AMG - Affiliated Managers Group: An FCF Machine And A Bet On Active Management
The business
Affiliated Managers Group (AMG) is one of the largest investment management firms in the world, with $723 billion in assets under management ((AUM)), spanning investments across an array of strategies with over 500 different investment products. AMG makes equity investments into boutique investment management firms, and in return, gets a certain percentage of the performance fees (“revenues”). The nature of the agreement varies with each affiliate (especially relating to expenses - some are fixed, some vary in relation to AUM), but the company’s revenue is largely contingent on the AUM of