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 expansion.

• Economic earnings per share (EPS) for Q2 2024 was $4.67, up 5% year-over-year, with first-half EPS at $10.06, up 17%, reflecting strong private markets fundraising and disciplined capital allocation.

• 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.

• Nearly 50% of EBITDA is now derived from alternatives, with a diversified product set across private markets, liquid alternatives, and differentiated long-only strategies.

• Accelerated share repurchases, with $477 million repurchased in the first half and authorization increased to 6 million shares in July 2024.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $218 million, up 1% year-over-year, with a margin of approximately 43%.

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

• Q2 2024 revenue was $500 million, down 2% year-over-year, mainly due to lower asset- and performance-based fees in private markets.

• Net client cash inflows were $0.9–1 billion in Q2 2024, with $6 billion net inflows in private markets and flat flows in liquid alternatives.

• Average shares outstanding (diluted) for Q2 2024 was 33.4–35.3 million, reflecting share repurchases.

Outlook and guidance

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

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

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

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

• Current cash, operating cash flow, and available credit are anticipated to be sufficient for foreseeable needs; no material impact expected from global minimum tax changes.