10-QPeriod: Q3 FY2025

AFFILIATED MANAGERS GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 6, 2025For Securities:AMGMGRBMGRMGRDMGRE

Summary

Affiliated Managers Group, Inc. (AMG) reported a strong third quarter and year-to-date performance for the period ending September 30, 2025. Net income attributable to controlling interest saw a significant increase of 72% for the quarter and 6% year-to-date, driven by robust Affiliate transaction gains and growth in equity method income. Total consolidated revenue experienced a modest 2% increase for the quarter, with a slight increase year-to-date. However, total consolidated expenses rose by 9% for the quarter and 15% year-to-date, largely due to an increase in compensation and related expenses, particularly affiliate equity compensation. Despite increased expenses, the company demonstrated strong operational performance, with assets under management growing to $803.6 billion and aggregate fees increasing by 16% for the quarter. The company also maintained a solid liquidity position, with significant cash and cash equivalents and access to its revolving credit facility.

Financial Highlights

38 data points
Beta

Revenue

$528.00M

Net Income

$212.40M

40.2% Net Margin

EPS (Diluted)

$6.87

Total Assets

$8.93B

Cash & Equivalents

$476.10M

Free Cash Flow

$275.90M

Financial Statements
Beta
Revenue$528.00M
SG&A Expenses$100.50M
Operating Expenses$409.20M
Net Income$212.40M
EPS (Basic)$7.47
EPS (Diluted)$6.87
Shares Outstanding (Basic)28.40M
Shares Outstanding (Diluted)32.90M

Key Highlights

  • 1Net income attributable to controlling interest increased by 72% to $212.4 million for the three months ended September 30, 2025, compared to $123.6 million in the prior year period.
  • 2Total assets under management grew to $803.6 billion as of September 30, 2025, an increase of 10% from September 30, 2024.
  • 3Aggregate fees increased by 16% to $1,346.0 million for the three months ended September 30, 2025, driven by higher asset-based fees in liquid alternative and private markets strategies.
  • 4Affiliate transaction gains of $127.6 million were recorded in the nine months ended September 30, 2025, primarily from the Peppertree Transaction.
  • 5Consolidated expenses increased by 9% to $409.2 million for the three months ended September 30, 2025, primarily driven by a 15% increase in compensation and related expenses, largely due to affiliate equity compensation.
  • 6Cash flow from operating activities was $716.8 million for the nine months ended September 30, 2025.
  • 7The company repurchased 0.3 million shares for an average price of $230.04 per share during the three months ended September 30, 2025.

Frequently Asked Questions

The significant increase in net income attributable to controlling interest was primarily driven by Affiliate transaction gains, notably from the Peppertree Transaction, and a substantial increase in Equity method income (net).

Total assets under management grew by 10% to $803.6 billion. Growth was particularly strong in liquid alternative strategies (up 40.8% to $204.8 billion) and private markets (up 10.3% to $147.7 billion).

Affiliate equity compensation is a significant driver of increased compensation and related expenses. For the nine months ended September 30, 2025, these expenses increased by $67.8 million, partly due to a modification of certain equity awards at an affiliate.

The company maintains a solid liquidity position with $476.1 million in cash and cash equivalents as of September 30, 2025. Management expects current cash balances, operating cash flows, and borrowings under its revolving credit facility to be sufficient to meet its cash requirements for the foreseeable future.