Affiliated Managers (MGR) 1 Nov 212021 Q3 Earnings call transcript

Greetings, and welcome to the AMG Third Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Anjali Aggarwal, Head of Investor Relations for AMG. Thank you.

You may begin.

you the us third thank AMG’s to and for results quarter morning for today joining discuss Good of XXXX.

I’d may of obligation to with begin, this results materially differ we like these assumes you actual remind Before no AMG of that release be available from call, including our we statements, guidance statements. section make non-GAAP website, forward-looking along Relations number and measures, on update of earnings our reconciliation and Investor a which will could to a the call during any of A today’s replay announced any call. of financial on a copy our earnings the

investor to are Jay In results that, for that Officer I website will to quarter regularly our to and discuss for the Wojcik, information. the and over consult With President addition, and an Financial this us Jay. With the Tom at we Chief call updated updated company’s today presentation Executive Chief encourage posted Horgen, morning investors turn to Officer.

good and theme XXXX Anjali in AMG pleased morning we a continues to are at our and excellent everyone. with results. be Growth Thanks,

quarter third strategy, includes in the growth share XX% the Against per of with flows, generated quarter consistent again execution improving AMG which continued operating and in in of strongest year-over-year history. earnings third attractive of our new our affiliates supporting our $X, areas economic affiliates. existing reflects partnering growth EBITDA the strong of Our representing growth the backdrop and of

strong believe increase quality portfolios to profile financial where secular inflation, the has is in investing to seeing contributed their desire our performance prospect Further, AMG’s results impact is opportunity and and rising strategy behavior, and an to an areas fixed demand year-to-date asset organic changes high, have this through as ESG. position focused Our fee specialty today’s growth government growth, Asia active wealth allocations levels, clients and active requires to of for performance These improving they client investing. are investment approach higher shifts increasing income, the highest including behavioral in year. environment address we excellent management, of profile the managers achieve affiliates’ markets, generation. in on We and sustainable resulted an private improving in

And that in in strategic and in will we team to Since XXXX, operating affiliates of XXXX. demand, approximately affiliates, expect has capital up affiliates and AMG these overall alongside impact our composition growth our collective strategy. freeing growth redeploy changing actions The at both these work our profile. has manifesting X EBITDA not we evolving As management X sustainable new toward simultaneously our we our this Executing growing impact in-demand had business this we have with on the have an execute on impact And prospects. affiliates, time, are have on over towards significant are earnings, strategy, business new growing partnered dedicated long-term composition we year industry. shift alone, our growth elements all strategies. will resources and our repositioning collectively contribute added will X and of and secular completed and flows increasing a across our ongoing only in private we strategy investings. markets X is and $XXX X reshaping strong areas fast to our in further into segments including of This million this of

investors been managers investments, most months. one independent of active XX in the over new to has AMG the Turning asset past

AMG’s demand ahead, partnership favorable firms. and approach transaction investment confident And our is solutions. partner unique competitive ability opportunity quality for execute we looking owned position the set partnership investment resonating strong highest to increasing with new Our on environment, are in the our our given

estate Ellis high-quality Kyle multifamily are seeking an strategic AMG’s Capital proven objectives. to differentiate AMG is Abacus to excellent industry. be and and a a demand as we planning their fast partnership core working continues will were for Ben ability opportunities and has real in business and Succession transactions to approach growth operational businesses segment continue Ben strategic Notably, quarter, and forward invest to oriented AMG’s solutions autonomy capital is and them founder-led culture we attractive strong together market on and were estate, With and a approach, forward AMG’s of with firms. solutions where capabilities, permanent illiquid their leading and look build partner place business. his take in a entrepreneurial continue private Group enduring, with may seeking preserves independent strategic incentive planning. of multigenerational partners, been and team with offer were the partner independent prospects our partnership affiliate, attracted are to lifecycle the partner in towards component newest real and alignment Abacus to stage our seeing structural our an their our pleased with partnership to Friedman, enables uniquely During which to Many managers to welcome them to institutional real and leadership reaching succession estate now and demographically-driven approach attractive. a growing,

also secular through the affiliates opportunities. business within development same new to existing distribution in growth investing addition product with affiliates, on are In collaborating evolving and of many our we

distribution we For areas repositioning AMG towards the on demand. example, product the focus the quarter, platform, completed wealth evolution of our an growing of with offering second in overall in Funds, U.S.

in we our to evolution, and the result Asian previously a an equities, adding of now evolving this market. are mix distribution product capital ESG opportunities. product this available income As not And and of resources we lineup, fixed U.S. including support efforts in and forward offer strategic the enhanced equities, specialty

and affiliates in differentiate with especially and in strategies, Recently, developing, alternatives, continue alternatives, our development of supported expand overall and We our which again, these launching we will Pantheon, additional PFM Artemis and consistent and the focus liquid Pantheon markets product they forward. track suite on for continue their our further illiquid seating ESG leading to in-demand strategies, including as secular AMG market which going both their on vehicle, in side, of growth recently a fund. dedicated build investor of late-stage introduced their PFM a filed a equity leveraging base areas. innovation, growth strong their position listed to markets provider long-term as within to private fund solutions. will has expand infrastructure record flagship healthcare has further investing private private

sustainable fund central These can the its launched how lift team. strategic out its seed equities Artemis all future of great capital are global examples Additionally, AMG’s of following and positive capabilities of conversations today areas an demand. client focus is client affiliates stewardship. in increasing across desire on for A the support our meaningfully of all and increasing active consistent sustainable theme our recent

as said clients that engage I an best become evolving generate requires have increasingly is managers, client sustainable excellent high-quality of especially are investing. well-positioned highest independent passive across an among impact to from to positioned are active affiliates through the strategies. environment. not managing we number highly has AMG complex AMG As believe a differentiated their managers before, positive our world, forecast through the managers performance in are to and to also replicable worldwide. and and environment approach increasingly difficult deliver in-demand and investing communities quality Simultaneously, Affiliates outcomes in active given firms, are benefit the active active investors benefiting that independent

over and the in continues I’ve been our build. quarters several to the describing business that past momentum strength Finally,

for significant see to continued we strategy secular forward, as we increase Looking growth and growth our our opportunity execute areas. exposure

our execution details review this consistent strategic by existing this quarter. with time. of the We capabilities. to of the with repurchases, and new the earnings affiliates shareholder will together And in as leveraging to do significant will invest And turn over continuing we share value that, through further I AMG’s create to compound it and as will well Tom over strategy,

Thank you, everyone. Jay and good morning

towards quarter for AMG evolve performance, as areas. continue business third strong XX%. growth demonstrate share earnings mix we secular Our excess unique organic growth, of net to consecutive our our growth And and of the investments delivered investment AMG’s repurchases attributes continue inflows third growth. combined affiliate of produce invest Strong results in year-over-year to to we quarter as model affiliate

include adjusted for strategies. $X.X billion, quarter, These quarter quantitative of per and EBITDA $X. earnings cash Parnassus, Net were $XXX client strong not year-over-year private October. million markets, fixed specialty in wealth Overall, XX% by net ESG. the from share totaled excluding certain closed inflows and billion inflows do driven $X.X inflows the early which income, For areas, and including results management net growing from grew economic contributions fast were

our enhancing continue fundraising alternative we Abacus, existing Pantheon and by strategies. Turning profile in of to strong alternatives, excluding partnerships, and performance our partnership affiliates strong across management continue levels managers, strategies with private including significant which very our new certain focused and expect fee recently $X.X be Baring to remains we Asia, billion. increasing, to market Client and to Performance investing In category quarter. close business totaling the to class inflows business. the allocations net long-term announced markets and upside in see performance asset earnings a source potential of fourth through Comvest we on including the our and in for illiquid our represents are private affiliates quantitative across this exposure with

performance performance were market source inflows and continues firms like across client seen be the and demand against a ValueAct, $X.X volatility. Capula net strong backdrop outstanding a category of alternatives, we given liquid This fees to growth of Garda. investment trends heightened representing the Turning the significant have billion, Systematica, to continuation of

to are billion, X the to for XX% equities, confident dispersion our and Moving differentiated managers, strategies Sales assets X-year X-year in a net to clients. net is category asset outflows outflows global benchmarks U.S. affiliates, basis. heightened $X.X billion. Performance the of of highest and outperforming active value on volatility benchmark excellent, present outperforming two-thirds basis. activity and proposition improvement our a than with equities, to more of second versus on be deliver We market favorable an opportunity their including a remain this strong quarter. we reported that Within quality experienced continues of $X.X we a

for further demand Parnassus And multi-asset and $XXX wealth. are finally, income, of the as generated high million equity With like in U.S. going toward see we we inflows growth tilting forward. our continue areas addition fixed in we ESG, of steady client category to well-positioned growth

economic on the power includes earnings performance grew per which in XX% $X. year-over-year for our million EBITDA fees markets These new adjusted Turning performance and of$XXX investments. quarter, million, recent strong by to affiliate third earnings results totaled gains from and investments, $XX financials, affiliate and driven were share net strategic additional of

Friday. of $XXX Now impact the of moving $XX our to to the range levels, X% fee AUM range higher blend specific through to to EBITDA of reflect guidance market quarter. quarter, approximately full the This Parnassus $XXX which current million fourth items in performance and a in seasonally up million the fourth on $XXX includes million million adjusted based be modeling for we expect

Taken recent performance in expected alternative strategies. performance, total, are particularly versus XXXX investment history, given fees liquid affiliate strong be very to within excellent

for $X of million the interest the we a the we expense at share level. third to expense quarter was depreciation fourth $XX to interest quarter. was similar million the expect fourth a Controlling be quarter interest Our similar in and quarter expect at level remain in third and

third recent Our the and $XX new in for activity. of fourth and quarter, amortization be share million approximately to expect reported reflecting the we impairments it $XX million was quarter investment

XX% were these GP And quarter negative be GAAP the this purposes, tax approximately GAAP any $XX economic the expected related tax taxes to were million third the items effective to cash $XX quarter. XX% Our fourth excluding fourth mark-to-market are quarter. third and quarter. remain seed quarter, be levels. cash deferred in were and and expect $X economic for at $X.X Intangible and Other respectively, to rates million modeling In items rates we expect million. on we other million for impact the for and

and quarter million, Our average approximately expect to share count we be our the count fourth $XX.X million adjusted quarter. third share weighted for the was for $XX.X

we a sheet strategy source and capital our to Finally, execute return and our of growth strength allocation, turning capital as to cash the significant remain and on balance balance shareholders. generation sheet

approach by of sheet recently most and extension balance evidenced junior to our This enhanced was duration, hybrid and building bond $XXX million improving XX-year we’ve flexibility X-year issuing significant our our growth support we in be growth. years, a extending our and million $X.XX on loan. execute to to our On to credit allocation, to we invest support set continue $XXX term billion will disciplined opportunity facility as our strategy. few past the by completing Over capacity a look capital

we $XXX returning committed expect fourth conditions third to excess We million. also our investments. through repurchased remain cash million and the quarter, In share in total shares $XXX of to new to repurchases. quarter, million shareholders to year-to-date the to shares, repurchase we of bringing $XXX And market subject approximately

earnings reinforce deployment we results our investments share strong affiliate and can and growth ways the capital differentiated ongoing This growth, compound through business to investment momentum of organic performance, quarter’s repurchases.

power earnings drives and well trend toward as of areas flow an positioned continued our of growth, portion forward, higher. increasing generate time. cash to secular And value to our Looking sustainable business shareholder are we free our over strategy

Now questions. we are to your happy take

Instructions] Citi. your Katz of question. with [Operator first the proceed line Bill you. Our Thank with comes question Please, from

Okay. Thank taking democratization repositioning in big pretty two one you’ve retail in if to wondering for for maybe to alternatives? take you’ve was the together what guidance. alternatives. advantage of and you I your very footprint. retail sort perhaps, updated identifying sort opportunity could to you’re of questions how maybe the for about the also a blending much of seems you the opportunity be early And been been you certainly Jay, talk

Yes. Thanks, And morning to you. good Bill.

been Act collective a We channel. within opportunity, illiquid fund, X-year-old for AUM. marketing of a six introducing, now wealth have generally, think that alternatives. alternatives is in we Today, fund. big were we particular, in wealth think, accounts And early billion trusts we into I wealth alternatives. in big extending And and channel dedicated with in also this $XXX other affiliates We the some in also to early, and done reach And of Pantheon for our the terms affiliates particular, XX opportunity a channel. about have have a us our for the do investment

We’re here. really just beginning

additional I channel. through capital where development that and we’re look that as as our seed we And iCapital in with into product to aware value partnership resources, think AMG and investment more continuing we introducing a well. to that you’re drive have our as iCapital build towards to funds, well affiliates relationship

$X little So, for we’ve today, I momentum over and there, raised we that a that billion to created. on think look we Pantheon build

you. Thank

the with from comes question. question proceed next Please, Dan your with Our Jefferies. Fannon line of

Hi, thanks. Good morning.

but quarter. ongoing wanted for I that, a mean, acceleration Any but demand, and/or these from shouldn’t that’s Just clearly levels? I expand just upon not be the that of cycle think say to of been fundraising I been either – It’s in to in the one-time mean, – on or new. one-time about It’s we large happening Or fundraising. alternative several this some quarter? – private closings bit should happened liquid just quarters, of something kind little building the or the type

Yes, thanks. Good morning to you, Dan.

only take Let not it maybe, could we then Tom, narrow can that. me let And illiquids. but Tom if you maybe about illiquids, first and to talk it broaden flows just to

question. Dan. Thanks Thanks, for Sure. your

you And enhance itself to expect long-term this continue we I quarter. more of of of So growth to our how growth business. as mix overall profile Jay in think strategy and the our the growth our business remarks fully time strategy, driving spent both on growth And lot a I evolution execute that an saw is we organic time. over and earnings towards prepared that areas manifest secular against

Importantly, think quarter-to-quarter. flows we don’t about

on believe We’re being capital sustainable today choices that long-term we’re I why that three in I and the at made value growth to and say, any the really that today and with making you last long-term primary positioned time give case. we our the And we focused than our proposition with resources mind. are think growth years, I’ll will are growth. several reasons better in be for

their on headwinds in than significantly some quant have an value impact those of both terms most they areas the in First, businesses. couple And absolute earnings. today were, like in smaller and some relative years and terms even last we of faced our notably of real basis equities many we the asymmetry upside that are of over in on of

overall were to growth our Second, affiliates resources our a number most that’s the means the areas our early in investments we businesses our like through affiliates evolve management, investing wealth reposition where our of unlock against of in significant, versus because positive which mix few we’re mix, of business of further simultaneously in where industry then the partially years private both fact made markets, we Asia, and quality invest meaningfully business we’ve due proactive business we pivoted ESG, still enhanced the innings capital organically new faster that has and combination growth, to realign growth, secular profile, investing said, in to partially ago. decisions than and investments we’re capital. And to these growing plan, existing the certain today our and third are and time and that a continue aggressively more our towards to growth areas. in favor and our executing that That has been and growth overall

what come are then and impact question. seeing And affiliates than Pantheon, and markets double-digit you’re And where at EIG They intentional. own aided Asia, the really We including of last to terms in existing So Abacus. right. multiple fundraising dynamics, markets new to that And billion this X organic meet Dan, Each private Asia mode the given very each expect those clients have and at flows from. targeted multiple like is these seeing on affiliates, in over OCP and private we’re years, Baring geographies. products growth that’s to we seen needs and growth the diversified in constantly by their of year you’re of businesses Comvest momentum $X specific and, the and quarter inflows. in we’ve continue, had more in your

and that momentum to we’ve build expect going So a strong affiliates, of seen it that particularly in quarter, quarter a was on but really continue we industry forward. the and the the our continuation third to was

and long-term strong we one for ESG is we’re ValueAct. and Parnassus addition very seeing. flows of near will performance make important driving presence Systematica, the long-term. track liquid in saw which And Capula strong the about our I fees strong I and active performance excellent well and records, think and that equities We flows of our guidance, performance also is where including it’s the at positioned And is we’re included the point, in quality alts, with last really to also Garda, as with really across growing think

every These particular, in we of alternatives period long As the we valuable and extended and continue see an business management as we’re funds be is additionally, future. to tend us. our consistent assets our grow to increasing. performance also performance we generate fees our duration, of time produce locked-up markets that for also of to private of exposure, value the to AUM inflows into liquid fees experienced dollar is very fees, and growing that bucket duration can those substantial that business And continues where

mix overall, including and overall more path, our very in in pushing towards So confident private business more our markets. strategic growth,

good more over this positive and time. growth continue see We’re areas towards pleased to pushing to the we’re think the quarter, we flows track business on a

that was So, Tom. great,

me specific more and point – point to general then Dan, one me Let just more make one let Tom’s comments.

The Tom really the made. first, a that point I just think it’s general, important

business that really of successfully Our profile improving. and on these areas an we see to reshape our strategy are as executing mix flows our continue we growth, secular continuing output towards of

point make to in or Parnassus. X that best we’ve from position specific growth really The X I We’re been now. was the years wanted in a perspective

X. As you Parnassus announcement, on October saw closed in our

numbers. of quarter. in $X results had these nor billion third are flows, and the they in financial the results the The So flows not about

you. Thank

Goldman Please Alex question. comes Sachs. line from your Our next with of question proceed Blostein with the

the guys for question. Great. Thank you, taking

AMG’s been We clearly question space. the why Franklin you morning. a Could is to all proposition reason Just ask new announced We’ve flush – this see The for is acquisition. I staying activity an affiliates? seen the there out more on here value in minute. market private the Turmeric acquisition

differentiated business? versus who’s you you of willing partner how somebody curious XXX% just can bring angle your firms sort and the ability to So of to with acquire the think about

Alex. Thanks, Yes.

We to you as firms have with that form for independent business. support are exist firms. and think partner that’s aligned we and management. active stay So We best those to actually independent is a to permanent the our know, firms desire obviously, that a in clients. their fully, And

accelerating you when their about independent – so firms, and about really support our And and solutions own think for their own it’s plans support growth growth strategic initiatives.

to at incrementally do So them AMG business objectives. along plan their on and their everything try to we help is strategic

funds to to take effort, has to pretty think who Pantheon in access AMG a channel, and supported provide was other wealth over resources. in an begin them that when about you And $X distribution support that channel, fund we who at ceded and So billion of and dramatically got in grow and AMG raised look that, with. specifically, who continuing the it now

or we it’s strategic package administrative the plan. So our seed heavily involved selling, aspects improve the whether it’s itself, in of their very capital, it’s it’s are affiliates the it helping on

I that’s in we vehicle as reach and fact, this Pantheon, In mentioned were quarter, my a for listing infrastructure client prepared perspective. the from expanding supporting remarks, their

number capital with So also mentioned a at my that in is have Comvest, a a wealth firms we’re with seed fund them biotech or we partnered prepared channel. supporting new more illiquid as firms, style now of opportunities we’re launch And least growth private equity the of help which in see private fund, equity opportunities broadly, equity PFM, to OCP additional we at the see in resources. in remarks with particular, space. continuing we’ve I a for Asia,

the or of channel, equity client efforts. we that’s and the nearly I for – well. billion for affiliates have around penetration the the on on as relation bearing, client in also marketing extending $X recent large side the institutional cycle where private and them institutional see opportunities mention relationships world, the We for we’re raised should our most And in bearing we’ve reach

efforts. secular AMG, growth we’re resources are helping in capital we we affiliates. these much very more of going obviously for these the now And you that see So when trends, and to our business about leaning opportunity into think the

each we goes we’re these by, so that come in growth And illiquid more. evidencing expect that markets. more And period to

you. Thank

of with Bedell line Our comes the question. question from next Bank. with Deutsche Please, your Brian proceed

morning Good Thanks. Great. folks.

firms, opportunities the ask du from partner the maybe alternative jour, recently for And if on in more – thought another you than side has review you’ve guess, larger become engage maybe the perspective. on talk more stay in you? your illiquids. And topic but a into? be maybe can to Let’s if might the just And some and private whether interesting about for done area if could to you’re obviously, you you that’s new on traditionals are interesting. right ones thought a that’s private you can in a of to your capacity your do investment larger I the transactions now credit, these what’s general that get areas something your to know on ability I historically, Maybe review composition than obviously, just if credit way to there appealing other overall have good that.

a over particular, going with in capacity to of help point. anything, I’m Tom here. if can missed couple the me Good morning. I’ve top in Brian. there, come questions have on the Thanks, Yes. Tom, in you and But

is buy just less relevant don’t question me, smaller, than here, to gets want something smaller us is you something amount that’s that’s a me you big concept get size let created, and Because bigger. of the then right? So and of first size to because that want shareholder value contradictory bit the to there buy us is address

about still do that that likely that and to the that firms than so what’s piece value do, when we of remain I want of with for valuable the think be who more leave company is that’s them. not independent exciting that the independent purchase and means and of partnering they what you inside to historically the And is imagine we us, growth has been ahead especially

We consolidation. options not worth size independent might by XXX%, consolidation a buy think find many a that fit ownership I that’s transactions is or little that more XXX%. I have because and if this that not good for don’t note there good of you idea success. buying humorously is skewed think you really of don’t And long-term the are will is that Frankly, thing out that there business we money, can think landscape nature really firms, you are buying but for the to AMG. is whole you towards XXX%. the the today is good think noting I other changed then cultural for we spend want that clients for don’t as stake

our independent still So, last opportunity accelerate want that just mentioned growth, firms independent, set partner a their those be as growing help are to to comments. in want set support had I are the to that that of

us We are There for surprised giving ability competitors That seeing to independent of independent. really more an candidly want in that remain we lack is a is are fewer that create competitors. firms to relationships this environment.

environment of new terms for partnerships. So, very us the on favorable we in are

a period deal activity. of in I we are elevated think

over for year alone. eight We have last transactions years, the this done X.X

out XXXX. And time to a investments to we our don’t having we hard money finding hard We growth-oriented time are are think have this in. we put with. businesses a into have I businesses more having I don’t since put enough think good capital than year finding partner

these continue to are And with bullish we on transaction. post eight eight very So, have we and that the we hope what doing we back that’s are which firms is very done with and partnering I transactions, and to that something do, strong generating come you main in then will are point, them cycle, that. their finding these I shareholder value think growth partnerships,

our back, mix have of that’s is impact thing business. stepping on changes investments other a shape the and does So, important significant the new our the business. It

income think firms managers, growth and at double-digit we fixed organic wealth growing period illiquid as and so continue added to rates specialty all they ESG significant are And this growing we that businesses. are at have add managers, all managers, during We Asia-based rates. the

shape our has business and mix and same at changed our existing is While business, the also at time, that up growth. picking

so very think because by, that momentum each about goes is are just our that each build. goes by, we day we beginning And excited quarter to

turn it to I missed you will I So Tom, elements I some there. maybe know because

Jay. Thanks Sure.

So, I one and maybe question balance will Brian, comments, sheet credit private a one your then around couple around of make capacity.

is business unique we and that really a EIG terms of of we the across fixed components Also, space of private Asia value in participating provide First, in that OCP markets and six both their flavor, and have space alpha Comvest credit bit space, that client private relative overall. business the have in their affiliates credit I in of income credit absolutely Pantheon, different income and a the streams Garda components and significant today and are fixed trend Baring in referenced, space. the while have Capula a interest think of each

So, we we today. overall big I And think remains us. interesting It’s in continue of credit taking to are a that been us, in a it we think investments, terms to growth new are active be. I for expect private very area intentional very approach. driver And but an space for

parts that commoditized. for the looking parts manager the are more We of a really those market be versus market where become differentiated of have those can

you a big I think but area, very that also growth think have to play it’s we So, it’s one in. intentionally

great we look, in capacity, of terms shape. In are

that stream. allocate good business combine that we sheet, see flexible We a cash free to where in be in investment lot we And momentum balance our translates with you into to great flow our have a growing are a thoughtfully of opportunities. able place capital when

a years. remarks, redid We extended hybrid we in level revolver, leverage comfortable of our couple are term and issued very our a bond back, months loan. mentioned a We $X.XX out running at prepared we my today. just X redid billion, I As

high-growth that the our new see ability to more about, has broadly So, well. be areas make Jay issues any the returning great with in with also space, in and repurchases beyond excess capital as we to structures, but respect to investments continue through and alternative don’t capacity both, talked to market, in as

[Operator comes next Please from your Instructions] KBW. Robert Our the with with proceed line Lee question of question.

Margo Rob. morning. for This in Hi, for taking Thank question. you my good is filling

in viewing of talk business. a or set? bit sort you was as the that to opportunity are just little in could stakes M&A increase more you I continues So, as terms hoping of And of grow, that more competition an the about

Good Yes. Yes. Hi, Margo. morning.

we and sort So, we growth what maybe firms partnership succession interest include we independent much also and notable options just a capital planning. minority firms But a for independent type taking that variety are we offer are those to very most custom partner and transactions. step of with is offering of back,

XXXX. support doing succession and not have them, We traditional guess since consider cycle and a it their what can by the for, really offering through supporting would capital different is right can I they growth them growth for level, do we time partnership them firms time. we history businesses. in because evolve we through of their and our obviously been at supporting initiatives them but state also earlier-stage transaction than – We buyers. the you their see over only solution through while plan if starts well, firm minority a support with a those even planning at as right work a initially as And succession some

we need But set. for through is to are able that believe because we we option So, that only go opportunity have the best capture I that at I the not industry. something succession in still that are planning an frankly to firms all think been

continue be global of services And mentioned for us is opportunity we so our on are support have sold, an still interests that offering distribution more of to the new that the plus of those to firms. above efforts earlier. there broadly, a I all But all a to prospect, partner the been

business I at – years and AMG diversity progress partner, mention here all partner a other is of I business. I the our a think these being of was The benefits our efforts wealth over the in on XX and supportive long-term of years going of is thing was I now going to context guess, our the the

to We our it fourth Parnassus guidance in very out Tom our line this assets are year in the particular, bottom play just quarter, since seeing coming financials gave to the you today is fourth the on quarter. into that

just just minutes to the line. few further, see bullish into are I $XXX year. from that this we We ‘XX done affiliates that all we ask that coming impact and mentioned have bottom Maybe Tom, have a to a could this guidance on more how from and the four we touch translates we are very seeing EBITDA. I the million our the of while momentum bit perspective And a here, on

Sure. I would be happy to.

in fourth guidance perspective, range range quarter you as of to for So, in for the updated now heard low we significantly and just full we our that in prepared end it raised earlier above year. provided of the the And our the have put is that year. remarks, $XX.XX the at high the end

the $XX.XX confident midpoint of half to for up the would versus be per per we initial strategy growth economic in the economic share number delivering basis. to a and guidance recall, of at And XX% the that than At range the you our really in earnings current range share. on $XX, per And more earnings up our in is XXXX provided EBITDA more be $XX.XX versus we of it’s share range. February, of year, would really of an that billion $X.XXX ways. guidance upper range, upside to XX% we closer $XX.XX now feel approximately and that’s than which an execution of If

important are as group underappreciated partnered excellent today continue and are we think management an over performance fees year. And performance, generate quality performance follow. long-term. fees seeing firms that a concentrated and And they really those you mentioned, of of with secular businesses just industry, affiliates Jay in strong the our the are to earnings. demand. strong increasingly And highest again and investment our I are delivering independent diverse the First, an active of Performance this component in that areas are as

generate this talked our markets have capital diverse stability and benefit to year-after-year-after-year. affiliates even to execute are allocation stream start We the incredibly strong stream. as And more fees strategies. valuable about performance time, we as and over of stronger is flow and on fee that of performance private on us call, delivered diversity cash And have to our fees, more positioned as from consistently an well we growth performance we

rate then from guidance, those investments, million here this of of organic didn’t on include years. over capital new terms the $XXX and businesses of Jay new discussed. growth are is more return. and we growth our year, our by our run adding gave the past opportunity heavy And million we earnings finally, all have few investments focus set of the impact to in count and we pace and shares both are you when taken original year Second, you our incredibly And new a $XXX share four on driving that investments. EBITDA growth down areas, than of strong are benefit secular this we are with to as XX% getting has buy back And

points discussed. we So, this we earnings are growth the taken impact in partially lot of deliver a total, year just very positioned the realized have strong and only to I well of

So, we also XXXX into tailwinds have well. heading as significant

you. Thank

comes next question line with Citi. Bill the your with Please proceed Our from of question. Katz

Hey.

handle Just just way of a what us to underappreciated or a opportunity? your follow-up talking for within on get of fee are you and write about, how assets of your Tom. you provide performance eligible us any ways off this better Any much can for sort were other AUM, sort of

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So, that market-sensitive time, it’s then And you of into absolute one, of that, the earnings illiquids. our growth. capitalize the a performance big continues get year-after-year-after-year fees grow that of that really Two, can group, over pool substantially to and to it’s and And benefit return consistency pretty fact you mix long-term and the time. grow the continues the really one over diverse from Bill. coming three, fact it’s that

really have Yes. performance. the is of that leads truly add us for that excellent we in this generally opportunity year to flows. experienced back will off the And just I performance the fee past, as

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that gentlemen, back Mr. for and floor concludes question-and-answer session. Ladies turn you. will Thank the final I Horgen any comments. our to

Thank execute continue AMG strategy. speaking you. look next momentum Thank hope you the nine strong everyone all we months quarter. outstanding for as I morning. delivered has XXXX, in to first we forward and our and healthy safe results joining you us remains this we and of see with on to

This today’s you. conference. concludes Thank

your your for disconnect participation and wonderful Thank lines. have you a may day. You