Affiliated Managers Group (AMG) Q1 2025 earnings summary

Executive summary

• Assets under management reached $712.2 billion as of March 31, 2025, up 2% year-over-year, with growth in private markets and liquid alternatives offsetting equity outflows.

• Strategic capital allocation and new partnerships (NorthBridge, Verition, Qualitas Energy) added $18 billion in AUM, with $700 million committed to these investments year-to-date.

• Peppertree sale generated a significant gain, doubling the initial investment and providing $240 million in expected proceeds for redeployment.

• Over 50% of EBITDA and future earnings now come from alternatives and private markets, reflecting a strategic shift toward higher-growth asset classes.

• The diversified affiliate model and strong recurring cash flow support growth and capital return strategies.

Financial highlights

• Adjusted EBITDA for Q1 2025 was $228.2 million, down 12% year-over-year due to lower performance fees and a prior-year one-time catch-up fee.

• Net income (controlling interest) for Q1 2025 was $72.4 million, down from $149.8 million in Q1 2024; diluted EPS was $2.20, compared to $4.14 year-over-year.

• Economic EPS was $5.20, down from $5.37 year-over-year, benefiting from $720 million in share repurchases over the last four quarters.

• Revenue for Q1 2025 was $496.6 million, slightly down from $499.9 million in Q1 2024.

• Aggregate fees declined 14% year-over-year to $1,270.4 million, driven by a 15% drop in performance-based fees.

Outlook and guidance

• Q2 2025 adjusted EBITDA expected between $210 million and $225 million, reflecting current AUM and seasonally lower performance fees.

• Management targets mid-teens annualized long-term earnings growth, supported by organic growth, affiliate performance, and disciplined capital allocation.

• Collective accretion from new investments and Peppertree sale projected at approximately 8% to run-rate economic EPS, starting in 2026.

• Full-year 2025 share repurchases expected to total about $400 million, subject to market conditions and investment activity.

• The company expects net purchases of approximately $150 million of Affiliate equity during the remainder of 2025.