Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain matters discussed in this Quarterly Report on Form 10-Q, in our other filings with the Securities and Exchange
Commission, in our press releases, and in oral statements made with the approval of an executive officer may constitute
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial
results, our liquidity and capital resources, and other non-historical statements, and may be prefaced with words such as
“outlook,” “guidance,” “believes,” “expects,” “potential,” “preliminary,” “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “projects,” “positioned,” “prospects,” “intends,” “plans,” “estimates,” “pending
investments,” “anticipates,” or the negative version of these words or other comparable words. Such statements are subject to
certain risks and uncertainties, including, among others, the factors discussed under the caption “Item 1A. Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2024, and from time to time, as applicable, our Quarterly
Reports on Form 10-Q . These factors (among others) could affect our financial condition, business activities, results of
operations, cash flows, or overall financial performance and cause actual results and business activities to differ materially
from historical periods and those presently anticipated and projected. Forward-looking statements speak only as of the date
they are made, and we will not undertake and we specifically disclaim any obligation to release publicly the result of any
revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such
statements or to reflect the occurrence of events, whether or not anticipated. In that respect, we caution readers not to place
undue reliance on any such forward-looking statements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction
with our Consolidated Financial Statements and the notes thereto contained elsewhere in this Quarterly Report on Form 10-Q.
References throughout this report to “AMG,” “we,” “us,” “our,” the “Company,” and similar references refer to
Affiliated Managers Group, Inc., unless otherwise stated or the context otherwise requires.
Executive Overview
AMG is a strategic partner to leading independent investment firms globally. Our strategy is to generate long-term value
by investing in high-quality independent partner-owned firms, which we refer to as “Affiliates,” through a proven partnership
approach, and allocating resources across our unique opportunity set to the areas of highest growth and return. With their
entrepreneurial, investment-centric cultures and alignment of interests with clients through direct equity ownership by firm
principals, independent firms have fundamental competitive advantages in offering unique return streams to the marketplace.
Through AMG’s distinctive approach, we enhance these advantages to magnify the long-term success of our Affiliates and
actively support their independence. Our innovative model enables each Affiliate’s management team to retain autonomy
and significant equity ownership in their firm, while they leverage our strategic capabilities and insight, including growth
capital, product strategy and development, capital formation, and incentive alignment and succession planning. As of
March 31, 2025, our aggregate assets under management were approximately $712 billion across a diverse range of private
markets, liquid alternative, and differentiated long-only investment strategies.
In the first quarter of 2025, we completed a minority investment in NorthBridge Partners, LLC (“NorthBridge”), a
private markets manager specializing in industrial logistics real estate assets. Following the close of the transaction,
NorthBridge partners continue to hold a significant majority of the equity of the firm and direct its day-to-day operations.
In May 2025, we completed a minority investment in Verition Fund Management LLC (“Verition”), a global multi-
strategy investment firm. Following the close of this transaction, Verition partners continue to hold a significant majority of
the equity of the business and direct its day-to-day operations.
In May 2025, we entered into an agreement to acquire a minority equity interest in Qualitas Energy, a renewables-
focused global infrastructure manager specializing in energy transition. Following the close of the transaction, Qualitas
Energy partners will continue to hold a majority of the equity of the business and direct its day-to-day operations. The
transaction is expected to close during the fourth quarter of 2025, and is subject to customary closing conditions. The
financial results will be recognized in the Consolidated Financial Statements one quarter in arrears.
In May 2025, we entered into an agreement to sell our equity interest in Peppertree Capital Management, Inc.
(“Peppertree”), our Affiliate accounted for under the equity method, as part of the announced acquisition of Peppertree by
TPG Inc. (“TPG”), a public company listed on the Nasdaq Global Select Market. Pursuant to the terms of the agreement, we
are expected to receive total consideration of approximately $240 million, based on the TPG closing share price on May 2,
2025, and includes approximately $102 million in cash, subject to certain closing adjustments, and approximately 2.9 million
