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AMG - Affiliated Managers Inc News Story

$155.64 -2.4  -1.5%

Last Trade - 22/04/21

Sector
Financials
Size
Large Cap
Market Cap £4.84bn
Enterprise Value £6.62bn
Revenue £1.46bn
Position in Universe 1181st / 6852

AMG Reports Financial and Operating Results for the Fourth Quarter and Full Year 2020

Mon 8th February, 2021 12:00pm
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Company reports EPS of $2.54, Economic EPS of $4.22 in fourth quarter

EPS of $4.33, Economic EPS of $13.36 for the full year 2020

                                                                                                                                                                                                                                                                                                                                                                   
 •    Completed investment in Boston Common (https://ir.amg.com/news-releases/news-release-details/amg-announces-investment-boston-common-asset-management-women)Asset Management (https://ir.amg.com/news-releases/news-release-details/amg-announces-investment-boston-common-asset-management-women), a women-owned leader in sustainable and impact investing  
 •    Completed investment in Jackson Square Partners (https://ir.amg.com/news-releases/news-release-details/amg-announces-investment-jackson-square-partners), a leading global growth-equity manager                                                                                                                                                             
 •    Q4 Net Income (controlling interest) of $116 million, Economic Net Income of $191 million                                                                                                                                                                                                                                                                    
 •    Adjusted Q4 EBITDA increased 27% year-over-year, driven by growth in both management and performance fee EBITDA contribution                                                                                                                                                                                                                                 
 •    Repurchased 10% of shares outstanding across the full year 2020, including $226 million in shares during Q4                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                   

WEST PALM BEACH, Fla., Feb. 08, 2021 (GLOBE NEWSWIRE) -- Affiliated Managers
Group, Inc. (NYSE: AMG) today reported its financial and operating results for
the fourth quarter and full year 2020.

Jay C. Horgen, President and Chief Executive Officer of AMG, said: 
 “AMG reported Adjusted EBITDA of $255 million in the fourth quarter; the
year-over-year growth of 27% reflects strong investment performance from our
Affiliates across a broad array of alpha-oriented strategies, along with the
positive impact of strategic investments and actions to reposition the
business for growth. Business momentum and net client cash flows were
particularly strong in private markets, wealth management, and specialty fixed
income during the quarter. Looking ahead, AMG continues to have excellent
long-term growth prospects; our Affiliates are well-positioned to benefit from
clients’ increasing risk appetite, particularly given their strong track
records in attractive product areas.

“Throughout the challenges of 2020, we invested for growth across both
existing and new Affiliates, allocating capital and resources toward the areas
of highest growth and return. We were pleased to welcome four excellent new
Affiliates over the last 12 months, including most recently Boston Common
Asset Management, an innovator in sustainable investing, and Jackson Square
Partners, a leader in growth-oriented global equities. With a three-decade
track record of successful partnerships, proprietary long-term relationships
with prospective Affiliates around the world, and a broader set of partnership
solutions for independent firms than ever, AMG is uniquely positioned as the
partner of choice for outstanding independent investment firms globally.

“AMG enters 2021 with significant momentum across our business, including
strong investment performance in secular growth areas, increasing
opportunities to invest in excellent partner-owned firms, and a highly liquid
and flexible capital position. With these competitive advantages, along with
the enhanced earnings power of our business, we have an outstanding
opportunity to create long-term value, through both accretive growth
investments, and returning significant capital to shareholders over time.”

 FINANCIAL HIGHLIGHTS                                 Three Months Ended                           Year Ended                                
 (in millions, except as noted and per share data)    12/31/2019              12/31/2020           12/31/2019             12/31/2020         
 Operating Performance Measures                                                                                                              
 AUM (at period end, in billions)                     $     722.5             $     716.2          $     722.5            $     716.2        
 Average AUM (in billions)                            720.2                   700.9                758.1                  664.4              
 Net client cash flows (in billions)                  (11.3        )          (15.8        )       (53.5        )         (61.8        )     
 Aggregate fees                                       1,417.2                 1,450.7              4,962.7                4,626.4            
 Financial Performance Measures                                                                                                              
 Net income (controlling interest)                    $     22.5              $     115.9          $     15.7             $     202.2        
 Earnings per share (diluted) ((1))                   0.46                    2.54                 0.31                   4.33               
 Supplemental Performance Measures ( (2))                                                                                                    
 Adjusted EBITDA (controlling interest)               $     200.3             $     255.2          $     841.6            $     798.8        
 Economic net income (controlling interest)           221.8                   191.4                720.2                  624.4              
 Economic earnings per share                          4.52                    4.22                 14.22                  13.36              

For additional information on our Supplemental Performance Measures, including
reconciliations to GAAP, see the Financial Tables and Notes.

Capital Management 
 During the fourth quarter of 2020, the Company repurchased approximately $226
million in common stock and announced a fourth-quarter cash dividend of $0.01
per share of common stock, payable March 4, 2021 to stockholders of record as
of the close of business on February 18, 2021. For the full year 2020, AMG
repurchased $430 million in common stock. In addition, AMG’s Board of
Directors increased the Company’s share repurchase authorization to a total
of 6.9 million shares.

About AMG 
 AMG is a global asset management company with equity investments in leading
boutique investment management firms. AMG’s strategy is to generate
long‐term value by investing in leading independent active investment
managers, through a proven partnership approach, and allocating resources
across the Company's unique opportunity set to the areas of highest growth and
return. AMG’s innovative partnership approach allows each Affiliate’s
management team to own significant equity in their firm while maintaining
operational autonomy. In addition, AMG provides centralized assistance to its
Affiliates on strategy, marketing, distribution, and product development. As
of December 31, 2020, AMG’s aggregate assets under management were
approximately $716 billion, across a broad range of active, return-oriented
strategies. For more information, please visit the Company’s website at
www.amg.com.

           

Conference Call, Replay and Presentation Information 
 A conference call will be held with AMG’s management at 8:30 a.m. Eastern
time today. Parties interested in listening to the conference call should dial
1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) shortly before
the call begins.

The conference call will also be available for replay beginning approximately
one hour after the conclusion of the call. To hear a replay of the call,
please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and
provide conference ID 13714782. The live call and replay of the session and a
presentation highlighting the Company's performance can also be accessed via
AMG’s website at https://ir.amg.com/.

Financial Tables Follow

 ASSETS UNDER MANAGEMENT - STATEMENT OF CHANGES (in billions)  



 BY STRATEGY - QUARTER TO DATE              Alternatives          Global             U.S. Equities          Multi-Asset           Total     
                                                                  Equities                                  & Fixed                         
                                                                                                            Income                          
 AUM, September 30, 2020               $    219.1            $    240.7         $    84.3              $    109.4            $    653.5     
 Client cash inflows and commitments   7.0                   8.4                3.9                    7.2                   26.5           
 Client cash outflows                  (15.8              )  (14.8           )  (6.4                )  (5.3               )  (42.3       )  
 Net client cash flows                 (8.8               )  (6.4            )  (2.5                )  1.9                   (15.8       )  
 New investments                       —                     4.2                6.4                    —                     10.6           
 Market changes                        6.1                   36.0               15.0                   5.4                   62.5           
 Foreign exchange                      2.2                   4.2                0.5                    1.0                   7.9            
 Realizations and distributions (net)  (1.2               )  (0.2            )  (0.2                )  —                     (1.6        )  
 Other                                 (0.9               )  —                  —                      —                     (0.9        )  
 AUM, December 31, 2020                $    216.5            $    278.5         $    103.5             $    117.7            $    716.2     



 BY STRATEGY - YEAR TO DATE                 Alternatives          Global             U.S. Equities          Multi-Asset            Total     
                                                                  Equities                                  & Fixed                          
                                                                                                            Income                           
 AUM, December 31, 2019                $    241.2            $    274.9         $    100.0             $    106.4            $     722.5     
 Client cash inflows and commitments   29.6                  33.3               14.7                   23.9                  101.5           
 Client cash outflows                  (51.7              )  (61.2           )  (29.4               )  (21.0              )  (163.3       )  
 Net client cash flows                 (22.1              )  (27.9           )  (14.7               )  2.9                   (61.8        )  
 New investments                       3.7                   4.2                6.4                    —                     14.3            
 Market changes                        (3.4               )  26.4               12.7                   8.3                   44.0            
 Foreign exchange                      0.9                   1.3                0.3                    0.2                   2.7             
 Realizations and distributions (net)  (2.6               )  (0.2            )  (0.2                )  (0.2               )  (3.2         )  
 Other                                 (1.2               )  (0.2            )  (1.0                )  0.1                   (2.3         )  
 AUM, December 31, 2020                $    216.5            $    278.5         $    103.5             $    117.7            $     716.2     



 BY CLIENT TYPE - QUARTER TO DATE           Institutional          Retail          High Net           Total     
                                                                                   Worth                        
 AUM, September 30, 2020               $    370.4             $    167.2      $    115.9         $    653.5     
 Client cash inflows and commitments   10.4                   9.6             6.5                26.5           
 Client cash outflows                  (21.6               )  (14.5        )  (6.2            )  (42.3       )  
 Net client cash flows                 (11.2               )  (4.9         )  0.3                (15.8       )  
 New investments                       8.4                    2.2             —                  10.6           
 Market changes                        31.2                   21.9            9.4                62.5           
 Foreign exchange                      4.0                    3.4             0.5                7.9            
 Realizations and distributions (net)  (1.2                )  (0.4         )  —                  (1.6        )  
 Other                                 (0.6                )  (0.1         )  (0.2            )  (0.9        )  
 AUM, December 31, 2020                $    401.0             $    189.3      $    125.9         $    716.2     



 BY CLIENT TYPE - YEAR TO DATE              Institutional          Retail          High Net            Total     
                                                                                   Worth                         
 AUM, December 31, 2019                $    407.2             $    198.1      $    117.2         $     722.5     
 Client cash inflows and commitments   40.8                   39.9            20.8               101.5           
 Client cash outflows                  (78.8               )  (63.3        )  (21.2           )  (163.3       )  
 Net client cash flows                 (38.0               )  (23.4        )  (0.4            )  (61.8        )  
 New investments                       12.1                   2.2             —                  14.3            
 Market changes                        22.0                   12.7            9.3                44.0            
 Foreign exchange                      1.4                    1.1             0.2                2.7             
 Realizations and distributions (net)  (2.6                )  (0.5         )  (0.1            )  (3.2         )  
 Other                                 (1.1                )  (0.9         )  (0.3            )  (2.3         )  
 AUM, December 31, 2020                $    401.0             $    189.3      $    125.9         $     716.2     



 CONSOLIDATED STATEMENTS OF INCOME                                                
                                                                                  
                                            Three Months Ended                    
 (in millions, except per share data)       12/31/2019         12/31/2020         
                                                                                  
 Consolidated revenue                       $     555.5        $     554.4        
                                                                                  
 Consolidated expenses:                                                           
 Compensation and related expenses          234.8              246.8              
 Selling, general and administrative        93.5               83.5               
 Intangible amortization and impairments    72.5               7.1                
 Interest expense                           18.8               26.8               
 Depreciation and other amortization        4.6                4.4                
 Other expenses (net)                       20.8               18.1               
 Total consolidated expenses                445.0              386.7              
                                                                                  
 Equity method income (loss) (net) ((3))    (19.5        )     35.4               
                                                                                  
 Investment and other income                3.3                31.1               
 Income before income taxes                 94.3               234.2              
                                                                                  
 Income tax expense (benefit)               (1.6         )     38.4               
 Net income                                 95.9               195.8              
                                                                                  
 Net income (non-controlling interests)     (73.4        )     (79.9        )     
 Net income (controlling interest)          $     22.5         $     115.9        
                                                                                  
 Average shares outstanding (basic)         48.9               44.9               
 Average shares outstanding (diluted)       49.1               47.5               
                                                                                  
 Earnings per share (basic)                 $     0.46         $     2.58         
 Earnings per share (diluted) ((1))         $     0.46         $     2.54         
                                                                                  



 RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES ((2) )                                           
                                                                                                       
                                                                 Three Months Ended                    
 (in millions, except per share data)                            12/31/2019         12/31/2020         
                                                                                                       
 Net income (controlling interest)                               $     22.5         $     115.9        
 Intangible amortization and impairments                         162.3              86.5               
 Intangible-related deferred taxes                               32.3               (2.8         )     
 Other economic items                                            4.7                (8.2         )     
 Economic net income (controlling interest)                      $     221.8        $     191.4        
                                                                                                       
 Average shares outstanding (adjusted diluted)                   49.1               45.3               
 Economic earnings per share                                     $     4.52         $     4.22         
                                                                                                       
 Net income (controlling interest)                               $     22.5         $     115.9        
 Interest expense                                                18.8               26.8               
 Income taxes                                                    (6.0         )     35.8               
 Intangible amortization and impairments                         162.3              86.5               
 Other items                                                     2.7                (9.8         )     
 Adjusted EBITDA (controlling interest)                          $     200.3        $     255.2        
                                                                                                       
 See Notes for additional information.                                                                 
                                                                                                       



 

 CONSOLIDATED STATEMENTS OF INCOME                                                    
                                                                                      
                                            Year Ended                                
 (in millions, except per share data)       12/31/2019           12/31/2020           
                                                                                      
 Consolidated revenue                       $     2,239.6        $     2,027.5        
                                                                                      
 Consolidated expenses:                                                               
 Compensation and related expenses          943.0                883.7                
 Selling, general and administrative        376.8                321.4                
 Intangible amortization and impairments    144.5                140.5                
 Interest expense                           76.2                 92.3                 
 Depreciation and other amortization        21.3                 19.1                 
 Other expenses (net)                       57.0                 52.8                 
 Total consolidated expenses                1,618.8              1,509.8              
                                                                                      
 Equity method loss (net) ((3))             (338.0         )     (43.4          )     
                                                                                      
 Investment and other income                25.2                 34.1                 
 Income before income taxes                 308.0                508.4                
                                                                                      
 Income tax expense                         2.9                  81.4                 
 Net income                                 305.1                427.0                
                                                                                      
 Net income (non-controlling interests)     (289.4         )     (224.8         )     
 Net income (controlling interest)          $     15.7           $     202.2          
                                                                                      
 Average shares outstanding (basic)         50.5                 46.5                 
 Average shares outstanding (diluted)       50.6                 46.7                 
                                                                                      
 Earnings per share (basic)                 $     0.31           $     4.34           
 Earnings per share (diluted) ((1))         $     0.31           $     4.33           
                                                                                      







 RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES ((2) )                                           
                                                                                                       
                                                                 Year Ended                            
 (in millions, except per share data)                            12/31/2019         12/31/2020         
                                                                                                       
 Net income (controlling interest)                               $     15.7         $     202.2        
 Intangible amortization and impairments                         745.8              427.7              
 Intangible-related deferred taxes                               (51.3        )     (9.9         )     
 Other economic items                                            10.0               4.4                
 Economic net income (controlling interest)                      $     720.2        $     624.4        
                                                                                                       
 Average shares outstanding (adjusted diluted)                   50.6               46.7               
 Economic earnings per share                                     $     14.22        $     13.36        
                                                                                                       
 Net income (controlling interest)                               $     15.7         $     202.2        
 Interest expense                                                76.2               92.3               
 Income taxes                                                    (9.1         )     69.5               
 Intangible amortization and impairments                         745.8              427.7              
 Other items                                                     13.0               7.1                
 Adjusted EBITDA (controlling interest)                          $     841.6        $     798.8        
                                                                                                       
 See Notes for additional information                                                                  
                                                                                                       





 CONSOLIDATED BALANCE SHEET                                                                   
                                                                                              
                                                  Year Ended                                  
 (in millions)                                    12/31/2019            12/31/2020            
                                                                                              
 Assets                                                                                       
 Cash and cash equivalents                        $      539.6          $      1,039.7        
 Receivables                                      417.1                 421.6                 
 Investments in marketable securities             59.4                  74.9                  
 Goodwill                                         2,651.7               2,661.4               
 Acquired client relationships (net)              1,182.0               1,048.8               
 Equity method investments in Affiliates (net)    2,195.6               2,074.8               
 Fixed assets (net)                               92.3                  79.6                  
 Other investments                                211.8                 257.2                 
 Other assets                                     304.0                 230.9                 
 Total assets                                     $      7,653.5        $      7,888.9        
                                                                                              
 Liabilities and Equity                                                                       
 Payables and accrued liabilities                 $      634.6          $      712.4          
 Debt                                             1,793.8               2,312.1               
 Deferred income tax liability (net)              450.2                 423.4                 
 Other liabilities                                359.1                 452.2                 
 Total liabilities                                3,237.7               3,900.1               
                                                                                              
 Redeemable non-controlling interests             916.7                 671.5                 
 Equity:                                                                                      
 Common stock                                     0.6                   0.6                   
 Additional paid-in capital                       707.2                 728.9                 
 Accumulated other comprehensive loss             (108.8          )     (98.3           )     
 Retained earnings                                3,819.8               4,005.5               
                                                  4,418.8               4,636.7               
 Less: treasury stock, at cost                    (1,481.3        )     (1,857.0        )     
 Total stockholders’ equity                       2,937.5               2,779.7               
 Non-controlling interests                        561.6                 537.6                 
 Total equity                                     3,499.1               3,317.3               
 Total liabilities and equity                     $      7,653.5        $      7,888.9        



Notes

                                                                                                                                                                                                                                                                      
 (1)  Earnings per share (diluted) adjusts for the dilutive effect of the potential issuance of incremental shares of our common stock. We had junior convertible securities outstanding during the periods presented and are required to apply the if-converted      
      method to these securities in our calculation of Earnings per share (diluted). Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into our      
      common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable    
      shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share.  The following table provides a reconciliation of the numerator and denominator used  
      in the calculation of basic and diluted earnings per share:                                                                                                                                                                                                     



                                                                                                                                                                                                                                                                                                          Three Months Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
      (in millions)                                                                                                                                                                                                                                                                                       12/31/2019                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              12/31/2020                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              12/31/2019                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              12/31/2020                                                                                                                                                                                                                                                                                                                       
      Numerator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
      Net income (controlling interest)                                                                                                                                                                                                                                                                   $                                                                                                                                                 22.5                                                                                                                                                                                                                                                                                                                                                                                                                                                  $                                                                                                                                                 115.9                                                                                                                                                                                                                                                                                                                                                                                                                                                 $                                                                                                                                                 15.7                                                                                                                                                                                                                                                                                                                                                                                                                                                  $                                                                                                                                                 202.2                                                                                                                                                                          
      Interest expense on junior convertible securities, net of taxes                                                                                                                                                                                                                                     —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       4.8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       —                                                                                                                                                                                                                                                                                                                                
      Net income (controlling interest), as adjusted                                                                                                                                                                                                                                                      $                                                                                                                                                 22.5                                                                                                                                                                                                                                                                                                                                                                                                                                                  $                                                                                                                                                 120.7                                                                                                                                                                                                                                                                                                                                                                                                                                                 $                                                                                                                                                 15.7                                                                                                                                                                                                                                                                                                                                                                                                                                                  $                                                                                                                                                 202.2                                                                                                                                                                          
      Denominator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
      Average shares outstanding (basic)                                                                                                                                                                                                                                                                  48.9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    44.9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    50.5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    46.5                                                                                                                                                                                                                                                                                                                             
      Effect of dilutive instruments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
      Stock options and restricted stock units                                                                                                                                                                                                                                                            0.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0.2                                                                                                                                                                                                                                                                                                                              
      Junior convertible securities                                                                                                                                                                                                                                                                       —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       —                                                                                                                                                                                                                                                                                                                                
      Average shares outstanding (diluted)                                                                                                                                                                                                                                                                49.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    47.5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    50.6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    46.7                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (2)  As supplemental information, we provide non-GAAP performance measures of Adjusted EBITDA (controlling interest), Economic net income (controlling interest) and Economic earnings per share. Management utilizes these non-GAAP performance measures to assess our performance before our share of certain non-cash expenses and to improve comparability between periods.  Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income taxes, depreciation, amortization, impairments, certain Affiliate equity expenses, gains and losses on general partner and seed capital investments, and adjustments to our contingent payment arrangements. We believe that many investors use this non-GAAP measure when assessing the financial performance of companies in the investment management industry.  Under our Economic net income (controlling interest) definition, we add to Net income (controlling interest) our share of pre-tax intangible amortization and impairments (including the portion attributable to equity method investments in Affiliates), deferred taxes related to intangible assets, and other economic items which include non-cash imputed interest (principally related to the accounting for convertible securities and contingent payment arrangements), certain Affiliate equity expenses, and gains and losses on general partner and seed capital investments. Economic net income (controlling interest) is used by management and our Board of Directors as our principal performance benchmark, including as one of the measures for aligning executive compensation with stockholder value.  Economic earnings per share represents Economic net income (controlling interest) divided by the Average shares outstanding (adjusted diluted). In this calculation, the potential share issuance in connection with our junior convertible securities is measured using a “treasury stock” method. Under this method, only the net number of shares of common stock equal to the value of the junior convertible securities in excess of par, if any, are deemed to be outstanding. We believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in available capital resources (which could be used to repurchase shares of common stock) that occurs when these securities are converted and we are relieved 
      of our debt obligation.  The following table provides a reconciliation of Average shares outstanding (adjusted diluted):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



                                                                                        Three Months Ended                                                                                                                                                                                                                                    Year Ended                                                                                                                                                                                                    
      (in millions)                                                                     12/31/2019                                                                                                                 12/31/2020                                                                                                                 12/31/2019                                                                                                                 12/31/2020                                                                         
      Average shares outstanding (diluted)                                              49.1                                                                                                                       47.5                                                                                                                       50.6                                                                                                                       46.7                                                                               
      Junior convertible securities                                                     —                                                                                                                          (2.2                                     )                                                                                 —                                                                                                                          —                                                                                  
      Average shares outstanding (adjusted                                              49.1                                                                                                                       45.3                                                                                                                       50.6                                                                                                                       46.7                                                                               
      diluted)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 (3)  These non-GAAP performance measures are provided in addition to, but not as a substitute for, Net income (controlling interest), Earnings per share or other GAAP performance measures. For additional information on our non-GAAP measures, see our Annual and Quarterly Reports on Form 10-K and 10-Q, respectively, which are accessible on the SEC’s website at www.sec.gov.  The following table presents equity method earnings and equity method intangible amortization and impairments, which in aggregate form Equity method income (loss)  
      (net):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



                                                            Three Months Ended                           Year Ended                                 
   (in millions)                                            12/31/2019              12/31/2020           12/31/2019              12/31/2020         
   Equity method earnings                                   $     78.8              $     116.9          $     289.4             $     288.6        
   Equity method intangible amortization and impairments    (98.3        )          (81.5        )       (627.4        )         (332.0       )     
   Equity method income (loss) (net)                        $     (19.5  )          $     35.4           $     (338.0  )         $     (43.4  )     
                                                                                                                                                    

Forward Looking Statements and Other Matters

Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws. These statements
include, but are not limited to, statements related to our expectations
regarding the performance of our business, our financial results, our
liquidity and capital resources and other non-historical statements. You can
identify these forward-looking statements by the use of words such as
“outlook,” “guidance,” “believes,” “expects,” “potential,”
"preliminary," “continues,” “may,” “will,” “should,”
“seeks,” “approximately,” “predicts,” “projects,”
“positioned,” “prospects,” “intends,” “plans,”
“estimates,” “pending investments,” “anticipates” or the negative
version of these words or other comparable words. Actual results and the
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors,
including changes in the securities or financial markets or in general
economic conditions, pandemics (including COVID-19) and related changes in the
global economy, capital markets and the asset management industry, the
availability of equity and debt financing, competition for acquisitions of
interests in investment management firms, the ability to close pending
investments, the investment performance and growth rates of our Affiliates and
their ability to effectively market their investment strategies, the mix of
Affiliate contributions to our earnings and other risks, uncertainties and
assumptions, including those described under the section entitled “Risk
Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q. Such factors may be updated from time to time in our periodic
filings with the SEC. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements that are
included in this release and in our filings with the SEC. We undertake no
obligation to publicly update or review any forward-looking statements,
whether as a result of new information, future developments or otherwise,
except as required by applicable law.

From time to time, AMG may use its website as a distribution channel of
material Company information. AMG routinely posts financial and other
important information regarding the Company in the Investor Relations section
of its website at www.amg.com and encourages investors to consult that section
regularly.

Investor Relations:
Anjali Aggarwal

Media Relations:
Jonathan Freedman

+1 (617) 747-3300 
ir@amg.com  
pr@amg.com  

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