AMG generated full-year economic earnings per share of $26.05, an increase of 22% year-over-year, driven by our strong organic growth and the positive impact of our capital allocation strategy. Our affiliates generated approximately $29 billion in annual net client cash flows, the highest level since 2013, and representing an organic growth rate of 4%. Throughout 2025, across both organic growth and new affiliate investments, AMG added approximately $97 billion in alternative assets under management, representing an increase of 35% in our total alternative AUM. This increase includes $74 billion in net inflows generated by existing affiliates managing alternative strategies, and $23 billion in additional alternative AUM from partnerships with new affiliates.

As we have seen in recent years, our growing footprint in alternatives has fueled significant organic growth and accelerated earnings. With more than $1 billion in capital committed across five new investments, we deployed near-record levels of capital and growth opportunities in 2025. In addition, we continued to invest our capital and resources in and alongside our affiliates, collaborating with our partner firms to develop new products for the U.S. Our unique investment model continues to attract outstanding independent firms seeking a strategic partner, and our new investment pipeline remains strong.

Garda's outstanding multi-decade track record of performance and its leading position in the fast-growing area within liquid alternatives underpin our strong conviction in the firm's long-term prospects. Both investments are consistent with our strategy and are expected to be accretive to our earnings in 2026. Across these three transactions, AMG received more than $730 million in pre-tax distributions and sale proceeds, more than 2.5x our invested capital, and with an average IRR of more than 35%. The significant proceeds from these liquidity events highlights the underlying value of our affiliates and enhances our flexibility to execute our growth strategy.

What went well
  • Record full-year 2025 economic earnings per share of $26.05, up 22% year-over-year
  • Approximately $29 billion in annual net client cash flows, the highest level since 2013 (4% organic growth)
  • Record year for alternatives flows, with $74 billion of net inflows from existing alternative-strategy affiliates
  • Q4 Adjusted EBITDA of $378 million grew 34% year-over-year; Q4 economic EPS of $9.48 grew 45%
  • Repurchased about $700 million of shares in 2025 (roughly 11% of shares outstanding), including a record $350 million in Q4
  • More than $1 billion committed across five new affiliate investments; global wealth AUM surpassed $100 billion, growing organically over 100%
What went wrong
  • Active equities saw net outflows of roughly $45 billion for the full year and $12 billion in Q4, reflecting industry headwinds
  • Multi-asset and fixed income flows were flat for both the quarter and the full year
  • Q1 2026 Adjusted EBITDA guidance of $310-$330 million is sequentially lower than Q4's $378 million, partly on lower expected performance fees ($40-$60 million vs $125 million in Q4)
  • Departure of President and COO (former CFO) Tom Wojcik after seven years introduces a senior leadership transition
  • Full-year Adjusted EBITDA growth of 11% lagged the stronger Q4 pace, held back by long-only equity outflows

Guidance Changes

MetricPeriodCurrent guidance
Adjusted EBITDAQ1 2026$310M-$330M
Net performance fee earningsQ1 2026$40M-$60M
Economic earnings per shareQ1 2026$7.98-$8.52
Fee-related earningsQ1 2026~$270M (30% growth vs Q1 2025)
Adjusted weighted average share countQ1 202627.4M
Net performance fee earningsFull-year 2026~$170M (in line with 5-year average)
Share repurchasesFull-year 2026at least $400M
AQR contribution to earningsFull-year 2026more than 20%

Performance Breakdown

MetricYoYNote
Full-year economic EPS +22% Strong organic growth plus the impact of share repurchases and capital allocation
Q4 economic EPS +45% EBITDA growth and reduced share count from repurchases
Q4 Adjusted EBITDA +34% Investment performance, organic growth, and $125M of net performance fees
Full-year Adjusted EBITDA +11% Growth in alternatives partly offset by active equity outflows
Q4 fee-related earnings +20% Positive investment performance, organic growth, and margin expansion at largest affiliates
Full-year fee-related earnings +8% Shift toward higher-fee alternative strategies and organic growth
Total alternative AUM +35% $74B of existing-affiliate net inflows plus $23B from new affiliate partnerships

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Business mix shift to alternativesAlternatives roughly one-third of EBITDA six years agoAlternatives ~60% of EBITDA on a run-rate basis; alt AUM now $373B—
Organic growthPrior years of net outflows / weaker flow profileReturned to organic growth; $29B net inflows, strongest since 2013—
U.S. wealth platformFocused primarily on long-only mutual funds~$8B alternatives AUM and five continuously offered alternative solutions; $2.2B alt net new flows in 2025—
AQR and PantheonDouble-digit earnings contributors in 2025Growing contribution expected in 2026, with AQR likely above 20% of earnings—
New affiliate investmentsNorthbridge, Verition, Montefiore, Qualitas Energy, BBH collaboration in 2025New partnership with HighBrook and follow-on investment in Garda, adding ~$20M to full-year Adjusted EBITDA—
Balance sheet simplification2037 junior convertible trust preferred securities outstandingIssued $425M 10-year 5.5% note; redeemed the trust preferred, removing share dilution ($174M conversion premium ~600K shares at $293)—

Q&A Summary

What is driving AQR's outlook for 2026 and the diversity of its flows, given growth in tax-aware and other strategies, and how do you view competition?
AQR benefits from a decades-long track record of innovation, differentiated products, and strong performance across institutional and wealth clients. Demand has continued into Q1, with flows spanning tax-aware solutions, global institutional mandates, and long-only products. Competition is expected to emerge, but few firms match AQR's institutional, operational, and distribution platforms or its first-mover advantage.
Can you frame the pipeline of larger funds coming to market in private and liquid alternatives in 2026 and their contribution to organic growth?
Pantheon leads with secondaries across private equity, credit, and infrastructure, offering U.S. and non-U.S. wealth structures. AMG is also selling drawdown funds into wirehouses and RIA networks for multiple affiliates and developing new products, notably the BBH structured/alternative credit collaboration, with hopes of launching several products over the next few years. AMG seeds many of these products with its own capital to scale them, generating high ROI.
You cited $100 billion of global wealth AUM but most commentary is on the U.S. platform. Can you speak to the other ~$90 billion and the combined wealth opportunity?
Wealth growth is primarily in alternatives but also includes support for long-only products, including ETFs for several managers. There is growing interest in liquid alternatives beyond U.S. wealth, including institutional demand aided by market volatility and strong performance. Wealth access spans both AMG's own U.S. distribution platform and the independent distribution channels of affiliates like Pantheon and AQR.
What is AQR's 2025 EBITDA contribution and the incremental pickup expected in 2026, and does it assume changes among distribution partners?
AQR was a double-digit contributor to EBITDA in 2025 and is expected to exceed 20% in 2026, driven by strong net flows into liquid alternative products and strong investment performance that generated substantial performance fees. AQR continues to diversify its distribution reach among large gatekeepers of wealth assets.
Given the growth of private markets and liquid alternatives, should investors expect a structurally higher trajectory of performance fees over the next few years?
The $170 million 2026 guidance reflects the trailing five-year average used as a through-the-cycle estimate. Because AMG generally participates in future fund carry rather than buying in-the-ground carry, performance fee contribution is back-ended and expected to grow as carry-eligible AUM increases. The diverse mix across liquid alternatives and private markets makes the stream more stable over time.
How are you investing resources to grow the wealth strategy?
AMG has added people and capital across the full value chain: a product-creation group that gathers client feedback and works with affiliates to build wealth-suited structures, balance-sheet seeding of new ideas, expanded RIA-channel coverage, and a wholesaling sales force to scale products onto the major wirehouses once they reach critical mass.
How does AMG think about the ROI of seeding new products?
Seeding product innovation is one of the most valuable uses of capital because creating something new that can scale, such as the BBH structured and alternative credit products, can deliver very high ROI for shareholders while magnifying affiliates' prospects and preserving their independence.

More on Affiliated Managers Group, Inc.

Reported 2026-02-12 · figures from the Affiliated Managers Group, Inc. Q4 2025 earnings call.

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