Affiliated Managers Group, Inc.

Greetings and welcome to the AMG Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A 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. I would now like to turn the conference over to your host, Patricia Figueroa, Head of Investor Relations for AMG. Thank you. You may begin.

Good morning, and thank you for joining us today to discuss AMG's results for the third 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. Also, please note that nothing on this call constitutes an offer of any products, investment vehicles, or services of any AMG affiliate. 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. AMG delivered another quarter of strong results, with 18% growth in economic earnings per share, reflecting the ongoing momentum in our business and the positive impact of our capital allocation strategy. Our growth strategy continues to drive the evolution of our business mix towards secular growth areas. with alternative strategies meaningfully and increasingly contributing to AMG's earnings. The ongoing demand for our specialized private market strategies accelerated in the quarter, as evidenced by the $7 billion in new capital raised at Pantheon, Forbian, EIG, Peppertree, and Comvest. In addition, our liquid alternative strategies generated positive flows in the quarter, and we see opportunities for organic growth, particularly at AQR, as demand for tax-aware alternative solutions in the U.S. wealth channel continues to build. Stepping back, the growth investments we have strategically and deliberately made over the last several years have played a critical role in reshaping AMG's business profile. Having invested our capital in firms and initiatives aligned with long-term growth trends, Most notably, in alternative firms operating in specialized areas where independent partner-owned firms thrive, AMG's affiliates now manage more than $265 billion in client assets and alternative strategies. We're approximately one-third of our AUM split between private markets and liquid alternatives, which together generate approximately half of our EBITDA. As we further shift AMG's business profile towards alternatives. We believe we are not only improving our long-term organic growth prospects, but also enhancing the stability of our cash flow. By increasing our private markets exposure, we expect that the quantum and duration of locked-up capital in our business will grow. And, as we expand and diversify our footprint in liquid alternatives, we expect that AMG's will be even more resilient across all stages of a market cycle. In total, our affiliates operate across private markets, liquid alternatives, and differentiated long-only strategies. And this diversified portfolio of high-quality independent partner-owned firms is not only a distinct competitive advantage, it also supports our capacity to continue investing across our opportunity set in the areas of highest growth and return to benefit our shareholders. AMG continues to be a beneficiary of the broad and increasing client demand for alternative strategies. And I am especially excited about the democratization of alternative strategies in the wealth channel. AMG's U.S. wealth platform is uniquely positioned to enable our affiliates to capitalize on this trend as wealth investors increase their allocations to both private markets and liquid alternatives. AMG has been a leader in product innovation including through the seeding, packaging, and distribution of new private markets and liquid alternative solutions. Throughout 2024, we have continued to build on our success in the wealth channel, including through the launches of a number of new alternative strategies in this attractive client segment. Today, we have more than $5 billion in assets from alternative products on AMG's U.S. wealth platform. And looking ahead, we expect to continue to scale our excellent existing product lineup and introduce new, innovative products while also accessing new clients and platforms outside the U.S. through AMG's strategic relationships. More broadly, in addition to working with our affiliates on their product growth opportunities, AMG's ongoing strategic collaboration continues to position our affiliates for enhanced long-term success. across a range of areas, including business development and strategic planning, capital formation, distribution, product development, succession planning, and incentive alignment. As we continue to deploy our capabilities to enhance our affiliates' long-term success, we will further distinguish AMG as a strategic partner to prospective new affiliates. Our proven ability to magnify the competitive advantages of partner-owned firms while also preserving their independence continues to differentiate AMG's partnership model and is highly valued by prospective affiliates. Since the beginning of the year, we've advanced our new investment pipeline, including several opportunities that are now in the later stages of discussion, and our broader transaction pipeline of potential new investments remains strong. AMG's business profile is evolving, and our opportunities to invest for growth are expanding. Given the strength of our balance sheet and significant ongoing liquidity, we have ample capital flexibility to both execute on these growth opportunities and continue to repurchase our shares. And as always, we will remain disciplined as we evaluate capital allocation decisions. As I reflect on the progress we've made over the past five years, each element of our growth strategy, investing in new affiliate partnerships, investing in our existing affiliates, and investing in AMG's capabilities to magnify our affiliate success, is driving the evolution of our distinctive business profile towards secular growth areas. And as we continue to execute on our strategy, we see increasing opportunities to create meaningful additional shareholder value over time. And with that, I'll turn it over to Tom.