Q: Hector Erazo (Jefferies) asked about the demand for quant strategies across affiliates and any capacity concerns. A: Dava Ritchea (CFO) detailed the overall flow profile, noting the strongest momentum is in the four key areas of infrastructure, secondary solutions, absolute return strategies, and after-tax investing, which drove record $29 billion in alternative inflows in Q2. She contrasted this with $14 billion in net outflows from differentiated long-only equities and $2 billion in outflows from multi-asset/fixed income due to seasonal tax payments. Jay Horgen (CEO) added that AMG's large-scale liquid alternative managers have a long track record of managing capacity, and specifically for tax-aware long-short equity strategies, the underlying markets (e.g., MSCI World, S&P 500) are deep and provide ample capacity.

Q: Bill Katz (TD Cowen) asked about the acceleration in the deal pipeline, the types of affiliates being targeted, and how the pipeline compares to the beginning of the year. A: Jay Horgen (CEO) confirmed a meaningful increase in new investment opportunities starting at the tail end of Q2, continuing into Q3, with a significant pipeline for the back half of 2026. He attributed this partly to discussions delayed earlier in the year due to geopolitical uncertainty. The focus remains on secular growth areas in both private markets and liquid alternatives. He highlighted that AMG's unique value propositionpreserving independence while magnifying advantagesdifferentiates it from control buyers. He noted check sizes typically range from $100 million to $500 million, with some larger transactions in the pipeline, and reiterated a disciplined approach targeting high-teens returns.

Q: (Operator) The call included a discussion on the company's financial results and guidance. A: Dava Ritchea (CFO) reported record Q2 2026 results with adjusted EBITDA of $316 million (up 44% YoY) and economic EPS of $8.29 (up 54% YoY). AUM reached a record $942 billion. For Q3 2026, she guided adjusted EBITDA to $315-$325 million and economic EPS to $8.43-$8.71, representing approximately 40% growth YoY. She also noted the company repurchased $189 million in shares in Q2 and expects ~$600 million in full-year repurchases.

Q: (Operator) The call included a discussion on the company's capital allocation strategy. A: Jay Horgen (CEO) emphasized that capital allocation is the most impactful element of AMG's strategy. He stated that cumulative free cash flow over the next five to seven years is expected to approximate the company's entire current market capitalization. This capital will be deployed with discipline into growth investments (new and existing affiliates) and share repurchases, with the goal of generating a long-term compound annual growth rate in economic EPS of 15%-20%, a rate that has recently accelerated to ~40% in 2026.

Q: (Operator) The call included a discussion on the evolution of AMG's business mix. A: Jay Horgen (CEO) highlighted that alternatives now account for more than 60% of AMG's earnings, up from 50% 18 months ago and 35% five years ago. He expects this contribution to grow meaningfully over the next 12 months, potentially reaching 70%. This shift is driven by strong organic growth in alternative strategies and new affiliate investments, fundamentally changing the company's earnings quality and growth profile.

Q: (Operator) The call included a discussion on the drivers of organic growth. A: Jay Horgen (CEO) identified four key secular trends driving AMG's organic growth: 1) accelerating client demand for secondary strategies in private markets, 2) ongoing demand for infrastructure strategies, 3) growing demand for absolute return strategies, and 4) the continued expansion of tax-aware investing. These four areas drove approximately $100 billion in net inflows into AMG's alternative strategies over the past 12 months.

Q: (Operator) The call included a discussion on the company's balance sheet and liquidity. A: Dava Ritchea (CFO) stated that AMG's balance sheet remains strong, supported by long-dated debt, low leverage, and access to a recently extended $1.25 billion revolver (maturity extended to June 2031 with enhanced terms). The balance sheet is further supported by a healthy underlying business generating recurring and growing annual after-tax cash flow of approximately $1 billion, positioning the company to execute on an active pipeline while also repurchasing shares.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .