Affiliated Managers Group, Inc.

Greetings and welcome to the AMG Second Quarter 2026 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. Please note this conference is being recorded. I will now turn the conference over to your host, Patricia Figueroa, Head of Investor Relations. Please go ahead.

Good morning, and thank you for joining us today to discuss AMG's results for the second quarter of 2026. 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 due to a number of factors, including those described in today's earnings press release and our most recent Form 10-K and subsequent filings with the SEC. 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 Horgen, President and Chief Executive Officer, and Dava Ritchea, Chief Financial Officer. With that, I'll turn the call over to Jay.

Thanks, Patricia, and good morning, everyone. AMG reported another quarter of record results, including the highest second quarter earnings in our company's history. Adjusted EBITDA of approximately $316 million and economic earnings per share of $8.29 grew 44% and 54% year-over-year, respectively, reflecting the strength of our diversified business and the ongoing execution of our strategies. Assets under management increased to a record $942 billion, driven by net inflows in markets and setting the stage for ongoing earnings growth momentum in the second half of 2026. We continue to generate strong organic growth with $13 billion in net inflows in the quarter and $56 billion in net inflows over the last 12 months. Importantly, these figures understate The exceptional momentum in higher fee, higher margin alternative strategies, which attracted $29 billion in net flows in the quarter and approximately $100 billion over the past 12 months. Given this significant growth and our increasingly attractive business profile, we continue to repurchase shares at an elevated pace. Deploying approximately $189 million towards repurchases in the quarter and approximately $375 million in the first half of 2026. The momentum across our business highlights the successful execution of our strategy and is a result of the ongoing evolution of our earnings profile towards alternatives. Alternatives account for more than 60% of our earnings, and this contribution is expected to grow meaningfully over the next 12 months. As we have discussed in prior calls, four secular trends continue to drive our organic growth profile. First, the accelerating client demand worldwide for secondary strategies across private markets. The ongoing client demand for infrastructure strategies broadly. Third, the growing demand for absolute return strategies within client portfolios. And fourth, the continued expansion of tax-aware investing. Together, these four growth areas, secondary solutions, infrastructure, absolute return strategies, and tax-aware strategies, have been the driving force behind the $100 billion in net inflows into our affiliates' alternative strategies over the past 12 months. Looking ahead, we expect ongoing strength in alternative strategies as clients increasingly seek differentiated sources of return and diversification against the backdrop of a more complex market environment. With five consecutive quarters of alternative-led net inflows so far and increasing exposure to structural growth areas, AMG is well positioned for sustained organic growth and earnings momentum. More broadly, over the last 12 months, our assets under management have increased by approximately $171 billion, or 22%. including $69 billion as a result of new affiliate investments. Following an active first half, including the completion of our investments in BBH Credit Partners, High Brook Investors, and an incremental minority investment in Guarded Capital Partners, our pipeline remains strong. In the second quarter, we saw a notable increase in new investment opportunities. including a number of high quality independent firms managing alternative strategies and that trend has continued into the third quarter. We are excited to execute on this expanded opportunity set and we see meaningful potential to form new partnerships that further diversify our business and drive earnings growth. Our reputation as a strategic partner that can magnify the competitive advantages of independent firms while preserving their independence continues to distinguish AMG in the marketplace. No other institutional partner can match our 30-plus year track record in meeting the needs of and magnifying the opportunities for independent firms, which is why AMG's unique approach continues to strongly resonate with prospective affiliates. and given our competitive differentiation, our robust capital position and our strong pipeline of new prospects, we have a sizable opportunity to drive additional earnings growth and further evolve our business profile through new investments. AMG's business is highly diversified across 40 affiliates operating in private markets, liquid alternatives and differentiated long-only strategies. This unique business profile generates significant, unencumbered cash flow, enabling us to navigate periods of uncertainty and changing market conditions while also making accretive investments in new and existing affiliates. In addition, given our forward growth prospects and the strength of our capital position, we have been a buyer of AMG shares in size. We're purchasing more than 10% of the company shares outstanding in the last 12 months and nearly 25% since the beginning of 2024. And we expect to continue to take advantage of this opportunity, especially during periods of dislocation in our share price. Our attractive business profile and our ability to invest substantial capital in the areas of highest growth and return across new and existing affiliates and share repurchases provides us with the opportunity to continue to generate a long-term compound annual growth rate in economic earnings per share of between 15% and 20%, as we have done over the past five years. And given the ongoing successful execution of our strategy, that growth rate has accelerated In 2025, we generate a growth in economic earnings per share of more than 20%. And we expect that growth rate to be approximately 40% in 2026. As we look ahead, our capital allocation decision-making will continue to be, by far, the most impactful element of our strategy. We expect our cumulative free cash flow over the next five to seven years to approximate our entire current market capitalization, enabling us to continue to deliberately evolve AMG's business towards areas of growth in our industry. And with our unique, partnership-centric, cash-generative, return-focused model, we will continue to deploy that capital with discipline. further diversifying and enhancing our earnings power and our ability to create long-term value for shareholders. And with that, I'll turn it over to Dava.