Affiliated Managers (MGR) 7 Nov 222022 Q3 Earnings call transcript

Greetings, and welcome to the AMG Third Quarter 2022 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. I would now like to turn the conference over to your host, Patricia Figueroa, Head of Investor Relations for AMG. you. Thank

begin. may You

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

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

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

remarkable and a This good everyone. months. XX has morning, been Patricia, Thanks, last

disruption expect the world period share In grow XXXX diversity double-digit in XXXX. In in We than of given in business. years different environments fixed simultaneous uniquely also stark of as share more today, highlights geopolitical per investments risk in earnings resulting low client strong declines. policies overall as impact share contrast equities our and of continued and policies. declines both markets. the been new growth of AMG year-to-date economic the capital we period growth growth environment. in the delivered against of in our third performance, AMG's strong generated the inflation, have on grew year-to-date the we'll and the of of been same XXXX and dramatically delivered significantly the At together per and for the in the across time, to new unprecedented these offset with markets remarkable rates our it to Notably, drive we the drawdown backdrop year-over-year our And and in allocated approximately earnings efficacy both XXXX, top and rates quarter earnings to performance we severe a in monetary and in monetary believe our discuss market business positioned for XX% repurchases strong results portfolios. combination have rising two having X% seen easing under model geopolitical disparate income, diversification higher has performance And tightening and market the risks. success in is XX% AMG,

business profile is Our unique. intentional and

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environment market As business we of our principles of discuss, trends and you the capture diversification, liquidity. and portfolio beginning us. to portfolios, are demand investors importance Jay intentionally to of the heard recalibrate ahead to returns have has demonstrated built this the uncorrelated construction, Clients year's

areas flow full by strong affiliate supported performance in in earnings increase our with proposition strategy our Our growth participation momentum liquid Management, outlook resulting this in growth That earnings for investment strategies, collectively our sheet to the XXXX with real transaction, ability generation, towards is markets earnings, and the growth. capital investment by confidence significant deploy to our and year, strong can the outstanding further earnings we toward that to in cash number alternative unique October first to step our value to our combined year strong deploy capital of notably compounding current environment, most in key business consistent private assets. Peppertree our a strength performance and expressed Baring through elements: the enhances in our long-term aided to positioning in capital contribute deployment is In balance over took capital secular We proceeds and from performance, with fee and the significantly return time. investment fee AMG earnings shareholders opportunities. in Capital growth continue performance shareholders, line generation

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billion $X.X redemption. of Finally, the driven in outflows low-fee in multi-asset and saw income cash strategies, we single management a quarter, fixed primarily net by

Turning to financials.

the grew share EBITDA share offset stronger For more performance quarter, and earnings million of $XXX investment in net repurchases, of the earnings. third dollar. excellent new markets and than activity, adjusted year-over-year X% year-to-date of per benefiting $X.XX the period, $XX quarter and performance fee from which lower in Economic investment million a included

to fourth moving guidance. quarter Now

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$XXX guidance Additionally, to are performance given in set million fee strong performance expected range million, $XXX of includes the and the in net strategies the that contribute large excellent of diverse earnings the to quarter.

and are Many AMG earnings to stable fee performance to upside across As of experiencing our our serve more long-only component a this we well-diversified potential, with strategies we resilient earnings earnings last highlighted markets, stream equity as in and of our asymmetric strategies year. making call, ballast at are cases, stronger performance negative AMG's cycles. with fee ultimately and on these some power market overall which generative correlation low earnings

to Turning modeling items. specific

fourth and the interest share million, $XX and million, was For the it in we was a our the for we to of quarter, interest expect expect $XX depreciation fourth be third quarter. Controlling expense similar million quarter. level $X

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

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

in rates tax to income and this we tax quarter, fourth and rates at taxes quarter, the and the be cash expectations. respectively, XX%, seed reflecting expect capital million not seed, we XX% the in Our GAAP mark-to-market any and Other negative other quarter, which XX%, GP quarter, and effective economic the GAAP GP were included were deferred the and do any the economic in million XX% $XX third items. impact fourth from and on items quarter, we were million excluding respectively, cash for on quarter. Intangible-related mark-to-market investments. contribution fourth expect expect $X and impact In $XX higher

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

Finally, balance turning capital allocation. to the sheet and

look capital to balance generate our the Baring enabling capital we us today's sheet our financial execute further against to strength flow significant value. transaction flexibility, of as shareholder and enhances position and closing The deploy the positioned we Given free strategy. to environment cash generation, our well are in our of

As connection previous into million a Friday's In proceeds of $XXX have our approximately to XXXX. expenses approximately closing gross with transaction, of proceeds purchase Baring million, million reduction, bonds statements, reminder, approximately AMG the our allocated matched XX% in or $XXX received and taxes $XXX with in million of price. based EQT, deal of on to translating the against maturing million and $XXX shares debt million $XXX line through partially XX.X cash which of of we treasuries duration future went and

repurchases shares approximately investment be to Nearly increase remaining year-end will fund our manner. disciplined those over sold half expect EQT We or methodical million and proceeds $XXX affiliate next by in in a the be XX% quarters few the and in the repurchase $XX of recent to shares, new our allocated our to the repurchased of guidance. growth year share remainder quarters. In share $XXX third in total million. we and fourth And million additional strategy coming ongoing will the this the bringing execution our quarter, quarter repurchases of fund

the outstanding and fee $XXX the is for our nearly of at of from we fourth the Baring the least XX% XXXX, full performance earnings quarter, our at year Given proceeds of for the now year. million transaction to shares intend strong the expectations in shares which repurchase beginning

our will remain framework. all investment is capital the subject always, and a manner, As continue to expectations inherent We conditions diversity invest and our our model. on the market and new common a investment demonstrates The growth, in of remain under in we strength focused to evaluating affiliates disciplined activity. momentum and our long-term that decisions stability

growth to and strong a our flow In streams. our free to market in We have management sheet new earning and and affiliates robust ability a environment are generate generating significant deliver this environment, significant to positioning our The for performance. we changing confident in our deploy performance differentiated capital shareholder business represents and fee by cash both earnings opportunity value. supported balance recurring continue and and

questions. your to happy take we're Now

first question. Bill with of your comes Our from Instructions] Katz Please Suisse. proceed Credit question with [Operator line the

morning, very you Good thank for my taking everybody. much Okay, questions.

on kind with Just here? terms same of a on what's so step appreciate deployment, going I guidance. little it what's capital the of deal done see the in in set time? great to this broader pricing But environment -- Tom, Is getting back, you it's in terms bit? Thank What's Jay as extra And for of incremental going a just the sure. or at or you. get contracting going on in opportunity the

good Bill, morning. Thanks question. for Hi, your

add, then we with announced you'll that, anything in. maybe the And morning, I'll deal of you about environment. still Tom, take have me backdrop and talk the to if we'll start and jump the this that Let

Peppertree squarely space. side our markets, strategy, fastest-growing the the investment communications infrastructure infrastructure market and private areas arguably, the the with line of This is in So investing data. in one of for is it's is and in which in private for demand the within

can in investing see we infrastructure, they a fiber This communications business opportunity the with excited strategic far to we execution on opportunities also us their investing a decades tailwinds continue want long passionate on the drive They've as much aligning They expert are an as a their They We to to area our can they growth, back Peppertree. They an their independent we sweet a to over spot. to towers, built owners. It's for the So a and the long-term and have ability They're and engagement two believe magnify us in this and to of to be across us. time. attracted area we to high-quality minority partnership us, their partner They first transaction space. independent. our of to were attracted It's strong where the efforts. a as and continue period. with impactful play of business thoughtfully value resources very their remain other has look because their areas. to here. It's and the specified and think and run it's going an secular our we're for to They're business very as of as growth and see, about that is team. space value-added moat model, minded. overall environment. market It's This going experience were engage was over strategy, entrepreneurial. foremost,

the So the the part maybe second in of on your then opportunity set environment. question taking

that. that the last activity other I our we've but freezes, start and pipeline full, that but them know me not and Let help also seen that bluntly, we're it engaging it's And our where resonating plenty to remains the kind don't unlike and seeing firms. specific differentiated surprised, that allowing I for of strategically periods to goals. combination highest think I'm quarter achieve with by do then their just put of volatility saying quality independence, opportunities there's We said out there. of is offering

to be growth new also and it strategic an just but help capital, affiliates, capital there potential the side is to advice, As prospects in could could new we continue services need be products. distribution other for seed talk help, the environment. distribution increasing like and That on

us. that changed. Obviously, think environment the has So the do environment for resonating overall has is We really changed.

look especially kind remarks buyers in is them M&A that's buyer of the The I thing with I evolved. pricing markets, that risk coming space. see And pricing in started As see down. share that of my the to much. in environment. seller. market has other just has private structures And and prepared traded have we down seeing public you that's happened number buyer overall and even come played universe And the other the has thing don't happened, said within as markets, better you're A into that that private traditional inward, is, the can think, publicly between

is our environment shifting us, of sort opinion. for news the good together, taken So in

We part strategy with continue, that is quality partner of highest as firms. all we independent our to know, the

on So we we opportunities good coming see this, continue this be out very of environment. and focused to

fact, expect this we that capital come areas have to about secular of we talk that on we environment. to capital and in to invest the which see of probably we'll opportunities and we're our out about that In do growth, all excited expect ability call this

thanks, so for And question. your Bill,

Thank you.

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

depth, growth you performance is But performance. the as the overall also morning. kind Obviously, on have to just for the these leading of about fees kind And for talk about of follow from guys contribution. good the I affiliates. before, future performance would sales fees. outlook environment in highlighted in terms a curious up that gross and context, be good indicator maybe then Thanks, for just of wanted

if would still in So or and on some any if have that's been I more seeing quantitative favor. curious demand you're change the strategies come the that of specifically, out within be yet of

and Well, and thanks and I'm liquid to talk alternatives then start I'll for business back maybe your for prospects the circle And let our Yeah. good of morning, going in question. particular. Dan. about the business some Tom

first, fees can you Tom. with performance start maybe So

execute are to by a Look, our and talking in part give then and generation a for that on affiliates significant diversity I'll growth investment for about given second and expectations the Dan, does really bit performance good view and real morning. of for earnings, of terms of they're important Thanks, And And your that future our what diversification. your question. They you're fee They to of a provide performance flows. lead fee strategy. of I'll business. Sure. dislocation times seeing strategies, Maybe our AMG earnings in a now. provide start cash question you to particular, market around differentiator

Importantly, stream is I think in our from others performance industry. fee the different earnings very

fee performance earnings a our basis. of are on realized reported All

affiliates a coming products. more that's cash real also and individual they're of terms of that that's and a across So to in us, multiple spread than dozen

So a stream. and very this durable earnings diverse is

excellent absolute and an I I'll talk environment. driven really this that's If to future net expectations have the think be in performance fee shined you discussed our And $XXX so, look leading expect that over is a of some return annually. or primarily million to the for about course going as we back moment. flows our our decade of year, prepared last XXXX we products year have that in growth And remarks, a averaged by earnings in

year earnings the a saw level fees, every being time, fees spans year. see particular; really into to the really buckets: this, leading fourth this Garda, the you upside, to And fees as like at we asymmetry opportunity really count performance and and a when seeing you and earnings, have and fee metric about can private of over from absolute data obviously, bank time, when Systematica, look performance the year of that like to strategies our page in look to But over combination sort quarter our beta-sensitive return and some year. investor we We materials Those realizations a also this the Peppertree pattern also we pattern base make talk but that translated continue performance time you year is you're strategies that performance three that stability base then a And shows there's there state at in on -- this in upside. performance also of to build and quarter; Capula, continue strong very been expect where AQR, this then where more our performance contributors. throughout performance challenge in expectations that quarter, to this the strong time markets over there. is fee of where, exceptionally strategies strong we this for the bit investments time, sensitive

So terms about changes happening means around really, what when make. portfolio clients expectations us three is likely And to in each for the changes expect this think we the you to it's of that think we ways. construction a impact in we in of And our flows, of that's in prepared market. our remarks and one talked biggest lot the

First, have levels just the by driven we're seeing asset rise excellent fact that we performance.

and up this over of more these it happen, the performance space our create ultimately, more client our as management move strong course us quickly portfolio. more organic to from in away lot and right, this growth decade to have now over and opportunity role And have reassess accelerating. those more portfolios that who into about time. creates see products should past the streams. the conversations for fees, as they things number earnings these their need A have to the really we're have fee a they to think play starting are need an of right balance, strong moved moved conversations clients to And of return Second, uncorrelated realize markets have

our long-term it opportunities. our good So in to about alternatives when positioning overall our we overall really really feel growth book liquid comes in and

your me the the the businesses about overall, this take neighborhood for XX% of outlook of question, the something the good really about are Putting Tom are let second just those general, So businesses for -- is alternatives. the that, profile pipeline. firms. maybe of and and alternatives. into growing performance, talk some Dan, assets part flow Of in pipelines and in up like that liquid context in said, the we're And the as XX%-XX% those

the Systematica, talk AQR, Winton, highlight just more to bit and them. two Garda, about would I everyone, So for little names a maybe of Capula,

SAM than the since and of the highlight other beginning what called. that's investment -- And these year. is incremental as and all again, year an I the firms. XX%. up think Systematica's beginning last of of year, very number It's January kind consistent business markets would products Systematica, in this excuse a a it's as performance, alternative me, at I is of microcosm we they the at Blue business. this of that is of this of AQR with up some Systematic more XXXX. a is That well that have XX% Trend year of affiliates. made

example. to So flavor using an give I'm just this as trying a one you

because and they're outperformed we similar their I liquid and people think really is, back, I seeing businesses value-sensitive their having thing begin and choppy times, alts the by investing performance in consciousness think out have quant even within AQR, a amount, the of flows to business liquid year, coming has business, And other This that say would come particular quant theme long-only we've that kind the products. business back. on two AQR, growth has enormous as They value that's another know, and after of alts we're business. their that in pointed value is will that continue. an ameliorate some

together, when pipelines two look for forward and new both those look prospects businesses you So at at they client building. flows, are taking you

constructive we're so products. flows on these in XXXX into And

you. Thank

KBW. Brown line Please with from question. your comes with proceed question of next Mike Our the

you for morning, Good my Hi, Jay thank Tom. taking and questions.

morning. Good

and of sentiment investor asset as about guess starting well? lately? I you I sentiment Are equities see across little to all So more any touch on of shoots wanted the green through? your just classes to just hear coming here. investor income a is side activity bit Can How you fixed

just broadly activity don't why and you describe yeah, So Tom, flows?

Mike. Thanks, Sure.

on it in this capitalize continue So those to manifest execute as the the all does again, themselves really manifesting are secular I'll for more the importantly, our to Peppertree our that trying to areas. of mix our to client today more that business future. the strategy, example driving announcement the the years. I and against as we position And and looking the strategy, growth course continue putting coming point we're how to more to towards we're we in context opportunity trends business of think that expect us over an execute, business And of as continue another we of give to themselves to

the pluses the of kind what of right minuses. in and equity the and market, combination terms performance business's traditional of see In side, are I we some there now, our think

side, well in U.S. positioned. we're equities, the On plus really

two We that's where think terms strong the to the tilts area side, we're terms as of when toward demand. we strategies in elements proposition, value benchmark in around are energy think our three-year core sustainability kind on trends we a still And there, just trends value U.S. fundamental secular outperforming Jay to an ESG. if will, and of about you're question, on the in the one one incredibly managers of ESG, going in continued bullish ESG And affiliates, long-term last response our the period. the of see in transition long-term number as well. have of And towards you then mentioned and XX% value value of

it continues side, flip challenging equities. little be the for bit global a to On

sequentially choppy. in growth strategy, there But sentiment improved still flows a around the Our in quarter. I the particularly second market, is bit the think

records, their performance move alternative when I some environment you but good remains our though. side very markets, our and alternatives. conversations area, some affiliates quality needs primary private Then heal. we liquid private see track our that our focus long-term there changing areas, time really markets to we fundraising strong. things and remain over think the of And strong, strong, have two performance business, the feel remains of the the still We So about then to market in do client and in

we process investment shifting in think boats of in the a businesses think industry, we underwriting that lot with AMG We of and sort will market, there's a of decade been time. I towards discussion that's see new at really over of has changing. it to this loser more markets, that we affiliates all about and a way see the but been lifting those next winner quality private the out tide the much engage this our area type decade rising and allow an and the stand of where our absolutely last in bit

in a we are Jay his to and positioned think well remarks, likely better that client markets as direction. going this certain Second, be trends more in of some demand subsets are bit private of others and mentioned move than to

back product Starting as able more our through help like clients assets the businesses solutions right about and all at trends there's are an my portfolios. strategy of with rightsize of coming in And the the done products view get then even as those of increasing time terms and the saying, sales to like space And to complete distribution see think work product is U.S. what those of to And formation conversations create in lastly, disruption, question to think strategic that talked being becomes of to focused this last areas when capital the to products can alternatives, and offer over the and like I a think liquid market. where and see on on have the the growth think, really that's to And side we I solution then think the differentiating. client really cycles. institutional need this important. XX infrastructure, continue and portfolio And the are that that change. that then be that that we part wealth future. in development about well last we XX secular such leverage So we months to Jay, side the way really the been I but AMG's strong course big also moving lastly, we I real in helping allocations them ultimately, on be area help area through people kind into Pantheon can

stake And than equity, on private models in that in then side, our sort who XX% challenging look to space, public private of making traditional spectrum thing have in different does right? for We Yeah. think to within the in some equity we're you that of those about you the environment. are then space actually we was up long-only kind you of might of the the Tom. run to be -- a operating call One buyers managers. companies AMG and of main sort this I operating people different, of good XX% other I We the just would into other and the say right? that, some broad changes models would that fit exactly have but And where add, It venture summary, liquid of all have business. alternatives,

private well. have as long-only we about is markets have and We a half, then business

of allocation So that did which year-over-year almost we our 'XX over be to on portfolio last is diversification in play in gave think seeing environment year. going XX% that back are we -- off guidance I we XX% earnings why that the we're 'XX do really the in, out that the that nicely basis a you're up think that

you. Thank

America. with comes proceed Our the Please Bank next from of question. question Siegenthaler line of your Craig with

you and Good Hope well. morning, doing are Jay Tom. guys

morning, Good Craig.

on interest question debt my is and So higher rates.

for your fixed of what rate convertibles, the the higher calculus you of debt has new that any swaps guys to So billion investments? and and floating? changed use Do composition how $X.X exposure? versus rates of hedge is derivatives And of

Yeah.

have put that's on well So I'm that but as take going question, to important the sheet also most duration. balance in and the let's our Tom because liquidity probably

know you're I would be the question. So the Craig. I into that those would throw here, things asking other

Tom, it maybe, up. if you'll pick So

good And, morning. Sure. Craig. Thanks,

our on where on we all, with So duration on we leverage, excellent of like is feel are shape, balance only I our from we exceptionally perspective are balance continue the sheet and where sheet. we think first long not to of run duration overall, in

really below also elements talked you cash times. are One, top ecosystem, cash past liquidity line. the a around in And model elements. significant in of different generate levels terms flow, about mention The fact leverage that to the business Our margin a strength liquidity every and to of that level our the to of will, are year But we year. around very and the of level exposure to cash flow X work of of elements strategy. if execute after couple We've a number at kind ongoing our of and I'll leverage. at growth replenishing much affiliate flows to the diversification year just do after or either year not us capital AMG other the contribute against number put we have and that of really allowing the

significant capacity When is liquidity Baring sheet. coming us those as more that. to about we've is about also the balance a point, environment are talked that Secondly, the and we've the it the becomes we about of right, them of work of of And to really, of where more that to the boost the put think thinking liquidity, added time. sort about the a we you valuable, to part if got And and market and proceeds sheet, the result the of transaction uses and balance and Jay's liquidity combination gets. think value challenging over more of expect

we be like themselves, we we a So squarely and position we we to be where on like when exactly feel opportunities in feel today. where are present can always want that's offense

ability addition We're And to stream. also cash on have the balance we what to liquidity. a We sitting billion flow significant draw revolver. in have sheet, on we a consistent have $X.XX

have -- opportunities. potential plenty to capacity of against execute potential we So

is In balance majority vast terms The duration. of is the long rate. fixed sheet, nature of our the vast majority

context rate term have an changed environment. liquidity loan. necessarily on rates current our and terms view the of ongoing and our focus I'm We not balance the sure the And have sheet just our calculus, in It's really optimizing the that forward view. that optimizing a of in floating I of it's small think economic

of prepared pay Baring offset bought some in the actually We debt. me bond heard treasuries to mention from to the remarks, capital transaction some our my some you down XXXX So we against maturities. did earmark

-- continue feel great the environment but we like really on balance the in we market we're as changes. we're optimize shape sheet, So to

The is that. hope we're to uncertain got us our fourth gives that prepared an plenty the sitting the this repurchases we can for other down, his quarter, us in Tom in, or thing see elaborated new we that's uses opportunity, but liquidity But balance on which 'XX, go the debt in remarks obviously pay of flexibility also needed. quarter if investments on use that to sheet EQT going proceeds, of to and happened we further because of into lots that's

Thank you.

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

more back private circle the bit side just Great. Thanks. Good a detail so morning, folks. on market there. and If little I could

of -- as Slide side outlook do initially then like you then forward if side other or Or say, think versus, terms the private see absolute side was performance markets sort fundraising I we the illiquid at going that is X increasing contribution from see quarter can just fourth absolute fee cycles. on of So it what time? the that the over you about you maybe just side what side guess, in coming of return today, the as strategies? the contribution both angles, that market XXXX X, looking the rather And you monetizations, coming of first fundraising and about said? from it's and talk of in private in And all, of from the into

Yeah.

the start want illiquids? with So Tom, you outlook do to for

questions. for Yeah. the Brian, thanks

with respect take word out think would overall of sort opportunity, I fundraising So I your to cycle of question. the the

I are of amount into those think a diverse within as affiliates, group past, we've businesses, themselves. fair the in private have very each businesses markets we talked about a of and diversified them

generally a wrappers. channels of in in always have any we different time products different So range the given at out market in

really type have a don't fundraising overall. business cycle we So

credit, couple that in to are the of corporate to across strong businesses. much last those our of we private clients we the changes areas the we're private buyout-style to solutions, see to equity. some themes given traditional future, fundraising frankly, fundraising, a the raised market areas assets, focused has likely perhaps there's quality like themes they I the potential given that positioned businesses, some fundraising exposure headwinds continue to that in been capital feel of well And that And key we very strong our So real of the nothing on. against in like don't we look lot think that see expectation are years in when terms we're more infrastructure, those of are of facing across given continue more have how

mentioned fees, I would I side, to about performance in to quarter businesses to continue expect markets. fee the of do investments intermediate talked opportunity made bar for time, fourth would the this say, us performance we've of for lead that terms in as the private we some it think guidance we've of season. majority to I private small over more performance quarter, the our that continue realizations these terms markets not long-term is grow the that as linked but In as an fees. about did some to And that of of to

performance what We We is going further continue that to to look that's one, cash to opportunity think for build years. diversification two, and fee-generative us: just two-three-four already be increase generate big asset more to carry a continue set. to flow; very bank, out of diverse we but the a also,

of in question prepared denominator portfolios going think comment. is XX% and I my in are in broader come of today. take markets, one the know probably where center there's I their private issue the portfolios they're into do on committees I'll this remarks, and know is a year portfolio stage have a going to Yeah. allocated. have one. people to it liquidity our go the going to make which to business year, end at there. construction back to about and I people And at a that's think industry I lot just when more you is in to your their of they're next is that Obviously, context putting universe last only coverage But about of And XX% into your that

as areas will and that I will areas keeping though, I with private have deal think said, the areas need risks the to new the environment, that the of the stage of And think clients construction there Tom but portfolios. ability infrastructure, as of some is more fundraising specialty see out assets, center return liquid their including slowdowns to more specialty real through absolute do take credit the being areas. we to be year, of their As other emerging follow next markets, portfolios in going portfolio of generate

you. Thank

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

you On strange on Thanks are call, everyone. point, that institutional question. it's for usually targets XQ a year. morning, think highlighted you've talk the side. last redemptions this allocation as the But Everyone's about I guys seasonal good Hey, on off.

of early So what through a little quarter? the now seeing different we're any kind this Kind than are year a could halfway signs that institutional normal maybe year-end? be of you that behavior

Yeah. Thanks, Patrick.

team this tag I'll one. Tom, think, I

previously You're right. a very a by a followed year This unusual very is unusual XXXX. very year. unusual Actually, it's

question. So look, knows I'm the sure alternative side. on anyone the are I really not your pipelines answer do I liquid that seeing to -- say build will we that again

in people return out their quarter the play have uncorrelated portfolios. are for the in think us. till fourth may may That take need XXXX. to reacting It I to some

somewhat the we to growth. their I kind up sensitive say of we on people have be the the like are And is, the people that is And in that to liquid whole a would think close, years of buying carryover just fundraises run that complicit think have in and side. think not, all XX whether after liquid passive in growth of They be us to momentum admit some portfolios. last sensitive to bolstering quality were kind industry, way. there's and going I then to their more obviously, on thing I in final value the portfolios it side, or including I

come has so management active into portfolios. more these to And

play quarter? think if Yeah. have to out play and might. that. So going know, Do Tom, it's that out fourth add I will I don't the to It 'XX? anything you in to in 'XX

this the may of is the in market. things your by Jay's to your other trumped in I Maybe core They seasonality, just just question happening on I be to implied question likely specific that answer. think and some are think that there, get still are trends

in is be retail the in of a been And different around So visible. years. we've perhaps, last And than trends one we're very as several those will obviously, harvesting. not environment quite tax loss

some factors and there but play, likely this understand. occur, to are magnitude, these just at think And I will things early try So year. it's the bigger still think, pretty of I

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

this Thank again joining morning. all you for us

with compounded quarter. over confident XXXX As growth growth results. momentum, with third you well to next generate We quarter speaking forward both ability business look given as we heard, And earnings the in you pleased in are long term. AMG's our strong our we're as to

concludes Thank This today's you. conference.

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