Summary
Affiliated Managers Group, Inc. (AMG) reported a decrease in Net income attributable to controlling interest to $123.6 million for the three months ended September 30, 2024, down from $217.0 million in the prior year period. For the nine months ended September 30, 2024, Net income attributable to controlling interest was $349.5 million, a decrease from $476.8 million in the same period last year. This decline is largely attributed to the absence of a significant gain from the Veritable transaction recognized in the prior year, coupled with a decrease in investment and other income. Despite the decline in net income, the company demonstrated growth in its key operating performance measures. Assets under management increased by 15% year-over-year to $728.4 billion as of September 30, 2024. Aggregate fees also saw a robust increase of 16% for the quarter and 6% for the year-to-date period, driven by strong performance in alternatives and liquid alternatives strategies. The company continues to strategically invest in its Affiliates and support their growth, focusing on private markets and liquid alternatives, aligning with long-term client demand trends.
Financial Highlights
38 data points| Revenue | $516.40M |
| SG&A Expenses | $97.00M |
| Operating Expenses | $374.70M |
| Net Income | $123.60M |
| EPS (Basic) | $4.11 |
| EPS (Diluted) | $3.78 |
| Shares Outstanding (Basic) | 30.10M |
| Shares Outstanding (Diluted) | 35.00M |
Key Highlights
- 1Net income attributable to controlling interest decreased significantly in both the third quarter and the year-to-date period, primarily due to the absence of a large one-time gain from the Veritable transaction in the prior year.
- 2Assets Under Management (AUM) showed strong growth, increasing 15% to $728.4 billion as of September 30, 2024, driven by client demand in alternatives and liquid alternatives.
- 3Aggregate fees increased by 16% for the quarter and 6% for the nine-month period, reflecting growth in asset-based and performance-based fees, particularly in liquid alternatives strategies.
- 4Operating cash flow improved to $719.6 million for the nine months ended September 30, 2024, up from $619.4 million in the prior year, indicating strong cash generation from operations.
- 5The company repaid $350 million of senior bank debt and issued $450 million in new junior subordinated notes and $400 million in new senior notes during the nine months ended September 30, 2024, demonstrating active debt management.
- 6Share repurchases remain a priority, with 3.6 million shares repurchased for the nine months ended September 30, 2024, highlighting a commitment to returning capital to shareholders.