10-QPeriod: Q2 FY2025

AFFILIATED MANAGERS GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:AMGMGRBMGRMGRDMGRE

Summary

Affiliated Managers Group, Inc. (AMG) reported its financial results for the six months ended June 30, 2025. While consolidated revenue saw a slight year-over-year decrease, the company experienced growth in its assets under management (AUM), reaching $771.0 billion. The company's Net Income for the six months decreased significantly by 30% compared to the prior year, primarily due to a substantial increase in intangible amortization and impairments, which included a $70.0 million impairment charge on indefinite-lived acquired client relationships. However, Net income attributable to controlling interest saw a modest increase for the three-month period. The company continues to execute its strategy of investing in high-quality independent investment firms and noted strategic acquisitions and divestitures, including the sale of its interest in Peppertree and the agreement to sell a portion of its interest in Comvest. Despite the decrease in net income for the six-month period, driven by specific impairment charges, the underlying operational strength appears robust with AUM growth and an increase in consolidated revenue for the three-month period. The company's liquidity remains stable, with sufficient cash reserves and access to its revolving credit facility. Investors should monitor the impact of the intangible asset impairment charges and the ongoing integration of new investments and divestitures on future profitability.

Financial Statements
Beta
Revenue$493.20M
SG&A Expenses$95.70M
Operating Expenses$412.70M
Net Income$84.30M
EPS (Basic)$2.96
EPS (Diluted)$2.80
Shares Outstanding (Basic)28.50M
Shares Outstanding (Diluted)31.40M

Key Highlights

  • 1Assets Under Management (AUM) increased by 10% year-over-year to $771.0 billion as of June 30, 2025.
  • 2Consolidated revenue for the three months ended June 30, 2025, decreased slightly by 1% to $493.2 million, while for the six months it decreased by 1% to $989.8 million.
  • 3Net income for the six months ended June 30, 2025, decreased significantly by 30% to $235.1 million, largely due to a substantial increase in intangible amortization and impairments.
  • 4A significant $70.0 million impairment charge was recognized on indefinite-lived acquired client relationships in the first quarter of 2025, impacting profitability.
  • 5Net income attributable to controlling interest increased by 11% for the three months ended June 30, 2025, to $84.3 million, but decreased by 31% for the six months to $156.6 million.
  • 6The company completed several strategic investments and agreements, including minority investments in NorthBridge Partners and Verition Fund Management, and entered into an agreement to sell a portion of its interest in Comvest.
  • 7The company repaid its $350.0 million senior notes due August 1, 2025, and maintained a strong liquidity position with $361.0 million in cash and cash equivalents.

Frequently Asked Questions

The significant decrease in Net Income for the six months ended June 30, 2025, was primarily driven by a substantial increase in intangible amortization and impairments. This included a notable $70.0 million impairment charge on indefinite-lived acquired client relationships, impacting overall profitability.

The company experienced strong growth in its Assets Under Management (AUM), which increased by 10% year-over-year to $771.0 billion as of June 30, 2025. This growth was supported by client inflows and new investments, particularly in alternative strategies.

AMG continued its strategic focus on partnering with independent investment firms. Key activities included completing minority investments in NorthBridge Partners and Verition Fund Management, entering into an agreement to sell a portion of its interest in Comvest, and completing the sale of its equity interest in Peppertree. These moves reflect a dynamic approach to portfolio management and value creation.

AMG repaid its $350.0 million senior notes that matured on August 1, 2025. The company maintained a healthy liquidity position with $361.0 million in cash and cash equivalents as of June 30, 2025, and has access to a $1.25 billion revolving credit facility, indicating a stable financial footing.