Q1 2024 Affiliated Managers Group Inc Earnings Call Transcript
Key Points
- Affiliated Managers Group Inc reported a strong first quarter with $260 million in EBITDA and a 28% year-over-year growth in economic earnings per share of $5.37.
- The company saw continued momentum in both private markets and liquid alternative strategies, contributing significantly to the quarter's success.
- Affiliated Managers Group Inc has successfully launched new products and engaged in strategic partnerships, such as with Pantheon and Systematica, enhancing long-term growth prospects.
- The firm's diversified business model, which now derives half of its earnings from alternative strategies, provides a competitive advantage and enhances earnings stability.
- Affiliated Managers Group Inc maintains a robust balance sheet, allowing for strategic investments in new and existing affiliates and returning excess capital to shareholders through share repurchases.
- Despite strong overall performance, the company reported net client cash outflows of $(4) billion, reflecting challenges in fundamental equities.
- The competitive environment for acquiring new affiliates remains intense, with high pricing for growth-oriented firms potentially limiting acquisition opportunities.
- Some segments, particularly fundamental active equities, continue to experience volatility and unpredictability in flows.
- The reliance on performance fees, which can be variable, introduces earnings volatility and may affect financial stability in downturns.
- While alternatives are growing, the need to continuously innovate and compete in this space adds pressure and could impact long-term success if not managed effectively.
Greetings, and welcome to the AMG First Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, this conference is being requested. It is now my pleasure to introduce Patricia Figueroa, Head of Investor Relations. Thank you. Please go ahead.
Good morning, and thank you for joining us today to discuss AMG's results for the first quarter of 2024. Before we begin, I'd like to remind you that during this call, we may make a number of forward-looking statements, which could differ from our actual results materially. And AMG assumes no obligation to update these statements. A replay of today's call will be available on the Investor Relations section of our website, along with a copy of our earnings release, and a reconciliation of any non-GAAP financial measures, including any earnings guidance announced on this call.
In addition, this morning, we posted an updated investor presentation to our website and encourage investors to consult our site regularly for updated information. With
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