Affiliated Managers (MGR) 6 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the AMG First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being requested. It is now my pleasure to introduce Patricia Figueroa, Head of Investor Relations. Thank you. Please go ahead.

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

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

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

that, I'll the Jay. to over With call turn

everyone. alternative the good our generated both $XXX rate the With capital in quarter Patricia, XX% driven first together and And earnings and economic results strong of share allocation, XXXX. growth AMG year-over-year. in markets liquid continued representing private per delivered momentum a of our EBITDA, by positive across impact $X.XX, strategies. with million we Thanks, disciplined morning, of

to of private exciting for private AMG's new and quarter, the alternatives, exposure including markets Affiliates Affiliates position our resulted During alternatives. developments, which markets and long-term our ongoing number collaboration launches both accelerate liquid a strength fundraising, and in growing product success continued in with

to proven competitive model for ability strategically and partnership given prospective their preserving proposition Affiliates, with independent resonate Our magnify independence. partner-owned also our to firms while their advantages, continues value our

with business we Affiliates significant advanced mix investment opportunities. quarter, AMG's new and to capital to several we existing a invest April, opportunity with our we And long-term have our talent capital in growth. growth and capitalize roles and alternatives. financial focus new on key AMG's accelerate increased with attractive for leadership in flexibility, momentum new in markets Affiliates evolution During executives and engagement by our And of the recruiting evolved expanding areas our in our prospects private formation experience our liquid further team, to and by leaders aligning our

Pantheon's build their strategic Chief our supported by long-term As who succession engagement, evolution as including approach Kathryn engages her successful by and with the built illustrated planning of distinctive of Officer, and a executives Pantheon succeeding business. to given will Executive Pantheon, Ward, highly Leaf Chairman. Executive capital, become partner, Having is and strengths seed by management plan. wealth a business, succession and our to This well their and independent Kathryn long-term next and infrastructure and of ongoing experience generation Affiliates, offering enhance at existing extensive announced investor, as its our markets of product development, to Systematica. In expertise. become lead Affiliates the will on AMG the Paul business institutional private Pantheon success March, positioned growth distribution Affiliates enables success, alternative X

launched and In with wealth which client needs. equity growth billion years, of evolving Pantheon in private and we meet collaborated one Pantheon first established the now space, in the assets more its most management. Fund, the investing AMG to largest on U.S. is the channel AMG markets the distribute private closely under $X than products in the our to funds evergreen products one over Pantheon of and addition, opportunities resources has capital strategies develop Together, with successfully new and

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has with on in substantial diversification, initiatives capabilities. enhancing and Our firm's team business resulted management in ongoing Systematica's strategic the its collaboration durability growth

to of initial Systematica customized $XX has strategies grown a of differentiated the at from a billion and single-product neutral. solutions trend and across today, market relative with investment macro firm offering time and equity following business our value a suite

client together. firm's significant ongoing Systematica's to continue the value Given performance excited and long-term for excellent ability are prospects and liquid demand about we the create to the alternatives,

investments partnership and to the their of over AMG's Pantheon's years, supporting independence. areas in our More Affiliates contribution engage from one also deliberately characterized enhance we reshaped prospects model the long-term Affiliates profile Affiliates demonstrate business while from The unique with one combination majority past several new allocation. diversified success capital power broadly, with business to a AMG's has secular largely strategies of through Systematica's have their to strategically our by our long-only opportunities existing growth investments in high-quality in alternatives. operating our growth at and

our Today, strategies, liquid our from profile earnings across in of markets balanced and business alternatives, with alternative unique private half coming AMG's is industry.

expertise that across operating strategies partner-owned both complementary nature private our firms the capacity also independent and these return. AMG's of enhances collaborating decades strategic our firms the supports markets, given independent successful attractive high-quality of strategic earnings partner. increasingly continue to engaged been stability growth advantage firms investing of X partner-owned in is over of in liquid the of a an portfolio seeking differentiated partnerships honed course strategies and to and long-only competitive areas and with alternatives highest diversified Our is has

asset XX been having active since have one We new past X of Affiliates investments the investors independent and years, most over managers XXXX. made the in

level track particularly new XX-year our in given alternatives. we new investment and significant ahead, capabilities well our looking financial are our investment origination increase our record, positioned of activity, to flexibility, And

strategically decisions while growth continue capital our investing to in returning in as As we evolve always, AMG, we will allocation remain disciplined also excess shareholders. capital to

especially congratulate to turn Officer him his formation appointed before also our Tom, Operating to I new want call new moment in a our Now the I capital Officer to the General take Affiliates' as welcome alignment to Chief magnifying Kavita our want as Dava role success, on collaboration over with on increased on on I role Chief focus Ritchea, initiatives. Padiyar long-term congratulate her Financial team. newly through Counsel; and to

she model AMG. in given years private Dava with markets liquid is to We to alternatives, her uniquely partnership contributions AMG's many experience for valuable her experience positioned make and direct and extensive have and known

our our for and team, future outstanding well to and AMG both to by As positioned evidenced leaders develop AMG is growth. also talent excellent thriving within ability attract

over to And turn with Tom. I'll that, it

been skill morning, Having and and AMG Jay, are our our Financial well everyone. to the you, product the Chief and past contributions growth have well a make suited to as and development X company in direct proud capabilities, current for industry, for as business. future Officer on Thank set opportunity experience will years driving focus forward engagement and forward. to excited going I'm Affiliates. CFO AMG's new and to our role Dava the capital through good her for largest served as look that many strategic I'm state of with both our of also organic my formation the public

and their across Our the markets, excellent we and first and experiencing each fundraising strong private quarter. from rising drive performance In momentum investment and outstanding strategies, and we long-only business contributed long-only liquid performance differentiated fee our investment business Affiliates significant continued earnings of the performance private alternatives, organic reflect strategies. in alternatives asset In levels liquid performance benefited results net differentiated In strong in growth. our markets, continued to quarter to are strong momentum.

extending Affiliates sheet strengthened average initiatives share capital of excess returned debt more by to our through than several on XX the repurchases. existing balance also duration development our We our innovative alongside and product years,

our as we to And shareholder set. to are execute capital we opportunity continue our ability attractive confident allocation AMG's value. in long-term generate strategy, disciplined significant reflect actions Our

in share in earnings, catch-up and of net markets year-over-year EBITDA quarter $XXX of as grew Affiliates. of million as Turning other $XX XX% well earnings benefited million first the $XX per to from repurchases. our included fees Adjusted $X.XX fee share from Economic performance million private grew XX% and year-over-year and further impact results.

we historical longer quarter, to flow are certain will for flows, This net returning no new report basis and strategies. as-reported quantitative reporting our excluding

quant between given closed. As muted outflows years ago, significant moved the our minimis gap contribution sufficiently has the ex the on to and you impact EBITDA the quant in de the seeing that paradigm those several we may earnings were recall, disconnect given we certain of flows, and now

by In quarter, billion fundraising strength in our outflows private fundamental $X cash of reflects offset client net the markets first equities.

billion we mandates alternatives, in strong private and results inflows across infrastructure, institutional in driven performance private equity the private nearly our to again credit, by net and wealth from Turning both markets and with $X clients. In quarter reported strategies, including fundraising business. solutions

expect of in Affiliates markets real demand, industrial AMG's approximately solutions, to markets credit $XXX areas private and continue Our managed there assets infrastructure, specialty significant operate like the and areas, client X seen private multifamily decarbonization, sciences generate demand estate. and outstanding clients we billion performance, long-term life investment in Affiliates including strong and to from market private private continue.

and deliver Affiliates performance, particularly the our quantitative saw in demand alternatives, liquid improved In trends in quarter. continue strategies excellent to investment

performance performance growing to outstanding range over trends capture and and to our products, above years of fee our X of watermarks AUM we well portion is the currently diversification significant Affiliates portfolios. eligible client are stability demand add Given earnings across a and high last a positioned

the in long-only of We AUM despite Within strategies, income in we net billion ongoing of second beta multi-asset $XX strategies. by and management fixed in billion entered power, investment demand performance strength by for market differentiated $X equities. driven with higher and inflows generated driven wealth levels quarter approximately and outflows earnings

second Now quarter moving to guidance.

AUM be and adjusted current EBITDA to fee blend, between down X% $XXX quarter-to-date Friday of between market $XXX million based million $XX seasonally million. of performance and including We million lower net on levels, $XX reflecting earnings and as our expect was which

posted We of share of slide a quarter range quarter. the We XX.X modeling adjusted to given wanted second issuance Investor our $XX a quarter. in and $X.XX, share repayment section debt interest shares to reconciliation average in million of items. expect assuming where the guidance count item to $X.XX the quarter Relations touch moment, I'll the in find And detailed line earnings you that on an the for approximately million sheet economic per website, weighted the activity in combination I expense the balance through a highlight in of of first our second can

allocation. sheet capital Finally, and turning to the balance

Our balance in excellent to an sheet continues position. be

During of offset $XX hybrid in $XXX notes $XXX of paydown due loan. term XX-year the which the quarter, of we repayment XX-year issued of the million February that and million our million came notes, in junior

to further extended debt enhanced Taken and duration of our together, the growth execute to average these strategy. flexibility years our than more our financial actions XX

full shares, XXXX, new shares significant million repurchased and existing approximately $XXX but return the We maintain continue year the to million repurchase activity. to investments also our capital continue conditions not $XXX to investment in in in only expect to and now to at first to shareholders. and make market growth to Affiliates, in we least for liquidity We excess new quarter subject

was including In addition, capital $XXX $XX new global quarter. products up that million the for invest to wealth in in our to this in funded million expect approximately the seed markets, alternative alongside first Affiliates and year we U.S.

discussed Jay nonsponsor-backed that middle-market as We wealth at to to products bring clients. balance lending well of the Systematica, Comvest Partners support Pantheon and to expect at capital the as

integrated As or is part the independent product many U.S. their enables vertically capabilities, Affiliates wealth to AMG's difficult including for access operational firms market of sales support on and formation wealth growing and own. development, large our in cases, enter platform capital that impossible to comprehensive coverage,

with investment has to U.S. the Affiliates opportunity excited to are substantial with series seed market and as in momentum differentiated a to private existing over alternative expect continue the launch We expertise. our market combining of balance about is sheet products to grow our Affiliates and approximately The focus engage balance partner business market and our balance investments, that across bring capital AMG's wealth and GP multi-decade to capital private our our and on we time value strategies. Today, commitments, with by $XXX strategic sheet experience offerings we accelerating. Affiliates with a new in million in

performance excellent positioned the alternative Affiliates set our of with of And diverse managing Affiliates for growth. strategies, our

liquidity, alongside making Affiliates sheet value new invest our incremental we in Our growth are of secular addition positioned in significant drive and to to and strong Affiliate balance shareholder in investments areas to over time. well

to questions. your take Now we're happy

[Operator Instructions]

is Today's of Bank Craig from question coming America. of first Siegenthaler

in you quarter, congrats I just too. hope to Tom, the being a you're wanted we doing well. offer named And big COO on

Thank's Craig. that. for Thank you

flows. deeper positive net into our wanted in So channel is question little dive a institutional the inflection we to

lumpy in quarter, in pipeline, know flows the channel. this ability positive us But there's on the some provide of the redemptions this and to the can going based current maintain your forward? we thoughts the in on composition always flows So you wins channel

let then some that maybe minutes that's few in combination of flow answer fundraising, what in our you're profile overall profile private over how and of broadly Craig, liquid the in and and And what in the was strength institutional strategy improvement seen only years. extremely markets, more prior where general not past alternative really of of some the really strong the we've flow quarter, through and private we've On the spend that over is the think just on what terms time. me seen is influencing seeing markets, then on but stability institutional, question importantly, several this quarter in strength continued side course a came long-only. I a the

the thinking profile our you of overall about just kind Now put flow business. that context when in of and the

more growth we to continue strategy, areas point away do alternatives growth business is with main of especially on and the take markets. that towards said, evolution as is our private I half that on the to we mix execute As an continuing our And of enhance and growth have you've from than to strategy the earnings our to less our X/X drive X focus growth expect organic against that long-term years seen really I business. as more think of EBITDA of the continue gone And basis. the to alternatives last over business an profile course than secular to

of will again, sort that between push we and strength You headwinds the in where also pull a on of of private saw that we quarter, on land it but seeing this and big we're the markets institutional, be where driver and long-only, overall. some land

solutions, Affiliates, strategies, private they're areas life in market a specialty fundamental benefit bit decarbonization volatility and sciences. really side, here to credit, hard of sometimes long-only quarter. some those predict, equities, of across a the to number better quarter continuing is particularly well-positioned we we're a and there markets, from On the within private it did industrial depth have is the but and raising On infrastructure, first the diversity active assets like

we've continuing the like in what over markets you demand to seen alternative in we're for decade know, in may long given the portfolio very and see years valuable the saw investment the of from as more for clients performance as the that potential flows of about past here their And AMG really course volatility think And the and today their over next look strategies of that fee duration and terms their generate liquid more then on course alternatives, to time. quarter, and several construction. they the are drive We that earnings investing of fee liquid interest strong we're carried now we're and seeing performance. the excellent these rate,

quarter thing products as as to in have well. as fixed other strong and Wealth did fixed is income there Management of mention we businesses income across One a our multi-asset some well very our

continue sizable inflowing a is mix alternatives. and push together, all well growing our to demand in we as strategy the it and us is of put we for business our feel very client over future. to well more time toward growth our positioned trends going like ability as as business generate very you toward that when confident So today evolve portion both to our And areas

Cowen. from is question next Katz coming The Bill of TD

Okay. Dava, to Tom Dava, forward again. looking both. congratulations and with working you

the maybe So in section look of coming 'XX buyback. bunch just, there's the Jay, in things then capital and the we uses of lot ahead going management capital think back business, seed we about funds deal new into wealth the do sort terms How 'XX? market as to against for you, of a sounds and of it activity of a other like good up to on stepped

thanks your question. Bill, for Yes.

Let And and areas growth invest in me Affiliates. in by just start and by simply existing in we alongside strategy our investing Affiliates as investing is that also to of stated, the our return highest new in and saying, industry. our do

which you that just places just that accelerate is in obviously, really areas Affiliates invest our plans capital think existing other them seed and of investments is -- cannot like we alongside quickly, own does Affiliates, our to I capture to to find help what the the their distribution we new extent saying, existing touch and with So to were extent on required can that goal Affiliates we I'll -- returns. it business meet that in

led seeing We new first give repurchases opportunities, year, our investment we new to we say. of excess time. is look investments. did goal are healthy significant flow that X I Last Again, to back to capital should which has will new shareholders, over And investments.

prior a chose we not other call, make investments to. last on several mentioned that the new to and I we opportunity think year, I had

are seeing a So steady we flow.

competitive Obviously, there. the pipeline I is environment. a it's think

compete well. continue We to

market in our that we're both with existing is their those the opportunity strategic can and proving Affiliates advantages. that we I think magnify

their we independence strategic are being market. in is maintaining to able But also really and their independence, preserve that maintain the in independence unique

relates areas of to overall flow over it continuing question what are has to the Affiliates to you secular operating Tom time. see are in it we new that in search we're areas change our the Affiliates for and set, As our that investments we growth, of more relates mentioned as changed opportunity over looking in our time. It for will growth. that profile mix, business make of

Even if half And X/X EBITDA from over about we back we're were X an you contribution. in years, today, alternatives. just look

up. that think I number is going

So see our would we pipeline, when you alternatives. conversations quarter. mention businesses prospects look at with pipeline, and past liquid you did our my did in move existing private both prepared remarks I new markets several Affiliates forward in this that

very As see we investments, into there's year, again, alongside opportunity going do the business. great products continue credit active year, for Comvest, capital of the looking that evolve to prepared which are Systematica Pantheon the At launched time, we look in we're in direct rest a with to is Affiliates. making same forward and this new with do think Tom mentioned our to that to of a We've our his investments our our up lending number we stepping we're more remarks capital. of efforts and business.

going marketplace moved drive Tom to is in reason for why we've him over in that these channel really he an And It's another is an growth we be us. business to overseeing to on to in -- that while capital with the the the private COO is opportunity role, wealth capitalize formation effort the to businesses. markets continue see

our see own our management where highlighting of with actions are team sort strategic we opportunity. so And

opportunities. to Affiliates investments year Affiliates or into we alongside, be and it do investments an whether new in substantial in in So put capital those see this opportunity existing

doing expect our -- year. have as well, the tremendous do probably extended very repurchases We by our we for quarter. we We're comments in year, million also return a as to duration on per that liquidity, you doing the flexibility securities $XXX more to to sheet in in shareholders capital sheet, comments balance given per balance a great amount the strong full some position Tom's we saw that would this our sheet, of balance think a our of than as XX-year which

question from next The Jefferies. Fannon of is Dan coming

to alternatives. but It inflows So I on yet. maybe wanted liquid in like follow up not improving sounds trends, certainly

about gross that in the for performance about then redemption curious of given you're that Tom, the remaining how AUM, versus comments, gross this fees ranges? versus sales watermark bucket? a So And the year being maybe about above your historical of high context thinking within large the trends of percentage

Yes.

led guess, return that take our that just So in performance are which, to there's, question, X Affiliates potential watermarks. operate, I'll higher long-only saying, high that both across to for start clients for above the It that that strategies. around us, I has main we significant frankly I see, this and fees. And rising which I'm going all say, producing to mean world, have in alternatives performance has X, stream course, positive are levels, the Maybe the opportunities by to led think liquid more more Affiliates to unique markets the Tom business noticing category also asset of complementary private does is Dan.

very It for noted, good good let prospects. performance flows. But nothing say you on I we're the seeing in you little constructive it's little So But as that alternatives by slow the would of client else give a liquid positive pretty I'll honestly, been a Tom activity. been, if more period are terms alone. detail. a we significant has uptake about

for Yes. Dan. question, Thanks your

here. I themes remarks touched of key his Jay think in on initial a number the

relative seen the of investment at X One a number we've look strategies, alternatives, areas we're performance. you strategies. liquid what really following strategies, is in are And across overall liquid that Affiliates, the there seeing to value If in in in trend alternatives quantitative story. pieces excellent in

of quarter that in are often those valuable low fact So so form and the are perform is alternatives liquid in last to here to come well correlation to of earnings, no the the environments, or through of both as perform businesses for and able overall you're why we're really AMG us different diversification these elements with And see as businesses the the performance markets. that of core first several one course the seeing in equity to for that years. well over continuing fee clients

In trends, of alternatives quarter. some know in terms did we in call, fourth we headwinds on quarter talked the the fourth I see liquid

see alternatives first So quarter. flows and Overall, here quarter it the a in roughly liquid was outflow that the in were the really flat nice bounce to quarter. in back fairly first number fourth meaningful versus

So a we is And these improvement. pretty outperforming longer good the client of when push-pull again, on the portfolios. Jay about some real but in think this, touched term, strategies have really been

So positive to the for have large seen XX%, rebalancing of alternatives, those course who little some have and in of long-only or an effect XX%, when allocation of liquid a have enough strategies in years, equity don't a a their put bit the couple volatility denominator books. At XX%, with impacts over headwinds the books either have their some offset number the portfolio. of have of we liquid that in existing XX% allocation the who alternative seen returns up where have last that time, their clients private clients there dealing of same are

pain that of XXXX a correlation number XXXX at in alternatives, there the wrong the up client decision having GFC, forward come we have periods. felt into who the we frankly, the of out compelling are clients markets, are time I the this high low a where moved decade time really our particularly where lot been lot think of conversations excited of exactly a off going and and that's liquid and volatility, and Affiliates think very of the where post new

live we conversations of client a in see products should these So do portfolios. new around lot where

in ago of which quieted. a probably you've kind see As to from the some theme industry building alternatives, XX has big years liquid you're seen was momentum data, retail and starting

So we're to industry. see some there in the starting momentum

that AMG, So across and Affiliates drive repopulating and in growth can category. performance X continue that think of of our portfolios opportunities fee organic lot to Investment their we there those the a that earnings populating clients are performance, driving and and buckets. ultimately all for

significant that's Dan, especially I much relative in mean, fixed the by but quant performed, allocators the we other the income I more just saying, and value some somewhat almost of well think -- as on finish, which have institutional of as actually has. Yes. funds, and managers, the with short we're generated the haven't alpha managers the hedge that I'll side, long, multi-strat every space. I the CTAs noticed surprised alpha traditional don't quant have or category being mean, not space

interesting the grow, wire say is notice, expecting to of think offices to would actually we wealth in is what people and are some that -- think will so course, that to do space And RIA, I and single those thing thing the going multifamily allocations I bring we where our products are houses. of do the both the the

eventually long-only AMG's get allocators the portfolios their in and these do frankly, their as strategies. up So it also opportunity. earnings, forward And into will if to help private looking they offset need their that minds of that we products to hopefully are continue to will put because the numbers they they an markets but it have,

of Bedell The next question Brian is Deutsche coming from Bank.

welcome, Tom Congrats, and Dava. also

on fundraising, can confidence you alternatives the sales of talk potentially your secular with seeing talked of sticking in time, markets, and guess, outflows you on versus from about in, side, that. the quant I historical theme both AQR private pipeline and less the new after demand, coming trend, quarter alternative as the in number markets the you at contribution products guess, the its from I about, growth the from are see same can in just that that quarter, that especially especially sort Just given then private from the the side,

seeing on net leading flow we should the sort that question overall as indicator a alternative really I So go-forward guess be line of basis? is, a

for Brian, question. start. Thanks, Tom your I'll Yes. let

that alternative performance up a think and the and very thinking put I we've now of about way, flows consistent has in that in we're of In of the way Brian. over in results story terms the couple really the been Thanks, alternatives last years. course the

they're core AMG of of terms there side, that to that markets the at are driving and the on things are a board. we're our confidence private across the employing strategy really In really confidence in number sales that

is look continue first Affiliates to that add that to The to group. we

channel private AUM. X last of his have a We lot focus And be with year. is with their real as with that linked, existing drawdown with of our focus. opportunity terms to is sales that and markets billion managing and I of as the way helping Jay funds given the them channel. success the in in we penetrate now in in a extremely that as compelling the to to Affiliates well with having Affiliates product in said advisers We ability the ways wealth that $XXX resources continues we're liquidity added U.S. have X products, today, think, flagship of area limited the a And accessing in fundraising to that I to a to prior question, answer development, some think our channel these bring

if time. ability we're move think AMG, businesses. what's products a businesses to have into can once one, channels, different just accelerate overall we So at them And attracting help different about have the are into we markets, terms that over in multiplier those effect of them private happening move high-quality two, and

focused the invested that The years. businesses really course oftentimes, the impact to will thing have that where larger firms the been the hit we've more parts products, the be the we've a continue private market have last and alpha-oriented you've advantage, And cap markets that products other mention are output-driven. businesses over specialty clear We've and of where fundraising I'd of that avoided effect intentional. big of comparative in, some really denominator is in of commoditized couple on independent seen

that my aligned And across this I that a But track well, now hit strong again, a driving I staring very frankly, you redemption entering way then years that liquid the in track to most we're they're both in strong XX-year overall do you well, of to really new lot and across supposed with our on these and well amount products very and help down answer in alternatives prior records in in positioned but perform question. have performance when investment of alts, the and liquid brands, and given portfolios. as also, fair X- think records as the lastly, on channels. think X cases are look client to of a terms to oftentimes on continue that sales gross we're We ability product upside side, side, development

operate; private a to X let differentiated areas have that allocation, really these say questions seeing bring Affiliates we would and been about together mix that last at talked our I shift talked in strategies. capital we over we see because are sum of X years, alternatives all liquid me the about growth just try Yes, the we've long-only the and markets, AMG. where and

billion So today, we $XXX alts in the markets, in private have and balance differentiated long-only. over over XXX liquid in

going see new in both and also the alternative into to our segment, Affiliates. continue the capital is in that We but Affiliates, alongside

future. We've see balanced excellent, some very area. greater strong We between the We to balance segments the long-only have had balance differentiated strategies. a in a more having that percentage being that historical X in

expect that going. our even reflects and only where is where at that would from, today we And business not to. XX% where the some going growth coming X for that in think is is That capital X/X frankly, the we coming is in to XX%, alternatives, be from years. flows So where point are next maybe the

coming The Autonomous (sic) from Davitt [Michael] Patrick next question of is Research.

on activity roles. new a commentary. transaction have your on the Congratulations I quick follow-up

chose continue and some. with for deal fairly it's alternative see You to mentioned through think we volume to high competitive, I not And you mentioned managers. follow smaller you

to there? pricing dynamics topped on flow? you? more the pricing and So pricing is maybe get out there the signs that extent has any attractive could could for are of out the you you maybe what keeping And expand And

Yes. Thanks. Yes.

pretty starting significant follow at statement look the just the prior and has activity all see at up were the to up on when volume. sheets of the you actually you picked players activity comment. management Maybe industry, pretty with will seeing deal mean, if that significant. investment I -- I in you the we're just So that look is would the

there have that times us I been think are where covered is been covering transactions it or has There So have that slower. others you've happening. us been other

a XX So for of today were years definitely businesses or they very I say very supply looking ago ago. XX are are the out different there. years we there's independent needs that than strategic see much They new of firms partner. will

in we've with model to an you engage I that been firms. and the that knows operating that is and you with independent a we fit years, it against think There how category, independent know business who it to partner know how put XX especially this firms. context we that, have for when to engage art important is to

are about where very seeing think and engage I excited proven, we've at Affiliates, we we're growth especially that, we our that. So

advice independence. the in key succession actively of through just that's is a I frankly, And lot And we preserve human places. ownership, planning. differentiator even think equity us that also for around capital

out carve but compete a effectively I than competition their think ever in partner, want also have less to that they independence. And is strategic of where lot category, kind where we preserve to just had. want So we've people we a

of who traditional the buy a As what's will know, have you only lot XX% left away. And stake. buyers gone multi-boutiques is to a stake XX%

are So seem model competitive approach is really, to anywhere XX% strategic such more up all we ownership own flexible our in we most that a way business. we both from of being the be XX% is where when can and by to our

we about have that is notable plenty of other The AMG thing that is liquidity.

XXX. can so for any write And significant checks Those firm. to are that checks independent XXX are we cash up

on we're so And competitive very as that well. side

that very in any probably at when think we've as transaction been independent we're I calling aspect good those front-footed have having is in our beginning before before most due developing So well out origination. We're relationships well the look important the our really as firms. market relationship on in as a as of really with important a you that AMG's in very of and the you firms relationship we're these we're competitiveness, because the history, happen recent diligence of both transactions out category

to still for It time. I extreme. relates of pricing part some for was, pretty question, think, it is has been growth pricing, As your which

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The next Goldman question is Sachs. coming of from Alex Blostein

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Great. Yes.

So Tom, you that? why don't take

Thanks for Alex. your question,

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like comments. I'd closing Horgen for this the you. Mr. floor Thank over time, turn back At to to

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

and event. your thank Ladies today's and concludes participation This you in interest gentlemen, for AMG.

walk or the lines your and enjoy disconnect at day. off time, the your this of webcast may You rest