Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss in more detail the pipelines for new investments and how that compares to this time a year ago? Also, did the change in administration have any impact on conversations or dialogue with prospective Affiliates? A: Our pipeline remains strong, with several opportunities in late stages. The change in administration is likely favorable for new investments due to potential lower regulation and pro-business policies, which could accelerate our investment pipeline.
Q: Is the go-forward strategy similar to the NorthBridge model, focusing on minority stakes in smaller franchises, or are there plans for larger deals? A: We are pursuing both strategies. We have mid-sized firms that can grow significantly with our resources, and we also have larger new investments in our pipeline. Our approach includes both minority and bare majority stakes, with the potential for larger transactions if they meet our high standards.
Q: Can you provide an update on the trends in your retail alternative product pipeline, client demand, and distribution fee arrangements? How active are you in developing active ETFs for your Affiliates? A: We have aggressively ramped up product launches, with six continuously offered products now available. We see active ETFs as an exciting opportunity and are working with Affiliates to enter these markets, combining investment expertise with client demand trends.
Q: How does AMG's unique model attract firms like NorthBridge, and what strategic advantages do you offer? A: AMG offers strategic resources while preserving the independence of firms. NorthBridge chose us for our growth capital, seed capital, and strategic business development capabilities. Our model is attractive to independent firms seeking both strategic support and operational autonomy.
Q: What are the expectations for performance fee earnings, and how do they contribute to AMG's overall earnings? A: We expect performance fees to contribute meaningfully over the long term, with a reasonable annual expectation of $150 million. Despite starting the year lower, we remain confident in the growing contribution from private markets carried interest.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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