Affiliated Managers (MGR) 29 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the AMG Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Patricia Figueroa, Head of Investor Relations. Thank you.

You may begin.

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

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

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

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

good and morning, Patricia, Thanks, everyone.

strong organic and the our our the liquid performance managers continued our by of impact business, positive strategy. private driven for momentum ongoing XXXX reflect of the disciplined Our of affiliates, the capital in our alternatives markets excellent first of allocation the growth half results

in than During and products repurchasing twice activity, prospects, their the invested our our investment wealth growth, several more the alongside We with of our accelerated pace. enhance new alternative quarter, channel. our we affiliates share including number at to capital resources and new seeding discussions we a historical repurchase advanced

$X.X over in of trends in management of including the digital durable in as years nonbank we in capital credit. opportunities the industrial of the biotechnology, breakthroughs economy, decarbonization, including and asset Through and expanding return, last invest management, wealth the private in secular in emerging expanding opportunities and the growth, such billion to X invested and growth execution our the disciplined have highest areas AMG's strategy areas resources

capital in partner-owned in invested amplify and we specialized where in partnership independent AMG have resources including strategic accelerated affiliates where the our We approach meaningfully our areas areas our half engaged by And markets alternatives has thrive. in built and and evolution EBITDA new capabilities. firms and AMG's approximately today, our affiliates efforts, alternative liquid development, existing have private towards is of product distribution, can business strategies. generated of strategy

With contribution and current unique unfolding opportunities liquid in a both is each the differentiated of and private long-only positioned capitalize from long-term well environment. AMG's the business increasingly significant markets, trends alternatives to on profile strategies, and secular

of not of each long-only liquid portfolio enhances supports diversified capacity high-quality nature across of competitive affiliates Our operating of only and advantage a areas in investing highest continue to differentiated is the it given stability that growth the our complementary earnings markets, alternatives these return. strategies, our private also strategies and

building. Since pipeline the and investment several investments new new opportunities to is in potential transaction beginning our of markets of the year, private alternatives. advance And we liquid have both continued

advantages affiliates, prospective unique investments As we strategically their continues preserving our magnify through given make affiliate resonate independence. the new partnerships, ability with firms, look to of while AMG's to growth proven additional partner-owned approach also competitive to

AMG's strategies of in the of profile. we enhanced our from further secular we contribution Stepping prospects. our earnings to areas business And partnerships future as back, growth, strategy distinctive alternative increase, execution growth has new form expect continue evolving to the

is momentum business accelerating. Our

continues and existing flow As growth affiliates through growth evidenced by to invest improving and our our and robust new expand. to opportunities earnings in profile

year, of our we beginning XX% or shares conviction $XXX juxtaposed capital approximately outstanding. of Given of strategy nearly low our our our repurchased prospects, shares the our confidence the Disciplined and the have against million in in our forward sheet since and in liquidity, elevated new repurchasing balance strategy. our at in to on we growth fundamental including to pace execute expect is also allocation significant given shares while our XXXX. investments of ongoing our partnerships, And an strength opportunities, the valuation

AMG of flexibility, given And enters proven differentiated and we of model, capabilities shareholder create significant partnership meaningful opportunities financial in invest the value. strength. growth strategic XXXX our a see half to position second increasing and for

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

Thank and you, business secular private an is everyone. liquid good Jay, of morning, alternatives. in strategy areas. and AMG's our notably markets evolution growth towards driving Most growth mix

strategies to driven X total over roughly by shift trajectory. X/X our Over approximately EBITDA AUM And AMG's XX% grown furthering the by growth has AUM markets AUM while grown last XX%, XX long-only private months, half. positive differentiated of alternative contribution our years, remained flat, the alternatives from last from has has mix

expect we lead continued to long-term, and trends. predictable more will evolution durable our that the Over business growth

products. past fundraising by flow in X trends the quarters, improvement in momentum driven private has markets improving Over profile quantitative primarily long-only in the our ongoing strategy and stabilization been differentiated further and

infrastructure. net quarter, solutions long-term $X affiliates like specialty cash sciences net inflows. In inflows private real generated in markets and credit, in $X the client affiliates billion For including areas manage in private decarbonization, operate demand multifamily private generated estate. private long-term their of track client affiliates our by quarter, areas life X the infrastructure, significant our billion and now in credit second $XXX AMG's records, assets market and private primarily billion performance outstanding and supported industrial market in

private X our more AMG's driving At a capital, time market aspects when are strategy attract to are firms of results. struggling commoditized

growth is U.S. for differentiator in investment were long-term trends; the quarter. strategies a push Wealth, and First, flat second, on strategic multi-decade thematic and demand our Flows liquid client alternatives a AMG. alternatives our and significant specialized with focus which opportunity strong into in

long-term capture performance to demand trends given range products. positioned across outstanding well their are growing affiliates Our a of

macro, which trend strategies, that absolute strategy, of income relative beta-sensitive all to addition low global correlation In returns value our no manage the fixed to broader return markets. and or including following, generate quant, have affiliates

fully strategies we portfolios, allocations their expect of to construction portfolio more to continue the recognize value and environment address increasing alternatives. focus changing to and these market clients the liquid As

long-only net $X from outflows inflows saw billion industry the improving nearly AMG income. approximately quarter. fixed billion multi-asset positive benefited and We differentiated Within in beta of equities of $X in flow strategies, in and and trends

managing market and we long-only the track strategies affiliates enduring optimize And collaborating strategy. with with as client expertise affiliates are cycles. of evolve, developing across have ETFs records built trends long-term to active investment franchises their Our on including specialized differentiated delivery demand to our new vehicles, continue

and has results. strategic last efforts, the AMG seeing are to years, magnify product formation prominently Over in broadened capabilities most capital several development we tangible and affiliates its

first under of in the the more private has evergreen we funds U.S. the Building that equity we Fund, year, billion a Pantheon our the which to private fundraising in is AMG earlier strategy the off launched first interval AMG in a Pantheon this credit equity fund. On wealth the space, ago, is fund market and Credit to new fund $X.X success, and available the several on Solutions one And start. seeded platform, secondary years the scaled management. for non-U.S. assets private strong than wealth launched market successfully

the U.S. products affiliates than develop affiliates $X.X collaboration products billion flows quarter, continue this continued new our in and market. and the to with for with alternative our work market more we to wealth bring support to to drove broadly, in More

enhance Given the capabilities. we Wealth, on growth product further for our increasingly in continue attractive ability U.S. invest opportunities confidence development in AMG's capitalize to and and to our AMG's to affiliates' distribution

which We products. especially distribution a alternative built to channel and for focus introduce to the solutions, on successfully dedicated team RIA is incubate critical new

rates facilitate the resources to We enhancing element are new for key a advisers, education high marketing adoption our driving also training of products. and to

Overall, access in strategic including Wealth. unique to intermediaries and magnify success providing client U.S. we investment family to affiliates opportunities select are AMG's offices, large our to RIAs and partners, institutions,

to AMG we to also the our As access facilitate deploy continue affiliates. wealth to to we differentiate prospective will further capabilities market, new

affiliates to important ability create an increasingly our as they partner. with strategic together proven value existing independent firms for seek consideration a Our is

our with growth. for organic a liquid existing business earnings Each of new private secular more our in and and element the terms partnerships on our mix focus investing in Affiliate business towards areas That driving continued growth is strategy, both shift growth is in new and investing key in and growth our affiliates, expectations future markets. our change enhancing of in alternatives of distributing our products, profile investing

and With results that, second I'll the turn our guidance. call over quarter Dava to to discuss

Thank you, morning, good and Tom, everyone.

QX quarter X% benefiting contributed as to that our results fees both recent We fee we had several EBITDA average offset included past XXXX. higher million through growth see a repurchasing given AUM benefit our per in strong business and reflect quarters, investments cash the lower in increasing the in of second of results. This In performance repurchases, year, higher management, discrete foreign adjusted and the period continue $XXX by under year-over-year run share the for to tax the last by share Economic earnings. to $XX growth in grew million which $X.XX These in momentum we performance taxes new investments partially net shares. of to quarter, earnings AMG improving capital offset impact primarily deploy over assets our and our had was from flexibility average compared organic results.

it quarterly Given the in throughout seasonality our results. fee in is year-to-date performance to helpful the year, our addition our earnings to evaluate results

and increase driven half, per impact positive the repurchases. reported in an of investment capital the strategy, earnings We fees, first economic in AUM, allocation share year-over-year, $XX.XX including share performance average and of activity up new affiliate XX% our by

quarter third to moving guidance. Now

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

our the first crystallize vast on are of that one primarily given fourth report performance the either quarter, typically performance several impact affiliates our earnings, quarter second quarter and the quarters majority following fourth of low the lag. a quarter fee or and year, quarters. a reminder, seasonably The in the fees third in As

to We third posted of economic can guidance an reconciliation of the grow detailed for average website A weighted be the shares items to of expect assuming count and where earnings range modeling the share share section third has $X.XX the our $X.XX been find million quarter. quarter. for Investor adjusted quarter you to slide in Relations XX.X per

GAAP our second in to return note normal tax higher impairment amortization I a line which was tax quarter, rate the basis. we will resulted a to and GAAP go-forward rate that elevated on expect our here in and

and $XXX repurchases balance half the repurchased Finally, turning year. capital to in million second allocation. we quarter, the bringing first sheet In million the of shares, $XXX in opportunistically the to

market the For expect million subject at XXXX, repurchase to $XXX conditions activity. shares, and to in full investment now least year we new

first activity year ability in not of the half opportunities. Importantly, repurchase for invest the our does to this growth elevated limit

the business, to we to balance and our our With by existing affiliates our have current capital new duration ample of and strength investments leverage our in repurchase the growth shares. continue cash both and position, recurring annual flow generated sheet and flexibility make

an with both structure materialize. our supports capital the years average capital debt ability institutional long-dated our revolver opportunities continue deploy more duration to markets Our undrawn $X.XX when billion to access to attractive than of capital and and XX

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

happy Now questions. we to take are your

Our of question Alex Sachs. from first [Operator today coming Goldman Instructions] is Blostein

the flows alts start with the guess, momentum bit including morning, of call you alts on in highlighted this the business, seeing could on flattish, guys a the discussion that from we book. I are Maybe liquid quite you

of So little outlook was book in lumpy areas anything the the seeing can alts sort for that quarter about there you're organic this whether the talk of the strength for a rest growth and of year? the we bit

question. your I'm for take one. going let that thanks Alex, to Tom

and on I'll Thanks, alternatives in talk Alex. that momentum markets overall overall Maybe context. certainly and flow both private about our liquid touch

we've that the business on prepared take and an remarks, really main which lot flows point overall importantly, of to evolution private seeing. As where you strength with a towards away alternatives of really focus markets, on secular is more is Most growth been to our in my continuing the areas. is mix heard think that is growth drive a strategy our I

basis. And and as X as And X/X over have that's that of we an business we on profile strategy over the continue EBITDA years growth roughly business. expect to the against growth to half seen time, of that to our long-term really, our of you've organic output alternatives gone than enhance earnings last intentional from more execute strategy. an the And

improving our the In past by you One, of been flow quantitative a flow terms positive in thirdly, improvement profile, net there's stabilization in And over strategies in about liquid moment; ongoing primarily more markets, actually nearer-term investor past private as page really few X differentiated in resulted momentum as trends two, the that bit well in and the some profile, product then overall, areas. a and a I'll quarter, nice our in further client that driven see talk long-only quarters, about materials can flows. billion cash and our this alternatives in a $X areas. where that's in

our across talk a now of areas on areas sciences markets, as industrial of infrastructure, include well-positioned multifamily raising estate. number they're to about solutions digital well a life couple So the and credit, as and infrastructure, focused In specialty benefit as Those affiliates, the assets as market strategies. you real private like decarbonization, from continue private diversity to we depth of the specifically. well

markets. flows given interest. generate helping you work And fee in we're who sheet a the those lines U.S. number acceleration rate, to know, long duration those an space affiliates the in through valuable, their be highly lot for U.S. carried our to wouldn't space seed their new we're of of with as flows potential otherwise that new there and products, balance private our Alex, to And and creating drive are the a including doing products really business the wealth leveraging wealth of launching

trends forward as we long-term growing the as nature alternatives. alternatives, well uncorrelated In of liquid terms in the performance see growth have We stabilization long-term of outstanding are we opportunities returns. there, seen and really demand liquid strong looking those to given

the to of clients on allocation the with to market value portfolio environment do changing and liquid focus we As to deal expect to construction strategies, recognize an continue these alternatives. increasing see

and point fact forward of in the strategies. a that going sales also of quarter, liquid see that's that, good I'll for indicator we this Importantly, past in alts a think in we did types gross client uptick demand leading to those terms nice

trends just to out, we're terms better improvement seeing industry bit differentiated In we saw little trends again multi-asset and beta, fixed of long-only, of positive overall, round in and overall it a strength income. in

very our to particularly strategy you over portion in and as it that's towards markets you our inflowing business client and we is when and ability our confident today a really put mix well together, business alternatives, as future, feel going of private our for liquid to all continue have sizable in well positioned So to more trends time. growth generate push that even demand the

from question The next is coming Dan Fannon of Jefferies.

versus quite to more to quarter. follow is on buyback obviously, perspective different just So drive at buyback? second the I that up as wanted little today capital. of started that of guidance, The bit was the get to raising rest now year, the number look I you hoping on through And in more kind strong, when increase the what's year you a

is of you context election the to in in then new from dialogues the change similar decision-making year, the And terms capital heard delayed deployment a think and of opposed may we've business? in progressing commentary there we there's the any you external result prospects White normal of about other the back as of House seems as what investments, be or in the quite to of course -- as or of factors think half of kind do pause

Dan, thanks question. for your

rationale. with the and buybacks start in quarter our me the Let

let see remainder the for the to me then what the the quarter so about new of yes, rationale -- me And on let for share talk I'll investment year. repurchases for elevated move and in So year. the question start really we the with and

shares an We're just half we've to over factors $XXX more time significantly rate come under we've combination first years. count Quantum. But of the these share of really on now of compel of which view opportunistic set, now. million per our year, the take the XX% buying XXXX, about really that level And about is back of averaged us increased X year, share to some in pace repurchases. just have We've per a for together past double doing to year. this our been Maybe half

to over and last a securities well our we've issued sheet growth X.Xx years, thing is of really, mentioned significant Xx the balance and that liquidity that we is bearing I'll sheet of factor I highlight couple you the the a think on that transactions. really Dava XX-year veritable leverage balance earnings we've had, excess strengthened balance number we've had the And since sheet our given other below our our first movements target. the driven to

So we than today. have leverage lower Xx

generally. strategies So on the by shift areas Probably flows here growth to improving And towards profile business. the driven factor growth the significant momentum months which our over our accelerating this X the it, past our positive is and we evidenced and second secular just that's thing, and led this in see most the alternative quarter. in Tom mix earnings the quarters, importantly, XX been over past growth touched

you X.X quarter. think all it's had inflow I years an since we've know been

the about AMG by we're that but trend investing it's continue and really off, way, evolve think managers we over in near just And of intentional to growth, capital in very will strategically the we positive Really, deliberately secular trajectory. a good our in term term. ultimately, areas because feeling long so just deploying and we pay pretty the though, not the in are

year. the and been see of new we invest affiliates existing the a will opportunities that bottom investments, the overall additional investments of couple and was line which on new affiliates, our areas increased we us new have grow but line part steadily help And your beginning question, then progressing finally, and specifically in to in also of top second since

is the commentary note. the you So same as

expanding. made election it's driven those. It turns also that per those I don't good to that know is on and on constructive And continue discussions se. our out pipeline we And progress have be

our independent market I say, it's in strategic think today unique is is our for to position and independence. on point I that, strategic firms. paths both Really, relative competitive would really the be to landing the also other preserve ability

out passive to who want buyers not integrate and That consolidators both are who stands are financial strategic and against businesses.

So also pipeline matured, it's look when but you our at it expanded. has today,

So think supply. And will the similar to in I do on change actual I it, taxes, I'd that moment to there's we this view a really a ball. new activity. when have that much crystal constructive don't at been like is investment the too have commentary. in of and a the particular, have Oftentimes, election we're say with drives very seen

on this at nothing driving that's but supply, that's there point, there's But uptick the an horizon overwhelming could in be.

I So Dava on any relates expect to to investments, to think and it about fund and this ability see that fund talk continue as our for on We out just but But our to capacity balance need can I'll watch we ability to to rate, our to investments. turn growth to in at change sheet we the it investments. it. elevated our do new which execute also XXXX, repurchase we maybe

maybe that, with Dava, sheet. it you up pick on balance I'll So the let

Jay. Great. Thanks,

by the repurchase ample our to business, growth our So strength to the sheet shares. make recurring cash our our capital flow position, and to given have we new generated and and and existing continue investments flexibility affiliates in balance duration leverage both current of

Just and few to you color a give a more on little numbers this.

in or investments to of each flow in generates year. annually $X deploy expect cash which sheet either we billion return approximately balance growth pretax Our capital

AMG we sheet billion, million securities approximately be is will $X.X Our $XXX and over time. balance have million returned net of of in nearly $XXX products cash that debt and to investments available given position

lower X.Xx. growth be Finally, our to we ratio of to to capacity our $X.XX leverage continues target our on pipeline additional of revolver, and X.Xx to And liquidity with have Xx investments. execute access our leverage much of billion than

in together, repurchases as we capacity plenty growth on execute to Taken elevated the term also have near of and term investments the long and over well.

we're that for time. I just think our seeing in the the valuation answer we've us And that's I'll low the mentioned, in Dan, to business, relative opportunistic. that capacity what juxtaposed momentum That's some that your compelled really combination a all mentioned, Dava those of low to just against new But the really say our had shares. momentum investments, valuation our business of to finally Yes, I the question. and just that be the factors

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

Okay.

Jay, you the size the growth sort of to of coming deals, some laser-like could in certainly wonder Just might of terms focus the in back if at? out just the areas shape of things on maybe of I terms you pipeline faster maybe looking be some frame of the and appreciate

then could And on but was are separately, a update we Maybe terms and of number little an bit where wealth you about unrelated, talk of the in if I to separately management wondering side. then just many where can working you're of distributors how of over looking with folks of you're sort today? that x to? you do the on And sales number add quarters? incremental think get And

Yes.

So the investments. with with question your I'll will start new new thanks and start Bill, the for I first, investment -- well,

I'll Just on size, have efforts our about wealth. in maybe try and rounding talk to the we're and out Tom what for looking touch

first the primarily then off differentiated focused where long-only private just I'll that just left markets of strategies. alternatives areas and and within growth maybe up selectively we So liquid and secular pick is you on are thing

successful formation of demand I these it focused biotechnology, through them, And doing X been around really just Tom includes in economy is -- think find in decarbonization, but last to trying so digital that things litany over the businesses capital mentioned, digital long-term we're in industrial I the few. we've on are what a won't breakthroughs that And go the like name themes years. secular to

themes. those that's affiliates. at look business investments, business and with from that go about think, as we're and to going of liquid and markets today, new we our comes private profile our every from organic think also our half new well. but driving, flow both alternatives, existing see And I as And guess, well the over it can almost our and growth momentum stands of I really one do investments of back them, all them what's You follow half,

our about have pipeline moment pipeline. at the good just a look do We the today, think of size. and transactions in pausing you variety it. few on to see a a larger for pretty size When We actually

For high-growth lower. size size have $XXX we maybe bit the firms be a mean still that, it to number said out is [ that us, And I to a again, ]. prior check this a would probably calls. $XXX larger check $XXX, underneath of I've on size

try million businesses We secular size that triple we double typically to buy $XXX and billion enterprise in growing areas can $X the to in target or so value range.

Sometimes we go the over Typically, that's a perspective. that. It percentage partnership XX% much XX% we're often of depends between on the and how equity. in from investing of

usually transaction it out you. our So for $XXX just frame size is to $XX ], [ to all

and see some that on the What on to really the matters pretty of diversity. bottom have a that But of that is top so the are us good opportunity few half for we growth. we half

get of to billion some to easier $X successful smaller investments Oftentimes, business getting $XX investments our be billion. lot $XX billion. most $XX So it's kind tended to of a billion $XXX to business imagine to a some because to than a billion of our

high So a lot perspective, approach I long the Quality right the really from a term. we've over think growth of got matters quality.

magnify new positioned way. that We're So this investment and efforts the well their ability to our independent growth helped us really has firms in quality in in strategically area. very

private area. the in quality both about excited we're and liquid alts so markets And

And I on constructive said, our pipeline. very like we're

your talk about to So turn now over maybe Tom question. what second I'll to do is it

and is Bill, that our affiliates. excited things off we We've real have for big as for really pay both wealth been to of to that Look, Thanks, making the investment new positioned differentiator well think we as is a and really the AMG. we're investment that uniquely there, U.S. a channel the is and question. with offering one talk affiliates thanks that, starting existing Jay, about, a

independent wealth platform capital think on part growing affiliates have of its integrated in channel. this it, resources an to do the vertically that own difficult required As our we wealth to given capabilities, market and U.S. access that's about that you be large something for enables our that's when extremely formation firm overall effective to the and

many our If $X markets of billion to $XX you affiliates, AUM, in XX of to have employees. with billion XX we firms think maybe private

more client-facing in you employees. is way have some our play U.S. to wealth. have and And have individuals the We affiliates that of

sophisticated to have market to house the buying You field, that at RIAs, but wires in center the really really of down, the on penetrate have scale be the the wholesaling boots of the the also large from resources, able at resources marketing in is able with the channel. and cover large to ground be top the to terms resources, top to desk the

their that do independent powerful. in something firms that's AMG, can't most really And can just be on really, own. And with partnership that

about we're of number platforms space. asked You new the the wealth to on. Remember, U.S. we're not

billion years. in $XX a have We XX through for this space. we've that business And our predecessor firms, really been at

independents, RIA, of bank a self-directed. we number different types wirehouses, So platforms, channel, of operate across

the impact unique these appropriate products and clients. at own can where and the resources try capabilities that affiliates distribution at wrappers the distribution the to resources appropriate as our Ultimately, to have our we're wrappers for then channels excellent platforms build the exist our best investment well biggest trying with the affiliates penetrate and and as use

the us since heard that Product development that and important there, is this our way to capital bring going part the new about we've you've billion, more alongside invest on $X resources Pantheon over more to of last north affiliates products continuing of fund now years, had market of $X.X really we billion, on that a the back we're to talk we're that attacking channel. then couple the of and to billion, and build launched over AMG And the success $X initially strength.

credit a have on. We've We wealth already seed number XXXX, seeded to new private vehicle this kind the launch, for equity going. with done market. Pantheon for we've Just more in that working times, we the non-U.S. we're a Pantheon of partnered we're private and and private growth secondaries fund AMG and of think when about thematically, a the wealth market, the Solutions distribute credit the first Credit market of U.S. its Pantheon you where extremely seeing interesting Fund,

So we on very that in has have strong market the of box. first-mover and been real fundraising out a advantage the product

Also, an liquid continue following our to also wealth to clients with giving new a them Comvest nonsponsor-backed work as we focus bring opportunity market. with launch trend we partnered our to on And expand wealth seeded well. fund alternatives, that in Systematica lending advance U.S. with to the middle-market reach we've to their

investment and to think advantage, I the AMG U.S. see making. something to in try working, exactly in discussed You and an we're continue we it put And I prepared as remarks, also doing my asked where our really we Wealth. press at see when about that that's we're behind what we shoulder that's

dedicated distribution especially We're to focused elements introducing marketing for training that's advisers. incubating resources on team the high facilitate and and adoption on focus are critical also a to driving education built rates to products. the the new alternative products. successfully for solutions, enhancing to our and RIA And We channel, key of new those

a time. and all client institutions, and we we're position our RIAs AMG's large as to family of unique think select Overall, intermediaries across in as offices, we really our well success magnify those that and have well strategic U.S. to affiliates wealth affiliates over access investment collectively, opportunity delivering partners to us

Yes.

for one a channel emphasize So And amplify our us. affiliates private I our that is liquid affiliates. wanted to of things or said advantage the opportunity wealth strategic get access huge affiliates, to here, Tom the to markets for that just ability alternatives

seeking you can't have but don't about firm a that who's keys, we where of they will they times a the right, it enough. There will always, seeking they for underscore turn consolidated. if not. independent they it, time, partner. the will, And almost -- I to most an you probably oftentimes, want partner, When do guess over It's think are be criteria

to fast allowing the So is And world while think anyone strategic of given we to there's them not we the running that. space to opportunity win their are really as for us I independence in as especially our being that can, does to continue in -- preserve that really wealth.

Davitt coming Autonomous from The next is question of Patrick Research.

my have been questions asked. All topical

XQ any to highlighted? Could alts to specific So there items. catch-up secondly, color And cleanup in affiliate? what have you noise give on was it if couple some of fees the I related intangible And just any a results? the you extent were more

question, Patrick. Thanks right. start? to All want for Dava, do you your

can Sure. I take that.

to of question, side, a no quarter. reevaluation had one were equity method our second fees the event On And your impairment in the small quarter. second there affiliates modest at catch-up we in second the

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

back just going Maybe to theme. organic growth private wealth the and

and If business. both markets sustainable your your the from business is quant just What's alts your confidence level positive private and business generating you long-only in flows the assume stable.

costs that patterns just of distribution Just sense say, the get, the a do And quarters. Is trying share we distribution on the you're the you seasonal notwithstanding P&L that you get obviously, the to run side, those then with in affiliates? typically of between first mostly where EBITDA through do a on costs Or AMG. at share let's durability they that, the for? how affiliates there wealth the method working

Brian. Great,

will I'm our just for answer to I going think we both can -- on on see private this, that from I it think the Tom I markets, you chart and organic will have deck. in IR see stage in growth the and time, some I we been weigh but to the

it's we I we alts, alts negative. But generally for look think liquid liquid think growth forward, a positive positive when story us. organic is think I been and both

is good. to alternatives performance differentiated of I Mainly to think nature And important markets. liquid because the note what both private and complementary is strategies long-only really is

choppier, performance when you from when more see volatile liquid to see perspective. you sloping alts have from slower you markets, so growth alts. turn a oftentimes see tend probably perspective, markets, flow And that's in a and liquid on upward you really When

is the of do kind But we liquid and flow complementary of combination alts, balance forward. both that, story. private good going of we long-term see We a markets like positive that a So think nature it. the secular as

And over I'll will Tom, comment, it who but detail. then just more one I'm give going to to make turn you

actually trends does We positive that stabilize is consistent part are lower a outflows help long-only which on with of equities, business. and that the seeing industry for our I gross us, guess

maybe, So you let pick I'll from it Tom, there. up

questions, add growth much terms don't your have and Brian. story. of Thanks, thanks the to Jay, I Yes. for in actually organic

built some remarks covered touch of in we briefly We've we question with questions. doing to wealth your enter it well pretty on model. just a I'll I on as as our wealth I the and the previous think Jay answer and raise lot products a affiliates team, market, prepared the think drawdown our this liquidity in effectively do in we're think fund when venturing, when limited right, particularly joint or these about a sizable channel.

in but affiliates. long-term model. and it the and business and with to of the order of affiliates for a at right where level, the on the cost incentives in from to some we're we the house, the benefiting revenue behalf to top sense continue product have we investment of also our sharing the create also invest at to So both economic Obviously, make makes good that enable us alignment growth the

Yes. to that by as product saying, be given sources we X revenue revenue, there given are come And back have as a well and punctuate to clear, JV of I'll that it's revenue affiliate just just that that AMG.

with We on to profit earn have an opportunity scale both.

your question. for thanks So

of I the turn brings comments. to us Horgen end to question-and-answer the over for closing back This session. it Mr. will

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

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

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