10-Q: AMG Reports Strong Q2 2026 Growth in AUM and Revenue

Affiliated Managers Group, Inc. (AMG) announced a substantial increase in assets under management and revenue for the second quarter of 2026, driven by strong performance across its diverse investment strategies.

Summary

• Affiliated Managers Group (AMG) reported significant financial and operational growth for the second quarter and first half of 2026.
• Assets under management (AUM) reached $942.4 billion as of June 30, 2026, a 22% increase year-over-year.
• Consolidated revenue for Q2 2026 was $640.7 million, up 30% from Q2 2025, and $1,185.6 million for the first half, up 20% year-over-year.
• Net income (controlling interest) for Q2 2026 was $185.9 million, a substantial increase from $84.3 million in Q2 2025.
• The company completed several strategic investments in new Affiliates, including BBH Credit Partners, Garda Capital Partners LP, and HighBrook Investors.
• Adjusted EBITDA (controlling interest) for Q2 2026 increased by 44% to $316.0 million.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this filing positively due to strong revenue growth, significant increases in assets under management, and robust net income growth, indicating effective strategic execution and market demand for its services.

Positives

• Assets under management (AUM) grew to $942.4 billion, a 22% increase year-over-year, indicating strong client demand and market appreciation.
• Consolidated revenue saw a significant 30% increase in Q2 2026 to $640.7 million, and a 20% increase for the first half of the year.
• Net income attributable to controlling interest surged by 89% for the first half of 2026 to $296.3 million.
• Equity method revenue, net, increased by 50% in Q2 2026 and 64% for the first half, demonstrating strong performance from equity method affiliates.
• Strategic investments in new Affiliates (BBH Credit Partners, Garda Capital Partners LP, HighBrook Investors) are expected to contribute to future growth.
• The company successfully managed its debt structure, with a weighted average maturity of 22 years for senior and junior subordinated notes.

Negatives

• Investment and other income decreased by 45% in Q2 2026 to $13.9 million, primarily due to lower net realized and unrealized gains on other investments.
• Intangible amortization and impairments for consolidated Affiliates decreased by 37% in the first half of 2026, largely due to a significant decrease in impairment charges compared to the prior year's first half, which included a large impairment charge.
• Other expenses (net) increased by 60% for the first six months of 2026, largely due to expenses related to the settlement of junior convertible securities conversions.

Risks

• The company's financial condition, business activities, results of operations, cash flows, or overall financial performance could be affected by various risks and uncertainties as detailed in its Form 10-K.
• Market appreciation and client demand are key drivers of AUM and revenue; adverse market conditions could negatively impact these metrics.
• The company is subject to regulatory authorities that require the maintenance of minimum financial or capital requirements.

Future Outlook

The company anticipates continued growth by investing in new and existing Affiliates, expanding its strategic capabilities, and expects its business mix to further evolve and diversify, increasing exposure to in-demand private markets and liquid alternatives strategies.

Management Comments

• AMG is a strategic partner to leading independent investment firms globally.
• Our strategy is to generate long-term value by investing in high-quality independent partner-owned firms, which we refer to as Affiliates, through a proven partnership approach, and allocating resources across our unique opportunity set to the areas of highest growth and return.
• We continue to see client demand for alternative strategies; broad-based demand for our Affiliates liquid alternative and private markets strategies generated strong net inflows in the quarter, while our Affiliates equity strategies experienced net outflows in line with trends across the industry.

Industry Context

StockSavvy.ai notes that AMG's performance aligns with a broader industry trend of increasing demand for alternative and private markets strategies, while traditional equity strategies face outflows, reflecting a shift in investor preferences towards diversification and potentially higher returns offered by less traditional asset classes.

Comparison to Industry Standards

• AMG's AUM growth of 22% year-over-year outpaces many traditional asset managers, reflecting the strong demand for alternative and differentiated strategies.
• The company's revenue growth of 30% in Q2 2026 is robust, especially considering the industry-wide net outflows in equity strategies.
• The performance of private markets and liquid alternatives strategies, which represent a significant portion of AMG's AUM, shows strong client inflows and market appreciation, indicating competitive positioning within these segments.
• While specific competitor data is not provided, AMG's ability to attract and retain capital in its chosen strategies suggests it is performing well relative to peers focused on similar investment areas.

Related Party Transactions

• Deferred and contingent payment obligations related to investments in Affiliates.
• Affiliate equity transactions, including purchases and issuances of equity interests.
• Tax distributions to partners subject to clawback from funds of consolidated Affiliates.
• Interests retained by a prior owner of a consolidated Affiliate in private equity partnerships.
• Investments by executive officers and directors in funds advised by Affiliates.
• Fees earned and expenses incurred for services provided to Affiliate-sponsored investment products.
• Service of Affiliate management owners and company officers as trustees or directors of investment vehicles.

Stakeholder Impact

• Shareholders: Potential for increased value through revenue and net income growth, share repurchases, and strategic investments.
• Employees: Continued focus on share-based compensation and Affiliate equity expense suggests ongoing investment in human capital.
• Clients: Continued demand for alternative and private markets strategies indicates client satisfaction and trust in AMG's offerings.
• Creditors: Company maintains an investment-grade rating and manages its debt structure with a long weighted average maturity.

Next Steps

• Continue to invest in high-quality independent partner-owned firms (Affiliates).
• Allocate resources to areas of highest growth and return.
• Support Affiliates' independence and long-term success through strategic capabilities.
• Further evolve and diversify business mix, expanding exposure to private markets and liquid alternatives.

Key Dates

Recommendation

The filing shows strong operational and financial performance with significant growth in AUM and revenue, alongside robust net income. However, the decrease in investment and other income and the increase in certain expenses warrant a cautious approach. While the company is executing well on its strategy, the current economic environment and potential for market fluctuations suggest a 'hold' rating until further clarity on sustained growth and margin expansion is observed.

Keywords

Asset Management, Investment Firms, Private Markets, Liquid Alternatives, Equity Method Investments, Consolidated Revenue, Assets Under Management, Financial Performance