AFFILIATED MANAGERS GROUP, INC. Q1 FY2024 earnings call

• AMG had strong Q1 2024 results with $260 million EBITDA and $5.37 economic EPS growth. • Collaboration with affiliates led to new product launches and private markets fundraising. • Leadership team evolved with new roles for executives. • Success stories of Pantheon and Systematica showcased AMG's partnership model. • Diversified into alternatives, with over half of earnings now from alternatives. • Strategic partnership model resonates with independent firms, preserving their independence while magnifying competitive advantages. • Capital allocation focused on investing in affiliates and returning excess capital to shareholders.

AMG delivered strong results in Q1 2024 with $260 million in EBITDA. Economic earnings per share were $5.37, a 28% year-over-year growth. In alternatives, private markets and liquid alternative strategies contributed significantly. Private markets affiliates manage approximately $120 billion in client assets. Liquid alternatives affiliates delivered excellent investment performance. Differentiated long-only strategies had net outflows but multi-asset and fixed income saw inflows. Alternatives now contribute over half of earnings from an EBITDA perspective.

• Second quarter adjusted EBITDA expected between $215 million and $220 million. • Economic earnings per share expected in the range of $4.50 to $4.60. • Full-year 2024 share repurchases expected to be at least $450 million. • Up to $100 million in seed capital expected to be invested this year in new alternative products for U.S. and global wealth markets.

• Market volatility could impact investment performance and fundraising. • Competition for attractive investment opportunities may affect capital allocation. • Potential challenges in maintaining positive flows in certain segments like long-only strategies.

Q: Dive deeper into positive inflection in institutional channel net flows and ability to maintain positive flows going forward?

A: Jay Horgen mentioned strength in private markets fundraising, stability in liquid alternatives, and improvement in long-only. Private markets affiliates are raising assets in well-positioned strategies, liquid alternatives have excellent investment performance, and multi-asset/fixed income saw inflows.

Q: Thoughts on deal activity against other uses of capital?

A: Jay Horgen stated strategy is to invest in high growth/return areas via new affiliates and existing ones. New investments are prioritized, with excess capital returned to shareholders. Pipeline of new investment opportunities exists, competitive environment, but strategic partnership model is unique.

Q: Gross sales vs gross redemption trends in liquid alternatives and performance fees outlook?

A: Thomas Wojcik noted excellent investment performance in liquid alternatives, bounce back from Q4 headwinds. Flows were flat vs Q4 outflow. Expect growth in allocations in wealth space due to strong performance and complementary nature to other strategies.

Q: Confidence in private markets fundraising as leading net flow indicator?

A: Thomas Wojcik said confidence comes from attracting high-quality businesses, ability to help accelerate their growth, focusing on specialty/alpha-oriented products, and strong investment performance driving performance fees and client interest.

Q: Wealth channel progress, contribution to EBITDA, and competitive dynamics?

A: Thomas Wojcik mentioned wealth channel products contribute but are growing. AMG's vertically integrated solution, generalist-specialist model, and ability to cover the wealth channel with independent partner-owned firms give competitive edge.