AMG Files Q2 2024 10-Q, Details Subordinated Notes

TL;DR

AMG's Q2 10-Q is out, showing their debt structure with notes due as late as 2064.

AI Summary

Affiliated Managers Group, Inc. (AMG) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial instruments mentioned include various junior subordinated notes with maturity dates ranging from 2059 to 2064.

Why It Matters

This filing provides investors with a detailed look at AMG's financial health and debt structure as of mid-2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The company's financial performance and debt obligations, as detailed in the 10-Q, present inherent risks to investors.

Key Numbers

• 20240630 — Period End Date (Quarterly financial reporting)
• 20240802 — Filing Date (Submission of the 10-Q)

Key Players & Entities

• AFFILIATED MANAGERS GROUP, INC. (company) — Filer
• 0001004434-24-000040 (other) — Accession Number
• 20240630 (date) — Period of Report
• 20240802 (date) — Filing Date
• Five Point Eight Seventy Five Junior Subordinated Notes Due 2059 (financial_instrument) — Debt Obligation
• Four Point Seventy Five Junior Subordinated Notes Due 2060 (financial_instrument) — Debt Obligation
• Four Point Two Junior Subordinated Notes Due 2061 (financial_instrument) — Debt Obligation
• Six Point Seventy Five Junior Subordinated Notes Due 2064 (financial_instrument) — Debt Obligation

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock ($0.01 par value) AMG New York Stock Excha

Filing Documents

• amg-20240630.htm (10-Q) — 3634KB
• amg_6302024xexhibit101.htm (EX-10.1) — 1061KB
• amg_06302024xexhibit311.htm (EX-31.1) — 11KB
• amg_06302024xexhibit312.htm (EX-31.2) — 11KB
• amg_06302024xexhibit321.htm (EX-32.1) — 6KB
• amg_06302024xexhibit322.htm (EX-32.2) — 6KB
• amg-20240630_g1.gif (GRAPHIC) — 15KB
• amg-20240630_g2.jpg (GRAPHIC) — 37KB
• 0001004434-24-000040.txt ( ) — 15013KB
• amg-20240630.xsd (EX-101.SCH) — 76KB
• amg-20240630_cal.xml (EX-101.CAL) — 84KB
• amg-20240630_def.xml (EX-101.DEF) — 339KB
• amg-20240630_lab.xml (EX-101.LAB) — 707KB
• amg-20240630_pre.xml (EX-101.PRE) — 526KB
• amg-20240630_htm.xml (XML) — 2806KB

Financial Statements (unaudited)

Financial Statements (unaudited) CONSOLIDATED STATEMENTS OF INCOME 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 3 CONSOLIDATED BALANCE SHEETS 4 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 5 CONSOLIDATED STATEMENTS OF CASH FLOWS 7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 40 PART II Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 6. Exhibits 41 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 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, 2023 2024 2023 2024 Consolidated revenue $ 512.5 $ 500.3 $ 1,029.9 $ 1,000.3 Consolidated expenses: Compensation and related expenses 228.9 215.3 451.2 455.7 Selling, general and administrative 85.2 89.4 182.3 181.1 Intangible amortization and impairments 12.5 7.3 25.0 14.5 Interest expense 30.9 33.5 61.3 63.4 Depreciation and other amortization 3.3 3.1 7.0 6.1 Other expenses (net) 13.8 10.8 28.3 19.9 Total consolidated expenses 374.6 359.4 755.1 740.7 Equity method income (net) 55.8 18.1 114.5 135.7 Investment and other income 26.5 19.3 64.3 37.2 Income before income taxes 220.2 178.3 453.6 432.5 Income tax expense 32.8 43.3 77.7 98.7 Net income 187.4 135.0 375.9 333.8 Net income (non-controlling interests) ( 62.1 ) ( 59.0 ) ( 116.1 ) ( 108.0 ) Net income (controlling interest) $ 125.3 $ 76.0 $ 259.8 $ 225.8 Average shares outstanding (basic) 35.9 31.5 35.9 32.1 Average shares outstanding (diluted) 42.1 35.3 40.2 36.0 Earnings per share (basic) $ 3.49 $ 2.42 $ 7.23 $ 7.02 Earnings per share (diluted) $ 3.25 $ 2.26 $ 6.74 $ 6.49 The accompanying notes are an integral part of the Consolidated Financial Statements. Table of Contents 2 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, 2023 2024 2023 2024 Net income $ 187.4 $ 135.0 $ 375.9 $ 333.8 Other comprehensive income (loss), net of tax: Foreign currency translation gain (loss) 24.5 ( 2.2 ) 51.3 3.4 Change in net realized and

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 8 December 31, 2023 June 30, 2024 Cost $ 35.3 $ 44.0 Unrealized gains 2.6 4.2 Unrealized losses ( 0.0 ) ( 0.2 ) Fair value $ 37.9 $ 48.0 As of December 31, 2023 and June 30, 2024 , investments in equity securities include consolidated Affiliate sponsored investment products with fair values of $ 15.8 million and $ 12.1 million , respectively. For the three and six months ended June 30, 2023 , the Company recognized net unrealized gains on equity securities still held as of June 30, 2023 of $ 2.6 million and $ 3.9 million , respectively. For the three and six months ended June 30, 2024 , the Company recognized net unrealized gains on equity securities still held as of June 30, 2024 of $ 0.2 million and $ 1.6 million , respectively. Debt Securities The following table summarizes the cost, gross unrealized gains , gross unrealized losses, and fair value of investments in U.S. T reasury securities classified as available-for-sale, all of which mature in 2024 , and consolidated Affiliate sponsored investment products classified as trading: Available-for-Sale Trading December 31, 2023 June 30, 2024 December 31, 2023 June 30, 2024 Cost $ 405.4 $ 99.9 $ 17.9 $ 19.7 Unrealized gains 0.0 — — — Unrealized losses ( 0.1 ) ( 0.0 ) ( 0.1 ) ( 0.3 ) Fair value $ 405.3 $ 99.9 $ 17.8 $ 19.4 For the three months ended June 30, 2023 , there were no maturities or sales of available-for-sale securities. For the six months ended June 30, 2023 , the Company received $ 101.7 million of proceeds from the maturity of available-for sale securities. For the three and six months ended June 30, 2023 , the Company purchased $ 75.0 million and $ 175.0 million of available-for-sale securities, respectively. For the three and six months ended June 30, 2024 , the Company received $ 300.0 million and $ 725.2 million of proceeds from the maturity

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 9 December 31, 2023 June 30, 2024 Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity funds (1) $ 424.4 $ 187.2 $ 473.1 $ 217.5 Investments in other strategies (2) 6.1 — 6.8 — Total (3) $ 430.5 $ 187.2 $ 479.9 $ 217.5 ___________________________ (1) The Company accounts for the majority of its interests in private equity funds one quarter in arrears (adjusted for current period calls and distributions). These funds primarily invest in a broad range of third-party funds and direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . (2) These are multi-disciplinary funds that invest across various asset classes and strategies, including equity and credit. Investments are generally redeemable on a daily, monthly, or quarterly basis. (3) Fair value attributable to the controlling interest was $ 324.9 million and $ 361.4 million as of December 31, 2023 and June 30, 2024 , respectively. Investments Without Readily Determinable Fair Values The Company made an investment in a private corporation where it does not exercise significant influence. Because this investment does not have a readily determinable fair value, the Company has elected to measure this investment at its cost minus impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments in the private corporation. The following table summarizes the cost, cumulative unrealized gains, and carrying amount of investments without readily determinable fair values: December 31, 2023 June 30, 2024 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, 2024 , the Company recorded no gains or losses on the under

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 10 For the Six Months Ended June 30, 2023 2024 Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Balance, beginning of period $ 371.2 $ 50.4 $ 421.6 $ 430.5 $ 50.4 $ 480.9 Purchases and commitments 46.0 — 46.0 64.6 — 64.6 Sales and distributions ( 28.9 ) — ( 28.9 ) ( 26.7 ) — ( 26.7 ) Net realized and unrealized gains 18.3 — 18.3 11.5 — 11.5 Balance, end of period $ 406.6 $ 50.4 $ 457.0 $ 479.9 $ 50.4 $ 530.3 5. 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, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Investments in equity securities (1) $ 37.9 $ 37.9 $ — $ — Investments in debt securities (1) 423.1 — 423.1 — Financial Liabilities (2) Contingent payment obligations $ 14.7 $ — $ — $ 14.7 Affiliate equity purchase obligations 53.9 — — 53.9 Fair Value Measurements June 30, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Investments in equity securities (1) $ 48.0 $ 48.0 $ — $ — Investments in debt securities (1) 119.3 — 119.3 — Financial Liabilities (2) Contingent payment obligations $ 7.9 $ — $ — $ 7.9 Affiliate equity purchase obligations 53.9 — — 53.9 ___________________________ (1) Amounts are recorded in Investments in marketable securities on the Consolidated Balance Sheets

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 11 For the Three Months Ended June 30, 2023 2024 Contingent Payment Obl

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