Asked about specific affiliates and strategies seeing the most interest in quant, and if there are any capacity constraints.

Dava Ritchea first provided an overview of AMG's flow profile, emphasizing strong momentum in infrastructure, secondary solutions, absolute return, and after-tax investing, which drove $29 billion in alternative inflows. Jay Horgen then addressed capacity, stating that AMG's large-scale liquid alternative managers have a long track record of managing capacity. He specifically noted that tax-aware strategies, being primarily long-short equities in deep markets like the MSCI World Index or S&P 500, have significant capacity. “in liquid alts, that's a key issue as to how to manage your investment returns and your capacity, our Affiliates have a long-standing track record of doing so.”

Inquired about the nature of the increased deal pipeline, particularly regarding private market firms, and how the current pipeline compares to earlier in the year.

Jay Horgen confirmed a meaningful increase in new investment opportunities since late Q2, setting up a significant pipeline for H2. He attributed this partly to delayed discussions from earlier in the year due to geopolitical uncertainty. He stated AMG is focused on secular growth areas in both private markets and liquid alternatives, noting the rapid shift of AMG's earnings profile to over 60% alternatives (headed to 70%). He highlighted AMG's unique value proposition as a strategic partner preserving independence and targeting high-teens returns on investments, with check sizes typically $100M-$500M. “we have actually seen a meaningful increase in new investment opportunities in our pipeline that began really the tail end of the second quarter. It continues in the third quarter. It's a setup for a pretty significant pipeline for the back half of this year.”

AMG

Affiliated Managers Group (AMG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 30, 2026

Source: earnings call transcript

Executive summary

Affiliated Managers Group, Inc. Q2 FY26 — Record Earnings and Strong Alternative-Led Inflows

AMG reported record Q2 earnings, driven by strong organic growth and a strategic shift towards higher-margin alternative strategies, which now comprise over 60% of earnings. The company continues to deploy capital through accretive investments and significant share repurchases, aiming for sustained long-term economic EPS growth despite some outflows in traditional long-only products. Management anticipates continued momentum in alternatives and a robust pipeline for new investments.

Highlights

Adjusted EBITDA reached $316 million, growing 44% year-over-year.
Economic earnings per share increased 54% year-over-year to $8.29.
Assets under management hit a record $942 billion, driven by net inflows and market performance.
Net inflows totaled $13 billion in the quarter, with higher-fee alternative strategies attracting $29 billion.
Alternatives now account for over 60% of earnings, expected to grow meaningfully over the next 12 months.

Concerns

Differentiated long-only equity strategies experienced net outflows of $14 billion in the quarter.
Multi-asset and fixed income saw net outflows of $2 billion, largely due to seasonal tax payment timing.

Guidance & targets

Category	Target	Timeline	Confidence
Adjusted EBITDA	$315 million to $325 million high materiality	Q3 · FY26	High
Recurring fee-related earnings	$315 million medium materiality	Q3 · FY26	High
Net performance fees	up to $10 million medium materiality	Q3 · FY26	High
Economic earnings per share	$8.43 and $8.71 high materiality	Q3 · FY26	High
Full-year share repurchases	approximately $600 million high materiality	FY26	High
Long-term compound annual growth rate in economic earnings per share	between 15% and 20% high materiality	Long-term	High
Economic earnings per share growth rate	approximately 40% high materiality	FY26	High
Cumulative free cash flow	approximate our entire current market capitalization high materiality	Next 5 to 7 years	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Alternatives This segment's contribution to earnings has grown from 35% five years ago to over 60% currently, with a target of 70%. Driven by secondary solutions, infrastructure, absolute return strategies, and tax-aware investing. Net inflows: $29 billion (Q2 FY26)Net inflows: $100 billion (LTM)Organic growth rate (ex-tax-aware liquid alts): over 15% (LTM)Private markets fundraising: $8 billion (Q2 FY26)	—	—	—	over 60% of earnings
Differentiated Long-Only Equity Experienced headwinds and outflows, but long-term flow trend is improving. Its earnings contribution has decreased to 35%. Net outflows: $14 billion (Q2 FY26)	—	—	—	35% of earnings
Multi-Asset and Fixed Income Outflows largely driven by seasonal money market and short-duration fixed income funds due to tax payment timing. Expected to normalize to modestly net positive organic growth in Q3 FY26. Net outflows: $2 billion (Q2 FY26)	—	—	—	—

Deals & partnerships

BBH Credit Partners Investment in an affiliate

One of the new partnerships completed in the first half of fiscal year 2026.

HighBrook Investors Investment in an affiliate

One of the new partnerships completed in the first half of fiscal year 2026.

Garda Capital Partners Incremental minority investment in an existing affiliate

An incremental minority investment completed in the first half of fiscal year 2026.

Risks & headwinds

Headwinds in differentiated long-only business Q2 FY26

Net outflows of $14 billion in Q2 FY26.

Mitigation:Expect flows to improve over the medium to long term, consistent with improving trend and decreasing earnings contribution (now 35%).

Seasonal outflows in multi-asset and fixed income Q2 FY26

Net outflows of $2 billion in Q2 FY26.

Mitigation:Expected to normalize to modestly net positive organic growth in Q3 FY26; seasonal impact due to tax payment timing.

Geopolitical uncertainty impacting deal discussions Earlier in FY26, shifting to H2 FY26.

Delayed discussions for new investments.

Mitigation:Pipeline has significantly increased in late Q2 and Q3, indicating discussions are resuming.

What to watch in Q3 FY26

Alternative strategies earnings contribution

relatively short order

Current >60%

Target 70%

Why it matters

Demonstrates the continued successful execution of AMG's strategy to shift its earnings profile towards higher-growth, higher-margin alternatives.

our alternative business is at 60%, and we see that 60% going to 70% in a relatively short order.

Find out whether AMG delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquiring about the durability of the tax-aware trend, especially given recent scrutiny, and the overall prospects for liquid alternative strategies.

Jay Horgen explained that tax-aware investing is a structural, secular trend impacting the entire wealth management ecosystem, driven by individual investors' need for after-tax returns. He noted that tax-aware strategies represent over 10% of AMG's earnings and are primarily long-short equities in deep markets with high capacity. He expressed a positive outlook for AQR and highlighted strong demand for liquid alternatives, with AMG's liquid alt organic growth (excluding tax-aware) exceeding 15% over the past 12 months.

“We believe that tax-aware investing, it represents a structural mindset shift in individual investor behavior. And we also see this as a long-term secular trend that continues to strengthen.”

asked by Bill Katz · answered by Jay Horgen

2 min read 5 chapters

Detailed narrative

Strategic Evolution Towards Alternatives

AMG's earnings profile has significantly evolved, with alternatives now constituting over 60% of total earnings, a substantial increase from 50% 18 months ago and 35% five years ago. This proportion is expected to reach 70% in the near term. This shift is driven by accelerating client demand in secondary strategies across private markets, infrastructure, absolute return strategies, and tax-aware investing, leading to enhanced fee rates and margin expansion at key affiliates.

Strong Organic Growth and Net Inflows

The company achieved $13 billion in net inflows for Q2 FY26, with alternative strategies contributing a record $29 billion. Over the last 12 months, alternatives attracted $100 billion in net inflows, primarily from private markets fundraising ($8 billion in Q2) and liquid alternatives ($21 billion in Q2).

This strong flow profile underscores the success of AMG's strategic focus on secular growth areas and is fundamentally changing the composition of its business and earnings profile.

Disciplined Capital Allocation

AMG continued its elevated pace of share repurchases, deploying $189 million in Q2 and $375 million in H1 FY26, which reduced the economic share count by 1.8 million shares year-to-date. Concurrently, the company invested $175 million in new and existing affiliates during H1 FY26, including BBH Credit Partners, HighBrook Investors, and an incremental investment in Garda Capital Partners.

Management emphasizes a disciplined approach, targeting high-teens returns on new investments.

Outlook and Long-Term Growth Targets

For Q3 FY26, management expects adjusted EBITDA of $315 million to $325 million and economic EPS between $8.43 and $8.71, representing approximately 40% growth year-over-year. The company projects a long-term compound annual growth rate in economic EPS of 15% to 20%, supported by a robust balance sheet, approximately $1 billion in annual after-tax free cash flow, and a strong pipeline of new investment opportunities.

Tax-Aware and Liquid Alternatives Momentum

Tax-aware investing, primarily through AQR's long-short equity strategies, represents over 10% of AMG's earnings and is viewed as a durable, structural shift in individual investor behavior. Liquid alternatives, excluding tax-aware strategies, achieved over 15% organic growth over the past 12 months.

This strong demand across institutional and retail clients is driven by the need for diversification, liquidity, and less correlated return streams in complex market environments.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.