AMG Delivers Strong Full Year 2024 Earnings

AMG, a strategic partner to leading independent investment management firms globally, reported strong financial results for the fourth quarter and full year 2024. The company achieved a 10% full-year Economic Earnings growth, driven by its strategic evolution and disciplined capital allocation strategy. Assets Under Management (AUM) increased to $707.9 billion by year-end.

Key highlights of AMG's performance include:

* A new partnership with NorthBridge Partners, a private markets manager specializing in industrial logistics real estate assets.
* Private markets Affiliates raising approximately $24 billion during the year, reflecting the ongoing demand for their specialized strategies.
* Strong shareholder returns through $700 million in share repurchases, representing about 13% of outstanding shares.
* Net income (controlling interest) of $512 million, with Economic Net Income (controlling interest) of $702 million.
* A 10% full-year Economic Earnings per share growth, reflecting AMG's ongoing strategic evolution and disciplined capital allocation strategy.

AMG's strong financial performance can be attributed to several key factors:

1. Business Mix Evolution: AMG's shift towards alternatives, such as private markets, has gained momentum, with $24 billion raised by its private markets Affiliates during the year. This transition is strategically sound, as alternative assets typically command higher fees and longer lock-up periods, potentially leading to more stable, recurring revenue streams.
2. Capital Allocation Excellence: AMG's share repurchase program, retiring 13% of outstanding shares, reflects sophisticated capital management. With aggregate fees of $5.2 billion, the company maintains strong cash generation capabilities to fund both growth initiatives and shareholder returns.
3. Strategic Acquisitions: AMG's investment in NorthBridge Partners, a leading vertically integrated real estate manager with excellent forward prospects, capitalizes on secular growth trends in the last-mile logistics sector. This move broadens AMG's participation in private markets and underscores its focus on investing in areas of secular growth.

AMG's partnership with NorthBridge Partners aligns with its focus on secular growth and diversification by targeting a high-growth area, broadening AMG's participation in private markets, leveraging AMG's proven partnership model, and supporting AMG's strategic evolution towards alternatives.