Affiliated Managers Group (AMG) Delivers Record First Quarter 2026 Results, Driven by Alternative Strategies and Strategic Investments

Key Financial and Operating Highlights

• Diluted EPS: \$3.84, up from \$2.20 year-over-year (74% increase)
• Economic EPS: \$8.23, representing a 58% year-over-year increase
• Net income (controlling interest): \$110.4 million, up from \$72.4 million in Q1 2025
• Economic net income (controlling interest): \$224.6 million, up from \$158.7 million
• Adjusted EBITDA (controlling interest): \$317.3 million, up from \$228.2 million (39% increase)
• Record Assets Under Management (AUM): \$882 billion as of March 31, 2026 (up from \$712.2 billion at Q1 2025 end)
• Record net client cash flows: \$22.5 billion for the quarter; \$52 billion net inflows over last 12 months (7% organic growth rate)
• Aggregate fees: \$1.91 billion for Q1 2026, compared to \$1.27 billion in Q1 2025
• Approximately \$186 million in common stock repurchased in the quarter
• First quarter cash dividend declared: \$0.01 per share, payable May 26, 2026

CEO Comments and Strategic Direction

Jay C. Horgen, President and CEO, attributed the strong performance to broad-based demand for AMG’s Affiliates’ liquid alternative and private markets strategies, resulting in record inflows and solid organic growth. Horgen emphasized AMG’s disciplined capital allocation and ongoing investments in high-growth, secular demand areas. The Company reported four consecutive quarters of strong inflows, and its focus remains on partnering with and investing in independent, high-quality investment management firms.

Notable Strategic Transactions

• BBH Credit Partners Acquisition (January 2026): AMG completed its investment in Brown Brothers Harriman’s taxable fixed income and credit franchise, including its structured credit platform.
• HighBrook Investors Partnership (February 2026): Entered a new partnership with this private markets manager specializing in thematic real estate opportunities.
• Additional Investment in Garda Capital Partners: Increased stake in this leading liquid alternatives manager focused on fixed income relative value strategies.

Assets Under Management Breakdown (as of March 31, 2026)

Capital Management and Balance Sheet Strength

• AMG repurchased \$186 million of its own common stock in Q1 2026, demonstrating confidence in the business and commitment to shareholder value.
• Cash and cash equivalents stood at \$376.1 million as of March 31, 2026, versus \$586.0 million at the end of 2025, reflecting capital deployment activity.
• Total debt increased to \$2.92 billion from \$2.69 billion at year-end 2025, in line with ongoing investment activity.
• Stockholders’ equity was \$3.09 billion at quarter-end, compared to \$3.24 billion as of December 31, 2025, with total equity at \$3.98 billion.

Key Metrics and Shareholder-Relevant Developments

• Strong organic growth and record inflows: Continued secular demand for alternatives and private markets, with liquid alternatives and private credit as major drivers.
• Significant capital allocation: Recent investments in BBH Credit Partners and HighBrook Investors are expected to further broaden AMG’s product set and growth profile.
• Improved profitability: Substantial year-over-year increases in all major non-GAAP and GAAP earnings measures, supporting potential for share price appreciation.
• Share repurchases: The \$186 million buyback in Q1 represents meaningful capital return and could have a positive impact on share value.
• Dividend declared: While the dividend remains symbolic at \$0.01 per share, it signals continued stable capital management.

Forward-Looking Statements and Risks

Management remains confident in AMG’s ability to continue generating strong cash flows and delivering shareholder value through both organic growth and strategic investments. However, the company notes that forward-looking statements are subject to risks including market volatility, competition for acquisitions, regulatory changes, and investment performance of Affiliates. Investors are urged to review risk disclosures in AMG’s SEC filings.

Conference Call and Additional Information

AMG will hold a conference call at 8:00 a.m. ET on May 1, 2026. Interested parties may dial in or access the webcast via the company’s investor relations site. A replay will be available.

Conclusion: Potential Share Price Sensitivity

The record-breaking AUM, exceptional net inflows, strong earnings growth, and ongoing strategic investments all represent significant positive developments for AMG shareholders. The capital return via share repurchases and strategic positioning in alternative investments are likely to be viewed favorably by the market and could drive share price appreciation, barring any adverse macroeconomic or market events.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial figures are as reported by Affiliated Managers Group for the first quarter of 2026. Investors should review official filings and consult their financial advisors before making investment decisions. Past performance is not indicative of future results.

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