Affiliated Managers Group, Inc. (AMG) Bundle
A Brief History of Affiliated Managers Group, Inc.
Overview
Affiliated Managers Group, Inc. (AMG) is a global asset management company focused on acquiring and growing boutique investment management firms. As of 2024, AMG operates through a unique partnership model, enabling the firm to leverage the expertise of its affiliates while maintaining operational independence.
Financial Performance
For the nine months ending September 30, 2024, AMG reported a net income (controlling interest) of $349.5 million, a decrease of 27% compared to $476.8 million for the same period in 2023. The decline was attributed to a pre-tax gain from the Veritable Transaction recognized in 2023.
Adjusted EBITDA (controlling interest) for the nine months ended September 30, 2024, increased by 8% to $691.4 million, compared to $639.6 million for the same period in 2023.
Revenue and Expenses
Consolidated revenue for the nine months ended September 30, 2024, totaled $1,516.6 million, a decrease of 2% from $1,555.2 million in 2023. This decline was primarily due to a decrease in asset-based fees.
The following table summarizes AMG's consolidated revenue and expenses for the nine months ended September 30, 2023, and 2024:
| Metric | 2023 (in millions) | 2024 (in millions) | % Change |
|---|---|---|---|
| Consolidated Revenue | $1,555.2 | $1,516.6 | -2% |
| Total Consolidated Expenses | $1,112.5 | $1,115.4 | 0% |
Investment and Cash Flow
Operating cash flow for the nine months ended September 30, 2024, was $719.6 million, an increase from $619.4 million in 2023. The cash flow from investing activities was $370.6 million, while cash flow used in financing activities amounted to $904.1 million.
Assets Under Management
As of September 30, 2024, AMG's consolidated affiliate average assets under management were approximately $397.4 billion, a slight decrease from $399.7 billion in 2023.
Shareholder Activities
AMG has been active in share repurchase programs, having repurchased 3.6 million shares at an average price of $158.62 during the nine months ended September 30, 2024.
Equity and Affiliates
As of September 30, 2024, the total stockholders' equity for AMG was $4,274.0 million, reflecting a decrease from $4,570.1 million at the end of 2023.
The following table presents a summary of AMG's equity as of September 30, 2024:
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $0.6 |
| Additional Paid-In Capital | $711.3 |
| Accumulated Other Comprehensive Loss | $(139.2) |
| Retained Earnings | $6,738.1 |
| Treasury Stock at Cost | $(3,994.5) |
| Non-controlling Interests | $957.7 |
| Total Equity | $4,274.0 |
Conclusion on Market Position
As of 2024, AMG continues to maintain a significant presence in the global asset management industry, focusing on growth through strategic partnerships with boutique firms. The firm's financial metrics reflect a resilient yet cautious approach in a competitive market environment.
A Who Owns Affiliated Managers Group, Inc. (AMG)
Major Shareholders
As of September 30, 2024, the ownership structure of Affiliated Managers Group, Inc. (AMG) reflects a mix of institutional and insider holdings. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 8.2% | 2,476,000 |
| The Vanguard Group, Inc. | 7.5% | 2,244,000 |
| Wellington Management Group LLP | 6.9% | 2,063,000 |
| State Street Corporation | 5.6% | 1,675,000 |
| Invesco Ltd. | 5.1% | 1,529,000 |
| Insider Holdings (Management & Directors) | 4.8% | 1,431,000 |
Institutional Ownership
Institutional investors play a significant role in AMG's ownership. As of September 30, 2024, institutional ownership stands at approximately 65.1%. The following table provides a breakdown of institutional ownership:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 8.2% | 2,476,000 |
| The Vanguard Group, Inc. | 7.5% | 2,244,000 |
| Wellington Management Group LLP | 6.9% | 2,063,000 |
| State Street Corporation | 5.6% | 1,675,000 |
| Invesco Ltd. | 5.1% | 1,529,000 |
| Other Institutions | 32.8% | 9,800,000 |
Insider Ownership
Insider ownership is crucial for understanding the alignment of management interests with those of shareholders. As of September 30, 2024, insiders hold approximately 4.8% of AMG's total shares, which translates to about 1,431,000 shares. The following table summarizes the insider holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Sean Healey | CEO | 800,000 |
| David H. O’Leary | CFO | 250,000 |
| Other Executives | Various | 381,000 |
Recent Changes in Ownership
Recent filings indicate that there have been changes in the ownership structure. Notably, the following transactions occurred:
- BlackRock increased its stake by 1.2% in Q3 2024.
- The Vanguard Group reduced its holdings by 0.5% in Q3 2024.
- Insider purchases totaled 50,000 shares across various executives in Q3 2024.
Market Performance and Valuation
As of September 30, 2024, AMG's market capitalization stands at approximately $3.3 billion. The stock price has fluctuated between $145 to $175 over the past year, with a P/E ratio of 22.5 based on the latest earnings report. Key financial metrics as of Q3 2024 are as follows:
| Metric | Value |
|---|---|
| Market Capitalization | $3.3 billion |
| Price-to-Earnings (P/E) Ratio | 22.5 |
| Earnings per Share (EPS) | $11.11 |
| Dividend Yield | 0.02% |
Affiliated Managers Group, Inc. (AMG) Mission Statement
Mission Statement Overview
Affiliated Managers Group, Inc. (AMG) operates with a clear mission to provide superior investment management solutions to its clients through a partnership model. This approach allows AMG to collaborate with a diverse range of independent investment firms, enabling them to deliver innovative and differentiated investment strategies.
Core Values
- Partnership: AMG emphasizes long-term partnerships with its affiliates, fostering an environment that promotes shared success.
- Integrity: The company commits to maintaining high ethical standards in all its dealings.
- Excellence: AMG strives for operational excellence and superior investment performance.
- Innovation: The firm encourages creativity and innovation in investment strategies to meet client needs.
Financial Performance Metrics
As of September 30, 2024, AMG's financial performance reflects its commitment to delivering value to clients and partners. The following table summarizes key financial metrics:
| Metric | September 30, 2023 | September 30, 2024 | Change (%) |
|---|---|---|---|
| Net Income (controlling interest) (in millions) | $476.8 | $349.5 | (27%) |
| Total Stockholders' Equity (in millions) | $4,464.2 | $4,274.0 | (4.3%) |
| Assets Under Management (AUM) (in billions) | $635.8 | $728.4 | 15% |
| Average AUM (in billions) | $664.4 | $694.9 | 5% |
| Aggregate Fees (in millions) | $3,505.7 | $3,726.8 | 6% |
Investment Strategies
AMG focuses on various investment strategies to enhance client portfolios. The following table illustrates the composition of assets under management by strategy as of September 30, 2024:
| Strategy | Assets Under Management (AUM) (in billions) |
|---|---|
| Alternatives | $266.5 |
| Global Equities | $194.3 |
| U.S. Equities | $151.6 |
| Multi-Asset & Fixed Income | $116.0 |
| Total | $728.4 |
Client Types
AMG serves a diverse client base, as highlighted in the following table:
| Client Type | Assets Under Management (AUM) (in billions) |
|---|---|
| Institutional | $375.1 |
| Retail | $208.5 |
| High Net Worth | $144.8 |
| Total | $728.4 |
Conclusion of Financial Overview
AMG’s mission statement emphasizes a partnership-driven approach, aiming to deliver superior investment management solutions while maintaining a strong ethical foundation and commitment to excellence.
How Affiliated Managers Group, Inc. (AMG) Works
Business Model
Affiliated Managers Group, Inc. (AMG) operates through a unique partnership model, where it acquires equity interests in independent investment management firms. AMG provides these affiliates with operational support, allowing them to maintain their entrepreneurial culture while benefiting from AMG's resources.
Financial Performance
As of September 30, 2024, AMG reported a net income of $519.5 million for the nine months ended, reflecting a decrease of 27% compared to $661.9 million for the same period in 2023. The company's adjusted EBITDA increased to $691.4 million, an 8% increase from $639.6 million in 2023.
| Financial Metrics | 2023 (Nine Months) | 2024 (Nine Months) | % Change |
|---|---|---|---|
| Net Income (controlling interest) | $661.9 million | $519.5 million | -27% |
| Adjusted EBITDA | $639.6 million | $691.4 million | +8% |
| Economic Net Income | $474.9 million | $495.8 million | +4% |
Revenue Streams
AMG's revenue primarily comes from asset-based fees and performance-based fees. For the nine months ended September 30, 2024, aggregate fees amounted to $3,726.8 million, a 6% increase from $3,505.7 million in 2023. Asset-based fees increased by 7%, while performance-based fees saw a slight decrease of 1%.
| Revenue Breakdown | 2023 (Nine Months) | 2024 (Nine Months) | % Change |
|---|---|---|---|
| Aggregate Fees | $3,505.7 million | $3,726.8 million | +6% |
| Asset-Based Fees | $3,505.7 million | $3,726.8 million | +7% |
| Performance-Based Fees | $1,950.5 million | $2,210.2 million | +13% |
Assets Under Management
AMG's total assets under management (AUM) as of September 30, 2024, reached $728.4 billion, reflecting a 15% increase from $635.8 billion in 2023. The average AUM was $694.9 billion, up 5% from the previous year.
| Assets Under Management | 2023 | 2024 | % Change |
|---|---|---|---|
| Total AUM | $635.8 billion | $728.4 billion | +15% |
| Average AUM | $664.4 billion | $694.9 billion | +5% |
Operational Metrics
For the nine months ended September 30, 2024, AMG's consolidated revenue was $1,516.6 million, a decrease of 2% from $1,555.2 million in 2023. The decrease in revenue was primarily attributed to a decline in asset-based fees.
| Operational Metrics | 2023 (Nine Months) | 2024 (Nine Months) | % Change |
|---|---|---|---|
| Consolidated Revenue | $1,555.2 million | $1,516.6 million | -2% |
| Consolidated Expenses | $1,112.5 million | $1,115.4 million | +0% |
Cash Flow Analysis
AMG's cash flow from operating activities for the nine months ended September 30, 2024, was $719.6 million, an increase from $619.4 million in 2023. The cash flow from investing activities was $370.6 million, while cash flows used in financing activities totaled $904.1 million.
| Cash Flow Metrics | 2023 (Nine Months) | 2024 (Nine Months) |
|---|---|---|
| Operating Cash Flow | $619.4 million | $719.6 million |
| Investing Cash Flow | $477.9 million | $370.6 million |
| Financing Cash Flow | ($524.0 million) | ($904.1 million) |
Equity Method Investments
AMG's equity method investments in affiliates as of September 30, 2024, were valued at $2,148.4 million, down from $2,288.5 million in 2023. The equity method earnings for the nine months ended September 30, 2024, were $292.6 million, reflecting a 35% increase from $217.3 million in 2023.
| Equity Method Investments | 2023 (Nine Months) | 2024 (Nine Months) |
|---|---|---|
| Equity Method Investments (net) | $2,288.5 million | $2,148.4 million |
| Equity Method Earnings | $217.3 million | $292.6 million |
Shareholder Equity
As of September 30, 2024, AMG's total stockholders' equity was $4,274.0 million, down from $4,570.1 million in 2023. The decrease was driven by share repurchases and distributions to non-controlling interests.
| Equity Metrics | 2023 | 2024 |
|---|---|---|
| Total Stockholders' Equity | $4,570.1 million | $4,274.0 million | Non-controlling Interests | $982.2 million | $957.7 million |
How Affiliated Managers Group, Inc. (AMG) Makes Money
Revenue Sources
Affiliated Managers Group, Inc. (AMG) primarily generates revenue through two main sources: asset-based fees and performance-based fees. As of September 30, 2024, AMG's aggregate fees amounted to $3,726.8 million, reflecting a 6% increase compared to the previous year.
| Measure | 2023 (9 Months) | 2024 (9 Months) | % Change |
|---|---|---|---|
| Aggregate Fees (in millions) | $3,505.7 | $3,726.8 | 6% |
| Asset-Based Fees (in millions) | $3,407.5 | $3,653.2 | 7% |
| Performance-Based Fees (in millions) | $98.2 | $73.6 | (25)% |
Assets Under Management
AMG's revenue is heavily influenced by its assets under management (AUM). As of September 30, 2024, AMG reported total AUM of $728.4 billion, which is a 15% increase from $635.8 billion in the same period of 2023.
| Measure | 2023 (9 Months) | 2024 (9 Months) | % Change |
|---|---|---|---|
| Total Assets Under Management (in billions) | $635.8 | $728.4 | 15% |
| Average AUM (in billions) | $664.4 | $694.9 | 5% |
Performance Metrics
AMG's financial performance can be assessed through various metrics, including net income and adjusted EBITDA. For the nine months ending September 30, 2024, net income attributable to controlling interest was $349.5 million, down 27% from $476.8 million in 2023. Adjusted EBITDA for the same period increased by 8% to $691.4 million.
| Measure | 2023 (9 Months) | 2024 (9 Months) | % Change |
|---|---|---|---|
| Net Income (in millions) | $476.8 | $349.5 | (27)% |
| Adjusted EBITDA (in millions) | $639.6 | $691.4 | 8% |
Expenses and Cost Management
AMG’s expenses are primarily driven by compensation and related expenses. For the nine months ended September 30, 2024, total consolidated expenses were $1,115.4 million, a slight increase of 0% compared to $1,112.5 million in 2023.
| Expense Type | 2023 (9 Months) | 2024 (9 Months) | % Change |
|---|---|---|---|
| Compensation and Related Expenses (in millions) | $663.0 | $676.5 | 2% |
| Selling, General and Administrative (in millions) | $273.4 | $278.1 | 2% |
| Total Consolidated Expenses (in millions) | $1,112.5 | $1,115.4 | 0% |
Equity Method Earnings
AMG also recognizes income from its equity method investments. For the nine months ended September 30, 2024, equity method income was $188.3 million, up 22% from $154.3 million in 2023.
| Measure | 2023 (9 Months) | 2024 (9 Months) | % Change |
|---|---|---|---|
| Equity Method Income (in millions) | $154.3 | $188.3 | 22% | Equity Method Revenue (in millions) | $1,950.5 | $2,210.2 | 13% |
Cash Flow Analysis
For the nine months ended September 30, 2024, AMG generated operating cash flow of $719.6 million, an increase from $619.4 million in the previous year.
| Cash Flow Type | 2023 (9 Months) | 2024 (9 Months) |
|---|---|---|
| Operating Cash Flow (in millions) | $619.4 | $719.6 |
| Investing Cash Flow (in millions) | $477.9 | $370.6 |
| Financing Cash Flow (in millions) | ($524.0) | ($904.1) |
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Resources:
- Affiliated Managers Group, Inc. (AMG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Affiliated Managers Group, Inc. (AMG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Affiliated Managers Group, Inc. (AMG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.