AMG Q3 Deep Dive: Alternative Strategies Fuel Growth Amid Margin Compression

The article discusses Affiliated Managers Group's Q3 2025 results, highlighting strong performance in alternative asset strategies, particularly from affiliates Pantheon and AQR, which drove a 17% year-over-year increase in EBITDA. Despite missing revenue estimates, the market reacted positively to the growth in alternatives, which now constitute 55% of EBITDA. Key strategic moves include a partnership with Brown Brothers Harriman for structured credit products and divestitures to enhance capital flexibility. However, the company faces challenges with margin compression and outflows in its legacy fundamental equity strategies. Management is optimistic about 2026, focusing on expanding its alternative asset management partnerships.