Affiliated Managers Group (AMG) Q2 2024 earnings summary

Executive summary

• Assets under management (AUM) reached $701 billion as of June 30, 2024, up 4% year-over-year, driven by growth in alternatives, new Affiliate investments, and organic growth in private markets.

• Approximately 50% of EBITDA and earnings are now derived from alternatives, reflecting a strategic shift in business mix and investments in secular growth areas such as digital economy, biotechnology, and private credit.

• The business model leverages partnerships with over 35 independent affiliates, focusing on high-quality, alpha-generating investment products and diversified strategies.

• Disciplined capital allocation, including accelerated share repurchases and investments in new affiliates, continues to drive long-term shareholder value.

• Diversified portfolio across private markets, liquid alternatives, and differentiated long-only strategies enhances earnings stability and positions for long-term growth.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $218 million (controlling interest), up 1% year-over-year, with $11 million in net performance fee earnings and higher average AUM.

• Economic earnings per share (EPS) for Q2 2024 was $4.67, up from $4.45 in Q2 2023, and year-to-date economic EPS reached $10.06, up 17% year-over-year.

• Net income (controlling interest) for Q2 2024 was $76 million, down 39% year-over-year, primarily due to lower equity method income and a $39.9 million impairment charge.

• Aggregate fees for the first half of 2024 were $2.57 billion, up from $2.51 billion year-over-year.

• Affiliates generated $1 billion in net client cash inflows in Q2, with private market affiliates contributing $6 billion in net inflows.

Outlook and guidance

• Q3 2024 adjusted EBITDA is expected between $210 million and $220 million, with up to $10 million in net performance fee earnings.

• Q3 economic EPS guidance is $4.68–$4.91, assuming 31.7 million weighted average shares.

• Full-year 2024 share repurchases are expected to reach at least $700 million, subject to market conditions and investment activity.

• Management targets mid-teens annualized long-term growth, supported by organic growth, affiliate investments, and share repurchases.

• Continued investment in new and existing affiliates, share repurchases, and debt repayment are primary uses of cash.