Affiliated Managers Group (AMG) Goldman Sachs U.S. Financial Services Conference summary

Business evolution and strategic focus

• Alternatives now comprise 55% of EBITDA, with a goal to reach two-thirds within one to two years, driven by both organic growth and acquisitions.

• Capital and resources have been allocated to areas of secular growth, especially alternatives, over the past six to seven years.

• The affiliate model emphasizes independence and strategic partnership, targeting firms that benefit from business development and product innovation support.

• Recent years saw four new investments and one strategic partnership, all in alternatives, with a strong pipeline into 2026.

• Typical deal size ranges from $250 million to $1 billion in enterprise value, with investments of 20%-60% in affiliate economics.

Organic growth and product innovation

• Liquid alternatives have seen a turnaround, with strong flows from AQR’s tax-aware strategies and other affiliates.

• AQR’s tax-aware suite targets RIAs and wealth advisors, offering products with strong performance and sticky assets.

• AQR is present on about half of top RIA platforms and is expanding into wirehouses, with significant growth runway.

• Private markets, led by Pantheon, benefit from AMG’s ability to distribute and seed new products, capitalizing on LP consolidation trends.

• New product initiatives include structured credit with BBH and plans for evergreen, drawdown, and multi-asset products.

Financial strategy and capital allocation

• Annual capital available for deployment is about $1 billion, sourced from affiliate distributions and moderate leverage.

• Share repurchases have reduced share count by about 40% over five years, with continued buybacks expected due to attractive valuation.

• Capital allocation prioritizes new and existing affiliate investments, product seeding, and share repurchases.

• Performance fees have averaged $150 million annually, with upside potential as alternatives grow and more carry is realized.

• Recent refinancing simplified the balance sheet and supported further share repurchases.