AMG's 2025 Q1 Earnings Call: Contradictions Unveiled in Alternative Investment Strategies and Market Dynamics
Earnings DecryptMonday, May 19, 2025 8:45 am ET
2min read
Investment strategy in alternatives, focus on alternative investments, deal activity and pricing, and liquid alternatives flows and performance are the key contradictions discussed in Affiliated Managers' latest 2025Q1 earnings call.
Alternative Asset Growth and Shift:
- reported record $14 billion in net client cash inflows into alternative strategies in Q1 2025, largely offsetting outflows from its long-only business.
- The shift towards alternatives is driven by the company's strategic capital allocation to areas of secular growth, particularly in private markets and liquid alternatives.
Private Market Affiliates Performance:
- Private markets affiliates raised $3 billion in the quarter, primarily in credit, infrastructure, and private market solutions.
- This performance reflects investors' conviction in these strategies and the positive fundamentals of the sectors, supported by AMG's capital formation efforts.
Liquid Alternatives Momentum:
- Liquid alternatives delivered $10 billion in net inflows in Q1 2025, marking the highest quarterly flow number in AMG's history.
- This growth was driven primarily by tax-aware solutions, with strong momentum coming from both institutional and wealth channels.
Impact of Market Volatility:
- Despite market volatility, AMG continued to invest in new affiliates, committing $700 million in the first quarter.
- The company's strong capital position allowed it to make investments from a position of strength, leveraging its business diversity and flexible balance sheet.
Share Repurchase and Capital Allocation:
- AMG repurchased $173 million in shares in the first quarter, with plans to repurchase approximately $400 million for the full year.
- This disciplined capital allocation strategy supports shareholder value creation and is integrated with ongoing investment activities.
Alternative Asset Growth and Shift:
- reported record $14 billion in net client cash inflows into alternative strategies in Q1 2025, largely offsetting outflows from its long-only business.
- The shift towards alternatives is driven by the company's strategic capital allocation to areas of secular growth, particularly in private markets and liquid alternatives.
Private Market Affiliates Performance:
- Private markets affiliates raised $3 billion in the quarter, primarily in credit, infrastructure, and private market solutions.
- This performance reflects investors' conviction in these strategies and the positive fundamentals of the sectors, supported by AMG's capital formation efforts.
Liquid Alternatives Momentum:
- Liquid alternatives delivered $10 billion in net inflows in Q1 2025, marking the highest quarterly flow number in AMG's history.
- This growth was driven primarily by tax-aware solutions, with strong momentum coming from both institutional and wealth channels.
Impact of Market Volatility:
- Despite market volatility, AMG continued to invest in new affiliates, committing $700 million in the first quarter.
- The company's strong capital position allowed it to make investments from a position of strength, leveraging its business diversity and flexible balance sheet.
Share Repurchase and Capital Allocation:
- AMG repurchased $173 million in shares in the first quarter, with plans to repurchase approximately $400 million for the full year.
- This disciplined capital allocation strategy supports shareholder value creation and is integrated with ongoing investment activities.
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