Competitive Advantages of Independent Investment Firms
Partner-owned, investor-led managers are better able to meet client objectives than non-independent peers.
- Aligned: Direct equity ownership strongly aligns interests with clients, creating long-term focus
- Entrepreneurial: Investment independence, and unique partnership-oriented cultures in which principals are able to directly impact the firm’s success, attract high-quality investment talent
- Investment-centric: Focused on client objectives and characterized by specialized investment expertise
- Committed: Through equity ownership in their own firms, and frequently, significant investments in the firms’ own strategies, and with a desire to build a multi-generational franchise, principals are focused on long-term success
The Independence Premium
AMG’s proprietary study of more than 1,300 individual investment management firms globally and ~5,000 institutional equity strategies (across 11 return-oriented equity categories representing approximately US$7 trillion in AUM over a 20-year period) highlighted that partner-owned independent firms:
- Broadly outperformed non-independent managers on a consistent basis
- Generated exceptional risk-adjusted excess returns versus indices
- Managed differentiated strategies that, on average, persistently demonstrated a high frequency of outperforming indices
The Advantages of Independence in Volatile Environments
During periods of market volatility, skilled investment managers are able to discern the most significant opportunities to generate excess returns, and dynamically re-calibrate portfolios. In a supplement to AMG’s proprietary study focusing on the performance of partner-owned independent managers during market volatility, we found that these managers:
- Meaningfully outperformed non-independent firms
- Generated substantial net excess returns across multiple strategies
- Generated outperformance relative to passive indexing: 3x greater in volatile periods
Advantages of Engaging with AMG and Our Affiliates
We offer access to a diverse range of partner-owned independent firms.
Global Reach
Distribution platform and capital formation capabilities across channels and geographies
Differentiated Strategies
Affiliates manage a wide array of industry-leading strategies across asset classes
Unmatched Track Record
30 years of identifying, vetting, and partnering with high-quality independent firms