Affiliated Managers Group (AMG) Q4 2024 earnings summary

Executive summary

• Achieved record Economic Earnings per share of $21.36 in 2024, up 10% year-over-year, driven by increased exposure to alternatives and disciplined capital allocation.

• Assets under management reached $708 billion as of 12/31/24, up from $673 billion year-over-year, fueled by growth in alternatives and differentiated long-only strategies.

• Approximately 50% of earnings are generated by alternatives, reflecting a strategic focus on high-growth, secular demand areas.

• Private market affiliates raised $24 billion in 2024, supporting long-term growth and strong demand for specialized strategies.

• Announced a minority investment in Northbridge Partners, expanding into industrial logistics real estate.

Financial highlights

• Adjusted EBITDA for 2024 was $973 million, up from $936 million in 2023, with Economic EPS at $21.36, up from $19.48.

• Net income (controlling interest) for 2024 was $512 million, down from $673 million in 2023; diluted EPS was $15.13.

• Aggregate fees for 2024 were $5,236 million, up from $5,066.6 million in 2023.

• Net client cash outflows for 2024 were $(13.9) billion, a significant improvement from $(29.2) billion in 2023.

• Repurchased $700 million in shares in 2024, representing 13% of shares outstanding.

Outlook and guidance

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

• Q1 2025 Adjusted EBITDA expected to be $220–$230 million, with $10–$20 million in net performance fees.

• Q1 Economic Earnings per share projected between $5.02 and $5.26, assuming 30.7 million shares.

• Performance fee earnings for Q1 expected to be $20–$30 million below the prior year period.

• Annual performance fees expected to remain around $150 million, consistent with the five-year average.