LONDON: On August 1, Affiliated Managers Group (AMG) announced that its economic earnings per share fell by 15% on a YoY (year-over-year) basis. Its revenue fell to $554 million in 2Q16—compared to $646 million in 2Q15. The fall was mainly due to lower inflows and weaker performance on a YoY basis. The company’s performance on a relative basis was weaker compared to other players in the industry. Alternative asset managers like KKR (KKR) and Blackstone (BX) reported improved earnings and valuations.
The performance of the company’s affiliates led to a $8.4 billion appreciation in its assets. The company generated EBITDA (earnings before interest, tax, depreciation, and amortization) of $220.3 million. Its EBITDA-to-assets under management ratio stood at 13.6 basis points or ~13.1 basis points excluding performance fees. This reflects low-performance fees—this is seasonal in the third quarter.
