Affiliated Managers (MGR) 7 Feb 222021 Q4 Earnings call transcript

Greetings, and welcome to the AMG Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. to conference like host, to now Ms. would turn over the your I of AMG. Relations Aggarwal, Investor Anjali Head for Thank you.

You may begin.

year fourth Good morning discuss and the to us joining full quarter and thank AMG's you results for of XXXX. today for

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

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

And good XXXX the strategy, AMG year-over-year, representing record generated AMG $XX.XX, annual execution of up achieved morning, outstanding billion EBITDA, through and growth of economic results XX% of the and across of in our our growth performance share business. our everyone. strong excellent earnings affiliates Anjali. momentum Thanks, of increasing XX%. over per $X

strategy, and of ownership we which on and enhancing across has growth, our continues in while years, our focus has investment engagement returning markets, initiatives, in reinvigorating shareholders, simultaneously AMG's of for these renewed mindset, foundational earnings our which increased demonstrated resulted back, long-term XXXX. most Our entrepreneurial including we values investment importantly, ESG, time. Stepping deliver business affiliates, commitment momentum business resources liquid over capital earnings execution, and has in our Through investing management both in new resulted we that the existing new strategic the strong growth growing our and last significant few fundamentally to significant spirit, disciplined more to compounded of private affiliates, power, are growth wealth positioned areas, favor opportunities. realigning changed. which alternatives, to growth with believe fast over our our environment and have More well Asia, and broadly, with meaningfully reshaping all are have

monetary asset new policy, Following returns coordinated and across a ultra-low highly a classes, decade forming. is of correlated globally rates paradigm

protection alternatives, results diversifying combination the for income, across power and and the cycles. on strategy clients well. rising and trends investment evolving clients parallel AMG offering for market roughly XX sustainable for our will investors private shape trends structurally under global across the management manage environment. these well regional well in real markets, billion market appetite the to achieving both decisions for uncorrelated as Among and an are all influencing an critical credit, is engage and solution Within climate developing returns rates, exposures investing. areas. $XXX are goals to managers our track to adjusted way in direct active risk our In investing that the of a positioned increasing focus demand with lending, continue are positioned our and this proven inflation with of way markets, inflation, environment, and and market manage the cycles and capital equity, delivering with these and Today, private an active private Looking and we elevated that affiliates excellent interest strategies, affiliates financial allocation the their fundamental across clients. records of our are they liquid of diversification, are private is ahead, And estate, affiliates industry assets ongoing clients' changing infrastructure in leading AMG's increasing change given sustainability, objectives. taking approach shift

have and greater Abacus, three markets last partnerships generating billion Comvest, in distribution our each in $XX the segment growth growth client have significant established at continue XXXX, XX the this to have course Asia fall Pantheon, product powder creating capitalize invested of changing over attractive to environment demand also to markets the in have correlations that for alternatives private US OCP over our unique of this liquid are Asia, has accelerate and dry and address in And completed north months private development and Collectively, growing new We opportunities in organic to in product segment. and return wealth investors raised now Baring nearly markets affiliates our we have repositioning is demand for resources both platform, investing of globally. The institutional as affiliates and on streams XX% wealth and rapidly we the power market development across PFM these and for improved. ahead. the opportunities

leadership, and sustainable well grown for portfolio demand focus and investment outstanding consistent conversations desire initial substantially return absolute today year diversified volatility incremental benefit client in stewardship. Strong Systematica, our had is managers. flow Systematica one theme continue for trends increasing began in and alternative protecting and to AMG's significant industry's Braga's and positioned performance Capula Leda client and and product diversification. A innovation. investing of And the investment since alternative we returns XXXX is active technology-driven increasing XXXX, and with fees streams Through and on on, leading a capital. an excellent XXXX generating liquid from focused across Garda in Our affiliates an each has while navigating for, is

growing requires joined new in Boston in managers affiliates sustainable to is strategies engage before, segment organically with our management, each for and benefiting record of that XXXX, As a across are $XX account affiliates track differentiated I've at double-digit our a active increasingly investing. affiliates ESG pioneers, clients investing positive active and worldwide. approach said an high Dedicated impact ESG of communities Two over our a generate now quality and as billion Common, multi-decade as sustainable rate. assets Parnassus under

a In are a Recently, collaborating in new wealth addition, with adding strategy, our in their number while US to broaden capabilities of assisted ESG we also launching area. new this affiliates we our to platform. products Artemis ESG

for for As client approach ongoing authentic area ESG accelerate, be AMG. demand of investing our an affiliates' to continues differentiation will

more Our liquid strategic focus overall along and wealth with growing Asia ESG areas growth businesses, a on profile. contributor markets, to management focus of fast private our become our alternatives have significant collectively strategies, and the

approximately client in the generated will these of second net invest which and flows, Our in affiliates attractive the in in billion these accelerated half areas year, we to $XX areas. continue

the see growth. next sustainable with AMG's As we are business I opportunities over making advantaged our said decade. respect. model resources are and growth in today strategic on are we focused is this the the decisions uniquely earlier, we aligned capital long-term And with

power have We scale with recent operating magnitude the ability to areas. transactions. across affiliates investments, which four new through growing and In evident new is in our earnings shape of XXXX, fast our the we partnered

most in in forward. managers months. of investors significant approximately $XXX EBITDA Systematica, made far, contribute together AMG XXXX, in going a in independent the so million the annual asset over active incremental will investment been past And we've has which one XX

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

to opportunities in high invest As new we to allocation growth enhance meaningfully profile capital disciplined a and are growth quality in able over at we affiliates our affiliates using continue existing time. framework,

turn ability earnings repurchases, long-term are growth to invest business, uniquely is to our review the to compound to And over Tom quarter. it that, to significant growth with value and shape evolve of our over Given clear. And of with for positioned opportunity deliver together share details the time. shareholder the the we I'll

Thank you, everyone. good And Jay. morning,

As results capital XXXX we flexibility. capital across power excellent and performance, deployment. growth earnings and momentum Jay significant with highlighted, we strong organic in affiliate and And liquidity XXXX, enhanced with entered delivered

affiliates investment long-term of evolving And continue for growth secular areas in to attractive to earnings positioned diverse business critical our strategically Our strong growth. on focus well deliver environment durable an to management landscape. driving and group is towards navigating we is changing fundamentally where active clients outcomes the

earnings. the versus to from and year. cash impact totaled on to excluding strategies, were have XX% prior flows, quant more quarter. earnings per of EBITDA economic Turning and On year-over-year. the share per year-over-year $XX.XX quarter. grew XX% adjusted earnings Adjusted $XXX $X.XX, each Outflows billion of for certain million grew and continue minimis totaled $XX XX% billion our full-year the economic strategies share client of basis, up EBITDA $X $X.XX Net a de certain billion a than quantitative

$XX Over quant by XXXX core momentum AUM, enhanced trends billion inflows in with the enter and wealth for growth earnings overall alternatives, significant ex total We gained growth our active value for delivering clients and of course presence profile, ESG management quarter the an XXXX, liquid organic year. Asia, growth markets, is a and accelerating. organic areas management across with delivering strategies, where private quarter, is strong

net $X Turning clients Pantheon, billion market to $XX AMG. EIG ValueAct, by fees their these business assets earnings. and of given institutional evolve and across our and alternative our client alternative very the returns performance performance reflected excellent and to for grow continuing ability business quarter year. performance see $XX returns private to alternatives to stability private liquid billion, and for to demand inflows outstanding certain delivered strength and private impact retail substantial excluding to for both managers, driven our and In continue strategies. also diversity long uncorrelated totaling strategies including deliver increasing and generated and Collectively, to Comvest, Baring absolute track with and experiencing look alpha records alternative billion our toward we totaled and to of across management markets, further continues strategy the Systematica, demonstrated levels liquid inflows strategies, in and liquid increase Interest in adding clients Capula, strong full are duration their In long-term and Garda XXXX as quantitative for We're markets the and class alternatives, nearly net income sources by seeking performance Asia, fundraising allocations, asset our growth. to portfolios.

two remains continues two-thirds the billion large equities. and favorable. quality $X global this accounted affiliates environment investment redemptions, the active Moving of by driven for managers to of for outflows institutional our be category. were high Overall, activity to which strong in Net performance

equity Our in global we equities affiliates strategies where continue including demand, Asian and to see client offer differentiated ESG.

overall, benefit quarter well growth billion with wealth remains category future. Boston we equities, $X US this focus growth deliver the generated and investor inflows QX management and positioned steady of billion, and experienced multi-asset XXXX reported long offerings, increased XX% net build allocations client are in Yacktman Within of and a and with rates We of affiliates, trends of and diverse combination of for investing, the reflecting performance fixed in on the full assets of businesses. to for $X.X we billion and our year for attract businesses performance our growth organic We're duration confident assets These outflows And for basis. to and are $X long-term sustainable a inflation. well are that, excited well with strong our potential outperforming and seasonality. from placed in a Parnassus, valuable demand our current the Road, and earnings. River investment the ESG five-year continued in including implications we lastly, approximately We and continuation excellent, as strong market to higher Common, value-oriented impact as and on about income,

financials. to Turning

have EBITDA and XX% benefiting our $XXX further per into of higher in represent by experienced upside For generated do the most new in similar years, $X.XX performance of growing adjusted asymmetry million XX% of steady XXXX. builds repurchases. from earning the as across translate with we significant investment the that of generate grew earnings future. performance growth and approximately levels to driven fees sensitive fees our absolute long-term over fees of those market averaging greater net notably addition driven category. source performance proven and affiliate opportunity what certain capital a on opportunity performance recurring of quarter, beta set Historically, investments. of consistent levels affiliate leads which And contribute earnings itself a share strategy. only XX% We strong our Economic share durable, time performance a in fourth excellent strong see of but facilitate $XXX to million quarter, meaningful performance execution year-over-year, diverse and Not recent growth return, our grew earnings annual asset to the to they year-over-year, a in stream, the alternatives inflows, fees private by in fourth strategies to to also we performance, liquid generate

moving to items the modeling specific Now, quarter. for first

in based Friday. million EBITDA of range the of blend and performance Abacus $XXX reflects our Systematica. through recent reflect our of levels, current This which impact on to We AUM expect in to fees guidance be full up the X% million adjusted and $XXX approximately to million down $XX investments market

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

million was fourth quarter. for of reported the $XX share impairments amortization Our and

million approximately first quarter. in We expect to it the be $XX

we rates and we the and fourth $XX the XX%, $XX deferred Our gains. GAAP for Intangible economic of cash purposes, first for are quarter, negative the million. quarter be and and the first quarter, In million quarter. million rates effective cash GAAP other fourth be and were exclusion were we excluding to reflecting million to quarter, first mark-to-market, mark-to-market expecting tax $X item the this $X adjustments for respectively, Other items, related expect economic in quarter. any tax XX% the were XX% in taxes modeling expect

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

and new to in the toward we as made across well billion allocation. half investments, our capital allocated strategy, was and balance including we active capital with and repurchases. turning firms. line more a growth, deployed year, that growth In four of investing more XXXX private capital sustainable than Finally, than sheet $X very the into markets was of as investments share

increasing completed to returns enabled to expected streams. alternatives exposure $XXX technology we of XXXX. deliver strong January, outcomes manager, collectively range to investment our Systematica, in in shareholder in Additionally, and return of structured in-demand, uncorrelated are million contribute were incremental and a investments further an EBITDA global leading a economic These approximately priced across

full capital in And shares, expect committed share of by the also million shares repurchased For of approximately shareholders year, our for shares, market We subject through conditions investment the remain we repurchase to $XXX million to returning million outstanding year. including reducing quarter, X% $XXX to excess to fourth and we in $XXX repurchases. new the XXXX, activity.

on duration of sheet with issuing In year's extend addition, last and our to of see by extending loan favorable we And hybrid the financing execute strong took and we ahead. we term balance the advantage and a growth XXXX. revolver XX-year through sheet to our enter significant year ample and a balance opportunities capacity the broad environment ranging note very

that the focus Our on and by business key secular our liquid including XXXX, of themes growth, – private evolve markets, continued driven alternatives allocating ESG. areas focused Jay to and capital resources to in our on

compound to unique our it demonstrated position is And business earnings, our as drivers. today, strongest We leveraging in ability growth our as ever has successfully have been.

ahead about and excited opportunities well to our time. are are value us positioned over We create significant for the shareholders of

Now we're to take your happy questions.

[Operator Instructions].

question of first from with Robert KBW. Our comes line Lee the

you just over us a guess, the any I Maybe stakes put in update one certain Can would But similar kind capital or that that us accretion And just as your what to of two that? opportunity back would amount from accretion on mean would in maybe Systematica, parts. you you with, then, that the come one at affiliates maybe manner. secondly, how could like two on, existing of we maybe update actually, and for be Number stakes maybe I'd would maybe similar EPS would year. there's increases get things. looking look to types you what could that coming existing start for question, usage that of ahead, in see related E&I set and

about that owned first minority Tom, that. question, the in And and of after Let the I'll me existing and you'll talk have. that through our ones I'll investments we maybe businesses, recycling the then, expand also this affiliates about take about Systematica, just affiliate year already which – part the we equity and talk talk

business which also six a last They team from XX% a and into So, launched her increase and Systematica, of talking up billion saw by transaction. Leda And let do initial past has have in this year. the the It time momentum into has profile years in great the which Leda notable XXXX. if at its $XX systematic as the $X primary not in momentum And strategies SAM, market that a woman-led was grown China alternatives. It Systematic given Systematica. a about is excited Its distinct as market today the a is XXXX, most one The That's accelerating. just as very largest, is later, systematic world. me had product, quickly, known one XXXX. generating returns. recently diversified over excellent we one business. had Strong know, about liquid scale. that a years in It's ago start five of led industry growing alternative strategy, by widely the the largest, recognized going five performance. I'm We firm XX% the strategy billion is Systematica woman-owned Markets, XXXX. of scale managers to business you or Braga, trading great into it's the that and leading unique and investment, from each growth see world. Alternative our

accelerate the the ownership an closely And business of Leda, time with this decided are a we Systematica was that majority complete the of remaining increase even rest still We're our we opportunity and we the more in full investment exciting. in for more to respect case, now With we on in repurchase collaborate expect investor, the did purchase the a In Leda of hands there our this stake and our to and ownership for which strategically the aligned purchase. from at minority participated in business. remains the interest, Leda. We stake, transition confidence owner long-term business. increased prior four of its given in the of the prospects. did opportunities and have the Systematica to this tremendous the team

turn Taking a And answer a Let actually your is will generations. really contractual step and we we a had actively it of part to when full we That the in question that transaction. Tom purchase get more generally provide to plan back, which investment, means just question in as With planning, directly. me equity we're minority in a involved Systematica, make across recycling of place majority now which your investment, here. to the second is moment. initial a succession

because But in optionality has So, the built this general, minority performance an of into we our investments in fair from initial it. a of the really did obligation the fulfilling was structure amount transaction. of business. accelerate it

new business of a view would to well treat the a form through investment, opportunity and and a knowing investment. on We both it run with of diligence value our the disciplined clients, having work partners, capital years over treat If the for an of benefit those most that an creates allocation any have additional takes We opportunity. time our affiliates shareholders. the that we to having process, like find it path with their we

seeding of a to the we M&A, facilitating the businesses resources along growth products, lift-outs, work. way, putting often variety these in have ways of addition, invest to In

it business. minority predetermined we overall, So, succession a outcome into set these new when planning. is there's to don't mind. in with treat We transactions, there's And the market do further differentiated our But, in a lots invest opportunity opportunity alongside like of we again stake investment. an position that of a believe stake, out in to invest a

further We succession just we we move their strategic But on want of want these objectives those strategic work affiliates. individual them partner and businesses. to a will oftentimes, towards to plan. with full great want So, objectives with to

Tom to to it turn the forward look for recycling. about I'll now talk maybe So,

These number of think a year. that, pretty good be basis, that XXXX million constructive should In you terms for million repurchases midpoint pretty think very XXXX, a multiple. a we're to a recycling, repurchases affiliate should like normalized $XXX to And tend equity about $XXX number and doing I assume was a probably on you being that and good as for also. something

They're they process part appropriate businesses. hands to partners the running be ongoing So, these to of in an that level of ensure tend do the accretive of our earnings. an equity have we to

So, the that a businesses of dynamic A most. it's have those really the also skewed repurchases to lot be process. tend grown toward

So, we're highest our businesses. of quality buying more

part your is the to ultimately that something given profile. that as to of quantum magnitude into earnings we make in and the we're good well visibility sure generally in it's our capital respect timing So, any accretive have as year. to controls question, With the planning place managing

assume going we for through color you give capital to when should we're And affiliate we repurchases. with pretty go that, as we you have where respect spending our guidance our planning be our $XXX as earmarked So, in to on ability repurchases million capital to to good firepower quite then that repurchases, for to a of addition should investments, equity bit we've share in well. addition complete of new assume and repurchases, making process, affiliate got you

Bank line Siegenthaler question next Our Craig of America. from of comes with

for intensity partners just models these know, businesses markets you've I staking vertical. of in As the you about targets terms qualities see have to deals for different private any market see they're largest also the of to if increase seen as private their capital and I and space, the the also general firms in your out compete also some deals three talk gotten the larger, could wanted your in want new how than there. you and competitive if

we that independent take anything, that. phone And free missed feel think partnership obviously a offer – to – add. a on knows to I going the just to step restate firms. back and everyone this and solution take permanent Tom, I'm I'll if first I

be What an objectives. achieve businesses, to and their in partner, is excellent want clients. succession we're objective we long-term course, of planning. best strategic of supporting known affiliates their our the is Ultimately, most their to do primary what's interest Our for, partners their

We planning over succession done three have decades.

And at we've the over we're best think that think I I long of it. a period proven time.

interest see there and buyers And from growth where time the, also the would it's We against through we, call, liquidity to bump private we resources minority capital letting businesses. in capital, transactions. or But relative to time, you up as them really partnership offer stake markets what run support solution because our strategic we our offering their alternative competitive any also differentiated our independent firms and businesses. with while

think I differentiation. so, And that's important an

We are our of don't in the business affiliates. with and we independence, compete

to design In services of the we all being over was with are reputation years. help And affiliates support resources our their as together growth the so on partners. these fact, that our built better long-term our plans, success collectively of we and partner supportive all

for we're entering phase the I believe So, And of track significant continuous a record growth have success. we AMG. longest

independent We firms the been two active of years. one have past in the over most investors

We decisions. are focused capital on making disciplined

pricing that transactions. so, to and us does in be structure And thoughtful both about very cause

it if in to We prices endure benefit interested chasing aren't of the our don't extraordinary we shareholders. think will

our alts, getting eight in further a recap, are ninth we view new two including of – Just investment in the of over new you Maybe are Systematica. affiliates And if said such the two-and-a-half last strategic will, the looking the and what for areas areas in added we've we've secular sorry, years, to terms wealth, to investment, mention, ESG, focused just areas strategically that we're before, this I'll of Asia, that prospecting on as are private we areas long-term are those for. strategy, investment markets, new trends. liquid

been most to see and affiliates liquid is successful investing, results you sustainable I that recent obviously, to year private alt. market can in adding past dedicated our we think in have in the Systematica

a for towards prospecting So, the with to favorable are continue\ done really There's our skew do is strategic see us. There out greater we've offer independence. consolidation to efforts. able environment in We there many the transaction are not consistent be competitors much who market. everything

say, the to on our that, that focused to So, The those the I touch goal focus partner to on, we very within and to mid-sized firms. long would the see of do continue to you pricing just portion is management offer areas but thing AMG specifically with fair opportunity our asset best last we're and really on over that prices of the not structuring, as time, affiliates, to sell. a period know, they really

the we've partnership is, made remaining ownership in trying Once our of collectively they all their aligned partnership. investment, to the we value So, respects, and true the our maximize ownership. are and

add? over So, the record on them helped long supporting really It Tom, services have we our affiliates, we we to have of And of have, affiliates behalf to the that over apart. periods deploy support again, us like that time. track there independents, decades grow continues three set of now. longest is anything you'd

is for in market more which tend and really of of you approach AMG another think the Maybe very differentiator of I solution referenced The solution. the to terms our us in fee a think one we management an a just to direct the point And to big individual blank that you've try paper is approach. business I piece it. most quick flexibility much of the covered amount of take EBITDA performance takes that every bring capitalize. willing of alignment-oriented scenario. they're type to fee, of firms

for we things of table with you those that a strategic hand to aligned in to that think of the as bring put looking strong spoke around structure, for creating inures an more a quite have they're also for what a flexibility lot in I our bit those value-add So, having important. distribution Jay when the the hand And benefit are critically a and terms support about, businesses lot in sense really market. who

of next Bill with Katz Citigroup. Our from question line comes

Just tie for some trying together a moment. to numbers

to sounds and equal of think, combination a EBITDA. buyback like in effectively you I XXXX, adjusted that was did deals

here Just sort not of performance of fourth and your running taking seasonality the math of into XXXX consideration some potentially. quarter fees

and If you see sort to Difficulty] guide $XXX not numbers round buyback? type for plus around million relative you $XXX discussion the EBITDA on analyze cash get give us million and to quarterly And buyback can for recycling. more your how the off you a B, guide deals flows? $XX why number adjusted you [Technical on simply absorption of A, maybe million residual

Tom, for that's to a perfect one answer. you

review I capital think year and forward last view. maybe our our

a of start you you factors just take around and can kind the earnings together. through framework walked really put I'll that so guidance, Maybe all them on

well time have a back earnings. to of history about AMG, we at a Going before think framework long my providing

share so a EBITDA First, on rate you a and you as some we to trends basic quarter performance business. for put growth the good break well. you color underlying you the out fees, always assumptions then, economic get have in earnings that run for a can forward, sense per And we then pretty give and marketing

told the XX% is pretty we average to for you good a think earnings performance level that fees model full we over of our Second, year.

So earnings overall for repurchases, I'll sense $XXX and then, to and your point, on a overall to Bill, And that guidance little power. we we for capital get talk about gives you how XXXX. a more And about provide did bit good that. that's million

of today. invest well, in to an sort back of the new of capital knowing on rate the cash through talked power we'll And And business, we the into we you for none in run affiliate spend how So overall of to going that's growth. investments. question have primarily about much earnings then, repurchases as earlier the repurchases, amount that's be can

worth new shares. a together, being in can next a a sense of get us our capital think return recurring for and framework EBITDA billion strong first investments able lot good more With and of that the put contribute of million than I you've translates more earnings of $XXX to $XXX get four that million expect free a of And you that work, with to $X year. power a business. in flows. capital saw also to cash for we and flexibility balance to to we business. the overall you So, way, opportunity it than momentum including gives on into duration combined repurchased respect in take our good really laid when it And that sheet, And all out And capital allocation shareholders. way excess of We look, the the to in the meaningful overall, execute ability set XXXX. there's foremost, in to you investment and

So, tilt going toward be going really to when in continue XXXX growth. continue to you to to we're with into new We're a focused. to We're Systematica, trying disciplined. already more return go investment be

believe our decisions that And that we're of your ensure earning we shareholders the business. then decisions these structure businesses growth best running optimize best high of going investing making new in quality our is our for given how All impact of EBITDA and the growth and and capital to advantages, range capital focused organic is create have, shareholder tax as well value, structuring and allocation investments risk-adjusted that through do long-term an for are common ability potential capital to to to and the on AMG our outcomes. both a return substantial for long-term appropriate a framework as the use our businesses are strongly point, Bill, also our are

story invest really we capital as the both, growth return aggressively the think have long to to through to and continue to So, to short, well. do repurchases ability then we be for capacity able and

say we top-down to $X look about just is our the to and spend. about, we is, year. in $XXX of it, the long the I'd that just just have first share that framework of articulated this days Rob over of And call did being Lee recycling billion the $XXX like We myself, of plus repurchases, top the $XXX asked another plan million here way million history Systematica come at that that million. part to several to just

I'm on going million another $XXX range throw $XXX that. to million to So, in

a would we've round think million number to be articulated. $XXX what about So,

even don't haven't in or I advanced we those new robust further what as What know aren't timing what do So, we stages. And pipeline. the we conversations a that And articulated that than can various we quickly. advanced more of is describe do know have have others, but we move is would are that some continue investments.

your So, XXXX it those your out own not about planning there, of numbers. numbers you right, are into think as

think And leverage could a to amount up thing billion, a used the for is opportunity, Sure, that could. little reserved last we the have bit? say the take You we've right but we about I I'd on.

in that but around a that could head. number just billion, have I There's that's expand. So your number flex to think good

those consider If for we will we only plan repurchases. investments. amounts Hopefully, be that the far, really further new And we in so will have. not,

question comes Our next Jefferies. Dan from the Fannon with line of

couple questions A in the just deck. on appreciate flows. disclosure And additional the

strategies then, we AUM, that talking then, included we included that you elaborate if see progressing about you and in what you And slide helpful. where of about provide a and mandates, you're the two bucket seen momentum chart it what's some asset in know but exactly these you on color how basically, could remind I the this would XXXX context certain you and other And as the quarter equity are think as more us that so, the so for you about outflow you seeing, bucket classes. this And not? and X, could global at be looking was the time pulled you're think, we've little can think quant couple out trends what within in largest past a also in – maybe

think it to that answer Tom then start team with tag I'll need questions the and to me this. you've I perspective and Tom to asked. let turn more will some I But specific

perspective. done rolling chart, we I really, new perspective, And to that we're being long still results choices strategic the are long-term side with made in our seeing today and on sustainable we're we're that in that resources And value strategic mind. And the have we you a terms like longer But with organic think quarter on what and actually shown we this about is I early chart as the first I capital a think is so, term think growth months, would our XX gives growth term we And plan. at quarter. in note that thing least proposition our on execute don't to that growth. focused think and innings making flows the of this on

to business faster than businesses expect and my earnings improving these overall are like results ESG our evolve we in described than alts, faster organically remarks, wealth As Asia, private and reflect secular our our growth growing in towards as and future. flows existing given to that contribution the prepared industry markets management, business, the further I areas we continue the liquid

of is the it And have very over so, what on think you're intentional, four our seeing time, seen private flows because last our XXXX. areas, we've and liquid ESG those saw the momentum markets, but good quarters. in really those I at half alts And, part, back accelerate to got you look, take those some areas growing of rates. Each and double-digit results we are

areas of it very areas, mix way these of going opportunities, whether own to continuing types to of back helping flows making the output on support are in business reshape us XXXX. an we it profile entire this did really in for investments we over course our successfully growing strategy. directly capital our seed through these in secular improve investments, see services that's in doing like continue new other affiliate or started or XXXX. by and strategic both growth, to be So, Frankly, our as And towards these executing existing our but our areas, affiliates of also

from to to from regard. position we're we're the And I fact but say, I putting on definitely here, take been some best look when this four we've really growth that in last that the So, up it's really in I as focus a do the forward going results think in years. time, perspective some forward want

Tom, fourth now, global. the more in context and color, why give don't specifically quarter maybe some you talk put So about

on I'll first. give layer questions Jay that address go some specific let the two out. try and themes And, Dan, me deeper more a color and your laid you

the really to been are but now our for continue that time, of the take our talking small flows done to we've look what is earnings. we've our On some contributing at we've part about those tried relatively piece way page be a businesses on a certain of quant a large and AUM, disproportionately

AUM page obfuscating really that contribution flow of we where we of see And two come billion an on XX% at good AUM just primarily effectively, two than were the category remained believe earnings ago quality level our overall under by can broad contribution. in you challenged two We going surface contributing quant. kind in that back ESG. a we for it. of on tried So, AUM what's excluding has the global that the was On XX% that large That terms terms good redemptions around the overall today years actually of $X affiliate less to and at the thirds that of and have, basis. about take that quarter, happening done to institutional feel And our the the we've and out number. about is strategies Asia about EBITDA X% performance business stroke equities, particularly had of to and down profile about feel driven The in we strong. some managers, differentiated about about was

affiliates, as really just And, kind both for on Dan, growth. strong of strategy. businesses the historically about ASIA, mix. total, generated we well lot here. question, last and your US flows versus aided of a double our business we've deliver Collectively, of year really affiliates, as private Baring equity of invest of our the think, about all the continue, frankly, are make enhance leading further as in us And one we at go is to role by lessened. flows but is driving strong alternatives combination generation really we're ValueAct. Parnassus liquid there a areas they're addition markets, EBITDA. diversification in had ESG. these of on growth said, see in management Abacus. our is performance the mix And well, executing organic into highlighted private aggressively growth, excellent is some our in as as $X of and third positive our A we shape. in we're that long-term, at you're flows as our continue into finally, the growth which points earnings. billion rates a in impact including a is basis in about resources to performance and and EIG, about And of a Pantheon, business, long-term earnings, faced $XX about against the quarter up They digit we're purposeful from newer have markets fourth When future with of Comvest, across like growth, also substantial bodes valuable and example which lot you on we optionality where and equities, year this continuing believe area, the to seen into fundraising well We setup give X,XXX Active Across growth. We've know, management our positioned we I'll Capula active private areas flows our we and, In like translating So, year an we the clearly in inflows start that duration billion the result AUM, meaningfully earnings demand allows good Garda, to evolve and how quarter, XXXX. for in that of been our existing double-digit be focused well, of well more you fee cycle by favor of repositioning playing Systematica, then, strategies. performance is the expect very increasing very approximately of to long and very business liquid I've growth impacting seeing headwinds we aren't should times. and OCP We assets $XX that's in also had about invest alternatives to terms as future to a our and business a that And wealth with so reason each continue reallocating growth affiliates area organic we private detail, And we've of organically. markets growing to for our our year. to at have the value really course, global reason about and have billion in over this markets. our in of to and three And upside impact momentum in every quant years, inflows

over that seeing you're flows earnings from impact time. So, accretive those

have Importantly, strategies they be they have fees. They generate these opportunity fee, to management substantial attractive performance tend really lockups, tend to are to also the higher and characteristics. duration longer some have that

So, just when to long a over in these flows in, position term. in year one, benefit not we're really the come but

sum we more strategic our up, flow toward to remain business confident really to to improving the trends I we're focused we're making on in and So, push continue. to think underlying see mix path And going more continue We're that and we're on. the growth. pleased that

with Brian comes question line next from Deutsche of the Bedell Bank. Our

Just wanted at nearly of part liquids. on overall between alternatives, and now liquids of increasingly to larger circle just your evenly back business XX% AUMs, split

larger even distribution to demand obviously, bulking retail look on retail thinking and feel know, be alternative their what using space positioned make particularly increasingly acquisition area distribution efforts. desire in that? to course, given distribution alternatives? as that investments new for is ramping alternative. higher credit, on of in Maybe, you the to the And are private you it And of of managers investments in that? traditional you in more future And up of attractive might I traditional that? you're advance are their How I'm guess, managers get also sort within do trend making of the the this via that, even are terms you channels, In affiliates, your in distribution clout up as

caveat, are with to think I that to I'm but such differentiator bring the have a which looking AMG way, it for back to we've stands strategic on we own, are relates in who when that with done investments, is today. trying And this AMD independent for of would like both But very marketplace we this firms start much a and Tom services also of much one one we but allows a partnership its new to access affiliates firms solution question, now, new say very long bear. at that for existing benefits it's I'll time are these prior assistance. It's continue maybe is operate to and to going – independent this here. then resources

maybe, finish. you I'll can Tom, start So and

going Maybe it said of and overall, focused conversations impact things our We've in past course really and the we're combination distribution the been Jay do as the alternative distribution both to several the delivering is new of seeing the on our the great And then in most landscape. of both what also of And optimizing in the over the importantly, to of distribution It's really years opportunity, distribution but very and retail of the those existing AMG behalf scale flows about affiliates, that do with focus affiliates resources. on the then we today, well impactful our one I'll right. with affiliates on our affiliates. in prospects. results as definition can

which our billion platform. we've wealth distribution, fund more $XXX offers vehicles So, than and behalf We've them built we to businesses. nearly affiliates. people facing our XX client give our Act affiliate global today, on you an raise XXX fund our flavor institutional for overall And a platform, helped support also have private in billion who client-facing US SMAs, of at individuals more to them XX $XX than

and markets, them a On to resources, help magnifier the the institutional we it them create side, as efficiency, our leverage positioned affiliates. strategically We scale our act think really distribution allow to about there for seeing we and way is we're broadly, add alternatives focused efficacy we the their We've maximize and global talent, added really on more there. opportunities that and to to given enable evaluate continue specifically to them reach. private we resources

identifying have really And fund the affiliates. trends, and to an the demand to this affiliates wholesalers efficient integrated and On offices, FAs It we tap in can the wrapper, into of way. US vertically offering. side, to field on behalf everything home covering from market in enables RIAs our with wealth a help building the one-stop with shop right them to client scalable we interacting

that specifically, on gap next most combination between a today are tailwind and significant size current of institutions for the opportunities creates So, in many and the the allocations where retail focusing of market we the the the expect alternative largest follow. The single is and alts area decade. flows world this over to growth

Our ability a the resources existing up they're all tapping internally it opportunity affiliates affiliates. the connectivity into our client in as partner-owned partner further level a combination in It's table are excellent then prospects proven for products referenced, and delivering as office market. the actively comprehensive partnership access to EIG, results. offer and who and have long-term AMG, And an partner ways Baring in other the commitment a channel, to to AMG see affiliates. and really significant today, the that to the with funds differentiated at new that brings covering and of for in-demand market and Jay bring of our are the excellent And that We are one, requires the and to wealth the field, unique Comvest already approach. are with enables partners different wealth well number both an the ways wealth and a record channel with this solution AMG looking and ramping to complicated three-pronged for as as navigate, future. iCapital tough a a Pantheon, But home private participating a Asia strategic in market independent looking of, really solution affiliate outstanding it partnership and track with affiliate it's to requires landscape.

we as have forging to compelling those and put new doing, who side not what potential we you a all attractive affiliates. our affiliates, ahead when together, it's distribution So, very accelerate help to things affiliates to existing have but also speaking the wealth, are into only out we're offering on they're

already the have there's how bring just also these as liquid do the to I'd correlated AUM, a their the talking further. for during uncorrelated, those affiliates in alt we our do our $XXX we for private Yeah, for it's an they're the opportunity done been haven't there's number in think Abacus to And opportunity $XX businesses. of well the what into to of AUM. And placed, this much of airtime markets. billion plans as that nature everyone. Comvest, given wealth, plans have nature Asia, name billion to affiliates retail significant But alts in in of agree we've We We to period addition volatility, in managers, less streams the channel, Tom return opportunity wealth successful private we given to because will of markets. high I'll XXXX. to a channel, much several a be market a just people well private liquid increased gotten at of of their We that do change democratization expand summarize a as note heightened of differentiated businesses, Baring quality bringing have markets private that named, into continue products there just maybe think right are as it's market introducing environment. we We've well. that think which significant corollary about on have sort which Pantheon, products XXXX inflation new we

all including last and a generally in activity And And liquid XXXX our we and in distribution, alts. so seeing are then, of the we institutional, just plan do there. is, our in illiquid have thing a interest across pickup

democratization So, alternatives. a we and strategic capitalize with our institutional to on plan wealth, enter the both further with of capabilities in XXXX US enhanced

Autonomous line comes question of the next Patrick with from Davitt Our Research.

the can when past, see affiliate that pipeline think deal and of volatility. I extend periods you've we in freeze suggested the new

experienced volatility the So, give curious this you've of to on could there could if update Is past? any maybe in early reason shifts different be what period you any think an there. than

right, X% there's X% know or of happen off You're about a Look, highs. we're the going have talk we that. only lot said future. in what's to I

– prospect, If accelerated is of is everyone it the in that It But I hasn't essence. be pull a our anything, we're you're one today. right. there disrupted there remind versus might that time think it in pipeline. have environment because think these do I may So, backs the that different

to period, where of invest. periods I be times think, coming those that can the well those but think to I are we've over out the environment tend there have of Obviously, – We demonstrated are some in periods, those three there's a do the best decades environments. pause, more extreme. during

we'll prosecuting objectives of businesses So, about today, we down we're we're not the and And heads our capital good see the prospecting I that have on resources if major we along a sort – feeling focused I we of environment. with do our our and ready think types real to pullback capitalize shift, through be or described. on what major strategic a think that

Thank turn final Mr. to you. I'll Ladies Horgen and any questions. gentlemen, for floor time comments. our back the this concludes allowed for

and had Thank on focused business us. earnings strong you the forward opportunities morning. all healthy. this hope for us we with we to to you Thank look everyone a The has our significant ahead next power I And of again and speaking AMG increased joining remains of quarter. finish considerably, XXXX. safe remain you.

Thank you. This concludes today's conference.

time. at participation. lines disconnect may Thank for your You this you your