Summary
Affiliated Managers Group, Inc. (AMG) reported strong performance in its 2023 fiscal year, with total assets under management (AUM) reaching $673 billion, a 3% increase from the previous year. This growth was driven by net inflows into alternative strategies, particularly private markets and liquid alternatives, which offset outflows in equity strategies. The company's aggregate fees saw a 9% decrease to $5.1 billion, largely due to lower average AUM in global equities and the impact of the BPEA transaction, alongside a reduction in performance fees, particularly in liquid alternative strategies. Financially, net income attributable to controlling interest declined by 41% to $673 million, primarily due to lower affiliate transaction gains and equity method income, although a decrease in income tax expense provided some offset. The company continues to focus on its partnership approach with independent investment firms, emphasizing growth in private markets, liquid alternatives, sustainable investing, and wealth management. AMG also continued its share repurchase program, buying back approximately 3 million shares during the year, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
40 data points| Revenue | $2.06B |
| SG&A Expenses | $358.20M |
| Operating Expenses | $1.50B |
| Interest Expense | $123.80M |
| Net Income | $672.90M |
| EPS (Basic) | $19.18 |
| EPS (Diluted) | $17.42 |
| Shares Outstanding (Basic) | 35.10M |
| Shares Outstanding (Diluted) | 42.20M |
Key Highlights
- 1Total assets under management (AUM) increased by 3% to $673 billion as of December 31, 2023, driven by strong performance in alternative strategies like private markets and liquid alternatives.
- 2Aggregate fees decreased by 9% to $5.1 billion, primarily due to lower average AUM in global equities and reduced performance fees in liquid alternatives.
- 3Net income attributable to controlling interest decreased by 41% to $673 million, impacted by lower affiliate transaction gains and equity method income, partially offset by reduced income tax expense.
- 4The company actively engaged in share repurchases, buying back approximately 3 million shares of common stock during the year.
- 5AMG made strategic minority investments in Forbion Group Holding B.V. and Ara Partners Group, LLC, focusing on growth areas within private markets.
- 6The company completed the sale of its equity interest in Veritable, LP, realizing a gain of $133.1 million.
- 7The company maintains a strong balance sheet with $813.6 million in cash and cash equivalents and managed its debt effectively, with leverage ratios well within covenants.