Affiliated Managers (MGR) 4 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the AMG Third Quarter 2024 Earnings Call.

[Operator Instructions]

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

begin. may You

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

begin, AMG any differ please any Relations nothing affiliates. constitutes replay investment no website, this vehicles from reconciliation of products, non-GAAP obligation remind note measures available our to Investor actual results we services that number I'd update call of today's AMG during the offer along of our financial on forward-looking be an call. a we assumes and including section A of will release copy could call, or a of may our call and these you which on any earnings statements, any announced to this materially, with earnings this of make on Before that a of like statements. Also, guidance

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

impact per positive Thanks, Patricia, the the delivered earnings everyone. share, in XX% economic business morning, another AMG and reflecting quarter and capital with ongoing good our in of strong allocation growth results. our of momentum strategy.

demand in AMG's the evidenced the strategies ongoing for raised and Comvest. market EIG, the towards quarter growth alternative Peppertree secular Pantheon, Forbion, to capital The meaningfully specialized in and continues $X mix by accelerated private drive to areas contributing strategy evolution billion at as of our growth business new our strategies Our increasingly with earnings.

invested wealth the reshaping opportunities aware our deliberately several organic in as solutions alternative made growth over which capital business played in we partner-owned in profile. operating AMG's we the X/X trends, have firms and strategies in for areas AMG's where last approximately alternative and growth in with in Stepping role manage together build. our and initiatives generate AUM critical approximately between particularly split tax demand half quarter, EBITDA. aligned markets billion Having long-term alternatives, firms notably continues positive alternative strategies to were alternative our more the most at firms and channel growth, flows thrive. now back, specialized a client than generated In $XXX U.S. liquid see investments the for strategically of addition, affiliates liquid of our AQR years assets private have and and independent

expect and It distinct the in capital our are also the affiliates be investing capacity As our our of we organic increasing profile further exposure, of only improving portfolio resilient shareholders. of this our will AMG's and set we to we only private private more liquid but markets independent total, long-term is firms even In cycle. areas believe not liquid high-quality business markets, a stability advantage. return alternatives, across continue in stages we opportunity market not business prospects all partner-owned and towards competitive our By power And diversified long-only diversify our growth alternatives, shift the earnings that also our operate AMG's supports enhancing we grow. flow. expect cash growth our that in will across quantum strategies. we to duration footprint benefit expand of as locked-up differentiated our a of and And highest alternatives across

wealth packaging and of distribution build to launches in and private trend have their alternative investors private AMG for platform including the liquid especially is excited of alternative allocations am new Throughout our including and increasing of markets AMG's positioned of democratization about wealth a be on through number wealth alternatives. alternative has strategies this beneficiary attractive the liquid we solutions. strategies enable been this in seating, through in to XXXX, U.S. increase product on in our the I capitalize leader affiliates a both and continues to segment. broad uniquely channel and the continued as strategies markets a alternative innovation, to demand of success the client wealth to the AMG channel. new client

in continue ahead, billion and Today, More planning growth introduce formation, products we platforms broadly, from working new product affiliates scale assets $X product with AMG's range the also outside success platform. product expect development, to collaboration and while our U.S. alternative position to through affiliates to excellent our have and more existing on distribution, AMG's across addition innovative accessing on ongoing capital AMG's strategic clients including we looking strategic incentive business continues relationships. in for than lineup strategic planning, development, wealth succession And areas, long-term a and opportunities, products their our U.S. alignment. enhanced of to new

our As will affiliates. distinguish we prospective to as further long-term our we deploy AMG continue a strategic to new capabilities Affiliates' to enhance partner success,

model while also of investment profile broader remain partnership the Our prospective pipeline, by in opportunities potential opportunities including the investments differentiate independence, their expanding. is to to of of now invest new advantages have several ability magnify new evolving, beginning advanced transaction valued and business partner-owned to growth discussion, our we AMG's pipeline later our the that preserving for proven strong. is of and stages are year, are competitive and highly our Since continues the Affiliates. AMG's firms,

flexibility And as and we continue allocation we execute and ongoing will Given to both growth strength these shares. decisions. remain capital we significant opportunities liquidity, sheet on have balance disciplined evaluate repurchase our always, ample to our of the capital as

investing As in is success of element to in partnerships, over our affiliate our past towards the the driving of we distinctive investing growth made our secular capabilities years, magnify in affiliates, evolution areas. the on progress investing our strategy, and existing business profile I affiliate reflect new X growth have AMG's each

increasing we to turn additional And over execute see And value our we it I'll meaningful on time. opportunities as that, to over with Tom. continue strategy, create to shareholder

Jay affiliates everyone. of and including Thank morning, strong continues organic cash and alternative continues over more strength growth strategies, $X years client net in capital the capabilities, development investments offset AMG's managing our In the alternatives private and year our the broadly, evolve, and for EBITDA profile strategic from be bifurcated significant compared quarter, a period. story by business good equities. client industry third made to demand product past and formation. to driven ago few by you, active of new billion our enhanced were growth increasing improvement outflows AMG's to with organic fundraising ongoing headwinds markets the the contribution

will We development and especially growth we and long-term affiliates, further distribution, over which continue. evolve through mix in existing profile to organic expect alternatives areas, our And to together growth time. will organic and growth our business towards product enhance investments actively new with both continue turn in secular

like and their life fundraising a partnerships space, affiliate targets, Forbion communication rate infrastructure recent in Our biotech digital representing including private In $XX our net in quarter, billion XX%. markets bringing the sciences. fundraising strategies organic Affiliates our generated annualized quarter, exceeded $X and and number Peppertree the some the most more growth than of of of year-to-date inflows an and billion to in

investors' affiliates strategies private their specialist fundamentals their of and The positive fundraising dedicated sectors. momentum markets the in AMG's of reflects conviction investment

We liquid growth. for opportunities also generated in are organic where flows positive we an area strategies, alternative seeing increasing

their the $XX changing and to continue address differentiated alternatives. to construction value equities on saw flat we portfolios, the in allocations recognize Within income. fully market approximately strategies increasing we and portfolio in in focus flows to long-only clients these strategies, billion of expect outflows As more and multi-asset fixed environment net liquid of

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

organic to continues to ongoing given time. And and expect business strategy improve. over predictable our our trends materialize mix, Our flow more focus growth long-term we stronger and profile evolve to

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

exciting collaboration scaling with Lending lending RIA ongoing record Our the that position and is capital, seed AMG's alternatives. Comvest's more fund is to fourth of markets BDC running We products us AMG AMG's affiliates wealth be diversified, expected the than in private driving on demonstrated in ground a to the offerings combination Fund, of developments and U.S. on with Comvest in portfolio. our track accelerate for direct early Wealth represented $XXX scaled Senior affiliates addition U.S. a long-term hit select success drawdown raising success number recently for a the to Wealth. facilitated for solution positions public capital next by in the exposure AMG formation initiatives year to excellent offering of in the filed the growing platform which affiliate million channel Evergreen alternative The AMG's

Pantheon similar private concluded a Solutions concurrently seed Pantheon wirehouse Fund recently for market, on a large sell the are solutions, AMG and credit platform. focused also in round Credit second the We successful helping including secondary

to quarter, our for the new multi-decade established affiliates the $X.X drove develop assets than net its market billion to alternative most last and over market more to Our the nearly affiliates in private alternatives in grown products doubling the product in AMG largest to to management with opportunity has Wealth. continue of than one the with fund, including on And capitalize $X work under bring markets at Pantheon the of continued to U.S. XX in inflows collaboration growth months. and which support U.S. more wealth the products we billion, channel,

our enhance mix across investments, the affiliates driving formation, in strategy especially our growth is existing in secular investments growth evolution capabilities, areas. of to AMG's new toward business and capital investments

years, we that, increase. X results grown our turn With to the to Over X/X we alternative from quarter continue as guidance. from and the on from to half our third EBITDA strategy, over approximately the our execute discuss alternatives Dava I'll call last to strategies to contribution expect contribution has further and

Thank you, Tom, morning, and good everyone.

of our business under the management. and business the continued see We average balance sheet. our demand momentum assets secular strength increasing of of evolution in areas mix towards continue given strong our to

Taken in the factors provide us investments capital to with growth continued capacity execute to return areas together, and these shareholders. on

quarter, year-over-year, impact These in adjusted new included period driven that which investments million by $XXX in the AUM reflect by X% QX the quarter share net of share EBITDA earnings in million, growth and market earnings third average fees year-over-year. $X This recent $X.XX earnings. lower results. the further benefited to our to from performance up had and per was compared catch-up higher net Economic contributed fee of offset private primarily and performance fees In XXXX. we for the repurchases results XX% grew of

quarter slide modeling Now section moving can website, fourth Relations reconciliation to fourth find posted the for Investor guidance been has the where a to detailed of quarter. you where our items

million EBITDA $XXX includes as net based reflecting quarter-to-date This of blend, current We Friday, of in be fee performance down market was and range to earnings million. $XX $XXX our expect of it X% million. levels, adjusted the AUM is which approximately on and

results and quarter. expect year We adjusted in fourth put of for to be $X.XX the of the context per our shares let's weighted economic XX.X $X.XX expectations. guidance count million back, average and quarter share share assuming fourth quarter an expected earnings full go-forward Stepping between

fees average underperformance at performance return million below anticipated to year strategies. the due full absolute to Our $XXX certain historical are our of be

confident from contribution term, earnings long growing the from since contribute fees our the we especially a we interest future. will private to to meaningfully performance However, market that in strategies over remain carried continue expect

Additionally, the our core improve. foundational to business continue drivers of

Our is in in highest years. more approximately seen level than the at $XXX we've X billion AUM

grew per year-over-year. earnings economic nearly fees XX% QX performance Our at share, excluding

executing and growth. momentum Our to these and growth growth secular up of been. earnings strategy business direct are shifting execute ever for and on as capacity balance factors the a strategy are areas of in been sheet and as towards have our And continued they've we result have strong our us set

have sheet to In approximately allocation. we balance our XX% basis, Finally, the repurchased shares turning And or repurchased now a $XXX million of and outstanding. in million the third quarter, capital $XXX shares. we on year-to-date

rate to sheet new to in strengthen $XXX the XXXX, and quarter, term year conditions expect shares, balance we full bond maturities approximately issuing million of the and of floating debt subject In continued the our repurchase proceeds duration down by market For million our to loan. investment and the activity. to pay a $XXX using XX-year majority extend the our institutional we

Our our debt portfolio, profile repay to through cash an and more is ability given we have debt all in maturities than an years. current excellent duration average the investment of XX position with XXXX. And

flow capital With cash but of shareholders. our growth have position, investments the leverage our recurring structure ample capital new make to sheet strength we by in affiliates to our annual flexibility and business, capital balance the generated continue current not return also and long-dated to and existing only

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

Now we questions. take your happy are to

[Operator Instructions]

first line Our question of from with TD comes the Katz Bill Cowen.

appreciate I commentary. the updated

about you a $XXX as deployment been triangulate of a commentary further of has sort you're now higher in AMG Dava, that. pipeline seasoning ton of think versus here? to capital your something not bit around of it the do and maybe Just sounds visible. transactions There's around between trying from sort at than been and we like How million buyback

trying are as just of to the where understand and to capital in terms 'XX? look we the we then out So pipeline allocation

Bill, new Thanks, and Yes. it and our repurchases. of David I'll to then about and talk take deployment investment capital side ask the

pipeline to question is would current pipeline more look stages. we would our both partnerships, exposure have heard that, kind and opportunities in seasoning, prepared this this that throughout year. to we on the in we're of So we and alternatives the gain markets very We've potential think look it, had later remarks, would the at obviously the composition you our trying secular and advance -- is trends, several private that I high, at quality to we to my several growth as continue have pipeline, be say the When now liquid and in expressed we in be pipeline. your

think, of orderly we know, some Most really happens an ways, The approach. it in will take happen. unique is, when situation. I just all depends it timing of they really as each it them And on

they're guess I all So bespoke.

news throughout later said good stages. the is I in think though, and I pipeline robust. year, some why that's the remains the in remarks, steadily we my prepared Broadly, progressed fewer the

the So our transactions. new potential additional middle of even pipeline, have front at the affiliate for end we and

good stages, kind feeling all So about we're of and that.

importantly, positioning, you're you I independent I who engaged And be maybe strong. their someone buyers. independent competitive help the as a and think have aware financial of, differentiated competitive need When about them maybe we while partner, our over but would the businesses can really best we're is strategic us, AMG very position of leave couple more say benefits consolidator, really the evolved both a both them passive And think our the because firms is things, decade, to preserving of also independence. most a here relative in our also to of large offer minds, for last partner

preserve help but So be if alignment also can magnify strategic, independence and want you AMG. someone and would that be who successes your your

think choosing us. why very our that's like positioning firms feel good. We is we So competitive are

I'll very mention it And in activity. has look from we our that our pipeline And repurchase minds that, we're constructive at here. just on our when been so

as something we're So but Dava thunder I is to I'll Dava robust. pipeline add won't it steal been our here, it. But that has maybe relatively let monitoring

Great. Thanks, Jay.

which track in repurchases, the we about largest $XXX shares a take are of combination quarter, repurchase million you year, per repurchases. repurchased third million our that buying of in to as a we've repurchase years, share us the shares opportunistic XX% history. both averaging and year. back year be over about pace the can quantum significantly So given view the on increased know, last our $XXX help and consistently roughly This our several XXXX, will we factors and million to on been more Through

a capital capital have to return. allocation We disciplined growth deploy highest the and strategy to areas of

our And just we the about new prospects as mentioned, Jay in good feel near investment term. really

So we term. near capital in execute for potential incorporating share strategy the the growth need repurchases with are our to on

flexibility and We'll position the is repurchases will growth to some on on both. very QX more color share shares. In a call. market to have what in execute addition, question, on and subject as capital we're But strong continue repurchase say price year, our continue the to I we're expectations any to for our and that XXXX closing strategy both ample be can provide to Thanks consideration.

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

in I struggled And Any implication was this what hoping we watermark fee we strategies time. about as more return carry to guess, line? guidance the could what kind little have that, could flesh high of double-click of for maybe the talked you balances line that terms wondering help of contributing out into performance absolute terms to about to private bottom in over if a and on was think side just frame the AMG's XXXX? of sort I the specific of start flip are bottom you year. flow-through bit carry us I markets accrued

take one. Sure. Thanks, Alex. I'll this

million So in within below of return to as more investment currently fees, remarks, average be our of we challenged my X-year strategies, trend of I at absolute our performance about said $XXX prepared those expect given specifically strategies. following some performance

period. We of could challenges in expectation the performances, continue XXXX, some a million cycle some given through return of to performance of annual within these think this a $XXX number but good absolute softness some we in see is strategies our this

as a would strategies performance and XXXX know, time you the But of fees. there's between crystallize lot these now when

a in general. just step Let back me fees minute performance to take on

our set realized for across affiliates across earnings reported fee totaling performance have of and business return of absolute performance earnings a strategies. private So market fee us billion dozen those and of on about an we are in And fee data-sensitive, complementary generating important a do a assets basis. performance highly diversified part are all $XXX

our that strategy. to execute we cash use on So to us can growth that's real

like expected performance bit a these fees continue in year our which performance fundamentals to XXXX, the core and diversification nature complementary to lower, a in business. fees where to of And improve, business overall are come highlights our

still there's markets when could in Of contribute macro performance ground couple in number of these the a regard over that significant new ways, year, confident to to private purchase and our horizon things With earnings to could on market don't interest, impact but fee power those ability carried months long carry buy our we making remain affiliates, to events course, in drive left earnings a typically, of investments. when there's change. we so overall the we we're term. in the the different

And so it us increase for to into And time be opportunity to for that carry. tends expect their to to longer-term over a naturally a start performance fees we play us. contributions bit to

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

Just following questioning. up on line that of previous

to So carried talked contribution. range has And of curious forward. that specifically, going also XXXX, year. as about you expectation think of scale kind demand. obviously, on the just your expect strategy, increased But -- what you going we're what what or And liquid then to this it's in interest you

for ultimately, of Advantage Tax the products. maybe better flows AQR some So

little correlate existing color type I way AUM today? are demand where Are your don't liquid there some that are performance of want business? on economically these a there the So strategies get of same maybe that of Or to sits book what you that to attached more that seeing fees products? to

second add your question. Thanks color, see part maybe of if Tom I'm and Dava with start -- can and can your off where going for then some help your let question. me just I left to me

Just on carry.

So right, the in typically ground we is not do carry. Dava buy

you Asia, Comvest seasoning we've -- several sort one, know, Aura. market had markets over of the number investments. recently of because OCP private most the we a of FBN, businesses years, made as being last we However, our

we the out. that starting to we're made see to fund after next investment got start raised pay So

We a own, with We fund to its do It's predict, little lot a over long-only way absolute our structures and a year, expected this but have year. of to carry as it the exits work. fees because grow carry some and fee do course, even percentage It's performance last businesses year. the has any combination we return of have hard to some had beta-sensitive obviously, greater But do percentage a on that both a have forward. of In going we then, see being it's carry. some opportunity performance X time.

to the across of million year. So for estimate a benefit what what typical without of as is think think I $XXX macro we would that understanding we kind the sort exactly is David the for that average year our look is mentioned be us how best as environment

on So say that. for just that look of I because if kind think just the you fees grows markets those the alternatives the raised and as one I areas, other both flow that's the at profile work grows. in performance on that AUM thing private opportunity done we've might liquid capital we've of the

to bit come those And about alternative talk -- and as maybe more But the opportunity reality strategies, firms so is in markets, those the of AQR. just the it into I'll some little turn liquid set that assets Tom as forward. namely to alternatives private is a greater going liquid and

Yes. question, Dan. for Thanks, your Jay, thanks and

to get client-type product, that of and to think advantage in from worth in some I the alternatives up up our shows shows channel a net high question tax perspective. specific on your

growth We there. nice have seen really

has after-tax there's a others wealth industry. well I focus on some that You've generally. think of seen around as some management in returns And what lot press respect doing to the been AQR as with

macro into important So I think really theme. this a plays overall

So been in growth years. an that's excellent couple the of last opportunity

coming expect those like firms outcomes for continue about to as a to as end innovation well continue delivering of types growth see clients. We from a they to lot lot of AQR as think of

-- of sophisticated liquid their Yes. liquid out there products. mix business slightly and in their the And The let well said, tax-aware for investment greater -- average for of of that than alts the fee so thing a interesting, is has innovative. makes them overall first sort say maybe just And as AQR. And performance alternatives is become percentage on obviously is me very then opportunity it and performance business, tax-aware generation other significantly is that and and bodes Tom reality the the more their tax improved flows a aware strong, more one into fees. more strategy, is rates putting business plays

So that we're them. off in growth the paying innovation is significant assets. for seeing and

excited we're about your question. alternatives So and we're business a AQR, Thanks the pretty happening about pretty liquid for at excited generally. what's lot

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

Great. If perpetual for detail can a think extent on performance launched from what or maybe ask you your maybe about very for of -- you bit do you the that perpetual extent fees And if meaningful become I if maybe little from platform. products, to getting the products, affiliates. you to idea now? you are contributing talk they like do -- talk performance about then think much a raising can potentially on mentioned being your what could the I across you products forward? pipeline new fee part of can going fees And think billion more terms about wealth how Maybe private pipeline democratization can scale in of that $X performance

Thanks, Brian.

you really excited So know, wealth opportunity. look, about as we're the U.S.

And in connect them more in a in number a of capital affiliates wealth. sweet else strategies, with can. at new of is clients in And we're directly trying no do with to industry the strategy on our collaborating into and growth partner our that resources investing a do as advantages. creating way is main Our opportunities, new can one this it products part their with right really U.S. strategy, and to and that magnify that firms and the independent we way spot AMG of

vertically wealth a integrated have platform. We U.S.

several our wealth everything a ecosystem. lot clients And through is evergreen firm that's been be market just important think having way years the bringing product and first this space we in affiliates and the doubled equity the on north operating past platform AUM from would XX now that effective and I enables any private a growing are AMG scale $X difficult of ever development resources the in support of that be to that and really be its to the to independent And touching access able is affiliate through underlying for successful launched fund the over then to end roughly channel. as on platform. extremely success very the of mentioned, to in -- risk required that one having given Pantheon of which, strategies months. that own that We've course in large the do funds to based market billion and ago, to management in

capital direct the Lending momentum there, Senior XXXX. distribute the round, filed successful this Pantheon going excellent able Wealth first And for extend us raise a recently space. product remarks, success CCAP in year U.S. my Solutions U.S. alongside the market Just than see in private in to credit also of forward partnering Pantheon combination new Credit several in in XXXX, we see Systematica fund private into which the wealth alone, and in offering for mentioned is our seed Fund we I $XXX We AMG's to the lending to U.S. as allowed of to record in the partnered in Pantheon track AMG launch, wealth product market secondaries BDC, seeding Comvest demonstrated their invested to and that the we've products trend completed public Comvest's scaling called to million to more Fund. equity includes get products fund launch the non-U.S. where more that the new and also That And fund private in started. bring that's market. AMG wrapper, a prepared a the with second affiliates to seed with seed following and a be we'll new And Wealth. reach

number. billion $X You the mentioned

we've I think what's important, from. too, is thinking where come about

years, go that was number billion. about You to $X back X X

of scale So but we and one, products to that bring see our growth the growth growth team listed, in in continue, development new in those scaling and products we've continuing we just that to the seen think market. platform, with can substantial I that through two, product

Jay our what AMG they plus opportunities affiliates affiliates, about investment horizon the lots to see of our way. affiliate the existing of to of wealth IP in next business we a X talked also the stool that strength the but of them type create and meaningful help on a existing and new see that for really bring through pipeline investment of model, where getting lot attractiveness the X X the have we by of where the equals new First, AMG in terms into a the leg U.S. in new can opportunity really that

those fee diversifier ultimately, of the future the to see I number products nature products, with the performance a are being really and they're fees. funds perpetual lot our of using seeing It to come end stream. team about out our of wrappers that we're eligible and and about that product with. in do as have within of nature tender fees and to we You that innovation just returns the wrappers. asked of BDCs further contributor depends different of Certain that on about generate walked respect think we're perpetual the a to products performance funds expertise that interval all of through -- to we But and product of that performance to the course, from associated a client

so wealth obviously, now and say when of product a balance of balance in really and the are the space sheet I'd fund XX-year and seeing. lastly, front having AMG behind and that understands in markets of that over space, record time to having new market development to one do affiliates well and able having about just our the being center its then in and sheet being into of the starting big we're why our products, private a track think positioned you mutual evolving And some these plus U.S. and new see some innovation players the leading a capability this, put

And scaling then we and place our importantly, very seeing We're a to puts years. this see affiliates the that of capabilities XX today, most unique a over exist X having growth investment course next platform in of ecosystem. tremendously lot us in the special the at this

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

be you most would an seasonality XQ realizations going see different -- market modeling AUM and headwind we than from pick in from more that here? at view AMG what up, of alternative flow and given reason any industry rebalancing to that alternative do there should and distributions the in Is highs we think vein, that people's annual are the usually be and/or

your for question, Patrick. Thanks

I year-end think to early still little a think about it's seasonality.

we in We years magnitude a be that what and the seasonality have heavy frankly, of our quarter industry muted. some mentioned we're very I over haven't driver. seeing see a certainly But as towards a looked do With I in in to you see our realizations, relatively strength call out remarks, shifts far wouldn't same affiliate regarding alternatives in incredible fourth is growth it, ways, may materially AMG or, you our more as far ago. be time. I expect But there than annualized in in as past or we different my in business and It's seen anything what thus should organic would seen AMG see. opportunity prepared we've fundraising. that overall We've in some of to the seen the dramatic expect XX% more business at more thus like even pattern fundraising. necessarily to with mutual not XX fund respect it others like with particularly We'll wouldn't know, in alternatives conversations clients affiliates years. the suggest

return certainly, as I business. markets of don't seeing look our overall segment and of see that market long-term environment So private our you a in quality take positive the advantage will view that. size of But and and we're in the generally particular, a alternative headwind to as growth more the it environment that affiliates to of for material positive realizations

to to on add just point. last that And

other the nuanced had we conversation just older those of carry, because here did you funds see we around the any [ from For realizations nuance ] on bit more when carry. are AMG, a not it's own that some is some

but opportunity both also raise fee flows us the net seeing the fee earnings earnings performance for the now. you're us of fee, are that most So forward set the going from coming management for the

the opportunity growing. earnings so is And power

past well. bull pullback was you generally And in market our perform in and that I've stronger last volatile too, see the alternatives several for see think and liquid -- near maybe different part I in said us of would note, guess in past, super and XXXX, for that speaking, example, area when times of years earnings. that thing which and you want I kind is just I business is highs, ways, to the our markets choppy said because would the of occurred, one performance unique in it in we've times, it fee

strategies. nature correlation but the our some in -- lower of So inversely business, of ways, some nature diversified we our the of also aspect correlated or like

one And realizations. quick respect to point just with Patrick, maybe additional

multifamily have AMG's nature the We differentiated like exposures equity, sciences, of market decarbonization, about private life talked real estate. things just private

and have that way is to DPIs, continued through lot pretty the been less in so slowdown which had a part we've see good has leverage place. remained regular realizations which of these more pretty of we we've buyouts, strong. realizations has equity to fact -- taken a cycle the why where specialized private exposures, the So has contributing concentration to good in our fundraising given

So with realizations given seen change strong that maybe performance AMG industry, your in of more of will we I for likely here. see rate point but already we've less pretty agree a the

this thank participation. and gentlemen, thus Q&A Thank you. Ladies interest We concludes our concludes call for our session you and and today. your

You may your now disconnect lines.