Affiliated Managers (MGR) 6 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to the AMG Third Quarter 2023 Earnings Call. [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. Thank you.

You may begin.

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

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

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

morning, third share repurchases. capital everyone. both and allocation investments Thanks, our Patricia, growth AMG's strategy of year-to-date and quarter results the impact strong good across positive reflect and

During impact environment to persistent objectives. High-quality, higher times. managers challenge continued and the clients' inflation of pressured geopolitical have increasing risks rates, themselves achieve as the their the in volatile quarter, ability changing investors market investment distinguished collective independent to

uncertainty. investments shareholders, a entrepreneurial globally. quality and among With differentiated And streams private return our have XXXX, the and proven long-term firms have asset of independent Differentiated firms partner-owned those returns we growth and continued this markets, operating highest profitability a set expertise, approach. In businesses of affiliates through markets unique believe their to having set alignment and specialized generating this the critical for affiliates returns partnership diverse differentiated to X during cultures out long-term managers private clients, this especially we of of growth. to in high-quality in new access in investment liquid our again. achieve to in offers uncertainty leading add and diverse areas As in Partners, In is completed specializing And investor advantages European Independent life sector. October, both secular heightened are manager of a we dispersion create Forbion, private completed investment generate in for opportunities we fundamental in industrial periods in the objectives. dynamic private sciences Ara in opportunity playing our AMG clients competitive to decarbonization. with independent markets a are August, our fast-growing made markets specialized our

focus to secular benefit carbon achieving global the to are well investor positioned is continue from lower heightened a economy, transition to allocations tailwinds. accelerating these on Ara Given fund and this Partners

alternatives evolution, investments more venture As private fundraising AMG partners secondaries, their the critical. its of specialized markets independence. With last otherwise assets from to growth on the in approximately played capital. in largely the investment few Ara affiliates excellent to and And approximately traditional and now liquid evolved The reflect advantages as billion of we strategically future. firms. this a of Forbion, their and AMG equity, have and half billion strategies. Stepping year, strategy, greater independent back, momentum affiliates existing partners. investing X our a flows challenging of in contribution private strategies, distinctive appeal business markets forma environment specialized Ara has These Forbion affiliates. Ara contribution including growth reshaping to areas private strong new by deliberately over and than on an the affiliates a as a for chose of characterized role the approximately alternatives with growth magnify the Fundamentally, trends our continue we execute our even we demand strong of infrastructure, including investments in And business approach our investing billion $XXX partner to across an highlight year-to-date critical account to $XX investments meet strategy, have and range new resources profile earnings client its our for operating part estate, substantial strategies fundraising years develop high-quality independent existing entered team and growth. in client of including credit, pro have their growth secular AMG our aligning and managers composition one our AMG affiliates strategic made in raised in we in in from exposures we evolving real needs. we with alignment long-only our And on performance, equity expect collaborate to private remained strong the given capital success broad both next our has by of was alternatives. Today, with earnings. firm's And long-term strategies, from magnifying long-term a products with preserving phase based while and managing $X partner

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strategies. of ahead, new new investment during towards advanced the having several composition investment our positioned evolving Looking quarter, opportunities the attractive well further business we to activity, in-demand our are increase

of on Finally, heightened I allocation, disciplined capital period our emphasize want this during focus continued volatility to and uncertainty. particularly

our growth evaluate our flexibility. new affiliates That will significant We as disciplined investments existing new through our our prospects investments to as repurchases. through business we and deploy opportunities excess will financial we track our return capital, given XX-year remain make continue continue investment evolve said, unmatched successful record in to to and partnerships, we growth capital of and

more than evolution, invested operating evidenced billion discipline the shareholders also more returning is track a unique $X.X our by independent excess X having active private equities. over areas differentiated ongoing growth in is as truly alternatives record, profile Our capital markets, and with $X same past than liquid period. Today, AMG's our billion of over the years, firms in while result to in

our is of supports highest our a Our areas stability and advantage competitive continue to earnings enhances investing to diversified return portfolio and that of shareholders. benefit in both businesses capacity the our high-quality growth entrepreneurial

excellent given the are in it of highly significant to that, of advantages, Tom disciplined value allocation, quarter. our ability competitive details to confident approach the capital our we review over incremental to Looking position with combination And forward. and ahead, I'll our to unit the going our shareholder capital create turn

AMG's Thank capital made we X to both our affiliates to Jay, impact along we opportunity and level increase of to our to well continue strengthened see through growing of XXXX. balance in morning, the our disciplined invest through and have approach secular enabled return magnify sale to as our with us and allocation, share We you, good capital we has new transaction, time, the of the growth everyone. the stake our closing in repurchases. At have activity remaining operating areas our deploy affiliates investments veritable alongside their to and we same continued EQT substantial the advantages. capital completion to sheet as shareholders the of competitive in

the growth reflect attractive mix translate into shareholder actions And further allocating long-term remain we toward for of focused Our increasingly capital expect and secular AMG. will per areas business which our to significant evolve on we demand, earnings opportunity share returns.

fees received cash earnings, third $XX million Adjusted catch-up quarter The our at in of a was results. AMG one our to partial net proceeds. affiliates contribution September and transaction included completed performance of quarter gross million of of Veritable. markets Turning $X and private in Veritable million fee from EBITDA million $XXX $XXX

approximately for impact net of million a definitions. Economic and our with strong. and purposes, strategies earnings economic excluding This from which in billion Client is the quarter. GAAP $XXX strategies For demand gain while $X from quantitative item our headwinds excluded we the $X.XX of client financial repurchases. separate pretax gain persisted have alternative equities global our line as cash certain recorded we on metrics, outflows, were per income consistent of share statement. reported EBITDA net income share benefited a for remain supplemental

fundraising the certain our In primarily excluding reported across Turning markets year-to-date. performance nearly billion and year, quarter. billion prior of Comvest our investments business $XX and with $X at alternatives, to net Pantheon, in affiliates strong in private raised private again have inflows this were to Ara long-duration we including at fundraising markets driven results nearly and partners strategies. capital inflows Forbion new by These EIG, our quantitative

Our credit, generate estate, driving secondaries real long-term across performance, and track affiliates continue infrastructure and excellent fundraising momentum. records investment to their are outstanding

outstanding from clients range benefiting of in investment We where products. positive performance liquid strategies also alternative wide flows a across are generated

In delivered net in alternative outflows despite records track long-term recapture in across net strategies equities. And remain as global to $X in near-term we cycles inflows strong affiliates' billion on billion multiple addition, quarter, pockets continue client in headwinds time. U.S. equities, strength the $X Industry we performance records. track and them performance strong of our continued headwinds approximately building confident demand certain and over quantitative multiyear well in as in that strategies position liquid saw we to see modest which equities

Finally, demand in positive fixed income, GW&K. to see continue at for multi-asset fixed and strategies had we flows and income

moving to Now quarter guidance. fourth

does quarter to lag $XXX and Friday. adjusted based our be partial Forbion a from AUM earnings our as impact will excludes first which XXXX. quarter This partners, $XXX quarter fourth market million Ara between new EBITDA on the expect We million investment which and will reflects levels, not was to latest on begin of in include reflecting one be contribution down affiliate quarter-to-date X% and blend, contribute range reported current quarter the of of Veritable, from a

expect we share on annualized basis. to X% add will Taken Ara earnings per to together, economic an X% Forbion and

beta are AMG's fee across in of fee million $XX fee Performance cash. stronger Additionally, power products earnings paid resilient million. be a consistent year absolute well-diversified return, to group and to fourth to includes in range affiliates to a by earnings and million market generated quarter, the and earnings, approximately to $XXX across which cycles. sensitive $XXX making this market guidance earnings of earnings contributor $XXX range performance more AMG's full and strategies of are translates our performance continued a overall private net

XX.X adjusted economic quarter. average earnings for a We million to range share the count share expect per of $X.XX fourth weighted an shares quarter of assuming $X.XX

and find our I website. have to We on a items including you reconciliation items. expense, that our Relations historically and other impairments, can guidance of all taxes where amortization interest modeling economic of have Investor discussed the earnings detailed call, income the section posted

Finally, the sheet and allocation. capital balance turning to

year EQT of and has quarter, million we shares the we strength stake, Our the the generate bringing total is share to veritable continue of to million million second to capital look debt and and remains million, investments, this will $XXX $XXX an remaining source position completed net both quarter. a balance repurchases third repurchases to of the our sale contribute In value. as proceeds. $XXX reduction. growth in third $XXX sheet and pretax the repurchased completed quarter, ASR of approximately shareholder That of we in inclusive excellent generating our In

strong flows of Given year more at cash position, momentum, the shares full than least year. recurring repurchases anticipate outstanding XX% business and liquidity to of repurchase our million now of pace $XXX our combination and we are building this on

these always, to subject remain investment and As expectations activity. conditions market new

take of common decision-making discussed as framework, allocation and our our to a investments flexibility. levels managing As of disciplined the return financial through to with we capital previously, capital a all we leverage including have prudently shareholders running growth and excess well as approach

the XXX quarter. defease and liquidity fully short-term we to strong position million down to bonds first XXXX pay in Our treasuries, ] expect [ fully our February with has notes enabled us these

growth capital full strong sheet and invest have and our $X.XX We of continue capacity XXXX both head for we revolver. to with into return and a shareholders, the billion undrawn significant to to capacity balance

approach intentional. products deploy and new and cash affiliates, and the business capabilities. generate Our available we investing investments alongside to opportunities in to flow, new affiliates Cross capital growth growth of AMG existing us. innovating in set We our of to launching investing our a is in diverse substantial have

generate capital allocation competitive Looking our execute strategy to on advantages, growth ahead, remain disciplined shareholder positioned we and and given framework time. our over value distinct well

to your happy we're Now take questions.

the Thank comes question [Operator Instructions] of Jefferies. first you. with Fannon Dan Our from line

the The statements, in a you up new I thus the close of to this $X but far they've in said guess the on raised is believe couple billion new I $X year. billion show investments clarifications quarter. investments

those I accretive. want the an on believe And added has So X% EPS talk about could just also of maybe investments? to growth looked I if you the what you basis. fundraising and X% for annual then said rate like to both

accretive sure current to want that what to make Is make XQ on estimates? to. that to run sure is I accretive it's want Just rate? what based just

all Yes. going Well, answer I'm couple after broadly Tom they're There's have questions. and Go we'll question. maybe about related new start more a to thanks to for your that. talk the but those just investments ahead. of

Dan. Thanks, Yes.

once not included seeing so first on you're on Ara the include which that, come So question transaction, a go-forward the billion AUM, to is the the around $X Forbion the closed that We'll through see partners AUM quarter. related in from only basis we impact that's there.

by for the getting have In into specifics each been terms businesses, across fund, quite of fund of really them fundraising without on nicely X growing their franchises.

space environment Forbion an their very process equity had on fundraising biotech and fundraising Ara, is venture in well in a XXXX If and a on equity incredibly has larger that's been into growth the decarbonization then the in XXXX. private side of those you closing flagship And course fundraise both they've recall, capital of of business challenging. XXXX had in including really in strong the each and over the the raising time, some vehicles business, as as been exceptional

demand speaking clients their quality they're offering. of for really the have the doing what and that to So

accretion EBITDA, X% And In the quite number, on net that's that is the impact cash the spent cash obviously, terms that a of, earning X% look, obviously to there. of bit. we of

EBITDA numbers to in think you XXXX at XXXX numbers, can at Forbion Ara they'll I accretive XXXX. our both to in baseline not So X% be X% all about our in and and look being

fundraisings overall, prior Yes. I the just my new billion Forbion remarks, follow X with terms Ara markets $X our think $XX Dan, and in in year-to-date, together. that prepared private with and let me to heard business you of billion,

those largest in investors. in in environment. raised clients last had of fundraising, X investments. I'll has the and think and our dry And to economy. of looking example, is look as number you X for we're lower sense trends growth. it's transition, terms with Maybe for return for these one lots of Forbion form So profiles And Ara And secular the capital at to if X and invest the to here much We level, dry pockets most that it general, bigger $XX really, just year care, an in around might up the we will what areas. want mega-trends, our of good increasing really really powder is even this the everyone allocations That and energy months. We've is this sustainable a my back And growth. highly just Peppertree here in some strategy into that going end has their you carbon from happening partners, kind attractive just remind I taking powder been last months. breakthroughs in use data. and that include continues really by need secular large over billion how be of gives the is health they're part to for our last of to describes these because of XX

So growth. independent including specialized these and we incentives. we Ara the demand partner, opportunity for increased growing have we're specialize for lower products number looking capital they're clients. And And think these their firms structural emissions businesses, advantages with these have sustainable for customer interest accelerating carbon government out supported aligned targets, tailwinds, significant strategies, by in because strategies, sustainable strategies, to that specifically see It's that and to those economy. for transition factors, lower of a a really

So front are trends. partners we trying well in the our those are those that in structural to and of is tailwinds get positioned

the I operators was us is ultimate assets. the of the mention, technology between gap sits our it we're value place a will unique not of that to development partners bridges the It think the in in industrial that just -- sort about I important one and importantly, that of chain. new things

and new applications, they environment. operating large their clearly own technologies the team, into scale and can ready industrial So these within to have for fold assets in build, proven where to Ara technologies been implement businesses and the commercial their they're point once them buyers

technology on no So economy. lower real the carbon risk just to there, capitalize trying move to really a

addition seed which we're investor, having this our was about transition early in them partnership we to So from an excited where purchased interest.

We partners' hallmark which firm, more management model. also a of the partnership principles, Ara owning our is of facilitated

excited our very about very of number in So we're firms we're very and and about excited excited we're about Peppertree private a and specialized Forbion other markets. operating that,

for thanks your question. So

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

great It's the like liquids sources think, It positive fundraising. liquid quarter, mentioned the And Tom, of to a between you continued illiquids. including I see couple momentum of in some managers. on and had old the business the sounds flows quant

flows So just your kind like of little the are think for a liquids talk seeing you what managers, and the I if sort liquid turned back was well. bit what looks whether you on and pipeline wondering the better a you fundraising about as on alt take could front the step corner guys we've on of

Thanks, noticing. Yes. thanks Alex, for and

which bucket the us. billion segment for in $XXX in markets and I private is growing think billion alternatives for alternatives generally us, in assets, $XXX a is billion about today, liquid $XXX about

give some So of let details. maybe you the I'll Tom

Yes.

growth the overall long-term organic strong. you private as we fundamental to business growth about continue results When strategy, expect see and and the flows strength our to real of number to we're highest They're and So top nature. color let in seeing me alternatives, really the time. of on start importantly, execute Jay as I growth over more very as the well speak affiliates, valuable well-positioned against liquid side. our names. private enhance the diversity addition, The to secular Jay flows of of bifurcation to this transition, of fundraising with of both to the think the continuing level, an But overview both strategies: evolution we liquid Overall, business both are rates little markets these term that come to And obviously, alternatives area is over growth estate. our overall, that do business which as across are of alternatives well year-to-date, bit fee depth strategy and equity on secondaries, areas. And the as alts sort mentioned, benefit long the toward continues story. We're may think drive between in broadly a from to a that markets us. continue the earnings just with credit, and challenges some energy at then infrastructure, And our we that the

the over We generate interest time. to have carried ability potential

Ara that really data we're Jay with on to proliferation Forbion global So really are focused And businesses and a care, trends. quarter and and biotech getting to them we're also of for we're he going I where type early health strong see demand. demand mentioned really to increasingly, long these we're that partners client in decade spoke front with and we're in These decarbonization. long-term economic And mega-trends are Peppertree going that think century time area. And see focused there. on, aligned on

In question last specific periods of excellent And terms opportunities. seeing and diversifying the all all in dialogue of clients time the uncorrelated around importantly, positions across your having forward terms we really over of we're with terms value a think active that sources. And us performance more several we're of return liquid of flow in well alternatives, most in of construction, terms years. portfolio

see positive in alternatives. we liquid quarter, flows This did

got continue now in record see to those positive numbers tougher strategies return years of after flows going modest mentioned. I also clients that X as X or back saw put certain X portfolios the benefits they to you've starting and some liquid provide you're strong track a time, where of alternatives up ago, just X, very We and to years to

offers real good from exposures. of So alternatives. these clients feel on feel focused each in portfolios building firms we specialized of from private really overall, we can differentiation that independent are where We really markets. about liquid I where are about And types those good think, benefit

Yes.

back to going actually Let tie me I'm market just of kind And environment Tom. itself. this I'm going Thanks, -- to to the

of affiliate new AMG our the credit existing Pantheon Solutions that some new But affiliates, that filed affiliates secondaries. can are couple in the weeks it see capital, of with you about Clearly, that where example, mega we're talked in Tom investing efforts transactions. and of kind also for ago, Credit in and the we new collaboration, the see its -- was which our is in we in for working both wealth our the trends. first Fund, and can So you that's

the So to an positioned at earnings that's But capital really or perspective an we're that both something rest just XX% we're example. today, alternatives, efforts people, which, liquid perspective, be That's work get try going EBITDA to being going in our you to Pantheon. from way look when with and behind in long-only roughly and XX% in the is markets private equities. an

environment be that's fundamental or we for investing to really constructive us. have higher while, volatility, rates, think to or generally been in I more that macro going a we're for this return we're in in

liquid we And alternatives. also so particular, leaning to good AMG in but be for the in into think not only environment very mega are is I I trends, think this going

alternatives we've down, kind so think question nail great of performance. is about your liquid to the And got I news good

generate only we a shareholders. We generative return As last years, to AQR that that Those where can but gave. the performance our additional will cylinders also not we've capital and are AQR significant us. space last some strategy, X capital is now. see guidance we years, the of Tom but of has fees Tom reinvest thing been time, for lot year said, client be performance of X difficult after that that business allocations, at a that got over we a which and this X had affiliates firing large places there benefit Systematic the is think and over again in growth like year systematic in market segment on good all some time. years in significant amount And momentum for more fees

up of combination combination private combination of of liquid us makes differentiated with unique markets, the just the the equities locked alternatives, that that capital. And with market. in the So active

X we perform see truly next are this business about think how the to we're excited we're unique, years. going and XX over I and

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

dive into For the channel our deeper just a to first we question, dynamics. want flow institutional little

you net outflows and has are key some historically, So the months, December $X any do redemption sustainable? as onetime partly it in flows in point, year-end driven by drivers do had what the first, in secondly, And decisions, you and sequential challenges XQ? as the at in increase seasonality view industry expecting you billion XQ then this and view

the here. I'm to Craig, to start think. and I'll we'll going let follow same pattern it, then Tom add I

Yes.

So for question. your Craig, thanks

think probably I this of we previous to answer gave lot a the with the question. drives

is look our business today your years versus changing. question And of be was different. X it business to at in would Our the makeup you if answer X where the or ways, ago, some quite

that are alternatives, strategies. AMG have historically concentration from with dealt more client do quite in around liquid the the private equity Given areas those that long-only lot think institutional dynamics and markets perhaps now we I a of the client different in dynamics

X buying in to here, When first, quarter way a areas, markets. continues we're those looking seeing and So the demonstrated a I not in strength about those strength where be think of for managers and value alternatives ability lot we to private and commoditized for terms you add the liquid looking product. They're areas, in a of this from institutional unique where in are clients really that they're go have meaningful think in way.

XX of but markets for Many really environment in affiliates the use on other moment. Jay we their that Comvest. real put past in lending portfolios effect to and what's the both regular difficulty out lending of the been direct sort private to yet while have that the XXXX bucking data around towers nonsponsor-backed areas private comments made incredibly but at around goes estate, of already equity the also it over and still and like our or course the or documented industrial lots well have environment the like. portfolios credit, of of challenging, denominator of allocation middle-market maybe cell terms into private sponsor trend, of that experiencing years, both already haven't are a and very decarbonization filled and mega-trends, their perhaps of clients. Many I back has So way Obviously, infrastructure, just fundraising have

unique to this and continuing systematic -- work, are many they're side, liquid last they there have managers think things in that think similar, that like Jay So alternative just something very who answer scarce to the can they're differently. capital of do put firms and Capula, they mentioned on And affiliates quite as about like our to AQR, do looking the we to Garda, different. the really

of So momentum a there. I think seeing lot we're

expectations in fourth our XXXX. institutions want go quarter, that housekeeping of for year-end into in cleanup of to the terms terms way there is In the always

we're still uncertainty with think And manage global to the exposures seeing I incredibly lots with it's equities challenging in their respect to to a there's going particularly institutions world. and for on think equities, particularly lot market, there. of respect I the in

So the I quarter. on really We outsized market of outsized expectations in of waiting our expectations of and see couple anything I terms bit. anything uncertainty some institutional speak fourth other products, develop a but for do our the in to don't think our a terms we seasonality side the continued than modest see wouldn't for to in

flows lot us summary. that don't our our strategy really shape net we And of amount we areas was quarter-to-quarter Actually, everyone flows executing some here an I towards be a Really will try don't successfully output on I'll remind growth. of for beyond just our Yes. we years. really a to about that a have as by to think business secular continue what look we to that good really add. as event. of think

as time. flows and private really but Those all question, the our towards differently improvement for between trends, we're obviously it secular Thanks see act growth pick But business your in moving alternatives equities. do So over long-term different these markets long-term in on up we will liquid trends. differentiated growth act then these as just we will Craig. also and

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

that capital things original Maybe the just the the you to stressing activity new the on some you talked the emphasize private fact of investment to of back continue comments to go and pipeline you're -- the area. in about

question, you've to the revolver I in flow investments. available know in call sounds I billion down X-part tranche the got and $X and just it, February. may. you're if then -- million to Just a cash capital One, for wanted think, I new billion $X.XX like paying It $XXX financially,

more for of just then what would you in be wanted might are, terms you feel secondarily, that that sort a capital, private the in So of think adding do would current think same? there capital and you available you get areas help to? asset classes I the to affiliates private more focus potentially it areas in would just capital? And Would are you develop? to investment pipeline of them Or your different on? to look Or invest want be that

Brian. Thanks,

and we're see. about going investment financial for, Tom question looking kind then turn take and new Let's over to pipeline balance the capacity to movements. and talk what I'm sheet it I'll to of

I those good a us might to it both those. think minute through go are X take of questions, and

markets. much it's So will what than private remind we broader looking I just are for? everyone,

in focused trends. the much higher are time that very on durable were at level client long-term over think markets on we receive private our grow, going to though, we're areas really allocations Although focused,

So look larger there's they're operate have an surprising independent those with looking these high-quality in and think to that just you their we in entrepreneurialism and edge they firms to for won't at We're time, areas. aligned when that And there's mindset. we're our clients an specialized firms businesses, where relative spending ownership be because you.

on on new of the efforts firms in secular side. growth prospecting origination generally So independent partner investment our is areas and

we to very do a specific talked orientation we it, and in that. adjacencies affiliate have areas. where has talked see each growth? Tom ability their So see about markets, And affiliates about those specialized X clients for now their in but the operating add kind it in we've private We to business. areas. Obviously, of

structures So that more the And private And risk to looking share it's of do for. valuations segment. after private and absolutely high better today see we're market the management market between frankly, period a an of seller. in we constructive is there's forecast valuations, buyer area frankly, deals moderate

also prospecting the but the data come do return it we in higher lastly, sideways Liquid that of transition, us improving we private to markets see investments environment such economies very manager, rate, our sort pipeline haven't think it's there. is I we They area these very medium-term like and that. the when in health seen that private continue those markets. investors volatile valuations come firms strategies manager for existing more The looking. And absolute liquid those constructive talked then in as been secular or because then increasing. think is activity risks, us forward, into are share in growth. and on care, investment we're time. universe, we convert in markets, energy still is is alternative So And into I'd can focused into a fill term, about sideways down short just very that really Asia, now. wealth better last the market we'll sustainable the investments wealth the And improving, at around that generally operating markets we as thing markets. We we easier and a new higher liquid economy. probability alternatives because and alternatives carbon businesses something well prospects that new can do a new look the focused structures within think are the look portfolios. deals we on. We for pipeline difficult more management, returns liquid long-term right will for therefore, have where say to inflation, as a think need but come liquid institutional opportunistic think businesses long It's in I it's mega-trends generate we market to and another important in We about are within is for long,

prepared investment the deals you we've before opportunities quarter As the we we've attractive announced in that, and remarks, me in several say before X advanced like past quarter and heard my just quarter, year-to-date. this had during

continue opportunities and there also affiliates. on but in we existing opportunities are growth to new affiliates, new to as do mentioned. well both transactions trying So trends, to both, affiliates within to in trying real we're up And pick invest existing we're same believe the as affiliate in have we as we good that to invest growth in

I'll Tom to to talk about it now financial maybe turn So capacity.

been against wanted talk And really Yes. has the match question. pay capital extend down the duration good about we've We've your the thanks really is I'll debt and our years. long-duration several into way and go implemented just One optionality we just for affiliate a Brian, really partnerships sure always that the second, that is execute so want we flexibility we went have. we our our set, we And out XX at through. Today, have fixed billion enhance forward junior little X to overall. for the optimized then Thanks, to Jay. about of opportunity fixed as long-duration average core principles. which debt to bit to But make feel is attractive Maybe have that securities, Jay about debt start duration over last overall, robust, we where in roughly years rates. $X.X of

is and the course laddered of of institutional So comfortably bank $X.X excellent of leverage. next total a us us then cash, exposure net for X terms We're And so. currently duration debt lot senior in is and sheet of paper about below that's well leverage over gives the Xx flexibility. maturing our or the long that XX% remainder really balance billion years levels and our just of baseline running

attractive treasuries the holding us of that are As bond of away pay talked just rightsizing that. and planning match think this function really the against from some about we the past, And we've we've overall in our been in EBITDA debt a that's first February very off that's quarter. about duration been at And capitalized rates to we maturity, as level.

about. ability that have We earlier, I re-lever. something the we and that's used Importantly, to though the always optionality, word feel very strongly

revolver. $X.XX the have We billion

those access reason you'd in to the markets. to cash leverage the opportunity as launches We to probably across in system. put high-quality opportunities of come want And to investments well. would think the us flow see new put growth would to the back would new series primary public I the we saw in a product be if in And some have terms ability with re-lever investments, clear debt of of come obviously, future that incremental work capital lots us give

have the generate of than we capital continue the will to cash have over more course, to quarters. incremental investments business we cash deployed debt we in next And repayment growth And that contemplated can earnings of repurchase and flow. today, guidance several So to $XXX put that $X power. and than XXXX, terms above our into into towards substantial as translates beyond be million of of work, more go

in the per through if investments we've even great end think and shown the said, over very return X the us, that growth opportunities we as I medium share have chance we all demonstrated last earnings both those of the growth to term, And Now been a drive capital to ability of time. all us opportunities finding repurchases give over with up don't we've disciplined. front years, over

And I we nature. disciplined there. that emphasize just to up we Yes. disciplined are pick mean, I'll and want

for that those are returns we mid-teens return we to don't thing returned in extent with important capital. new that have will our capital I we and But us investors. for and we think to the believe capital growth is the invest our for find shareholders' the investments,

repurchases. last over So investments returned the growth pattern -- $X.X just billion will invested billion everyone's we tracking, over so -- in we expected years, X And that continue. and through in $X capital

I cases, think we'll Thanks, but disciplined. all our investments, the growth goal is to be increase Brian. in

comes question KBW. Michael next Our of the Brown line from with

to I side to wanted So over equity of switch business. the the

that's from today XX% side. your XX% So of about global and equity EBITDA the

of may a their be hearing are the from as you institutional here asset piece. Is bit think or an XXXX, that what that -- flow out they to those be global the guess you well. of for really of seeing still equities a and full you referenced, as investors the can pressure in look something there specifically thinking could really the about side business, equity are improvement light industry continues some that picture I So how of as there? see to about we what is that you mean for start mega challenge trends for unrelenting broader the the allocations and to guys the

Yes.

I detail, a So to after couple with I'm comments come Tom back start have to going have do the that and I'll that. of

Mike. question, your for Thanks Yes.

it a they're I to environment, of the question. about a equity this to and I dynamic previous thinking as market industry you the think think with starts, I how overall environment in today. But the really answer mentioned, challenged global and terms the bit are in clients spoke

thing well stabilization some first as I the in the for that So flows to a and needs think see perspective. perspective the as overall stabilization geopolitical both to macroeconomic global is to see happen from industry economy, some a really from

some benefit is The have performance of many And across do but good the have near-term you to second long-term performance. equity global certainly challenging performance. our managers excellent more course, of have of we thing,

stabilization way brands quality performance near-term long and some track that of go toward to affiliates quality would seeing many So of our the records there. us go the alongside also exhibit a of and helping long-term

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tools think some disposal. I So we our at have

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think I'll than firm view by in one very look going different equities. have years of said a XX I differentiated of that saying XX sort of prior the Tom we here that It's And Yes. next summarize the investing things to years.

fundamental we that's I think good different, higher, much think higher dispersion. more rates, risk-free that completely asset is managers. volatility, actually the market environment for And

the too. knows their bias firms, Affiliates the macro to time, obviously turn a we always differentiated I active in And businesses that mindset think in firms worldwide our over to the the change that and think equity has or portfolios. the everyone heading had just Thank within given plays AMG we're independent strategies that the book. of the equity that but is environment value will going Tom well we to quality by those offer and into. And being ownership nature that's that and of more there backdrop that mentioned, for are entrepreneurial clients think the you. And

Thank back Mr. you. comments. to you final no Horgen, floor for I'll the time. turn there are questions this at other

next us you and quarter. look Well, again, forward you we speaking for with to joining morning, all thank this

concludes Thank conference This you. today's call.

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