What Affiliated Managers Group (AMG) Said on Its Q3 Earnings Call

Key Points

• AMG posted record Q3 results: Net inflows were $21 billion, assets under management reached $974 billion, and adjusted EBITDA rose 41% year over year to $354 million. Economic earnings per share climbed 56% to $9.50, aided in part by share-count reduction from buybacks.
• Alternative strategies drove growth: They attracted more than $31 billion in quarterly inflows, led by private-market and liquid alternatives, partially offset by $12 billion in outflows from differentiated long-only equities. Alternatives represented about two-thirds of AMG’s run-rate EBITDA.
• Management raised its capital-return outlook: AMG expects Q4 adjusted EBITDA of $405 million to $475 million and economic EPS of $11.37 to $13.43, and now anticipates more than $900 million in full-year share repurchases. CEO Jay Horgen expects roughly 50% economic EPS growth in 2026 and reiterated a long-term annual growth target of 15% to 20%.

Affiliated Managers Group NYSE: AMG reported record third-quarter assets and economic earnings per share as inflows into alternative investment strategies and share repurchases helped drive growth.

The asset management firm recorded $21 billion in net inflows for the quarter, its sixth consecutive quarter of positive flows. Assets under management reached $974 billion, up 3% from the prior quarter and 21% over the preceding 12 months.

Adjusted EBITDA rose 41% year over year to $354 million, while economic earnings per share increased 56% to $9.50. Chief Financial Officer Dava Ritchea said the per-share result benefited from a roughly 11% reduction in the average economic share count from the year-earlier period.

For the first nine months of 2026, adjusted EBITDA rose 41% to $987 million and economic earnings per share grew 56% to $26. President and Chief Executive Officer Jay Horgen said the nine-month per-share figure was roughly equivalent to the company’s result for all of 2025.

Alternatives Drive Inflows

Alternative strategies attracted more than $31 billion in net inflows during the quarter, bringing their total over the past six quarters to $150 billion. Horgen identified four areas driving demand: private-market secondaries, infrastructure, absolute return strategies and tax-aware investing.

Private-market affiliates raised $10 billion during the quarter and a record $30 billion over the last 12 months, Ritchea said. The company’s 11 private-market affiliates managed $161 billion in assets. Liquid alternatives recorded $22 billion in quarterly net inflows and ended the period with $338 billion in assets.

Those inflows were partly offset by $12 billion in net outflows from differentiated long-only equities. Ritchea said the outflows were consistent with trends discussed in recent quarters and with the broader industry.

Alternative affiliates accounted for approximately $500 billion in assets and about two-thirds of AMG’s EBITDA on a run-rate basis, Ritchea said. Because many of the strategies attracting assets have higher fees and margins, she said the effect of flows on adjusted EBITDA was approximately twice what the organic growth rate alone would imply.

Underlying fee-related earnings increased 35% in the quarter, supported by organic growth, investment performance and margin expansion at certain affiliates. AMG also recognized $14 million in net performance fees and $15 million in incremental fees, primarily private-market catch-up fees.

Fourth-Quarter Outlook and Buybacks

AMG projected fourth-quarter adjusted EBITDA of $405 million to $475 million and economic earnings per share of $11.37 to $13.43. Its outlook included recurring fee-related earnings of $335 million to $345 million, up from $325 million in the third quarter, and assumed no material private-market catch-up fees.

The forecast also included $70 million to $130 million in net performance fees. Ritchea said the guidance was based on current asset levels and a market blend that was down 2% quarter to date as of Nov. 6.

The company repurchased $400 million of stock in the third quarter, bringing its year-to-date total to approximately $775 million. It raised its full-year repurchase guidance to more than $900 million, subject to market conditions and other capital allocation activity.

Asked whether the size of AMG’s public float could limit future repurchases, Horgen said he believed the natural limit was “a long way off.” He said the company had opportunities to invest in new and existing affiliates as well as buy back shares.

Management Sees Long-Term Growth Trends

Horgen said AMG expects economic earnings per share growth of approximately 50% for 2026, following growth of more than 20% in 2025. He reiterated a long-term growth expectation of 15% to 20% annually and said cumulative free cash flow over the next five to seven years could approximate the company’s current market capitalization, based on its current cash flow and an assumed growth rate.

Asked about the potential impact of the recent elections on infrastructure and tax-aware investing, Horgen said it was too early to tell, but that AMG continued to see long-term tailwinds in its four principal growth areas.

He also said tax-aware strategies remained a durable growth opportunity, describing their adoption as a strategic shift in client portfolios. Horgen emphasized that AMG’s other alternative strategies had also generated significant inflows, including the record private-market fundraising reported for the quarter.

About Affiliated Managers Group (NYSE:AMG)

Affiliated Managers Group, Inc NYSE: AMG is a global asset management company that partners with independent investment firms. Founded in 1993, AMG provides its partner firms with strategic capital, distribution support and business resources while allowing them to retain substantial independence over their investment processes and operations.

Through its partner firms, AMG offers a range of investment strategies and services, including alternative investments, equities, fixed income, private markets and wealth management.

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