Affiliated Managers Group, Inc.

Greetings and welcome to the AMG second quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patricia Figueroa, Head of Investor Relations. Thank you. You may begin.

Good morning, and thank you for joining us today to discuss AMG's results for the second 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 us today to discuss the company's results for the quarter are Jay Horgan, President and Chief Executive Officer, Tom Wojcik, Chief Operating Officer, and Deva Ritchie, Chief Financial Officer. With that, I'll turn the call over to Jay.

Thanks, Patricia, and good morning, everyone. Our strong results for the first half of 2024 reflect the continued momentum in our business driven by the ongoing organic growth of our private markets affiliates, the excellent performance of our liquid alternatives managers, and the positive impact of our disciplined capital allocation strategy. During the quarter, we invested our capital and resources alongside our affiliates to enhance their growth, including seeding a number of new alternative products in the Wealth Channel. We advanced several discussions with new investment prospects, and we accelerated our share repurchase activity repurchasing at more than twice our historical pace. Through the disciplined execution of AMG's strategy to invest our capital and resources in the areas of highest growth and return, we have invested $1.8 billion over the last five years in areas of secular growth, including in durable trends such as the expanding digital economy, breakthroughs in biotechnology, industrial decarbonization, the emerging opportunities in wealth management, and the expanding opportunities in non-bank asset management, including in private credit. We have invested in new and existing affiliates in specialized areas where independent, partner-owned firms thrive. And we have built AMG resources in areas where our engaged partnership approach can meaningfully amplify our affiliates' efforts, including in product development, distribution, capital, and strategic capabilities. AMG's strategy has accelerated the evolution of our business towards private markets and liquid alternatives. And today, approximately half of our EBITDA is generated by alternative strategies. With a significant contribution from each of private markets, liquid alternatives, and differentiated long-only strategies, AMG's business profile is unique and increasingly well-positioned to capitalize on both long-term secular trends and the opportunities unfolding in the current environment. Our diversified portfolio of high-quality affiliates operating across each of private markets' liquid alternatives and differentiated long-range strategies is a competitive advantage that not only enhances our earnings stability, Given the complimentary nature of these strategies, it also supports our capacity to continue investing in the areas of highest growth and return. Since the beginning of the year, we have continued to advance several new investment opportunities in both private markets and liquid alternatives. And our transaction pipeline of potential new investments is building. As we look to make additional growth investments through new affiliate partnerships, AMG's unique approach continues to resonate with prospective affiliates given our proven ability to strategically magnify the competitive advantages of partner-owned firms while also preserving their independence. And as we form new partnerships in areas of secular growth, we expect the earnings contribution from alternative strategies to continue to increase further evolving our distinctive business profile. Stepping back, the execution of our strategy has enhanced AMG's future growth prospects. Our business momentum is accelerating as evidenced by a robust earnings growth and improving flow profile. And our opportunities to invest in growth through new and existing affiliates continues to expand. Given our conviction in our strategy and our confidence in our forward prospects, juxtaposed against the low valuation of our shares, since the beginning of the year, we have repurchased nearly $500 million, or approximately 10% of our shares outstanding. Discipline capital allocation is fundamental to our strategy. And given the strength of our balance sheet and significant ongoing liquidity, we expect to execute on our growth opportunities, including investments in new partnerships, while also repurchasing shares at an elevated pace in 2024. AMG enters the second half of 2024 in a position of strength. And given our differentiated partnership model, proven strategic capabilities, and significant financial flexibility, we see increasing opportunities to invest for growth and create meaningful shareholder value. And with that, I'll turn it over to Tom.