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AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
(unaudited)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Consolidated revenue $493.2 $640.7 $989.8 $1,185.6
Consolidated expenses:
Compensation and related expenses 263.7 316.1 494.1 603.2
Selling, general and administrative 95.7 107.4 190.4 214.7
Intangible amortization and impairments 6.3 7.2 89.6 56.5
Interest expense 34.5 40.5 68.6 78.9
Depreciation and other amortization 2.5 2.2 5.3 4.7
Other expenses (net) 10.0 13.3 21.6 34.6
Total consolidated expenses 412.7 486.7 869.6 992.6
Equity method income (net) 65.6 124.9 140.9 272.2
Affiliate transaction gains (Note 8) — 14.6 — 14.6
Investment and other income 25.5 13.9 37.1 20.4
Income before income taxes 171.6 307.4 298.2 500.2
Income tax expense 35.7 70.0 63.1 116.5
Net income 135.9 237.4 235.1 383.7
Net income (non-controlling interests) (51.6) (51.5) (78.5) (87.4)
Net income (controlling interest) $84.3 $185.9 $156.6 $296.3
Average shares outstanding (basic) 28.5 26.4 28.9 26.6
Average shares outstanding (diluted) 31.4 26.9 32.3 27.3
Earnings per share (basic) $2.96 $7.05 $5.43 $11.16
Earnings per share (diluted) $2.80 $6.95 $5.01 $10.76
The accompanying notes are an integral part of the Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Net income $135.9 $237.4 $235.1 $383.7
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss) 63.3 (12.0) 57.6 (27.9)
Change in net realized and unrealized gain (loss) on derivative financial instruments 0.4 0.2 0.9 0.7
Change in net unrealized gain (loss) on available-for-sale debt securities — — 0.4 —
Other comprehensive income (loss), net of tax 63.7 (11.8) 58.9 (27.2)
Comprehensive income 199.6 225.6 294.0 356.5
Comprehensive income (non-controlling interests) (64.6) (51.0) (98.8) (82.4)
Comprehensive income (controlling interest) $135.0 $174.6 $195.2 $274.1
The accompanying notes are an integral part of the Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
December 31,2025 June 30,2026
Assets
Cash and cash equivalents $586.0 $411.0
Receivables 496.2 846.9
Investments 711.6 757.9
Goodwill 2,531.2 2,511.6
Acquired client relationships (net) 1,639.3 1,577.6
Equity method investments in Affiliates (net) 2,870.4 2,936.8
Fixed assets (net) 54.4 53.4
Other assets 318.3 308.3
Total assets $9,207.4 $9,403.5
Liabilities and Equity
Payables and accrued liabilities $806.9 $1,015.9
Debt 2,691.3 3,004.0
Deferred tax liability (net) 533.1 486.8
Other liabilities 754.0 692.9
Total liabilities 4,785.3 5,199.6
Commitments and contingencies (Note 7)
Redeemable non-controlling interests 246.8 270.2
Equity:
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares issued as of December 31, 2025 and June 30, 2026) 0.6 0.6
Additional paid-in capital 616.1 530.2
Accumulated other comprehensive loss (106.8) (129.0)
Retained earnings 7,615.4 7,911.2
8,125.3 8,313.0
Less: Treasury stock, at cost (31.5 shares and 32.5 shares as of December 31, 2025 and June 30, 2026, respectively) (4,886.9) (5,275.0)
Total stockholders' equity 3,238.4 3,038.0
Non-controlling interests 936.9 895.7
Total equity 4,175.3 3,933.7
Total liabilities and equity $9,207.4 $9,403.5
The accompanying notes are an integral part of the Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions, except dividends per share)
(unaudited)
Three Months Ended June 30, 2025 Total Stockholders’ Equity
CommonStock AdditionalPaid-InCapital AccumulatedOtherComprehensiveLoss RetainedEarnings TreasuryStock atCost Non-controllingInterests TotalEquity
March 31, 2025 $0.6 $667.8 $(175.7) $6,971.9 $(4,276.4) $910.8 $4,099.0
Net income — — — 84.3 — 51.6 135.9
Other comprehensive income, net of tax — — 50.7 — — 13.0 63.7
Share-based compensation — 10.9 — — — — 10.9
Common stock issued under share-based incentive plans — (0.1) — — (16.8) — (16.9)
Share repurchases, inclusive of excise tax — — — — (100.8) — (100.8)
Dividends ($0.01 per share) — — — (0.3) — — (0.3)
Affiliate equity-related activities:
Affiliate equity expense — 2.5 — — — 9.2 11.7
Issuances — (1.4) — — — 1.3 (0.1)
Purchases — 47.5 — — — (74.2) (26.7)
Changes in redemption value of Redeemable non-controlling interests — (26.0) — — — — (26.0)
Transfers to Redeemable non-controlling interests — — — — — 53.0 53.0
Capital contributions and other — — — — — (2.0) (2.0)
Distributions to non-controlling interests — — — — — (62.7) (62.7)
June 30, 2025 $0.6 $701.2 $(125.0) $7,055.9 $(4,394.0) $900.0 $4,138.7
Three Months Ended June 30, 2026 Total Stockholders’ Equity
CommonStock AdditionalPaid-InCapital AccumulatedOtherComprehensiveLoss RetainedEarnings TreasuryStock atCost Non-controllingInterests TotalEquity
March 31, 2026 $0.6 $554.7 $(117.7) $7,725.5 $(5,073.3) $894.1 $3,983.9
Net income — — — 185.9 — 51.5 237.4
Other comprehensive loss, net of tax — — (11.3) — — (0.5) (11.8)
Share-based compensation — 10.2 — — — — 10.2
Common stock issued under share-based incentive plans — (0.4) — — (10.7) — (11.1)
Share repurchases, inclusive of excise tax — — — — (191.0) — (191.0)
Dividends ($0.01 per share) — — — (0.2) — — (0.2)
Affiliate equity-related activities:
Affiliate equity expense — 3.5 — — — 9.9 13.4
Issuances — (7.3) — — — 9.7 2.4
Purchases — (6.6) — — — (2.5) (9.1)
Changes in redemption value of Redeemable non-controlling interests — (23.9) — — — — (23.9)
Capital contributions and other — — — — — (2.1) (2.1)
Distributions to non-controlling interests — — — — — (62.2) (62.2)
Affiliate transactions — — — — — (2.2) (2.2)
June 30, 2026 $0.6 $530.2 $(129.0) $7,911.2 $(5,275.0) $895.7 $3,933.7
The accompanying notes are an integral part of the Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions, except dividends per share)
(unaudited)
Six Months Ended June 30, 2025 Total Stockholders' Equity
CommonStock AdditionalPaid-InCapital AccumulatedOtherComprehensiveLoss RetainedEarnings TreasuryStock atCost Non-controllingInterests TotalEquity
December 31, 2024 $0.6 $733.1 $(163.6) $6,899.8 $(4,124.6) $952.9 $4,298.2
Net income — — — 156.6 — 78.5 235.1
Other comprehensive income, net of tax — — 38.6 — — 20.3 58.9
Share-based compensation — 21.7 — — — — 21.7
Common stock issued under share-based incentive plans — (47.0) — — 5.8 — (41.2)
Share repurchases, inclusive of excise tax — — — — (275.2) — (275.2)
Dividends ($0.02 per share) — — — (0.5) — — (0.5)
Affiliate equity-related activity:
Affiliate equity expense — 3.8 — — — 18.5 22.3
Issuances — (2.0) — — — 4.0 2.0
Purchases — 35.8 — — — (74.4) (38.6)
Changes in redemption value of Redeemable non-controlling interests — (44.2) — — — — (44.2)
Transfers from Redeemable non-controlling interests — — — — — 53.0 53.0
Capital contributions and other — — — — — (3.1) (3.1)
Distributions to non-controlling interests — — — — — (149.7) (149.7)
June 30, 2025 $0.6 $701.2 $(125.0) $7,055.9 $(4,394.0) $900.0 $4,138.7
Six Months Ended June 30, 2026 Total Stockholders' Equity
CommonStock AdditionalPaid-InCapital AccumulatedOtherComprehensiveLoss RetainedEarnings TreasuryStock atCost Non-controllingInterests TotalEquity
December 31, 2025 $0.6 $616.1 $(106.8) $7,615.4 $(4,886.9) $936.9 $4,175.3
Net income — — — 296.3 — 87.4 383.7
Other comprehensive loss, net of tax — — (22.2) — — (5.0) (27.2)
Share-based compensation — 17.1 — — — — 17.1
Common stock issued under share-based incentive plans — (35.8) — — (10.0) — (45.8)
Conversion premium on junior convertible securities — 0.5 — — — — 0.5
Share repurchases, inclusive of excise tax — — — — (378.1) — (378.1)
Dividends ($0.02 per share) — — — (0.5) — — (0.5)
Affiliate equity-related activities:
Affiliate equity expense — 5.4 — — — 18.3 23.7
Issuances — (8.7) — — — 15.8 7.1
Purchases — (15.8) — — — (3.8) (19.6)
Changes in redemption value of Redeemable non-controlling interests — (48.6) — — — — (48.6)
Capital contributions and other — — — — — (5.4) (5.4)
Distributions to non-controlling interests — — — — — (146.3) (146.3)
Affiliate transactions — — — — — (2.2) (2.2)
June 30, 2026 $0.6 $530.2 $(129.0) $7,911.2 $(5,275.0) $895.7 $3,933.7
The accompanying notes are an integral part of the Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
For the Six Months Ended June 30,
2025 2026
Cash flow from (used in) operating activities:
Net income $235.1 $383.7
Adjustments to reconcile Net income to cash flow from (used in) operating activities:
Intangible amortization and impairments 89.6 56.5
Depreciation and other amortization 5.3 4.7
Deferred income tax expense (benefit) 26.8 (32.6)
Equity method income (net) (140.9) (272.2)
Distributions received from equity method investments 295.9 464.5
Affiliate transaction gains — (14.6)
Share-based compensation and Affiliate equity expense 92.3 83.8
Net realized and unrealized gains on investment securities (20.5) (14.0)
Other non-cash items (3.9) 9.2
Changes in assets and liabilities:
Purchases of securities by consolidated Affiliate-sponsored investment products (35.1) (64.6)
Sales of securities by consolidated Affiliate-sponsored investment products 30.5 47.7
Increase in receivables (126.9) (355.9)
(Increase) decrease in other assets (13.0) 9.8
Increase in payables, accrued liabilities, and other liabilities 4.5 232.3
Cash flow from operating activities 439.7 538.3
Cash flow from (used in) investing activities:
Investments in Affiliates (510.1) (242.3)
Proceeds from Affiliate transactions — 36.2
Return of capital from equity method investments in Affiliates — 2.5
Purchases of fixed assets (3.0) (3.8)
Purchases of investment securities (56.4) (69.1)
Maturities and sales of investment securities 40.2 57.2
Cash flow used in investing activities (529.3) (219.3)
Cash flow from (used in) financing activities:
Borrowings of senior bank debt — 820.0
Repayments of senior bank debt — (170.0)
Repayments of junior convertible securities — (340.6)
Conversion payments on junior convertible securities — (174.0)
Repurchases of common stock, net (277.5) (364.8)
Distributions to non-controlling interests (149.7) (146.3)
Affiliate equity purchases, net (41.1) (56.7)
Other financing items (50.1) (56.6)
Cash flow used in financing activities (518.4) (489.0)
Effect of foreign currency exchange rate changes on cash and cash equivalents 13.0 (2.8)
Net decrease in cash and cash equivalents (595.0) (172.8)
Cash and cash equivalents at beginning of period 950.0 586.0
Effect of consolidation (deconsolidation) of Affiliate-sponsored investment products 6.0 (2.2)
Cash and cash equivalents at end of period $361.0 $411.0
The accompanying notes are an integral part of the Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
1.Basis of Presentation and Use of Estimates
The Consolidated Financial Statements of Affiliated Managers Group, Inc. (“AMG” or the “Company”) have been
prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information
and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by GAAP for full year financial statements. In the opinion of management, all normal and
recurring adjustments considered necessary for a fair statement of the Company’s interim financial position and results of
operations have been included and all intercompany balances and transactions have been eliminated. Certain reclassifications
have been made to the prior period’s financial statements to conform to the current period’s presentation. Operating results for
interim periods are not necessarily indicative of the results that may be expected for any other period or for the full year. The
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 includes additional information about its
operations, financial position, and accounting policies, and should be read in conjunction with this Quarterly Report on
Form 10-Q.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
All dollar amounts, except per share, per unit, and per option data in the text and tables herein, are stated in millions unless
otherwise indicated.
2.Accounting Standards and Policies
Recent Accounting Developments
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”)
2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40):
Disaggregation of Income Statement Expenses, which requires improved disclosure of the nature and disaggregation of income
statement expenses. The standard is effective for annual periods beginning after December 15, 2026 and interim periods
beginning after December 15, 2027. The Company is currently evaluating the potential impact that this standard may have on
its Consolidated Financial Statements.
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):
Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which revises guidance on how an entity
should identify the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity. The
standard is effective for annual periods beginning after December 15, 2026 and interim periods within those annual reporting
periods. The Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial
Statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software
(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which increases the operability of the
recognition guidance considering different methods of software development. The standard is effective for annual periods
beginning after December 15, 2027 and interim periods within those annual reporting periods. The Company is currently
evaluating the potential impact that this standard may have on its Consolidated Financial Statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting
Improvements, which amends certain aspects of the hedge accounting guidance to more closely align hedge accounting with the
economics of an entity’s risk management activities. The standard is effective for annual reporting periods beginning after
December 15, 2026 and interim periods within those annual reporting periods. The Company is currently evaluating the
potential impact that this standard may have on its Consolidated Financial Statements.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
3.Investments
The following table summarizes the Company’s Investments:
December 31,2025 June 30,2026
Marketable securities
Equity securities $34.8 $43.7
Debt securities 50.0 48.1
Total marketable securities 84.8 91.8
Other investments
Investments measured at NAV as a practical expedient 576.4 600.8
Debt securities — 14.9
Investments without readily determinable fair values 50.4 50.4
Total other investments 626.8 666.1
Investments $711.6 $757.9
Marketable Securities
Equity Securities
The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in
equity securities:
December 31,2025 June 30,2026
Cost $37.5 $42.0
Unrealized gains 6.1 10.9
Unrealized losses (8.8) (9.2)
Fair value $34.8 $43.7
As of December 31, 2025 and June 30, 2026, investments in equity securities include consolidated Affiliate-sponsored
investment products with fair values of $9.2 million and $9.9 million, respectively.
For the three and six months ended June 30, 2025, the Company recognized net unrealized gains on equity securities still
held as of June 30, 2025 of $5.1 million and $4.2 million, respectively. For the three and six months ended June 30, 2026, the
Company recognized net unrealized gains on equity securities still held as of June 30, 2026 of $3.4 million and $3.7 million,
respectively.
Debt Securities
The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in
consolidated Affiliate-sponsored investment products:
December 31,2025 June 30,2026
Cost $49.4 $48.2
Unrealized gains 1.1 0.6
Unrealized losses (0.5) (0.7)
Fair value $50.0 $48.1
For the three and six months ended June 30, 2025, the Company recognized net unrealized gains on debt securities still
held as of June 30, 2025 of $1.4 million and $2.2 million, respectively. For the three and six months ended June 30, 2026, the
Company recognized net unrealized gains (losses) on debt securities still held as of June 30, 2026 of $0.5 million and $(0.5)
million, respectively.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Other Investments
Investments Measured at NAV as a Practical Expedient
The following table summarizes the fair values of investments that are measured at net asset value (“NAV”) as a practical
expedient:
December 31, 2025 June 30,2026
Investments with limited liquidity(1) $535.7 $558.5
Investments with periodic liquidity(2) 40.7 42.3
Total(3) $576.4 $600.8
___________________________
(1)The Company expects to receive distributions related to its interests in investments with limited liquidity as the underlying
assets are liquidated over the life of the investments, which is generally up to 15 years. The Company accounts for the
majority of its interests in investments with limited liquidity one quarter in arrears (adjusted for current period calls and
distributions).
(2)Investments with periodic liquidity are generally redeemable on a daily, monthly, or quarterly basis.
(3)Investments measured at NAV as a practical expedient primarily invest in a broad range of private markets. Fair value
attributable to the controlling interest was $456.6 million and $486.4 million as of December 31, 2025 and June 30, 2026,
respectively.
As of December 31, 2025 and June 30, 2026, the Company’s unfunded commitments attributed to investments measured at
NAV as a practical expedient were $283.0 million and $335.5 million, respectively. As of June 30, 2026, the Company’s
unfunded commitments attributed to investments with structures yet to be determined were $75.0 million.
Debt Securities
The following table summarizes the cost, gross unrealized losses, and fair value of investments in consolidated Affiliate-
sponsored investment products that are valued using a Level 3 fair value measurement:
December 31,2025 June 30,2026
Cost $— $15.1
Unrealized losses — (0.2)
Fair value $— $14.9
For the three and six months ended June 30, 2025, the Company did not recognize any net unrealized gains or losses on
debt securities. For the three and six months ended June 30, 2026, the Company recognized net unrealized losses on debt
securities still held as of June 30, 2026 of $0.2 million.
Investments Without Readily Determinable Fair Values
The following table summarizes the cost, cumulative unrealized gains, and carrying amount of the Company’s investment
in a private corporation where it does not exercise significant influence, and does not have a readily determinable fair value:
December 31,2025 June 30,2026
Cost $8.5 $8.5
Cumulative unrealized gains 41.9 41.9
Carrying amount $50.4 $50.4
For the three and six months ended June 30, 2025 and 2026, the Company did not recognize any net unrealized gains or
losses on the underlying investment.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
The following tables present the changes in other investments:
For the Three Months Ended June 30,
2025 2026
Measured at NAV as a Practical Expedient Debt Securities Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Debt Securities Without Readily Determinable Fair Values Total
Balance, beginning of period $475.9 $— $50.4 $526.3 $570.9 $— $50.4 $621.3
Purchases and commitments funded 40.8 — — 40.8 43.2 15.1 — 58.3
Sales and distributions (17.0) — — (17.0) (18.6) — — (18.6)
Net realized and unrealized gains (losses) 16.0 — — 16.0 5.3 (0.2) — 5.1
Balance, end of period $515.7 $— $50.4 $566.1 $600.8 $14.9 $50.4 $666.1
For the Six Months Ended June 30,
2025 2026
Measured at NAV as a Practical Expedient Debt Securities Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Debt Securities Without Readily Determinable Fair Values Total
Balance, beginning of period $488.6 $— $50.4 $539.0 $576.4 $— $50.4 $626.8
Purchases and commitments funded 48.9 — — 48.9 59.1 15.1 — 74.2
Sales and distributions (41.8) — — (41.8) (43.3) — — (43.3)
Net realized and unrealized gains (losses) 20.0 — — 20.0 8.6 (0.2) — 8.4
Balance, end of period $515.7 $— $50.4 $566.1 $600.8 $14.9 $50.4 $666.1
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
4.Fair Value Measurements
The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis:
Fair Value Measurements
December 31,2025
Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial Assets(1)
Investments in equity securities $34.8 $34.8 $— $—
Investments in debt securities 50.0 — 50.0 —
Financial Liabilities(2)
Contingent payment obligations $0.0 $— $— $0.0
Affiliate equity purchase obligations 161.2 — — 161.2
Fair Value Measurements
June 30,2026
Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial Assets(1)
Investments in equity securities $43.7 $43.7 $— $—
Investments in debt securities 63.0 — 48.1 14.9
Financial Liabilities(2)
Contingent payment obligations $0.0 $— $— $0.0
Affiliate equity purchase obligations 200.4 — — 200.4
___________________________
(1)Amounts are recorded in Investments on the Consolidated Balance Sheets.
(2)Amounts are recorded in Other liabilities on the Consolidated Balance Sheets.
Level 3 Financial Assets and Liabilities
The following table presents the changes in the Company’s investments in debt securities classified as Level 3 financial
assets:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Balance, beginning of period $— $— $— $—
Purchases and commitments funded — 15.1 — 15.1
Sales and distributions — — — —
Net realized and unrealized losses(1) — (0.2) — (0.2)
Balance, end of period $— $14.9 $— $14.9
Net change in unrealized losses relating to instruments still held at the reporting date(1) $— $(0.2) $— $(0.2)
___________________________
(1)Gains and losses resulting from changes to unrealized gains (losses) are included in Investment and other income in the
Consolidated Statements of Income.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
The following tables present the changes in Level 3 financial liabilities:
For the Three Months Ended June 30,
2025 2026
Contingent Payment Obligations Affiliate Equity Purchase Obligations Contingent Payment Obligations Affiliate Equity Purchase Obligations
Balance, beginning of period $5.6 $48.4 $0.0 $194.2
Purchases and issuances(1) — 71.1 — 29.3
Settlements and reductions (4.9) (13.7) — (28.1)
Net realized and unrealized (gains) losses(2) (0.7) 12.1 — 5.0
Balance, end of period $0.0 $117.9 $0.0 $200.4
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(2) $— $13.1 $— $4.7
For the Six Months Ended June 30,
2025 2026
Contingent Payment Obligations Affiliate Equity Purchase Obligations Contingent Payment Obligations Affiliate Equity Purchase Obligations
Balance, beginning of period $5.7 $54.8 $0.0 $161.2
Purchases and issuances(1) — 93.1 — 61.3
Settlements and reductions (4.9) (43.4) — (62.0)
Net realized and unrealized (gains) losses(2) (0.8) 13.4 — 39.9
Balance, end of period $0.0 $117.9 $0.0 $200.4
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(2) $(0.1) $14.4 $— $39.6
___________________________
(1)Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests.
(2)Gains and losses resulting from changes to expected payments related to contingent payment obligations and the accretion
of these obligations are included in Other expenses (net) and included in Interest expense, respectively, in the Consolidated
Statements of Income. Changes to the redemption value of Affiliate equity purchase obligations are included in
Compensation and related expenses in the Consolidated Statements of Income.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
The following table presents certain quantitative information about the significant unobservable inputs used in valuing the
Company’s recurring Level 3 fair value measurements:
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2025 June 30, 2026
Valuation Techniques Unobservable Input Fair Value Range Weighted Average(1) Fair Value Range Weighted Average(1)
Financial Assets
Investments in debt securities Cost Transaction price $— — — $10.4 N/A N/A
Discounted cash flow Discount rates $— — — $4.5 20% 20%
Financial Liabilities
Contingent payment obligations Monte Carlo simulation Volatility $0.0 13% 13% $0.0 1% 1%
Discount rates 5% 5% 5% 5%
Affiliate equity purchase obligations Discounted cash flow Growth rates(2) $113.0 (10)% - 11% 3% $119.4 (11)% - 8% 2%
Discount rates 11% - 18% 14% 11% - 17% 14%
Monte Carlo simulation Volatility $48.2 15% 15% $81.0 10% - 15% 11%
Discount rates 5% 5% 5% - 6% 5%
___________________________
(1)Calculated by comparing the relative fair value of a security or an obligation to its respective total.
(2)Represents growth rates of asset- and performance-based fees.
Investments in debt securities represent the fair value of investments in consolidated Affiliate-sponsored investment
products. When using cost as the valuation technique, increases to recent transaction prices would result in higher fair values.
When using a discounted cash flow valuation technique, increases to the discount rates used would result in lower fair values.
Contingent payment obligations represent the fair value of the expected future settlement amounts related to the
Company’s investments in its consolidated Affiliates. Changes to assumed volatility and discount rates change the fair value of
contingent payment obligations. Increases to the volatility rates used would result in higher fair values, while increases to the
discount rates used would result in lower fair values.
Affiliate equity purchase obligations include agreements to purchase Affiliate equity and represent the fair value of the
expected future settlement amounts. When using a discounted cash flow valuation technique, increases to the assumed growth
rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values. When
using a Monte Carlo valuation technique, changes to assumed volatility and discount rates change the fair value of Affiliate
equity purchase obligations. Increases to the volatility rates used would result in higher fair values, while increases to the
discount rates used would result in lower fair values.
Other Financial Assets and Liabilities Not Carried at Fair Value
The following table summarizes the Company’s other financial liabilities not carried at fair value:
December 31, 2025 June 30, 2026
Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy
Senior notes $1,172.0 $1,171.0 $1,172.2 $1,153.9 Level 2
Junior subordinated notes 1,216.1 995.2 1,216.1 943.3 Level 2
The carrying amount of Cash and cash equivalents, Receivables, Payables and accrued liabilities, and certain Other
liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of the revolver (as
defined in Note 6) approximates fair value because the revolver has variable interest based on selected short-term rates.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
5.Investments in Affiliates and Affiliate-Sponsored Investment Products
In evaluating whether an investment must be consolidated, the Company evaluates the risk, rewards, and significant terms
of each of its Affiliates and other investments to determine if an investment is considered a voting rights entity (“VRE”) or a
variable interest entity (“VIE”). An entity is a VRE when the total equity investment at risk is sufficient to enable the entity to
finance its activities independently, and when the equity holders have the obligation to absorb losses, the right to receive
residual returns, and the right to direct the activities of the entity that most significantly impact its economic performance. An
entity is a VIE when it lacks one or more of the characteristics of a VRE, which, for the Company, are Affiliate investments
structured as partnerships (or similar entities) where the Company is a limited partner and lacks substantive kick-out or
substantive participation rights over the general partner. Assessing whether an entity is a VRE or VIE involves judgment.
Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an
entity as a VRE or a VIE.
The Company consolidates VREs when it has control over significant operating, financial, and investing decisions of the
entity. When the Company lacks such control, but is deemed to have significant influence, the Company accounts for the VRE
under the equity method. Investments with readily determinable fair values in which the Company does not have rights to
exercise significant influence are recorded at fair value on the Consolidated Balance Sheets, with changes in fair value included
in Investment and other income.
The Company consolidates VIEs when it is the primary beneficiary of the entity, which is defined as having the power to
direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or the
right to receive benefits from, the entity that could potentially be significant to the VIE. Substantially all of the Company’s
consolidated Affiliates considered VIEs are controlled because the Company holds a majority of the voting interests or it is the
managing member or general partner. Furthermore, an Affiliate’s assets can be used for purposes other than the settlement of
the respective Affiliate’s obligations. The Company applies the equity method of accounting to VIEs where the Company is
not the primary beneficiary, but has the ability to exercise significant influence over operating and financial matters of the VIE.
Investments in Affiliates
Substantially all of the Company’s Affiliates are considered VIEs and are either consolidated or accounted for under the
equity method. A limited number of the Company’s Affiliates are considered VREs and most of these are accounted for under
the equity method.
When an Affiliate is consolidated, the portion of the earnings attributable to Affiliate management’s and any co-investor’s
equity ownership is included in Net income (non-controlling interests) in the Consolidated Statements of Income.
Undistributed earnings attributable to Affiliate management’s and any co-investor’s equity ownership, along with their share of
any tangible or intangible net assets, are included in Non-controlling interests on the Consolidated Balance Sheets. Affiliate
equity interests where the holder has certain rights to demand settlement are presented, at their current redemption values, as
Redeemable non-controlling interests or Other liabilities on the Consolidated Balance Sheets. The Company periodically
issues, sells, and purchases the equity of its consolidated Affiliates. Because these transactions take place between entities that
are under common control, any gains or losses attributable to these transactions are required to be included in Additional paid-
in capital on the Consolidated Balance Sheets, net of any related income tax effects in the period the transaction occurs.
When an Affiliate is accounted for under the equity method, the Company’s share of an Affiliate’s earnings or losses, net
of intangible amortization and impairments and tax, is included in Equity method income (net) in the Consolidated Statements
of Income and the carrying value of the Affiliate is recorded in Equity method investments in Affiliates (net) in the
Consolidated Balance Sheets.
The Company periodically performs assessments to determine if the fair value of an investment may have declined below
its related carrying value for its Affiliates accounted for under the equity method for a period that the Company considers to be
other-than-temporary. The Company performs these assessments if certain triggering events occur or annually during the
fourth quarter. The Company first considers whether certain qualitative factors indicate an increased likelihood of a decline in
the fair value of an Affiliate during the reporting period. If such a decline is identified, and it is likely that an investment’s fair
value may have declined below its carrying value, the Company performs a quantitative assessment to determine if an
impairment exists. Impairments are recorded as an expense in Equity method income (net) to reduce the carrying value of the
Affiliate to fair value.
The Company’s Affiliates are consolidated or accounted for under the equity method, depending upon the underlying
structure of and relationship with each Affiliate. Substantially all of the Company’s consolidated Affiliates are VIEs. The
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Company’s Affiliates accounted for under the equity method considered VIEs generally require minimal levels of working
capital on each Affiliate’s balance sheet. Certain of the Company’s Affiliates accounted for under the equity method hold
general partner and seed investments, which may be significant. As of December 31, 2025 and June 30, 2026, the Company’s
carrying value attributable to its Affiliates accounted for under the equity method considered VIEs was $2,763.6 million and
$2,770.1 million, respectively. As of December 31, 2025 and June 30, 2026, including arrangements more fully described in
Note 7, the Company’s maximum exposure to loss attributable to its Affiliates accounted for under the equity method
considered VIEs was $3,245.3 million and $3,369.7 million, respectively.
As of December 31, 2025 and June 30, 2026, the carrying value for all of the Company’s Affiliates accounted for under the
equity method was $2,870.4 million and $2,936.8 million, respectively, including Affiliates accounted for under the equity
method considered VREs of $106.8 million and $166.7 million, respectively. As of December 31, 2025 and June 30, 2026,
including arrangements more fully described in Note 7, the maximum exposure to loss for all of the Company’s Affiliates
accounted for under the equity method was $3,352.1 million and $3,536.4 million, respectively, including Affiliates accounted
for under the equity method considered VREs of $106.8 million and $166.7 million, respectively.
Affiliate-Sponsored Investment Products
The Company’s Affiliates sponsor various investment products where the Affiliate also acts as the investment adviser.
These investment products are typically owned primarily by third-party investors; however, certain products are funded with
general partner and seed capital investments from the Company and its Affiliates.
Third-party investors in Affiliate-sponsored investment products are generally entitled to substantially all of the economics
of these products, except for the asset- and performance-based fees earned by the Company’s Affiliates or any gains or losses
attributable to the Company’s or its Affiliates’ investments in these products. As a result, the Company generally does not
consolidate these products. However, for certain products, the Company’s consolidated Affiliates, as the investment manager,
have the power to direct the activities of the investment product and have an exposure to the economics of the product that is
more than insignificant, though generally only for a short period while the product is established and has yet to attract
significant third-party investors. When the products are consolidated, the Company retains the specialized investment company
accounting principles of the underlying products, and all of the underlying investments are carried at fair value in Investments,
with corresponding changes in the investments’ fair values included in Investment and other income. Purchases and sales of
securities are included in purchases and sales by consolidated Affiliate-sponsored investment products in the Consolidated
Statements of Cash Flows, respectively, and the third-party investors’ interests are recorded in Redeemable non-controlling
interests. When the Company or its consolidated Affiliates no longer control these products, due to a reduction in ownership or
other reasons, the products are deconsolidated with only the Company’s or its consolidated Affiliate’s investment in the product
reported from the date of deconsolidation.
The Company’s carrying value and maximum exposure to loss from unconsolidated Affiliate-sponsored investment
products, is its interests in the unconsolidated net assets of the respective products. These products vary in size from early-stage
products with few initial investors to mature products with a large population of investors. As of December 31, 2025 and
June 30, 2026, the Company’s carrying value attributable to Affiliate-sponsored investment products, which are unconsolidated
VIEs, was $88.9 million and $249.6 million, respectively. As of December 31, 2025 and June 30, 2026, including
arrangements more fully described in Note 7, the Company’s maximum exposure to loss attributable to Affiliate-sponsored
investment products, which are unconsolidated VIEs, was $158.7 million and $340.8 million, respectively.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
6.Debt
The following table presents the carrying value of the Company’s outstanding indebtedness and a reconciliation to Debt as
presented on the Consolidated Balance Sheets:
December 31,2025 June 30,2026
Senior bank debt $— $650.0
Senior notes 1,172.0 1,172.2
Junior subordinated notes 1,216.1 1,216.1
Junior convertible securities 340.6 —
Total carrying value 2,728.7 3,038.3
Debt issuance costs (37.4) (34.3)
Debt $2,691.3 $3,004.0
The Company’s debt instruments are carried at amortized cost. Unamortized discounts and debt issuance costs associated
with its debt instruments, with the exception of the Company’s senior unsecured multicurrency revolving credit facility (the
“revolver”), are presented on the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt.
Senior Bank Debt
As of June 30, 2026, the Company had a $1.25 billion revolver. The Company amended and restated the revolver in June
2026, extending the maturity from November 15, 2029 to June 9, 2031. Subject to certain conditions, the Company may
increase the commitments under the revolver by up to an additional $750.0 million. The Company pays interest on any
outstanding obligations under the revolver at a specified rate, currently based either on an applicable term-SOFR, or prime rate,
plus a marginal rate determined based on its credit rating. As of December 31, 2025, the Company had no outstanding
borrowings under the revolver. As of June 30, 2026, the Company had outstanding borrowings under the revolver of $650.0
million and the weighted-average interest rate on outstanding borrowings was 4.62%.
Senior Notes
As of June 30, 2026, the Company had senior notes outstanding. The carrying values of the senior notes are accreted to
their principal amount at maturity over the remaining life of the underlying instrument. The principal terms of the senior notes
outstanding as of June 30, 2026 are presented and described below:
2030Senior Notes 2034Senior Notes 2036Senior Notes
Issue date June 2020 August 2024 December 2025
Maturity date June 2030 August 2034 February 2036
Par value (in millions) $350.0 $400.0 $425.0
Stated coupon 3.30% 5.50% 5.50%
Coupon frequency Semi-annually Semi-annually Semi-annually
Call price As defined As defined As defined
In addition to customary event of default provisions, the indenture governing the senior notes, including the applicable
supplemental indentures with respect to the 2030, 2034, and 2036 senior notes, limits the Company’s ability to consolidate,
merge, or sell all or substantially all of its assets, and requires the Company to make an offer to repurchase the applicable senior
notes at 101% of the principal amount, plus any accrued and unpaid interest thereon to, but not including, the date of
repurchase, upon certain change of control triggering events. The senior notes may be redeemed, in whole or in part, at a make-
whole redemption price (plus accrued and unpaid interest), at any time prior to March 15, 2030, in the case of the 2030 senior
notes, at any time prior to May 20, 2034, in the case of the 2034 senior notes, and at any time prior to November 15, 2035, in
the case of the 2036 senior notes. The make-whole redemption price, in each case, is equal to the greater of 100% of the
principal amount of the notes to be redeemed and the remaining principal and interest payments on the notes being redeemed
(excluding accrued but unpaid interest to, but not including, the redemption date) discounted to their present value as of the
redemption date on a semi-annual basis at the applicable Treasury rate plus 0.40%, in the case of the 2030 senior notes, and
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
plus 0.25%, in the case of the 2034 and 2036 senior notes. In addition, the 2030, 2034, and 2036 senior notes may be
redeemed, in whole or in part, at any time, on or after March 15, 2030, May 20, 2034, and November 15, 2035, respectively, at
a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon
to, but not including, the redemption date.
Junior Subordinated Notes
As of June 30, 2026, the Company had junior subordinated notes outstanding, the respective principal terms of which are
presented and described below:
2059 Junior Subordinated Notes 2060 Junior Subordinated Notes 2061 Junior Subordinated Notes 2064Junior Subordinated Notes
Issue date March 2019 September 2020 July 2021 March 2024
Maturity date March 2059 September 2060 September 2061 March 2064
Par value (in millions) $300.0 $275.0 $200.0 $450.0
Stated coupon 5.875% 4.75% 4.20% 6.75%
Coupon frequency Quarterly Quarterly Quarterly Quarterly
Call price As defined As defined As defined As defined
NYSE Symbol MGR MGRB MGRD MGRE
As of June 30, 2026, each of the 2059 and the 2060 junior subordinated notes could be redeemed at any time, in whole or
in part. The other junior subordinated notes may be redeemed at any time, in whole or in part, on or after September 30, 2026,
in the case of the 2061 junior subordinated notes, and on or after March 30, 2029, in the case of the 2064 junior subordinated
notes. In each case, the junior subordinated notes may be redeemed at 100% of the principal amount of the notes being
redeemed, plus any accrued and unpaid interest thereon. Prior to the applicable redemption date, at the Company’s option, the
applicable junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any
accrued and unpaid interest, if certain changes in tax laws, regulations, or interpretations occur; or at 102% of the principal
amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for
securities with features similar to the applicable notes.
The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the
terms of the junior subordinated notes.
Junior Convertible Securities
On December 8, 2025, the Company delivered notice that it had elected to redeem all of its outstanding 5.15% junior
convertible trust preferred securities (the “junior convertible securities”) on December 29, 2025 (the “Redemption Date”), and
announced its intention to settle any and all conversion obligations in cash. Substantially all holders of the junior convertible
securities delivered requests to convert their securities prior to the Redemption Date. On December 15, 2025 (the “Election
Date”), the Company made an irrevocable election to settle its conversion obligations in cash by reference to the daily volume
weighted average price of the Company’s common stock during each applicable ten trading day conversion reference period.
These conversions resulted in a settlement value in excess of the associated carrying value (the “conversion premium”). As of
December 31, 2025, the conversion premium of $155.5 million was recorded within Other liabilities, with a corresponding
reduction to Additional paid-in capital. In addition, the conversion resulted in a reduction to Deferred tax liability (net) on the
Consolidated Balance Sheets of $38.9 million, with a corresponding increase to Additional paid-in capital. The Company’s
election to settle each applicable conversion premium in cash using a ten-day reference period was accounted for as a forward
sale contract, which resulted in a $9.2 million expense recorded in Other expenses (net), in the fourth quarter of 2025.
On the Redemption Date, the Company redeemed $1.1 million of junior convertible securities which were not converted,
reflecting the principal amount of the redeemed securities, plus accrued and unpaid interest, up to, but not including, the
Redemption Date.
In January 2026, the Company settled each of its applicable conversion obligations in cash for an aggregate amount of
$514.6 million which resulted in an incremental expense related to the forward sale contract of $9.3 million. The junior
convertible securities were considered contingent payment debt instruments under federal income tax regulations, which
required the Company to deduct interest in an amount greater than its reported interest expense (“excess interest expense
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
deductions”). As a result of the settlement of these securities, the Company incurred a current cash tax liability of
approximately $56 million, reflective of the recapture of excess interest expense deductions.
Prior to their redemption by the Company or requests for conversion by the holders, as applicable and described above, the
junior convertible securities bore interest at a rate of 5.15% per annum, which interest payments were payable quarterly in cash.
For the three months ended June 30, 2025, the Company recorded interest expense of $4.5 million, in connection with the junior
convertible securities, including contractual interest expense and amortization of debt issuance costs of $4.4 million and $0.1
million, respectively. For the six months ended June 30, 2025, the Company recorded interest expense of $8.9 million, in
connection with the junior convertible securities, including contractual interest expense and amortization of debt issuance costs
of $8.8 million and $0.1 million, respectively. For the three and six months ended June 30, 2025, the effective interest rate was
5.21%.
7.Commitments and Contingencies
From time to time, the Company and its Affiliates may be subject to claims, legal proceedings, and other contingencies in
the ordinary course of their business activities. Any such matters are subject to various uncertainties, and it is possible that
some of these matters may be resolved in a manner unfavorable to the Company or its Affiliates. The Company and its
Affiliates establish accruals, as necessary, for matters for which the outcome is probable and the amount of the liability can be
reasonably estimated. For matters for which the outcome is probable but not reasonably estimable or where the outcome is
reasonably possible but not probable, the Company provides disclosure related to such matters, as necessary.
The Company has committed to co-invest in certain Affiliate-sponsored investment products. As of June 30, 2026, these
unfunded commitments were $410.5 million and may be called in future periods.
As of June 30, 2026, the Company was contingently liable to make payments in connection with an investment in a
consolidated Affiliate, which are included in Other liabilities. The Company is contingently liable to make maximum
contingent payments of up to $100.0 million ($24.9 million attributable to a co-investor). The fair value of the contingent
payment obligation was $0.0 million. The final measurement date of the contingent payment obligation was in July 2026.
As of June 30, 2026, the Company was obligated to make deferred payments of $84.0 million related to certain of its
investments in Affiliates accounted for under the equity method, of which $55.4 million is payable during the remainder of
2026 and $28.6 million is payable in 2027. Deferred payment obligations are included in Other liabilities.
As of June 30, 2026, the Company was contingently liable to make payments of $569.6 million related to the achievement
of specified financial targets by certain of its Affiliates accounted for under the equity method, of which $0.0 million may
become payable during the remainder of 2026, $360.1 million may become payable in 2027, $35.1 million may become
payable in 2028, $39.9 million may become payable in each of 2029 and 2030, and $94.6 million may become payable in 2031.
As of June 30, 2026, the Company was committed to provide one of its Affiliates accounted for under the equity method a
guarantee related to a credit facility used to fund a portion of the Affiliate’s commitments to certain of its investment products.
The Company believes the likelihood of being required to fund its guarantee under this arrangement to be remote. The
maximum amount of payments the Company could be required to make was $30.0 million and the fair value of the guarantee
liability was $0.0 million.
Affiliate equity interests provide holders at consolidated Affiliates with a conditional right to put their interests to the
Company over time. See Note 12.
The Company and certain of its consolidated Affiliates operate under regulatory authorities that require the maintenance of
minimum financial or capital requirements. The Company’s management is not aware of any significant violations of such
requirements.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
8.Goodwill and Acquired Client Relationships
The following table presents the changes in the Company’s Goodwill:
Goodwill
Balance, as of December 31, 2025 $2,531.2
Affiliate transactions(1) (9.7)
Foreign currency translation (9.9)
Balance, as of June 30, 2026 $2,511.6
_______________________
(1)Represents goodwill attributable to the myCIO Transaction as of the closing date, including $1.7 million attributable to the
non-controlling interests.
The following table presents the changes in the Company’s components of Acquired client relationships (net):
Acquired Client Relationships (Net)
Definite-lived Indefinite-lived Total
Gross CarryingValue AccumulatedAmortization Net CarryingValue CarryingValue CarryingValue
Balance, as of December 31, 2025 $1,267.4 $(1,112.4) $155.0 $1,484.3 $1,639.3
Affiliate transactions(1) (5.8) 4.3 (1.5) — (1.5)
Intangible amortization and impairments — (13.5) (13.5) (43.0) (56.5)
Foreign currency translation (3.8) 3.8 — (3.7) (3.7)
Transfers(2) 2.9 — 2.9 (2.9) —
Balance, as of June 30, 2026 $1,260.7 $(1,117.8) $142.9 $1,434.7 $1,577.6
_______________________
(1)Represents acquired client relationships attributable to the myCIO Transaction as of the closing date, including $0.4 million
attributable to the non-controlling interests.
(2)In 2026, transfers reflect the reclassification of indefinite-lived relationships to definite-lived relationships.
Definite-lived acquired client relationships at the Company’s consolidated Affiliates are amortized over their expected
period of economic benefit. The Company recorded amortization expense in Intangible amortization and impairments in the
Consolidated Statements of Income for these relationships of $6.3 million and $12.6 million for three and six months ended
June 30, 2025, respectively and $7.2 million and $13.5 million for the three and six months ended June 30, 2026, respectively.
Based on relationships existing as of June 30, 2026, the Company estimates that its consolidated amortization expense will be
approximately $15 million during the remainder of 2026, approximately $25 million in each of 2027 and 2028, approximately
$15 million in 2029, and approximately $10 million in each of 2030 and 2031.
In the first quarter of 2025, the Company completed an impairment assessment of the indefinite-lived acquired client
relationships for certain mutual fund assets and determined that the fair value of the assets had declined below their carrying
values. Accordingly, the Company recorded an expense in Intangible amortization and impairments of $59.2 million
attributable to the controlling interest ($70.0 million in aggregate) to reduce the carrying value of the assets to fair value. The
decline in the fair value was a result of current and projected declines in assets under management that decreased the forecasted
revenue associated with the assets. The most relevant assumptions used in these analyses were revenue growth rates over the
next five years ranging from (21)% to 0%, long-term revenue growth rates of 0%, and discount rates of 11.0%.
In the first quarter of 2025, the Company also recorded an expense in Intangible amortization and impairments of
$4.0 million attributable to the controlling interest ($7.0 million in aggregate) to reduce the carrying value of an indefinite-lived
acquired client relationship to zero due to the closure of one of its Affiliate’s mutual fund products.
In the first quarter of 2026, the Company completed an impairment assessment of the indefinite-lived acquired client
relationships for certain mutual fund assets, and determined that the fair value of an asset had declined below its carrying value.
Accordingly, the Company recorded an expense in Intangible amortization and impairments of $30.5 million attributable to the
controlling interest ($43.0 million in aggregate) to reduce the carrying value of the asset to fair value. The decline in the fair
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
value was primarily the result of current and projected declines in assets under management and the related reduction in
forecasted revenue associated with the asset. The most relevant assumptions used in this analysis related to the projected
trajectory of assets under management and associated revenue, as well as a discount rate of 10.5%.
In June 2026, myCIO Wealth Partners, LLC (“myCIO”) completed the divestiture of an advisor team (the “myCIO
Transaction”) that managed $5.6 billion in client assets. Pursuant to the terms of the agreement, the Company received cash
consideration of $24.5 million for its controlling interest portion of the divestiture, and may, in the future, receive additional
contingent cash consideration. The Company’s gain from the transaction was $14.6 million, which is recorded in Affiliate
transaction gains on the Consolidated Statements of Income, and was taxable at closing.
9.Equity Method Investments in Affiliates
Certain of the Company’s investments in Affiliates are accounted for under the equity method. The Company had 22 and
24 Affiliates accounted for under the equity method as of December 31, 2025 and June 30, 2026, respectively. The majority of
these Affiliates are partnerships with structured interests that define how the Company will participate in Affiliate earnings,
typically based upon a fixed percentage of the Affiliate’s revenue less agreed-upon expenses. The partnership agreements
generally do not define a fixed percentage for the Company’s ownership of the equity of the Affiliate. These percentages
would be subject to a separate future negotiation if an Affiliate were to be sold or liquidated. The financial results of certain
Affiliates accounted for under the equity method are recognized in the Consolidated Financial Statements one quarter in arrears.
The Company has determined that one of its Affiliates accounted for under the equity method is significant under Rule
10-01(b)(1) of Regulation S-X. For the six months ended June 30, 2025 and 2026, this Affiliate recognized revenue of $403.6
million and $901.0 million, respectively, and net income of $198.0 million and $642.8 million, respectively.
The following table presents the changes in Equity method investments in Affiliates (net):
Equity Method Investments in Affiliates (Net)
Balance, as of December 31, 2025(1) $2,870.4
Investments in Affiliates 246.9
Earnings, net of tax 336.1
Intangible amortization and impairments (63.9)
Distributions of earnings (465.9)
Return of capital (2.5)
Foreign currency translation (14.4)
Other 30.1
Balance, as of June 30, 2026(1) $2,936.8
_______________________
(1)Includes undistributed earnings of $280.4 million and $145.8 million as of December 31, 2025 and June 30, 2026,
respectively.
In the first quarter of 2026, the Company completed its agreement with Brown Brothers Harriman (“BBH”) to acquire a
minority equity interest in BBH Credit Partners, BBH’s taxable fixed income and credit franchise, its additional minority
investment in Garda Capital Partners LP (“Garda”), a liquid alternatives manager specializing in fixed income relative value
strategies and an Affiliate since 2019, and its minority investment in HighBrook Investors (“HighBrook”), a private markets
manager specializing in real estate assets. The majority of the consideration paid for Garda and a portion of the consideration
paid for HighBrook will be deductible for U.S. tax purposes over a 15-year life. Following the close of the transaction, the
Company’s investment in Garda continues to be accounted for under the equity method. The Company’s preliminary purchase
price allocations for each investment were measured using discounted cash flow analyses that included assumptions of expected
market performance, net client cash flows, and discount rates.
Definite-lived acquired client relationships at the Company’s Affiliates accounted for under the equity method are
amortized over their expected period of economic benefit. The Company recorded amortization expense for these relationships
of $27.0 million and $45.6 million for the three and six months ended June 30, 2025, respectively, and $29.2 million and $55.9
million for the three and six months ended, June 30, 2026 , respectively. Based on relationships existing as of June 30, 2026,
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
the Company estimates the amortization expense attributable to its Affiliates will be approximately $60 million for the
remainder of 2026, approximately $115 million in 2027, approximately $105 million in 2028, and approximately $90 million in
each of 2029, 2030, and 2031.
In the first quarter of 2026, the Company recorded an $8.0 million expense to reduce the carrying value of an Affiliate to
fair value based on market indicators that its fair value had declined below its carrying value.
10.Related Party Transactions
The Company has related party transactions in association with its deferred and contingent payment obligations, and
Affiliate equity transactions, as more fully described in Notes 7, 11, and 12.
From time to time, certain funds of the Company’s consolidated Affiliates may make tax distributions to partners subject to
clawback. The total receivable was $68.6 million and $62.3 million as of December 31, 2025 and June 30, 2026, respectively,
and was included in Other assets on the Consolidated Balance Sheets. The total payable was $99.3 million and $86.0 million as
of December 31, 2025 and June 30, 2026, respectively, and was included in Other liabilities. These amounts were primarily
attributable to the non-controlling interests.
A prior owner of one of the Company’s consolidated Affiliates retains interests in certain of the Affiliate’s private equity
partnerships and, as a result, is a related party of the Company. The prior owner’s interests are included in Other liabilities and
were $11.7 million and $7.6 million as of December 31, 2025 and June 30, 2026, respectively.
The Company may invest from time to time in funds or products advised by its Affiliates. The Company’s executive
officers and directors may invest from time to time in funds advised or products offered by its Affiliates, or receive other
investment services provided by its Affiliates, on substantially the same terms as other participating investors. The Company
and its Affiliates earn asset- and performance-based fees and incur distribution and other expenses for services provided to
Affiliate-sponsored investment products. In addition, the Company and its Affiliates earn fees or incur expenses related to the
Company’s efforts to develop and distribute Affiliate products. Affiliate management owners and the Company’s officers may
serve as trustees or directors of certain investment vehicles from which the Company or an Affiliate earns fees.
From time to time, the Company may enter into ordinary course engagements for capital markets, banking, brokerage, and
other services with beneficial owners of 5% or more of the Company’s voting securities.
11.Redeemable Non-Controlling Interests
Affiliate equity interests provide holders with an equity interest in one of the Company’s consolidated Affiliates, consistent
with the structured partnership interests in place at the respective Affiliate. Affiliate equity holders generally have a conditional
right to put their interests to the Company at certain intervals (between five years and 15 years from the date the equity interest
is received by the Affiliate equity holder or on an annual basis following an Affiliate equity holder’s departure). Prior to
becoming redeemable, the Company’s Affiliate equity is included in Non-controlling interests. Upon becoming redeemable,
these interests are reclassified to Redeemable non-controlling interests at their current redemption values. Changes in the
current redemption value are recorded to Additional paid-in capital. When the Company has an unconditional obligation to
purchase Affiliate equity interests, the interests are reclassified from Redeemable non-controlling interests to Other liabilities at
current fair value. Changes in fair value are recorded to Other expenses (net).
The following table presents the changes in Redeemable non-controlling interests:
Redeemable Non-controlling Interests
Balance, as of December 31, 2025(1) $246.8
Increase attributable to consolidated Affiliate-sponsored investment products 0.7
Transfers to Other liabilities (25.9)
Changes in redemption value 48.6
Balance, as of June 30, 2026(1) $270.2
___________________________
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
(1)As of December 31, 2025 and June 30, 2026, Redeemable non-controlling interests includes consolidated Affiliate-
sponsored investment products primarily attributable to third-party investors of $32.2 million and $32.9 million,
respectively.
12.Affiliate Equity
Affiliate equity interests are allocated income in a manner that is consistent with the structured partnership interests in
place at the respective Affiliate. The Company’s consolidated Affiliates generally pay quarterly distributions to Affiliate equity
holders. Distributions paid to non-controlling interest Affiliate equity holders were $149.7 million and $146.3 million for the
six months ended June 30, 2025 and 2026, respectively.
The Company periodically purchases Affiliate equity from and issues Affiliate equity to the Company’s consolidated
Affiliate partners and other parties under agreements that provide the Company a conditional right to call and Affiliate equity
holders the conditional right to put their Affiliate equity interests to the Company at certain intervals. The Company has the
right to settle a portion of these purchases in shares of its common stock. For Affiliates accounted for under the equity method,
the Company does not typically have such put and call arrangements. For the six months ended June 30, 2025 and 2026, the
amount of cash paid for purchases was $42.9 million and $60.9 million, respectively. For the six months ended June 30, 2025
and 2026, the total amount of cash received for issuances was $1.8 million and $4.2 million, respectively.
Sales and purchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to
its consolidated Affiliate partners and other parties as a form of compensation. If the equity is issued for consideration below
the fair value of the equity, or purchased for consideration above the fair value of the equity, the difference is recorded as
compensation expense in Compensation and related expenses over the requisite service period.
The following table presents Affiliate equity expense:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Controlling interest $48.5 $10.2 $52.1 $48.4
Non-controlling interests 9.2 9.9 18.5 18.3
Total $57.7 $20.1 $70.6 $66.7
In the second quarter of 2025, the terms of certain equity awards at an Affiliate were modified. The modification included
a mandatory repurchase provision upon termination of employment that changed the awards classification from equity to
liability. As a result, for the three and six months ended June 30, 2025, the Company recorded incremental Affiliate equity
expense of $30.5 million attributable to the controlling interest.
The following table presents unrecognized Affiliate equity expense:
Controlling Interest Remaining Life Non-controlling Interests Remaining Life
December 31, 2025 $71.7 2 years $159.5 5 years
June 30, 2026 84.7 2 years 152.0 5 years
The Company records amounts receivable from, and payable to, Affiliate equity holders in connection with the transfer of
Affiliate equity interests that have not settled at the end of the period. The total receivable was $4.7 million and $6.4 million as
of December 31, 2025 and June 30, 2026, respectively, and was included in Other assets. The total payable was $161.2 million
and $200.4 million as of December 31, 2025 and June 30, 2026, respectively, and was included in Other liabilities.
Effects of Changes in the Company’s Ownership in Affiliates
The Company periodically acquires interests from, and transfers interests to, Affiliate equity holders. Because these
transactions do not result in a change of control, any gain or loss related to these transactions is recorded to Additional paid-in
capital, which increases or decreases the controlling interest’s equity. No gain or loss related to these transactions is recorded in
the Consolidated Statements of Income or the Consolidated Statements of Comprehensive Income.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
While the Company presents the current redemption value of Affiliate equity within Redeemable non-controlling interests,
with changes in the current redemption value increasing or decreasing the controlling interest’s equity over time, the following
table presents the cumulative effect that ownership changes had on the controlling interest’s equity related only to Affiliate
equity transactions that occurred during the applicable periods:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Net income (controlling interest) $84.3 $185.9 $156.6 $296.3
(Decrease) increase in controlling interest paid-in capital from Affiliate equity issuances (0.1) (7.1) 0.3 (7.6)
Increase (decrease) in controlling interest paid-in capital from Affiliate equity purchases 20.6 (13.1) 8.6 (29.3)
Net income (controlling interest) including the net impact of Affiliate equity transactions $104.8 $165.7 $165.5 $259.4
13.Share-Based Compensation
The following table presents share-based compensation expense:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Share-based compensation expense $10.9 $10.2 $21.7 $17.1
Tax benefit 0.9 1.0 2.0 2.1
As of December 31, 2025, the Company had unrecognized share-based compensation expense of $70.2 million. As of
June 30, 2026, the Company had unrecognized share-based compensation expense of $62.7 million, which will be recognized
over a weighted average period of approximately three years (assuming no forfeitures).
Restricted Stock
The following table summarizes transactions in the Company’s restricted stock units:
Restricted Stock Units WeightedAverageGrant Date ValuePer Unit
Unvested units, as of December 31, 2025 1.0 $161.80
Units granted 0.1 299.16
Units vested (0.2) 153.92
Units forfeited (0.1) 170.83
Performance condition changes — —
Unvested units, as of June 30, 2026 0.8 $180.57
For the six months ended June 30, 2025 and 2026, the Company granted restricted stock units with fair values of $53.8
million and $28.9 million, respectively. These restricted stock units were valued based on the closing price of the Company’s
common stock on the grant date and the number of shares expected to vest. Restricted stock units containing vesting conditions
generally require service over a period of three years to four years and may also require the satisfaction of certain performance
conditions. For awards with performance conditions, the number of restricted stock units expected to vest may change over
time depending upon the performance level expected to be achieved.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Stock Options
The following table summarizes transactions in the Company’s stock options:
Stock Options WeightedAverageExercise PricePer Option Weighted AverageRemainingContractual Life(Years)
Unexercised options outstanding, as of December 31, 2025 0.3 $92.73
Options granted — —
Options exercised (0.2) 81.26
Options forfeited — —
Options expired — —
Performance condition changes — —
Unexercised options outstanding, as of June 30, 2026 0.1 $124.63 2.4
Exercisable at June 30, 2026 0.0 $101.05 1.1
The Company did not grant any stock options during the six months ended June 30, 2025 and 2026. Stock options
generally vest over a period of four years to five years and expire seven years after the grant date. All stock options have been
granted with exercise prices equal to the closing price of the Company’s common stock on the grant date. Substantially all of
the Company’s outstanding stock options contain both service and performance conditions. For awards with performance
conditions, the number of stock options expected to vest may change over time depending upon the performance level expected
to be achieved.
14.Income Taxes
The Company’s consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser
extent, taxes attributable to the non-controlling interests.
The following table presents the consolidated provision for income taxes:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Controlling interest(1) $33.6 $66.0 $58.3 $111.6
Non-controlling interests 2.1 4.0 4.8 4.9
Income tax expense $35.7 $70.0 $63.1 $116.5
Income before income taxes (controlling interest) $117.9 $251.9 $214.9 $407.9
Effective tax rate (controlling interest)(2) 28.5% 26.2% 27.1% 27.4%
___________________________
(1)For the three months ended June 30, 2025 and 2026, income tax expense (controlling interest) included intangible-related
deferred tax expense of $15.4 million and $14.3 million, respectively. For the six months ended June 30, 2025 and 2026,
income tax expense (controlling interest) included intangible-related deferred tax expense of $15.5 million and $20.6
million, respectively.
(2)Taxes attributable to the controlling interest divided by income before income taxes (controlling interest).
The Company’s effective tax rate (controlling interest) for the three and six months ended June 30, 2025 was higher than
the marginal tax rate of 24.5%, primarily due to an expense attributable to a modification of the terms of certain equity awards
at an Affiliate for which no tax benefit was recorded.
The Company’s effective tax rate (controlling interest) for the three and six months ended June 30, 2026 was higher than
the marginal tax rate of 24.5%, primarily due to expenses attributable to Affiliate equity awards for which no tax benefit was
recorded.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
The Company’s effective tax rate reflects the relative contributions of earnings in the jurisdictions in which the Company
and its Affiliates operate and is impacted by changes in the jurisdictional mix of income before taxes.
15.Earnings Per Share
The calculation of Earnings per share (basic) is based on the weighted average number of shares of the Company’s
common stock outstanding during the period. Earnings per share (diluted) is similar to Earnings per share (basic), but adjusts
for the dilutive effect of the potential issuance of incremental shares of the Company’s common stock.
The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per
share available to common stockholders:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Numerator
Net income (controlling interest) $84.3 $185.9 $156.6 $296.3
Income (loss) from hypothetical settlement of Redeemable non-controlling interests, net of taxes 0.3 1.2 (1.5) (2.8)
Interest expense on junior convertible securities, net of taxes 3.4 — 6.7 —
Net income (controlling interest), as adjusted $88.0 $187.1 $161.8 $293.5
Denominator
Average shares outstanding (basic) 28.5 26.4 28.9 26.6
Effect of dilutive instruments:
Stock options and restricted stock units 1.0 0.3 1.1 0.4
Hypothetical issuance of shares to settle Redeemable non-controlling interests 0.2 0.2 0.6 0.3
Assumed issuance of junior convertible securities shares 1.7 — 1.7 —
Average shares outstanding (diluted) 31.4 26.9 32.3 27.3
Average shares outstanding (diluted) in the table above excludes stock options and restricted stock units that have not met
certain performance conditions and instruments that have an anti-dilutive effect on Earnings per share (diluted). The following
is a summary of items excluded from the denominator in the table above:
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2026 2025 2026
Stock options and restricted stock units 0.2 0.1 0.2 0.1
Shares issuable to settle Redeemable non-controlling interests 2.8 1.2 2.5 1.1
For the three and six months ended June 30, 2026, under its authorized share repurchase programs, the Company
repurchased 0.6 million and 1.2 million shares of its common stock at an average price per share of $313.56 and $310.29,
respectively.
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AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
16.Comprehensive Income
The following tables present the tax effects allocated to each component of Other comprehensive income (loss):
For the Three Months Ended June 30,
2025 2026
Pre-Tax Tax Expense Net of Tax Pre-Tax Tax Benefit Net of Tax
Foreign currency translation gain (loss) $64.8 $(1.5) $63.3 $(13.4) $1.4 $(12.0)
Change in net realized and unrealized gain (loss) on derivative financial instruments 0.4 — 0.4 0.2 — 0.2
Other comprehensive income (loss) $65.2 $(1.5) $63.7 $(13.2) $1.4 $(11.8)
For the Six Months Ended June 30,
2025 2026
Pre-Tax Tax Benefit Net of Tax Pre-Tax Tax Benefit Net of Tax
Foreign currency translation gain (loss) $53.5 $4.1 $57.6 $(29.1) $1.2 $(27.9)
Change in net realized and unrealized gain (loss) on derivative financial instruments 0.9 — 0.9 0.7 — 0.7
Change in net unrealized gain (loss) on available-for-sale debt securities 0.4 — 0.4 — — —
Other comprehensive income (loss) $54.8 $4.1 $58.9 $(28.4) $1.2 $(27.2)
The components of accumulated other comprehensive loss, net of taxes, were as follows:
ForeignCurrencyTranslationAdjustment Realized andUnrealized Gains (Losses)on Derivative Financial Instruments Total
Balance, as of December 31, 2025 $(183.6) $(0.5) $(184.1)
Other comprehensive income (loss) before reclassifications (27.9) 1.3 (26.6)
Amounts reclassified — (0.6) (0.6)
Net other comprehensive income (loss) (27.9) 0.7 (27.2)
Balance, as of June 30, 2026 $(211.5) $0.2 $(211.3)
17.Segment Information
The Company operates in one segment. Accordingly, the Company’s Consolidated revenue, Net income, and Total assets
reflect the revenue, profit, and assets of the Company’s single segment, respectively.
The Company’s President and Chief Executive Officer is the chief operating decision maker (“CODM”). The CODM uses
Net income in assessing the performance and in determining the allocation of resources of the Company’s reportable segment.
The CODM is regularly provided expense information consistent with the expense categories presented in the Company’s
Consolidated Statements of Income.
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