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1. Company Snapshot

1.a. Company Description

Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States.It provides advisory or subadvisory services to mutual funds.These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments.


The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets.In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities.Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services.


Affiliated Managers Group, Inc.was formed in 1993 and is based in West Palm Beach, Florida with additional offices in Prides Crossing, Massachusetts; Stamford, Connecticut; London, United Kingdom; Dubai, United Arab Emirates; Sydney, Australia; Hong Kong; Tokyo, Japan, Zurich, Switzerland and Delaware.

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1.b. Last Insights on AMG

Affiliated Managers Group, Inc.'s recent performance was driven by strong Q3 2025 earnings, with diluted EPS of $6.87 and economic EPS of $6.10, reflecting 27% growth year-over-year. Net client cash inflows reached $9 billion in Q3 and $17 billion year-to-date, fueled by momentum in alternative strategies. A strategic collaboration with Brown Brothers Harriman (BBH) enhanced AMG's position in the US wealth marketplace. Additionally, the company repurchased approximately $350 million in shares year-to-date, including $77 million in Q3, signaling confidence in its financials.

1.c. Company Highlights

2. AMG's Q3 2025 Earnings: Strong Growth in Alternative Strategies

In the third quarter, AMG reported adjusted EBITDA of $251 million, a 17% year-over-year increase, driven by the positive impact of their investment performance and organic growth in alternative strategies. Economic earnings per share (EPS) of $6.10 grew 27% year-over-year, beating analyst estimates of $5.83. Fee-related earnings, which exclude net performance fees, grew 15% year-over-year. The company's strong financial performance was largely driven by its alternative strategies, with $9 billion in firm-wide net inflows in the quarter, bringing the year-to-date total to $17 billion.

Publication Date: Nov -05

📋 Highlights
  • EBITDA and Economic Earnings Growth: Adjusted EBITDA rose 17% YoY to $251M, while economic earnings per share jumped 27% to $6.10.
  • Alternative AUM Expansion: Added $76B in alternative AUM (30% increase), with $51B in net inflows, now contributing 55% of EBITDA via $353B in total alternative AUM.
  • Capital Deployment Momentum: Near-record $76B in total capital deployed year-to-date, with $17B in firm-wide net inflows (3% annualized organic growth).
  • Guidance and Share Repurchases: Full-year adjusted EBITDA guidance raised to $325M–$370M; repurchase target increased to at least $500M.

Alternative Strategies Drive Growth

AMG's alternative assets under management (AUM) increased by nearly 30% to $353 billion, contributing 55% of the company's EBITDA on a run rate basis. The growth in alternative AUM was driven by net inflows into alternatives, including significant contributions from two of AMG's largest affiliates, Pantheon and AQR. AQR's assets grew from around $100 billion at the beginning of 2024 to $166 billion as of September 30, with most of the growth coming from organic flows.

Valuation and Outlook

With a P/E Ratio of 10.49 and an EV/EBITDA ratio of 8.04, AMG's valuation appears reasonable given its strong growth prospects. Analysts estimate revenue growth of 12.1% for next year, driven by the company's continued investment in alternative strategies and its strong pipeline of new investments. AMG's guidance for adjusted EBITDA in the range of $325 million to $370 million implies continued momentum in the business, with a target mid- to high-teens returns on its investments.

Investment Strategy and Pipeline

AMG is focused on areas of secular growth in private markets and liquid alternatives, with a strong emphasis on businesses where its strategic capabilities can add value. The company has entered into four new investment partnerships with alternative firms this year and announced a strategic collaboration with BBH Credit Partners to bring structured credit products to the U.S. wealth marketplace. With a strong pipeline of new investments and a continued focus on organic growth, AMG is well-positioned to drive long-term shareholder value.

AQR's Contribution to Growth

AQR has been a significant contributor to AMG's flow profile, with a diverse business that includes a liquid alts business, a tax-aware wealth business, and a 40 Act long-only business. The company's excellent performance, particularly in the wealth channel, has driven inflows in each of these areas. With a leading position in a paradigm shift towards after-tax outcomes, AQR has the potential to increase its fee rates over time, driving further growth for AMG.

3. NewsRoom

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Affiliated Managers Hits a New 52-Week High: What's Driving AMG Stock?

Dec -03

Source: zacks.com

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AMG to Present at the Goldman Sachs Financial Services Conference

Dec -02

Source: globenewswire.com

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Clarkston Capital Partners LLC Has $282.44 Million Position in Affiliated Managers Group, Inc. $AMG

Nov -28

Source: defenseworld.net

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Boston Partners Has $223.01 Million Stock Position in Affiliated Managers Group, Inc. $AMG

Nov -27

Source: defenseworld.net

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AlphaCore Capital LLC Acquires New Position in Affiliated Managers Group, Inc. $AMG

Nov -27

Source: defenseworld.net

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AMG vs. ARES: Which Stock Is the Better Value Option?

Nov -24

Source: zacks.com

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Is Affiliated Managers Group (AMG) Stock Outpacing Its Finance Peers This Year?

Nov -24

Source: zacks.com

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Tweedy Browne's Strategic Moves: Alphabet Inc. Sees a -1.43% Portfolio Impact

Nov -20

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.33%)

6. Segments

Global Investment Management

Expected Growth: 9.33%

Strong investment performance, strategic acquisitions, and increasing demand for diversified investment solutions drive the 9.33% growth of Global Investment Management from Affiliated Managers Group, Inc. Additionally, the company's ability to attract and retain top investment talent, expand its distribution channels, and leverage its scale and resources also contribute to its growth momentum.

7. Detailed Products

Equity Strategies

Affiliated Managers Group, Inc. offers a range of equity strategies, including US, international, and global equities, as well as sector-specific and thematic strategies.

Fixed Income Strategies

The company provides a variety of fixed income strategies, including government, corporate, and high-yield bonds, as well as emerging market debt and municipal bonds.

Alternative Strategies

Affiliated Managers Group, Inc. offers alternative investment strategies, including hedge funds, private equity, and real assets.

Multi-Asset Solutions

The company provides multi-asset solutions, including balanced portfolios, asset allocation strategies, and target date funds.

Wealth Management

Affiliated Managers Group, Inc. offers wealth management services, including financial planning, investment management, and wealth advisory services.

Institutional Investment Management

The company provides institutional investment management services, including customized investment solutions for pension funds, endowments, and foundations.

8. Affiliated Managers Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Affiliated Managers Group, Inc. is medium due to the presence of alternative investment management companies and financial institutions that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers for Affiliated Managers Group, Inc. is low due to the company's diversified client base and the lack of concentration of clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Affiliated Managers Group, Inc. is low due to the company's ability to negotiate with suppliers and the lack of dependence on a single supplier.

Threat Of New Entrants

The threat of new entrants for Affiliated Managers Group, Inc. is high due to the low barriers to entry in the investment management industry and the increasing trend of fintech companies entering the market.

Intensity Of Rivalry

The intensity of rivalry for Affiliated Managers Group, Inc. is high due to the competitive nature of the investment management industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.80%
Debt Cost 5.88%
Equity Weight 58.20%
Equity Cost 10.54%
WACC 8.59%
Leverage 71.81%

11. Quality Control: Affiliated Managers Group, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Invesco

A-Score: 6.3/10

Value: 7.4

Growth: 2.9

Quality: 7.2

Yield: 7.0

Momentum: 7.5

Volatility: 5.7

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SEI Investments

A-Score: 6.3/10

Value: 4.1

Growth: 5.6

Quality: 9.2

Yield: 2.0

Momentum: 7.0

Volatility: 9.7

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Franklin Resources

A-Score: 5.9/10

Value: 5.1

Growth: 3.4

Quality: 4.3

Yield: 8.0

Momentum: 6.5

Volatility: 8.0

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Affiliated Managers Group

A-Score: 5.7/10

Value: 5.8

Growth: 5.6

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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Cohen & Steers

A-Score: 5.3/10

Value: 3.8

Growth: 3.3

Quality: 8.8

Yield: 7.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

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TPG

A-Score: 4.3/10

Value: 1.3

Growth: 1.6

Quality: 6.0

Yield: 7.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

273.19$

Current Price

273.19$

Potential

-0.00%

Expected Cash-Flows