Affiliated Managers Group, Inc.

Greetings and welcome to AMG's second quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires 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 2025. 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 reconciliations of any non-GAAP financial measures, including any earnings guidance provided. In addition, We have 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, Chief Executive Officer, Tom Wojcik, President and 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. It has been an exciting and very busy 2025 for AMG so far. In the second quarter, we reported strong results with year-over-year growth of 15% in economic earnings per share and more than $8 billion in net client cash flows, driven by by another record quarter of inflows into alternative strategies. From an organic growth perspective, the second quarter of 2025 was our strongest quarter in 12 years, reflecting the ongoing execution of our strategy to allocate our capital and resources to areas of secular growth. In addition, our results this quarter showcase the accelerating pace of our ongoing business evolution toward a greater contribution from in-demand strategies in both private markets and liquid alternatives. And we expect our results going forward to continue to benefit from this increasingly attractive business profile. In the first half of 2025, AMG has added approximately $55 billion in alternative assets under management. increasing our total alternative AUM by 20% in just six months, including a record $33 billion in net inflows into alternatives and four new partnerships with affiliates operating in private markets on liquid alternative strategies. Today, more than 15 affiliates manage $331 billion in alternative AUM, contributing approximately 55% of our EBITDA on a run rate basis. As we look ahead, given the substantial growth in alternative AUM this year and the addition of new affiliates, together with the positive impact of our ongoing allocation of capital to share repurchases, we anticipate a meaningful increase to our full year economic earnings per share in 2026. Stepping back, we are seeing several compelling trends that we expect will drive further growth across a number of our affiliates managing alternative strategies. In particular, these tailwinds include the acceleration of alternative flows into the wealth channel, driven by growing demand for secondary strategies across private equity, private credit, and infrastructure, and new strategies and liquid alternatives designed to deliver superior after-tax outcomes for high net worth investors. Two of AMG's largest and longstanding affiliates, Pantheon and AQR, are capitalizing on these trends by leveraging their scale, innovative cultures, and differentiated expertise. Their strong organic growth is having a pronounced impact on AMG's business profile and earnings, with each affiliate expected to be a double digit contributor to AMG's earnings this year. In addition, AMG's strategic engagement and collaboration on capital formation initiatives will enable many of our new and existing affiliates to access the full potential of the rapidly expanding opportunity in the wealth marketplace. Turning to new affiliate investments, we completed our investment in fruition in the second quarter, and we recently announced a new partnership with Montefiore. a leading European private equity firm focused on mid-cap companies in the services sector, with a track record of delivering exceptional returns for clients over the past two decades. Through its differentiated value-added approach, which focuses on accelerating profitable and sustainable growth by closely collaborating with management teams, Montefiore has successfully scaled portfolio companies from local players into sector leaders across Europe. The firm has excellent forward prospects, and AMG's strategic partnership solutions can magnify the firm's long-term success as it continues to execute its European expansion strategy. More broadly, we are in the midst of one of the most active periods of new investment activity in AMG's history, having announced four new partnerships with Northbridge, Verition, Qualitas Energy, and Montefiore so far in 2025, each underscoring the ongoing demand for AMG's differentiated partnership approach, our unique ability to source new opportunities, and our focus on investing in areas of secular growth. Looking ahead, our new investment pipeline remains strong, with active ongoing dialogue with prospective new affiliates operating in both private markets and liquid alternatives. We also completed the sale of AMG's minority stake in Peppertree, more than doubling our initial investment and further demonstrating our ability to create shareholder value by maintaining alignment with our partners and supporting our affiliates' long-term strategic goals. We were very pleased that the Peppertree partnership culminated in an excellent outcome for all parties, and the significant gain highlights the embedded value of our private markets businesses. Each element of our growth strategy, including investing in new affiliate partnerships, investing in our existing affiliates, and investing in AMG's capabilities that magnify our affiliate success, is driving the evolution of our distinctive business profile toward greater participation in secular growth areas. And given our strong capital position and diversified business profile, we have ample flexibility to continue to execute on these growth opportunities while simultaneously returning capital through share purchases. Finally, as you can see from our excellent results in the second quarter and for the first half of 2025, AMG's business momentum has accelerated as a result of the discipline and continuous execution of our strategy. Yet, as we look forward, we believe that the long-term impact of our strategy execution is only just beginning to materialize, and we see meaningful potential for substantial value creation ahead for all shareholders. And with that, I'll turn it over to Tom.