and subsequent filings with the SEC. And AMG assumes no obligation to update these statements. Also, please note that nothing on this call constitutes an offer of any products, investment vehicles or services of any AMG affiliate. A replay of today's call will be available on the Investor Relations section of our website along with a copy of our earnings release and reconciliations of any non-GAAP financial measures, including any earnings guidance provided. In addition, we have posted an updated investor presentation to our website and encourage investors to consult our site regularly for updated information. With us today to discuss the company's results for the quarter are Jay Horgen, President and Chief Executive Officer; and Dava Ritchea, Chief Financial Officer. With that, I'll turn the call over to Jay.
Jay Horgen : Thanks, Patricia, and good morning, everyone. Today, AMG reported another quarter of record results. including the highest second quarter earnings in our company's history. Adjusted EBITDA of approximately $316 million and economic earnings per share of $8.29 grew 44% and 54% year-over-year, respectively, reflecting the strength of our diversified business and the ongoing execution of our strategy. Assets under management increased to a record $942 billion, driven by net inflows in markets and setting the stage for ongoing earnings growth momentum in the second half of 2026. We continue to generate strong organic growth with $13 billion in net inflows in the quarter and $56 billion in net inflows over the last 12 months. Importantly, these figures understate the exceptional momentum in higher fee, higher margin alternative strategies, which attracted $29 billion in net flows in the quarter and approximately $100 billion over the past 12 months. Given this significant growth and our increasingly attractive business profile, we continued to repurchase shares at an elevated pace, deploying approximately $189 million towards repurchases in the quarter and approximately $375 million in the first half of 2026. The momentum across our business highlights the successful execution of our strategy and is a result of the ongoing evolution of our earnings profile towards alternatives. Today, alternatives account …
