AMG seeks to achieve earnings growth by investing in high quality boutique asset management firms that have demonstrated a consistent ability to deliver excellent returns over the long term and potential for significant future growth. Our unique partnership approach creates powerful incentives for continued strong performance by providing Affiliate management with direct equity participation in their firms alongside AMG. In our investments in each of our Affiliates, we hold a substantial equity interest while the remaining equity interests are retained by the management of the Affiliate. This strategy provides a degree of liquidity and diversification to principal owners of boutique firms, and also addresses the succession and ownership transition issues facing many founders and principal owners. AMG’s structure ensures that Affiliates maintain operational autonomy in managing their businesses – an approach that also preserves each Affiliate’s entrepreneurial culture and distinct investment process. With meaningful equity stakes in their firms, AMG’s Affiliate partners operate strong and profitable investment firms with the objective of managing their businesses to produce long-term growth.
Although we invest in firms that we expect to be successful in their own right, we are committed to helping Affiliates identify opportunities for further growth and leverage the benefits of economies of scale. These cross-Affiliate initiatives include broadening distribution in the U.S. and globally, developing new products and providing strategic support and enhanced operational capabilities.
Since our founding, AMG has created shareholder value by successfully making equity investments in industry-leading boutique firms and leveraging our scale to support and enhance their growth.