AFFILIATED MANAGERS GROUP, INC. (AMG) Business

Item 1.Business

Overview

AMG is a strategic partner to leading independent investment firms globally.  Our strategy is to generate long-term value

by investing in high-quality independent partner-owned firms, which we refer to as “Affiliates,” through a proven partnership

approach, and allocating resources across our unique opportunity set to the areas of highest growth and return.

We believe that high-quality, partner-owned firms have fundamental competitive advantages in meeting client objectives.

With their entrepreneurial, investment-centric cultures, and deep alignment of interests with clients through direct equity

ownership by firm principals, independent firms have an ownership mindset, a long-term orientation to building their firms, and

the ability to act nimbly to capitalize on market movements, enabling them to offer unique return streams to the marketplace.

AMG’s distinctive partnership approach magnifies the existing advantages of our independent Affiliates and actively

supports their ongoing independence and ownership culture.  Our innovative model enables each Affiliate’s management team

to retain autonomy and significant equity ownership in their firm, while they leverage our strategic capabilities and insight,

including access to growth capital, product strategy and distribution through our capital formation capabilities, succession

planning, and strategic advisory, to expand their reach, diversify their businesses, and enhance their long-term success.

Given that our Affiliates operate across alternatives and differentiated long-only strategies, we believe AMG is highly

diversified.  Our Affiliates manage numerous differentiated strategies across a range of return-oriented asset classes and

structures across alternatives (including private markets and liquid alternatives) and differentiated long-only (including equities

and multi-asset and fixed income).  We have built a highly diversified portfolio of Affiliates over time, and the underlying

diversity by strategy, product, and client type enhances our earnings stability across all stages of a market cycle, and therefore

our ability to consistently invest in the areas of highest growth and return to generate value for shareholders.

Our Strategy

We generate long-term value by investing in high-quality independent partner-owned firms and allocating resources across

AMG’s unique opportunity set to the areas of highest growth and return.  Our business generates significant cash flow, which

we deploy toward growth investments and the return of capital to shareholders.

Our growth investments are focused on: (i) partnering with high-quality new Affiliates operating in areas of durable client

demand; (ii) investing in and alongside our existing Affiliates to capitalize on their growth opportunities, including by seeding

new products; and (iii) investing in our own strategic value-add capabilities, which are leveraged by our Affiliates to further

scale and diversify their businesses.  Across these opportunities, we are focused on investing in areas of secular growth and

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long-term client demand.  As part of our strategy, we consistently evaluate our forward opportunity set; over the last several

years, we have further invested in alternative strategies, including significant capital deployed toward new investments in fast-

growing areas within private markets and liquid alternatives aligned with long-term trends.  Through these recent growth

investments, we have deliberately evolved our business toward alternatives, with the intention of improving our long-term

organic growth and earnings growth prospects as well as further enhancing the stability of our cash flow.

AMG’s strategic expertise in collaborating with partner-owned firms has been honed across more than three decades of

working closely with our Affiliates.  Our unique approach provides independent firms with the advantages of a long-term

strategic partnership, while actively supporting their autonomy and independence, thereby preserving their core advantages and

the essential elements of their success — their entrepreneurial cultures, differentiated investment expertise, and disciplined

long-term orientations.  We believe that clients recognize these fundamental characteristics of partner-owned firms, as well as

the alignment created by direct equity ownership by firm principals, as competitive advantages in achieving client investment

goals and objectives.  We hold meaningful equity interests in each of our Affiliates, and typically each Affiliate’s management

team retains a significant equity interest in their own firm.  Affiliate management equity ownership (along with our long-term

ownership) creates strong alignment and enables Affiliate management to participate directly in the long-term success of their

firms.

Our goal with Affiliates is to be an excellent partner.  As the business landscape continues to change, the needs of

independent firms also evolve.  Accordingly, AMG continues to invest in our strategic capabilities to enhance our Affiliates’

ability to achieve their long-term strategic objectives.  Each Affiliate partnership is unique, and we work closely with our

Affiliates to determine how AMG might amplify the long-term success of each firm by collaborating across a range of strategic

areas, including access to growth capital, product strategy and distribution through our capital formation capabilities, succession

planning, and strategic advisory.  Today, we are increasingly focused on partnering with firms where AMG’s strategic

capabilities can add significant value and with firms that see the value of a strategic partner that can magnify their success — as

illustrated by our recent investments.  We believe our strategic capabilities provide many of the benefits offered by

consolidation models, while critically enabling firms to retain their independence.  Together, these capabilities and our

commitment to Affiliate independence over the long term distinctly differentiate AMG’s partnership model from other strategic

paths available to independent firms.

In many cases, where Affiliates access our growth capital or capital formation capabilities, we invest our capital and

resources to develop, seed, and distribute new strategies and products that meet evolving client needs.  Our distribution

capabilities provide access to institutional and wealth clients to complement our Affiliates’ own resources and expand their

reach, including by leveraging the expertise of our senior sales and marketing professionals and the depth and breadth of

AMG’s strategic relationships in the U.S., Europe, the UK, the Middle East, and Asia.  As part of our capital formation

capabilities, AMG’s partnership model provides Affiliates access to its vertically-integrated U.S. wealth platform, which

includes product development expertise, an operations team supporting all aspects of the product lifecycle, and a scaled

distribution organization operating across specialized sales teams, a strategic relationships team, and marketing.  Accessing the

attractive and growing U.S. wealth marketplace is challenging for independent managers to effectively do on their own, at

scale; leveraging AMG’s dedicated resources and coordinated strategy across key distribution channels has been essential to the

successful launch and sustainable growth of our Affiliates’ new alternative products for the U.S. wealth market.  Likewise,

AMG’s platform provides wealth clients with access to differentiated products from best-in-class independent managers.  We

have a track record of successfully bringing Affiliate strategies to market — including one of the first evergreen funds in the

private equity space — and we are continuing to build on our success through the launch of innovative products, including four

new alternative strategies and an active exchange-traded fund (“ETF”) in the past two years.

In addition, for some of our Affiliates, we leverage our long-term partnership approach to facilitate succession planning

across generations of Affiliate management principals and provide succession planning solutions and advice, which can include

a degree of liquidity and financial diversification along with incentive alignment for next-generation partners.  We also engage

with our Affiliates on strategic matters to advance their broader objectives.  We enter every partnership with a long-term

orientation to magnify our Affiliates’ advantages and support their multi-year business plans.  While Affiliates typically partner

with AMG to preserve their independence and partnership culture, evolving conditions may lead an Affiliate to consider other

options.  In such cases, through our active strategic engagement, we collaborate with Affiliates to evaluate appropriate strategic

alternatives.  When strategic transactions occur, they typically enhance our flexibility to execute our growth strategy and return

capital to shareholders, as we deploy the resulting proceeds in accordance with our disciplined capital allocation framework.

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Given our partnership structure, strategic decisions are led by our Affiliates and AMG retains certain rights to protect AMG

shareholder interests.  And because we are aligned with our Affiliates, their success is our success.

Our proven ability to magnify the competitive advantages of partner-owned firms, while preserving their independence,

differentiates AMG's partnership model and is increasingly valued by prospective Affiliates.  Independent firms seeking an

institutional partner are attracted to our innovative partnership approach and our global reputation as a successful strategic

partner to leading independent investment firms around the world.  We anticipate that the principal owners of independent

investment firms will continue to seek access to an evolving range of growth and succession solutions.  Accordingly, we expect

to continue to have a significant opportunity to invest in and partner with additional high-quality firms across the global

investment management industry.  In addition, we continue to have the opportunity to make additional equity investments in

our existing Affiliates, or invest in their growth by providing seed or other growth capital.  We are well-positioned to execute

upon these investment opportunities through our:

•established process of identifying, and cultivating relationships with, high-quality prospective Affiliates in our areas

of focus;

•broad industry network and proprietary relationships developed with prospects over many years;

•substantial experience and expertise in structuring and negotiating transactions;

•global reputation as an excellent partner to our Affiliates, having provided innovative solutions for the strategic

needs of independent investment firms for more than three decades; and

•successful engagement with our Affiliates to enhance their long-term prospects, including through access to growth

capital, product strategy and distribution through our capital formation capabilities, succession planning, and

strategic advisory.

Our Affiliates

Our Affiliates provide a diverse range of differentiated return streams through their specialized investment processes.

Given their long-term performance records, our Affiliates are recognized as being among the industry’s leaders in their

respective investment disciplines.  Our Affiliates’ attractive return streams are utilized in client portfolios to address a range of

needs for institutional and individual clients globally; certain Affiliates also provide investment management and customized

investment counseling and fiduciary services to high net worth individuals, families, and institutional clients.

As of December 31, 2025, our Affiliates managed approximately $813 billion across a broad range of investment styles

and geographies, in alternative and differentiated long-only strategies, as described below.

Alternative Strategies

Private Markets:  Our Affiliates managed approximately $146 billion in private market assets.  These firms operate across a

diverse number of growing areas within private markets and share key characteristics that position them for long-term value

creation, including differentiated investment approaches, and deep sector expertise, regional networks, and market-specific

knowledge — all of which enhance sourcing and execution.  With differentiated investment models, a focus on diverse areas

with long-term structural tailwinds, long-dated capital commitments, and the growing potential to generate and realize carried

interest over time, we believe our private markets Affiliates enhance AMG’s long-term organic growth and earnings power.

Liquid Alternatives:  Our Affiliates managed approximately $227 billion in liquid alternative assets.  These Affiliates have

excellent long-term track records across both beta-sensitive and absolute return strategies, including multi-strategy, global

macro, relative value fixed income, and trend-following, which are designed to generate returns that have low or no correlation

to broader markets.  These strategies can generate sizable performance fee earnings that — given their diversity and

demonstrated low correlation to risk assets — can contribute to the stability of AMG’s earnings over time.  Many of our liquid

alternative strategies are designed to protect against volatility and drawdowns, complementing our private markets and

differentiated long-only strategies.

Differentiated Long-Only Strategies

Equities and Multi-asset and Fixed Income:  Our Affiliates managed approximately $312 billion in equity assets across a

number of differentiated products and approximately $128 billion in multi-asset and fixed income strategies.

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Our Affiliates operate across a range of traditional equity and fixed income strategies typically through mutual fund

products governed by the Investment Company Act of 1940, as amended (the “Investment Company Act”), ETFs, separately

managed accounts, and Undertakings for Collective Investment in Transferable Securities (“UCITS”), in both the U.S. and

international markets. Additionally, we have several wealth management Affiliates, which manage multi-asset class portfolios

on behalf of their clients.  These Affiliates have built enduring franchises with specialized investment expertise and long-term

track records across all stages of a market cycle.

With meaningful earnings contributions from each of private markets, liquid alternatives, and differentiated long-only

(including equities and multi-asset and fixed income) strategies, AMG’s business and earnings profile is highly diversified.

Given the complementary nature of these strategies, this diversification enhances our earnings stability and supports our ability

to reinvest in the highest growth and return opportunities to benefit our shareholders.  Our exposure across these

complementary areas further distinguishes AMG’s business model within the independent investment management industry and

positions AMG as an attractive strategic partner for leading independent investment firms operating across multiple asset

classes.

Our Partnership Structure with Affiliates

AMG offers bespoke partnership solutions to address each Affiliate’s unique needs.  Consistent with AMG’s partnership

approach and commitment to independence, we offer a range of operating structures and have customized arrangements with

each of our Affiliates that provide their management teams with the authority to manage and operate the business on a day-to-

day basis.

Each of our Affiliates operates through distinct legal entities, which affords us the flexibility to design a separate operating

agreement for each Affiliate that reflects the customized arrangement, including with respect to the specific terms of our

economic participation in the Affiliate, which, in each case, uses a “structured partnership interest” to ensure alignment of our

economic interests with those of Affiliate management. The form of our structured partnership interests in our Affiliates differs

from Affiliate to Affiliate, and may change during the course of our investment.

In the case of structures where we contractually share in the Affiliate’s revenue without regard to expenses, comprising

Affiliates that contribute a majority of Consolidated revenue, the Affiliate allocates a specified percentage of its revenue to us

and Affiliate management, while using the remainder for operating expenses and additional distributions to Affiliate

management.  We and Affiliate management, therefore, participate in any increase or decrease in revenue, and only Affiliate

management participates in any increase or decrease in expenses.  Under these structured partnership interests our contractual

share of revenue generally has priority over distributions to Affiliate management.

In the case of structures where we contractually share in the Affiliate’s revenue less agreed-upon expenses, we benefit from

any increase in revenue or any decrease in the agreed-upon expenses, but also have exposure to any decrease in revenue or any

increase in such agreed-upon expenses.  The degree of our exposure to agreed-upon expenses from these structured partnership

interests varies by Affiliate, and includes several Affiliates in which we fully share in the expenses of the business.  Further, the

expenses in which we agree to share may change during the course of our investment.

When we own a controlling equity interest in an Affiliate, we consolidate the Affiliate’s financial results into our

Consolidated Financial Statements.  When we do not own a controlling equity interest in an Affiliate, but have significant

influence, we account for our interest in the Affiliate under the equity method.  Under the equity method of accounting, we do

not consolidate the Affiliate’s results into our Consolidated Financial Statements.  Instead, our share of earnings or losses, net

of amortization and impairments, is included in Equity method income (net) in our Consolidated Statements of Income, and our

interest in these Affiliates is recorded in Equity method investments in Affiliates (net) in our Consolidated Balance Sheets.

Whether we consolidate an Affiliate’s financial results or use the equity method of accounting, we maintain the same

innovative partnership approach and offer support and assistance in substantially the same manner for all of our Affiliates.

From time to time, we may restructure our interest in an Affiliate to better support the Affiliate’s growth strategy, but only if

doing so is in the best interest of the Affiliate’s business, management partners, and clients, as well as our stakeholders.

Competition

Our Affiliates compete with numerous investment management firms globally, as well as with subsidiaries of larger

financial organizations.  These firms may have significantly greater financial, technological, and marketing resources; access to

captive distribution; and assets under management.  Many of these firms may offer products and services that our Affiliates

may not, in particular investment strategies such as passively managed products, including ETFs, which typically carry lower

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fee rates.  Certain Affiliates offer their investment management services to the same client types and, from time to time, may

compete with each other for clients.  In addition, there are relatively few barriers to entry for new investment management

firms, especially for those providing investment management services to institutional and high net worth investors.  We believe

that the most important factors affecting our Affiliates’ ability to compete for clients are the:

•investment performance, investment styles, and reputations of our Affiliates and their management teams;

•differentiation of our Affiliates’ investment strategies and products and the continued development of investment

strategies and products to meet the evolving needs and demands of investors;

•depth and continuity of our and our Affiliates’ client relationships and the level of client service offered;

•maintenance of strong business relationships by us and our Affiliates with major intermediaries; and

•continued success of our and our Affiliates’ distribution efforts.

Additionally, our strategy includes investing in independent partner-owned investment firms, and in this area we compete

with a number of acquirers and investors, including investment management companies, private equity firms, sovereign wealth

funds, and larger financial organizations.  We believe that the most important factors on which we compete for future

investments are purchase price; our partnership model, including the equity incentive structures and access to capital formation

and strategic advisory capabilities; and the breadth and depth of our relationships, and our reputation, with investment firm

prospects.  We believe we offer a unique and differentiated partnership opportunity to Affiliates based on the long-term

duration of our partnership, the ability for our Affiliates to remain independent partner-owned investment firms, and our

strategic capabilities.

Government Regulation

Our Affiliates offer their investment management services and products around the world, and are subject to complex and

extensive regulation by regulatory and self-regulatory authorities and exchanges in various jurisdictions.  Virtually all aspects

of the asset management business, including the provision of advice, investment strategies and trading, fund sponsorship, and

product-related sales and distribution activities, are subject to regulation.  These regulations are primarily intended to protect the

clients of investment advisers and generally grant regulatory authorities broad administrative and enforcement powers.

The majority of our Affiliates are registered with the SEC as investment advisers under the Investment Advisers Act of

1940, as amended (the “Advisers Act”).  The Advisers Act imposes numerous obligations on registered investment advisers,

including fiduciary duties, compliance and disclosure obligations, and operational and recordkeeping requirements.  Our

Affiliates operating outside of the U.S. may be subject to the Advisers Act and are also subject to regulation by various

regulatory and self-regulatory authorities and exchanges in the relevant jurisdictions, including, for those Affiliates active in the

UK, the Financial Conduct Authority (the “FCA”).  Many of our Affiliates also sponsor or advise registered and unregistered

funds in the U.S. and in other jurisdictions, and are subject to regulatory requirements in the jurisdictions where those funds are

sponsored or offered, including, with respect to mutual funds in the U.S., the Investment Company Act.  The Investment

Company Act governs the operations of mutual funds and imposes obligations on their advisers, including investment

restrictions and other governance, compliance, reporting, and fiduciary obligations relating to the management of mutual funds.

Many of our Affiliates are also subject to directives and regulations in the European Union and other jurisdictions relating to

funds, such as the UCITS Directive and the Alternative Investment Fund Managers Directive, with respect to depositary

functions, remuneration policies, and sanctions, among other matters.

Our Affiliates’ sales and marketing activities are subject to regulation by authorities in the jurisdictions in which they offer

investment management products and services.  Our Affiliates’ ability to transact business in these jurisdictions, and to conduct

related cross-border activities, is subject to the continuing availability of regulatory authorizations and exemptions.  Through

our distribution platform, we also engage in sales and marketing activities that extend the reach of our Affiliates’ own business

development efforts, and which are subject to regulation in numerous jurisdictions.  Our U.S. wealth distribution subsidiary is

registered with the SEC under the Advisers Act.  This subsidiary sponsors mutual funds registered under the Investment

Company Act, and serves as an investment adviser and/or administrator for our fund complex.  In the UK, our institutional

distribution subsidiary is regulated by the FCA.  We also have an institutional distribution branch of a subsidiary regulated by

the Dubai Financial Services Authority, and any activities in the European Union are subject to compliance with applicable

regulations in various European jurisdictions.

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Certain of our Affiliates and our U.S. wealth distribution subsidiary are subject to the Employee Retirement Income

Security Act of 1974, as amended (“ERISA”), and related regulations, with respect to retirement plan clients.  ERISA imposes

duties on persons who are fiduciaries under ERISA, and prohibits certain transactions involving related parties to a retirement

plan.  The U.S. Department of Labor administers ERISA and regulates investment advisers who service retirement plan clients,

and has been increasingly active in proposing and adopting additional regulations applicable to the investment management

industry.  Certain of our Affiliates and our U.S. wealth distribution subsidiary are also members of the National Futures

Association and are regulated by the U.S. Commodity Futures Trading Commission (“CFTC”) with respect to the management

of funds and other products that utilize futures, swaps, or other CFTC-regulated instruments.

In addition, certain of our Affiliates and our U.S. wealth broker-dealer subsidiary are registered broker-dealers and

members of the Financial Industry Regulatory Authority (“FINRA”), for the purpose of distributing funds or other products.

FINRA has adopted extensive regulatory requirements relating to sales practices, registration of personnel, compliance and

supervision, and compensation and disclosure.  FINRA and the SEC have the authority to conduct periodic examinations of

member broker-dealers, and may also conduct administrative proceedings.  These broker-dealers are also subject to net capital

rules in the U.S. that mandate the maintenance of certain levels of capital, and our Affiliates and our other distribution

subsidiaries may also be subject to other regulatory capital requirements imposed by non-U.S. regulatory authorities.

Due to the extensive laws and regulations to which we and our Affiliates are subject, we and our Affiliates must devote

substantial time, expense, and effort to remain current on, and to address, legal and regulatory compliance matters.  We have

established compliance programs for each of our operating subsidiaries, and each of our Affiliates has established compliance

programs to address regulatory compliance requirements for its operations.  We and our Affiliates have experienced legal and

compliance professionals in place to address these requirements, and have relationships with various legal and regulatory

advisors in each of the countries where we and our Affiliates conduct business.  See “Item 1A. Risk Factors.”

Human Capital Management

As of December 31, 2025, we and our Affiliates had approximately 5,600 employees, the substantial majority of which

were employed by our Affiliates and not by AMG.  Each Affiliate’s management team retains autonomy in managing and

operating their business on a day-to-day basis, including with respect to their human capital.  Given this, the following is a

discussion of AMG’s workforce, or approximately 250 of the total employees, and the policies and cultural initiatives which

pertain to our human capital.

Our employees and our reputation are our most important assets, and attracting, retaining, and motivating top talent to

execute on our strategic business objectives is a fundamental imperative.  We support that imperative through our strong

values-based culture, commitment to career development and training, employee engagement initiatives, attractive

compensation and benefits programs, attention to succession planning, and fostering of organizational diversity at all levels of

our organization.

Our leadership training and sponsored skills development programs cover a wide range of subject area expertise as well as

career development generally, and are anchored on a comprehensive performance review process, which includes a company-

wide 360-degree review program.  Further, we support employees’ educational pursuits relating to degree programs and

certifications through company-supported time off and funding for professional development and flexible work arrangements

tailored to individual employees’ educational goals.  We regularly conduct company-wide surveys to solicit feedback from our

employees on a variety of topics, including corporate culture, philanthropic interests, and general job satisfaction, which help us

to enhance employee engagement and retention.  Our annual anonymous employee engagement survey reported an employee

satisfaction rating of 93% in 2025, which we attribute to our focus and commitment to our employees, our entrepreneurial

culture and partnership orientation, and our meaningful involvement with communities surrounding our offices.

We prioritize employee engagement through a range of cross-functional, multi-level communication and collaboration

mediums through both in-person and virtual forums, including small working group lunches, company-wide gatherings and

town halls, management off-sites, and charitable volunteer activities.  Through employee participation in our corporate

philanthropic initiatives across our global offices, we are committed to giving back to the communities in which we work and

live, and we believe that these initiatives also support our efforts to attract and retain employees.  We provide company-

supported time off to encourage employees in their charitable endeavors.  We also offer a formal gift-matching program to

match employee donations to eligible non-profit institutions through AMG and The AMG Charitable Foundation, as well as a

volunteer-matching program, wherein volunteer hours are matched with philanthropic credits that employees may donate to

eligible organizations.  Through our matching program as well as through direct grants, AMG and The AMG Charitable

Foundation have made donations to more than 1,100 organizations around the world to date.

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We seek to recruit the best people for each role without regard to gender, ethnicity, or other protected traits, and it is our

policy to comply fully with all domestic, foreign, and local laws relating to discrimination in the workplace.  Across

management positions in our workforce, gender diversity is 39%, and nearly half (47%) of our employees are women.  Further,

four of seven (57%) independent members of our Board of Directors are women, and three of seven (43%) independent

directors are ethnically diverse.  In addition, two of our three Board committees are chaired by women.  Our executive

management team has responsibility for human capital initiatives, in coordination with a cross-functional management

committee with oversight responsibility for these matters, and reviews these initiatives with our Board of Directors regularly.

Our Website

Our website is www.amg.com.  Our website provides information about us, and, from time to time, we may use it to

distribute material company information.  We routinely post financial, investment performance, and other important

information regarding the Company in the Investor Relations section of our website and we encourage investors to consult that

section regularly.  The Investor Relations section of our website also includes copies of our Annual Reports on Form 10-K,

Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, including exhibits, and any amendments to those reports

filed or furnished with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended.  We

make these reports available through our website as soon as reasonably practicable after our electronic filing of such materials

with, or the furnishing of them to, the SEC.  The information contained or incorporated on our website is not a part of this

Annual Report on Form 10-K.