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    AMG
    Earnings call· Jun 2026(Q2 FY26)

    AFFILIATED MANAGERS GROUP Q2 FY26 earnings call AMG

    Jul 30, 2026 Source

    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

    5

    • 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

    2

    • 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

    8
    CategoryTargetConfidence
    Adjusted EBITDA
    $315 million to $325 million
    high materiality
    High
    Recurring fee-related earnings
    $315 million
    medium materiality
    High
    Net performance fees
    up to $10 million
    medium materiality
    High
    Economic earnings per share
    $8.43 and $8.71
    high materiality
    High
    Full-year share repurchases
    approximately $600 million
    high materiality
    High
    Long-term compound annual growth rate in economic earnings per share
    between 15% and 20%
    high materiality
    High
    Economic earnings per share growth rate
    approximately 40%
    high materiality
    High
    Cumulative free cash flow
    approximate our entire current market capitalization
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    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)
    		————

    Operational metrics

    25
    Adjusted EBITDA
    $316 million44% year-over-year
    Q2 FY26

    Highest second quarter earnings in company history.

    Economic earnings per share
    $8.2954% year-over-year
    Q2 FY26

    Reflecting strength of diversified business and strategy execution.

    Assets under management
    $942 billion7% increase from prior quarter
    Q2 FY26

    Record high AUM, driven by net inflows and market performance.

    Net inflows
    $13 billion
    Q2 FY26

    Company-wide net inflows for the quarter.

    Net inflows
    $56 billion
    LTM

    Company-wide net inflows over the last 12 months.

    Net inflows (Alternatives)
    $29 billion
    Q2 FY26

    Net inflows into higher fee, higher margin alternative strategies.

    Net inflows (Alternatives LTM)
    $100 billion
    LTM

    Net inflows into alternative strategies over the last 12 months, driven by secondary solutions, infrastructure, absolute return, and tax-aware investing.

    Share repurchases
    $189 million
    Q2 FY26

    Repurchases at an elevated pace.

    Share repurchases
    $375 million
    H1 FY26

    Total repurchases in the first half of fiscal year 2026.

    Economic share count reduction
    1.8 million sharesmore than 10% from the prior-year period
    YTD

    Reduced since the beginning of the year due to repurchases and retirement of junior convertible trust preferred securities.

    Capital deployed (Growth Investments & Capital Return)
    $800 million
    H1 FY26

    Total capital allocated in the first 6 months of the year towards growth investments and capital return.

    Fee-related earnings (excl. performance/catch-up)
    $299 million39% year-over-year
    Q2 FY26

    Actual fee-related earnings for Q2, growing due to positive organic growth, investment performance, and margin expansion.

    Net performance fee earnings
    $10 millionincreased $5 million from the prior-year period
    Q2 FY26

    At the high end of guidance range for Q2.

    Incremental fees (catch-up)
    $7 million
    Q2 FY26

    Primarily related to catch-up fees at private market Affiliates.

    Long-only businesses earnings contribution
    35%
    current

    Earnings contribution of long-only businesses within the broader business.

    Alternative businesses earnings contribution
    over 60%
    current

    Earnings contribution of alternative businesses, up from 50% 18 months ago and 35% 5 years ago.

    Liquid alternative organic growth rate (ex-tax-aware)
    over 15%
    LTM

    Supported by both institutional and retail demand.

    Private market Affiliates capital raised
    $8 billion
    Q2 FY26

    Driven by diverse set of Affiliates primarily in infrastructure, secondaries, and specialized areas.

    Liquid alternatives net inflows
    $21 billion
    Q2 FY26

    With contributions from several Affiliates.

    Tax-aware strategies earnings contribution
    just over 10%
    today

    Represents a structural mindset shift in individual investor behavior.

    Revolver maturity extension
    $1.25 billion
    June 2031

    Extended the maturity of the revolver with enhanced pricing and covenant terms.

    New affiliate investments
    $69 billion
    LTM

    AUM increased as a result of new affiliate investments over the last 12 months.

    Capital deployed into growth investments
    $175 million
    H1 FY26

    Deployed into new and existing affiliates in the first half of the year.

    Target returns on new investments
    high-teens returns
    long-term

    Targeted returns for new investments to ensure capital deployment to highest-quality opportunities.

    Check sizes for new investments
    $100 million to $500 million
    current

    Typical check sizes for new investment opportunities, with potential for larger transactions.

    Industry KPIs

    4
    MetricValueDetails
    Fundraising inflows$29 billionUSD
    Performance revenue$10 millionUSD
    Fee related earnings$315 millionUSD
    Deployment realizations—

    Deals & partnerships

    3
    BBH Credit PartnersInvestment in an affiliate

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

    HighBrook InvestorsInvestment in an affiliate

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

    Garda Capital PartnersIncremental minority investment in an existing affiliate

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

    Risks & headwinds

    3
    Headwinds in differentiated long-only businessQ2 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 incomeQ2 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 discussionsEarlier 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

    4

    Alternative strategies earnings contribution

    relatively short order
    Current>60%
    Target70%

    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.

    Q&A highlights

    3

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.