AMG Accelerates Alternative Strategy Momentum, Expands Private Markets Footprint
AMG, a leading global asset management company, has reported a record $14 billion in net client cash inflows into alternative strategies for the first quarter of 2025. This significant growth is driven by the strategic capital allocation to areas of secular growth over the past several years, particularly through investments in new and existing affiliates operating in private markets and liquid alternatives.
In a conference call earlier today, Jay Horgen, President and Chief Executive Officer, attributed the positive impact on the company's results to its evolution towards a substantially greater contribution from higher fee and longer-duration client assets. The record net client cash inflows into alternative strategies were largely offset by outflows from the long-only business.
AMG believes that the shift in its business composition towards alternatives is fundamental to achieving sustained organic growth. Given the progress made over the past several years, along with the current momentum in its alternative strategies, the company expects its flow profile to continue to improve as its mix shift accelerates.
The company has announced three new partnerships this year, with Northbridge, Fruition, and Qualitas Energy, committing approximately $700 million to these new investments. This represents one of the fastest levels of new investment activity in nearly a decade, and each investment is expected to be accretive to AMG's earnings and improve its organic growth profile.
On the private market side, AMG has recently announced two new partnerships with firms operating in areas of secular growth. The first partnership is with Northbridge Partners, a private markets manager specializing in industrial logistics real estate, which has delivered excellent performance for its LPs over the past decade.
The second partnership is with Qualitas Energy, a leading global infrastructure manager specializing in energy transition with a focus on Europe and a track record of delivering strong returns for clients over the past two decades. Qualitas Energy's distinctive competitive position and opportunistic value-added approach are highly attractive to investors seeking secure and sustainable returns.
On the liquid alternative side, AMG has been focused on the multi-strategy sector given its growing investor allocations, strong risk-adjusted returns, and low correlation to other asset classes. The company announced a partnership with Verition, a leader in the multi-strategy space with a strong risk framework and a proven ability to consistently deliver excellent results for clients.
With these strategic investments and partnerships, AMG is well-positioned to drive sustained organic growth and continue its evolution towards a higher fee and longer-duration client asset mix. The company's focus on private markets and liquid alternatives is expected to yield significant returns and improve its flow profile in the coming quarters."
