Affiliated Managers Group Reports Revenue Decline and 50% Drop in Net Income for Q1 2025

Affiliated Managers Group, Inc. (AMG) reported its financial results for the first quarter of 2025, revealing a significant decline in both revenue and net income compared to the same period in the previous year. The company generated consolidated revenue of $496.6 million, a decrease of 1% from $499.9 million in the first quarter of 2024. Net income fell by 50% to $99.2 million, down from $198.7 million, with net income attributable to controlling interests dropping 52% to $72.4 million. The decline in profitability was primarily driven by a substantial increase in intangible amortization and impairments, which rose to $83.3 million from $7.3 million in the prior year.

In terms of operational metrics, AMG's average assets under management increased by 5% to $712.1 billion, up from $680.0 billion. However, aggregate fees decreased by 14% to $1.27 billion, largely due to a 15% drop in performance-based fees, particularly in liquid alternative strategies. The company reported a 20% decrease in equity method revenue, which contributed to a 36% decline in equity method income, reflecting challenges faced by its affiliates.

Strategically, AMG completed a minority investment in NorthBridge Partners, LLC, a private markets manager, and also finalized a minority investment in Verition Fund Management LLC. Additionally, the company entered into an agreement to acquire a minority equity interest in Qualitas Energy, a renewables-focused infrastructure manager, expected to close in the fourth quarter of 2025. Furthermore, AMG announced plans to sell its equity interest in Peppertree Capital Management, Inc. as part of a larger acquisition by TPG Inc., with expected total consideration of approximately $240 million.

The company’s balance sheet as of March 31, 2025, showed total assets of $8.71 billion, a slight decrease from $8.83 billion at the end of 2024. Cash and cash equivalents were reported at $816.5 million. AMG's total liabilities increased to $4.25 billion, up from $4.18 billion, with a notable rise in payables and accrued liabilities. Looking ahead, AMG anticipates continued investments in new affiliates and strategic initiatives, while managing its capital structure to support growth and shareholder returns. The company remains focused on leveraging its partnerships to enhance long-term value despite the current market challenges.