AFFILIATED MANAGERS GROUP, INC. Q2 FY2024 earnings call

• Jay Horgen highlighted strong results in the first half of 2024 driven by private markets affiliates, liquid alternatives managers, and disciplined capital allocation, with $1.8 billion invested over five years in secular growth areas. • Tom Wojcik discussed the business mix shift towards private markets and liquid alternatives, private markets affiliates managing $125B in client assets and generating $6B in net inflows in Q2, and liquid alternatives' potential due to low correlation with broader markets. • Dava Ritchea mentioned second quarter adjusted EBITDA of $218M, economic EPS of $4.67, share repurchases of $327M in Q2 with $477M in first half, and full-year 2024 share repurchase target of at least $700M.

Over the last five years, AMG's EBITDA contribution from alternative strategies has grown from one-third to approximately half. In the last 12 months, total alternatives AUM grew by 14%, with private markets AUM growing by 24% while differentiated long-only AUM remained roughly flat. AMG's nine private markets affiliates now manage $125 billion in client assets and generated $6 billion in net inflows in the second quarter, primarily in private credit and infrastructure. Liquid alternatives flows were flat in the quarter, and differentiated long-only strategies benefited from positive beta and improving industry flow trends, with net outflows in equities and inflows in multi-asset and fixed income.

• Third quarter adjusted EBITDA expected between $210 million and $220 million. • Third quarter economic earnings per share expected to be in the range of $4.68 to $4.91. • For full year 2024, expected to repurchase at least $700 million in shares subject to market conditions and new investment activity.

Q: Alex Blostein asked about momentum in the alt business and lumpy organic growth outlook.

A: Tom Wojcik responded on flow momentum, private markets' strength in infrastructure, credit, etc., liquid alternatives' stabilization and growth potential, and differentiated long-only's positive trends.

Q: Dan Fannon inquired about capital buybacks and new investments.

A: Jay Horgen discussed elevated share repurchases due to excess liquidity, strong business momentum, and balance sheet strength, with Dava Ritchea adding on ample capital flexibility for growth investments and repurchases.

Q: Bill Katz asked about deal pipeline and wealth management distributors.

A: Jay Horgen talked about focus on secular growth areas, transaction size range, and Tom Wojcik discussed U.S. wealth channel investments, product development, and distribution team efforts.

Q: Patrick Davitt asked about intangible noise and catch-up fees.

A: Dava Ritchea stated there was a modest reevaluation event at a small equity method affiliate in Q2 and no catch-up fees in Q2.

Q: Brian Bedell asked about organic growth confidence and wealth distribution costs.

A: Jay Horgen and Tom Wojcik discussed organic growth from private markets and liquid alts, and Tom Wojcik mentioned joint venturing and cost/revenue sharing in wealth distribution.