Today, 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 strategy. 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 absolute return strategies, which attracted $29 billion in net flows in the quarter and approximately $100 billion over the past 12 months. 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. Today, 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. 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. Following an active first half, including the completion of our investments in BBH Credit Partners, HighBrook Investors, and an incremental minority investment in Garda Capital Partners, our pipeline remains strong.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EBITDA | Q3 2026 | $315M-$325M |
| Recurring fee-related earnings | Q3 2026 | $315M |
| Net performance fees | Q3 2026 | up to $10M |
| Economic EPS | Q3 2026 | $8.43-$8.71 (midpoint ~40% YoY growth) |
| Weighted average share count | Q3 2026 | 26.3 million |
| Share repurchases | FY 2026 | ~$600M |
| Economic EPS growth | FY 2026 | ~40% |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EBITDA | +44% | Organic growth, investment performance, and margin expansion at largest affiliates |
| Economic EPS | +54% | Earnings growth plus >10% reduction in average economic share count from repurchases |
| Fee-related earnings | +39% | Positive organic growth, investment performance, and margin expansion |
| AUM | +22% (LTM) | New affiliate investments, positive investment performance, and record alternative net inflows |
| Total net inflows | $13B in quarter | Led by record $29B of alternative-strategy inflows, offset by long-only and MA/FI outflows |
| Net performance fee earnings | +$5M (to $10M) | At the high end of the guidance range |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Shift toward alternatives | ~50% of earnings 18 months ago, 35% five years ago | Over 60% of earnings, targeting 70% in short order | — |
| Four secular growth drivers (secondaries, infrastructure, absolute return, tax-aware) | — | Collectively drove ~$100B of alternative net inflows over the last 12 months | — |
| Tax-aware investing | — | Structural mindset shift across the wealth ecosystem; just over 10% of AMG earnings today | — |
| New affiliate investment pipeline | 2025 near-record capital deployment | Notable increase in high-quality opportunities beginning late Q2 and continuing into Q3 | — |
| Disciplined capital allocation | 15-20% EPS CAGR over past five years | Accelerated to ~40% expected in 2026; balancing growth investments and repurchases at high-teens return targets | — |