It has been a landmark year for AMG, with record net inflows in alternative strategies and near-record levels of capital deployed in growth investments across both new and existing affiliates. Our third-quarter results reflect a building momentum in our business, with a 17% year-over-year increase in EBITDA and a 27% growth rate in economic earnings per share. Through the third quarter, across both organic growth and new affiliate investments, AMG has added approximately $76 billion in alternative assets under management, representing an increase of nearly 30% in our total alternative AUM. Today, our affiliates manage $353 billion in alternative AUM, contributing 55% of our EBITDA on a run-rate basis, and including sizable contributions from two of AMG's largest and longest-standing affiliates, Pantheon and AQR.
Both firms continue to capitalize on the tailwinds in their respective areas by leveraging their scale, innovative cultures, and differentiated expertise, which are collectively driving strong, ongoing organic growth for AMG. These elements are continuing to have a meaningful impact on our business profile and earnings. As you know, we expect each affiliate to be a double-digit contributor to AMG's earnings this year. Looking ahead, we have expanding opportunities to further invest in growth by investing in new and existing affiliates, and by investing in AMG's strategic capabilities to magnify our affiliate success.
Our new investment pipeline remains strong, with active ongoing dialogue with prospective affiliates operating in both private markets and liquid alternatives. Our strategic capabilities, particularly in capital formation, increasingly differentiate AMG in our dialogue with prospective affiliate partners. We recently announced a strategic collaboration which highlights the value of AMG's capital formation capabilities in the U.S. AMG invested in Comvest to provide a combination of growth capital and strategic capabilities that accelerated the growth of its credit franchise.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EBITDA | Q4 2025 | $325M-$370M |
| Net performance fees | Q4 2025 | $75M-$120M |
| Net performance fees (full year) | FY 2025 | $110M-$155M |
| Economic earnings per share | Q4 2025 | $8.10-$9.26 |
| Adjusted weighted average share count | Q4 2025 | 28.9 million |
| Share repurchases | FY 2025 | at least $500 million |
| Adjusted EBITDA and economic EPS | FY 2026 | meaningful increase expected, driven by organic growth and capital allocation |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EBITDA | +17% | Investment performance, organic growth in alternatives, full quarter of Verition and Peppertree's final contribution |
| Economic earnings per share | +27% | EBITDA growth plus the benefit of share repurchases reducing share count |
| Fee-related earnings (ex net performance fees) | +15% | Positive investment performance and organic growth in alternatives, partially offset by fundamental equity outflows |
| Total alternative AUM | +~30% (~$76B added, incl. $51B net inflows) | Organic growth in alternatives plus new affiliate investments; total now $353 billion |
| AQR AUM | grew from ~$100B (start of 2024) to $166B at Sept 30 | Mostly organic flows led by tax-aware wealth strategies and strong performance across liquid alts and 40-Act long-only |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Shift of business mix toward alternatives | alternatives a growing share; historically shrinking ~10% organically | alternatives are 55% of EBITDA on a run-rate basis, targeting more than two-thirds within a few years | — |
| Tax-aware / after-tax investing in U.S. wealth | emerging paradigm shift led by AQR | record liquid-alt inflows driven by tax-aware solutions; AMG sees it as still in early innings | — |
| U.S. wealth alternatives platform | alternatives AUM on the wealth platform ~$1 billion | grown to more than $7 billion; BBH collaboration to bring structured credit to the wealth channel | — |
| New investment pipeline and capital deployment | steady new-affiliate activity | near-record deployment; five new growth investments and a strategic collaboration in 2025, targeting mid-to-high-teens returns | — |
| 2026 earnings outlook | not previously framed | meaningful increase anticipated from full-year contribution of new investments, organic growth, margin expansion at AQR/Pantheon, and buybacks | — |