Our Unique Partnership Approach
AMG’s unique partnership approach preserves the entrepreneurial orientation that distinguishes the most successful independent investment management firms. AMG acts as a permanent institutional partner to its Affiliates, which share a common philosophy and goal of building an enduring franchise which will serve clients across generations.
With our broad experience and 25-year track record in partnering with independent managers, AMG is uniquely positioned to identify outstanding firms with excellent growth prospects. We offer cross-Affiliate strategic capabilities which can enhance the firms’ stability, growth prospects, and business operations over generations of management.
RETAINED EQUITY AND OPERATIONAL AUTONOMY
The AMG investment structure preserves operational, cultural, and investment autonomy at the Affiliate-level and also ensures that equity incentives remain at the Affiliate-level; Affiliate management partners retain meaningful direct equity in their own firms. Furthermore, Affiliates can leverage AMG’s scale and resources across a number of non-investment areas, including product distribution and marketing, operational risk management, and compliance across jurisdictions, along with other strategic support.
Each investment is individually negotiated within a proven framework based on the specific characteristics of the firm and the goals of its principals. Although the specific structure of each investment is tailored to meet the needs of a particular Affiliate, in all cases, AMG establishes a meaningful equity interest in the firm, with the remaining equity broadly distributed among management partners, thereby incentivizing further growth through ongoing superior investment performance and client service.
Advantages of an AMG Partnership
For nearly a quarter-century, AMG has successfully invested in growing, alpha-oriented firms. AMG’s partnership structure, which has been implemented with Affiliates around the world, fosters an environment in which each Affiliate can focus on what they do best: apply proven investment processes, provide the highest quality client service and manage business operations to generate long-term growth. Fundamental features of AMG’s unique partnership approach include:
- Key Affiliate principals retain investment and operational autonomy, preserving Affiliates’ unique entrepreneurial cultures
- Management partners retain direct equity ownership in their own firms, and therefore maintain a long-term perspective in managing and growing their businesses
- Retained equity creates strong alignment of interests between clients, Affiliates, and AMG
- Each Affiliate operates independently and invests autonomously, with an owner-based culture focused on delivering outstanding results for clients
AMG has an unmatched track record of successful partnerships across almost three decades.
- Global distribution
- Growth capital
- Broad strategic support
Alignment of Interests
AMG’s unique investment approach aligns the interests of Affiliates with those of clients and AMG. Through customized partnership agreements which leave day-to-day management to Affiliate management partners, our approach preserves the distinct operational and investment culture that shaped the firm’s success. In addition, AMG’s investment structure provides a mechanism through which Affiliate principals are able to individually realize the value of their retained equity over time, participate in the ongoing growth of the firm, and preserve equity incentive opportunities for the next generation of the Affiliate’s management. Clients benefit from seamless management and ownership transition and an uninterrupted focus on alpha generation and client service.
We believe our structure incents the growth of our Affiliates, and is attractive to management partners of independent firms who prioritize independence, the retention of equity upside related to future growth, and the implementation of a succession plan.
Key Elements of an AMG Partnership
For clients, AMG offers access to a broad and diverse array of independent managers with distinct brands and specialized investment processes, combined with the efficiency of in-market client service and a single point of contact.
For Affiliates, our global distribution strategy provides (on a fully discretionary basis) access to the resources of a globally-scaled asset management firm. Our platform brings our Affiliates’ focused expertise to clients and markets around the world, while ensuring that Affiliates’ products and services are responsive to the evolving demands of the global marketplace in a way that protects the autonomy of each individual firm.
Our global distribution platform operates in key markets worldwide to extend the reach of our Affiliates’ own business development efforts. Affiliates benefit from the expertise of senior sales and marketing professionals located in Asia, Australia, the Middle East, and the U.K., while AMG Funds distributes funds through the largest intermediaries in the U.S. retail channel. Our Affiliates currently manage assets for non-U.S. clients in more than 50 countries, including all major developed markets.
AMG leverages its scale as a global asset manager to offer best-in-class services to its Affiliates. Utilizing both strategic partnerships as well as in-house resources, AMG offers Affiliates a full range of resources and technology to address the global legal, regulatory, and compliance requirements across all jurisdictions.
AMG ensures its Affiliates have access to practical advice across the universe of investment management, fund, and broker-dealer legal and regulatory requirements; assistance in the development and implementation of compliance and internal control processes; and expertise in regulatory matters across jurisdictions.