Key Takeaways
- • Affiliated Managers Group (AMG) touched a 52-week high of $395 before closing at $381.83, with shares up 61.3% over the past year versus a 10.7% decline for the industry, according to Zacks Investment Research.
- • Alternatives drove the rally: nearly $100 billion in net alternatives inflows over the trailing 12 months, with private markets AUM of $153.3 billion and liquid alternatives AUM of $293.2 billion as of June 30, 2026.
- • Management raised its full-year 2026 share repurchase target to approximately $600 million from $500 million, after buying back $375 million in the first half of 2026.
- • Trailing 12-month return on equity of 21.94% exceeds the industry's 13.95%, while AMG trades at 9.38x forward P/E versus the industry's 13.29x.
- • Headwinds include $23.6 billion in first-half 2026 equity-strategy net outflows, expected 2026 expense growth of 8.2%, and $4.09 billion of goodwill and acquired client relationships exposed to potential impairment.
Summary
Affiliated Managers Group, Inc. (AMG) reached a 52-week high of $395 during the prior trading session, closing at $381.83, according to a Zacks Investment Research analysis. The shares have risen 61.3% over the past year, while the broader industry declined 10.7%. Over the same period, peers Hamilton Lane (HLNE) and Artisan Partners (APAM) fell 29.2% and 25.2%, respectively.
The primary driver is AMG's expanding alternatives platform. Since 2021, the firm has shifted its business mix toward private markets and liquid alternatives, which Zacks says has helped offset weakness in traditional equities. Alternatives attracted nearly $100 billion in net inflows over the past 12 months, led by demand for secondaries, infrastructure, absolute return and tax-aware strategies. As of June 30, 2026, affiliates managed $153.3 billion in private markets and $293.2 billion in liquid alternatives, and alternatives contributed more than 60% of earnings. Recent investments in BBH Credit Partners, HighBrook Investors and Garda Capital Partners have further broadened the company's capabilities. Zacks projects AUM growth of 23.6% in 2026, 8.3% in 2027 and 9.5% in 2028.
Capital position and shareholder returns also support the stock. As of June 30, 2026, AMG had $3 billion in debt and $411 million in cash, and its $1.25 billion revolving credit facility was extended to June 2031 with improved terms. The company holds investment-grade ratings of A3 from Moody's and BBB+ from S&P, and generates recurring after-tax cash flow of nearly $1 billion annually. The company repurchased $375 million of shares in the first half of 2026 and raised its full-year buyback target to approximately $600 million. The adjusted diluted share count has fallen about 38% since the second quarter of 2021. The quarterly dividend has been held at $0.01 per share since the COVID-19 pandemic. Trailing 12-month ROE of 21.94% compares with the industry's 13.95%.
The analysis also flags risks. Revenues declined at a 1.3% CAGR over 2019-2025 while expenses rose at a 3.6% CAGR, and consolidated expenses are expected to increase 8.2% in 2026. Although first-half 2026 revenues rose 19.8% year over year to $1.19 billion, performance-fee volatility remains a concern. AMG recorded $23.6 billion in first-half equity-strategy net outflows, and differentiated long-only strategies are expected to see $45.4 billion in outflows in 2026. The company also carries $4.09 billion in goodwill and acquired client relationships, which could face impairment if valuations or affiliate earnings weaken.
Zacks consensus estimates imply 41.1% earnings growth in 2026 and 13.8% in 2027, with both years revised upward over the past month. AMG trades at a 12-month forward P/E of 9.38x, below the industry's 13.29x, a discount to Hamilton Lane's 11.43x and a premium to Artisan Partners' 8.69x. Zacks currently rates AMG Zacks Rank #2 (Buy).
The primary driver is AMG's expanding alternatives platform. Since 2021, the firm has shifted its business mix toward private markets and liquid alternatives, which Zacks says has helped offset weakness in traditional equities. Alternatives attracted nearly $100 billion in net inflows over the past 12 months, led by demand for secondaries, infrastructure, absolute return and tax-aware strategies. As of June 30, 2026, affiliates managed $153.3 billion in private markets and $293.2 billion in liquid alternatives, and alternatives contributed more than 60% of earnings. Recent investments in BBH Credit Partners, HighBrook Investors and Garda Capital Partners have further broadened the company's capabilities. Zacks projects AUM growth of 23.6% in 2026, 8.3% in 2027 and 9.5% in 2028.
Capital position and shareholder returns also support the stock. As of June 30, 2026, AMG had $3 billion in debt and $411 million in cash, and its $1.25 billion revolving credit facility was extended to June 2031 with improved terms. The company holds investment-grade ratings of A3 from Moody's and BBB+ from S&P, and generates recurring after-tax cash flow of nearly $1 billion annually. The company repurchased $375 million of shares in the first half of 2026 and raised its full-year buyback target to approximately $600 million. The adjusted diluted share count has fallen about 38% since the second quarter of 2021. The quarterly dividend has been held at $0.01 per share since the COVID-19 pandemic. Trailing 12-month ROE of 21.94% compares with the industry's 13.95%.
The analysis also flags risks. Revenues declined at a 1.3% CAGR over 2019-2025 while expenses rose at a 3.6% CAGR, and consolidated expenses are expected to increase 8.2% in 2026. Although first-half 2026 revenues rose 19.8% year over year to $1.19 billion, performance-fee volatility remains a concern. AMG recorded $23.6 billion in first-half equity-strategy net outflows, and differentiated long-only strategies are expected to see $45.4 billion in outflows in 2026. The company also carries $4.09 billion in goodwill and acquired client relationships, which could face impairment if valuations or affiliate earnings weaken.
Zacks consensus estimates imply 41.1% earnings growth in 2026 and 13.8% in 2027, with both years revised upward over the past month. AMG trades at a 12-month forward P/E of 9.38x, below the industry's 13.29x, a discount to Hamilton Lane's 11.43x and a premium to Artisan Partners' 8.69x. Zacks currently rates AMG Zacks Rank #2 (Buy).
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