Chiel71 schreef op 6 februari 2024 14:57:
Strategic Evolution and Diversification:AMG has strategically diversified its business by investing in high-growth areas, particularly focusing on private markets and liquid alternatives, alongside differentiated long-only strategies.
The company welcomed two new affiliates, Forbion and Ara Partners, operating in private markets within sustainable investing sectors such as life sciences and industrial decarbonization.
Half of AMG's earnings now come from alternative strategies, balanced between private markets and liquid alternatives.
Performance and Fundraising:In 2023, private markets affiliates raised approximately $16 billion, demonstrating strong appeal despite challenging fundraising environments.
Liquid alternatives affiliates delivered significant performance fee earnings of about $160 million for the year, showcasing the value of these strategies in diverse market conditions.
Future Growth and Investment Focus:AMG plans to accelerate growth through organic expansion, new product launches, and partnerships with independent firms.
The company's investment strategy targets areas of secular growth, including infrastructure, private credit, market secondaries, and specialty strategies within private equity, venture capital, and real estate.
Capital Allocation and Share Repurchases:AMG emphasized disciplined capital allocation, investing in growth opportunities while returning significant excess capital to shareholders through share repurchases, repurchasing 10% of its shares outstanding in 2023.
The company plans to continue share repurchases in 2024, with a target of at least $400 million, subject to market conditions and new investment activity.Market and Business Outlook:AMG is optimistic about its pipeline of new investments, particularly in private markets and liquid alternatives, areas expected to drive future growth.
The company's diversified business profile, which includes a significant portion of earnings from alternative strategies, is seen as a competitive advantage, enhancing earnings stability and growth potential.
Distribution and Growth Strategy:AMG's focus on distribution, particularly in U.S. wealth markets, is a key part of its strategy to drive growth and attract high-quality, fast-growing independent firms.
The company sees increasing opportunities to deploy capital for growth investments, leveraging its strategic insights and capabilities to support affiliate success and drive shareholder value.