Equity Method Investments in Affiliates

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Certain of the Company’s investments in Affiliates are accounted for under the equity method. The Company had 22

equity method Affiliates as of December 31, 2024 and 2025. The majority of these Affiliates are partnerships with structured

interests that define how the Company will participate in Affiliate earnings, typically based upon a fixed percentage of the

Affiliate’s revenue less agreed-upon expenses. The partnership agreements do not define a fixed percentage for the Company’s

ownership of the equity of the Affiliate. These percentages would be subject to a separate future negotiation if an Affiliate were

to be sold or liquidated. The financial results of certain Affiliates accounted for under the equity method are recognized in the

Consolidated Financial Statements one quarter in arrears.

The following tables present summarized financial information of the Company’s Affiliates accounted for under the equity

method:


	For the Years Ended December 31,
	2023	2024	2025
Revenue(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$3,115.6	$3,212.0	$5,326.0
Net income(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1,313.0	1,506.4	1,971.2

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(1)Revenue and net income include asset- and performance-based fees, the impact of consolidated sponsored investment

products, and new Affiliate investments for the full-year, regardless of the date of the Company’s investment.


	December 31,
	2024	2025
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$3,348.2	$4,539.9
Liabilities and Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1,262.9	2,114.1

The following table presents the changes in Equity method investments in Affiliates (net):


	Equity Method Investments in Affiliates (Net)
	2024	2025
Balance, beginning of period(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$2,288.5	$2,246.6
Investments in Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14.3	857.6
Affiliate transactions(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	—	(187.5)
Earnings, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	442.7	561.0
Intangible amortization and impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(130.0)	(98.1)
Distributions of earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(402.7)	(465.9)
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.7)	(9.8)
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	34.5	19.9
Other(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	—	(53.4)
Balance, end of period(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$2,246.6	$2,870.4

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(1)Includes undistributed earnings of $168.0 million, $206.1 million, and $280.4 million as of December 31, 2023, 2024, and

2025, respectively.

(2)Represents the Company’s equity method investments in Peppertree, Comvest’s private credit business, and Montrusco

Bolton as of their respective closing dates.

(3)For the year ended December 31, 2025, Other includes the transfer of $53.4 million of interests to Investments associated

with the Comvest Transaction.

In the first quarter of 2025, the Company completed its minority investment in NorthBridge Partners, LLC

(“NorthBridge”), a private markets manager specializing in industrial logistics real estate assets, and in the second quarter of

2025, the Company completed its minority investment in Verition Fund Management LLC (“Verition”), a global multi-strategy

investment firm. In the fourth quarter of 2025, the Company completed its minority investments in Montefiore Investment

(“Montefiore”), a European private equity firm focused on the services sector, and Qualitas Energy, a renewables-focused

global infrastructure manager specializing in energy transition. A portion of the consideration paid for NorthBridge and the

majority of the consideration paid for Verition will be deductible for U.S. tax purposes over a 15-year life. The Company’s

purchase price allocations for each investment were measured using discounted cash flow analyses that included assumptions of

expected market performance, net client cash flows, and discount rates.

In the third quarter of 2025, the Company completed the sale of its minority equity interest in Peppertree Capital

Management, Inc. (“Peppertree”), as part of the announced acquisition of Peppertree by TPG Inc. (“TPG”), a public

company listed on the Nasdaq Global Select Market. Pursuant to the terms of the agreement with TPG, under which the

Company and each of the other owners agreed to sell their respective equity interests in Peppertree, the Company received

total consideration of $253.2 million, net of transaction costs, which included $99.8 million in cash and 2.9 million TPG

Class A common shares, all of which the Company has since sold. Peppertree is included in the Company’s results

through the closing date and the Company’s gain from the transaction was $127.6 million, which is recorded in Affiliate

transaction gains.

In November 2025, Comvest Partners (“Comvest”) completed the previously announced agreement to sell its private

credit business to Manulife Financial Corporation. Pursuant to the terms of the agreement, the Company received total

cash consideration of $282.0 million for its portion of Comvest’s private credit business. Comvest’s private credit business

is included in the Company’s results through the closing date and the portion retained will continue to be included going

forward. The Company’s gain from the transaction was $227.6 million, which is recorded in Affiliate transaction gains.

In December 2025, the Company completed the sale of its minority equity interest in Montrusco Bolton Investments

Inc. (“Montrusco Bolton”) to Walter Global Asset Management Inc. Pursuant to the terms of the agreement, the Company

received total cash consideration of $22.0 million. Montrusco Bolton is included in the Company’s results through the

closing date and the Company’s gain from the transaction was $16.2 million, which is recorded in Affiliate transaction

gains.

Definite-lived acquired client relationships at the Company’s Affiliates accounted for under the equity method are

amortized over their expected period of economic benefit. The Company recorded amortization expense for these relationships

of $86.0 million, $90.1 million, and $98.1 million for the years ended December 31, 2023, 2024, and 2025, respectively. Based

on relationships existing as of December 31, 2025, the Company estimates the amortization expense attributable to its Affiliates

accounted for under the equity method will be approximately $100 million in each of 2026 and 2027, approximately $85

million in 2028, and approximately $70 million in each of 2029 and 2030.

In the second quarter of 2024, the Company recorded a $39.9 million expense to reduce the carrying value of an Affiliate to

fair value. The decline in the fair value was a result of an anticipated decline in assets under management, which decreased the

forecasted income associated with the investment. The fair value of the investment was determined using a discounted cash

flow analysis, a Level 3 fair value measurement that included a projected compounded growth in assets under management over

the next ten years of (2.5)%, long-term growth rate of 3%, discount rates of 12% and 20% for asset- and performance-based

fees, respectively, and a market participant tax rate of 21%. Based on the discounted cash flow analysis, the Company

concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than-

temporary.

For the year ended December 31, 2025, the Company completed its annual assessment of its investments in Affiliates

accounted for under the equity method and no impairments were indicated.

In January 2026, the Company completed the previously announced agreement with Brown Brothers Harriman

(“BBH”), a privately held global financial services firm, to acquire a minority equity interest in BBH Credit Partners, a

newly formed subsidiary of BBH focused on structured and alternative credit investment strategies. Following the close of

the transaction, BBH partners continue to direct day-to-day operations and the Company’s ownership is limited to a

minority interest in the BBH Credit Partners subsidiary.

On February 12, 2026, the Company announced the completion of its additional minority investment in Garda Capital

Partners LP (“Garda”), a liquid alternatives manager specializing in fixed income relative value strategies and an Affiliate

since 2019, and its minority investment in HighBrook Investors (“HighBrook”), a private markets manager specializing in

real estate assets. Following the close of the transactions, the Company’s investment in Garda continues to be accounted

for under the equity method and Affiliate management continues to hold a majority of the equity of the respective

businesses and directs the day-to-day operations.

AFFILIATED MANAGERS GROUP, INC. 10-K