AMG Pivots Toward Alternatives Strategies: How is This Driving Growth?

Affiliated Managers AMG has been pivoting toward private markets and liquid alternatives, fueling strong client inflows into these segments and offsetting weakness in traditional asset categories. In sync with this strategy, in February, it announced new investment in HighBrook (a private markets manager operating in the real estate sector) and incremental minority investment in Garda. Last year, the company announced four new partnerships – NorthBridge Partners, Verition Fund Management, Qualitas Energy and Montefiore Investment – that added $23 billion to AUM across private markets and liquid alternatives. 

In October 2025, the company entered into a partnership with Brown Brothers Harriman to expand the reach of BBH’s structured and alternative credit strategies into the U.S. wealth marketplace. During 2023-2024, AMG acquired minority stakes in Suma Capital, Ara Partners and Forbion Group Holding B.V.

As of Dec. 31, 2025, Alternatives constituted almost 46% of total AUM and generated approximately 55% of Affiliated Managers’ earnings. For the next few years, the company targets to generate more than 66% of earnings from the alternatives.

To execute and fund its expansion plan and invest in growth opportunities, the company has sufficient liquidity available. Since 2023, divestitures of stakes in Comvest Partners, Peppertree, Veritable LP and Baring Private Equity Asia have significantly boosted the company’s investment capacity. This move aligns with Affiliated Managers’ goal to reallocate its capital into the lucrative investment opportunities.  

As a result of these steps, AMG was able to generate $28.7 billion of net client cash inflows in 2025, the highest level since 2013, after years of outflows. Looking ahead, the company is expected to keep executing its proven strategy with the same discipline (investing in high-quality affiliates in secular growth areas), while accelerating product innovation and expanding distribution. It is likely to continue benefiting from existing affiliates, especially AQR and Pantheon (both double-digit contributors to AMG’s 2025 earnings), across operating and alternatives.

Similar Steps by AMG’s Peers

BlackRock BLK has expanded through acquisitions and partnerships globally. In October 2025, its Aladdin platform partnered with OTCX to digitize dealer-to-client voice derivatives trading and broaden options access. In 2025, BlackRock acquired ElmTree Funds, HPS Investment Partners and Preqin, following 2024 deals for Global Infrastructure Partners and the remaining 75% of SpiderRock. These moves extend Aladdin into fast-growing private markets data and deepen BlackRock’s global footprint.

Invesco IVZ is advancing a broad transformation to boost efficiency and strengthen its platform. In January, it partnered with CI Global Asset Management to reshape Canadian operations and unlock new revenue. In 2025, it divested Intelliflo and sold 60% of Invesco India, forming a JV with the Hinduja Group. It also expanded private markets via partnerships with LGT Capital Partners and Barings. In December 2025, Invesco QQQ converted to an open-end ETF, supporting continued top-line growth.

AMG’s Price Performance & Zacks Rank

Shares of Affiliated Managers have gained 87.4% in the past six months against the industry’s decline of 7.6%.
 

Currently, AMG carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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