Affiliated Managers Group (AMG) Q3 2024 earnings summary

Executive summary

• Assets under management reached $728.4 billion as of September 30, 2024, up from $635.8 billion a year earlier, driven by growth in alternatives and new Affiliate investments.

• Economic earnings per share for Q3 2024 rose 18% year-over-year to $4.82, reflecting business momentum and capital allocation strategy.

• Nearly half of EBITDA now comes from alternatives, highlighting a strategic shift toward higher-growth asset classes.

• Raised $7 billion in new capital in private markets during Q3, with strong demand for specialized strategies.

• Share repurchases totaled $580 million year-to-date, including $103 million in Q3, with 3.6 million shares repurchased at an average price of $158.62 per share.

Financial highlights

• Adjusted EBITDA for Q3 2024 was $214 million, up 3% year-over-year, with aggregate fees of $1,157.1 million, up 16% year-over-year.

• Net income (controlling interest) for Q3 2024 was $123.6 million, down from $217 million in Q3 2023, primarily due to lower affiliate transaction gains and a one-time gain in the prior year.

• Economic net income (controlling interest) for Q3 2024 was $153.2 million, up 2% year-over-year.

• Net client cash outflows for Q3 2024 were $(2.8) billion, an improvement from $(9.4) billion in Q3 2023.

• Q3 2024 consolidated revenue was $516.4 million, down 2% year-over-year, mainly due to the prior year Veritable transaction.

Outlook and guidance

• Q4 adjusted EBITDA expected between $260 million and $270 million, with about $50 million in net performance fee earnings.

• Q4 economic EPS guidance is $5.94 to $6.17, assuming 31.3 million shares.

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

• The business mix is expected to continue shifting toward alternatives and high-growth strategies, aligning with secular client demand trends.

• Full-year performance fees anticipated below the historical $150 million average due to underperformance in certain absolute return strategies.