AFFILIATED MANAGERS GROUP, INC. 10-K

Item 8. Financial Statements and Supplementary Data Management’s Report on Internal Control Over Financial Reporting Management of Affiliated Managers Group, Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting processes are designed by, or under the supervision of, the Company’s chief executive and chief financial officers and applied by the Company’s Board of Directors, management, and other senior employees to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external reporting purposes in accordance with accounting principles generally accepted in the U.S. The Company’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the U.S., and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on its financial statements. As of December 31, 2025 , management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has determined that the Company’s internal control over financial reporting as of December 31, 2025 was effective. The Company’s internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP (PCAOB ID 238 ), an independent registered public accounting firm, as stated in their report appearing in “Report of Independent Registered Public Accounting Firm,” which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025 . 42 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Affiliated Managers Group, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Affiliated Managers Group, Inc. and its affiliates (the “Company”) as of December 31, 2025 and 2024 , and the related consolidated statements of income, of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2025 , including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2025 , based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024 , and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 , based on criteria established in Internal Control — Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 8. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 43 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Impairment Assessment for Indefinite-lived Acquired Client Relationships As described in Notes 1 and 7 to the consolidated financial statements, the carrying value of indefinite-lived acquired client relationships was $1,484 million as of December 31, 2025. Management assesses for the possible impairment of indefinite- lived acquired client relationships annually or more frequently whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. As disclosed by management, if they determine that it is likely that the fair value has declined below the related carrying value, management performs discounted cash flow analyses to determine the fair value of the asset group and record an expense to reduce the carrying value to its fair value. During the year ended December 31, 2025, management completed impairment assessments of the indefinite-lived acquired client relationships for certain mutual fund assets and determined that the fair value of the assets had declined below their carrying values and recorded an impairment expense of $128 million, to reduce the carrying value of the assets to fair value. The decline in the fair value was a result of current and projected declines in assets under management that decreased the forecasted revenue associated with the assets. The most relevant assumptions used in these analyses were revenue growth rates over the next five years, long-term revenue growth rates, and discount rates. The principal considerations for our determination that performing procedures relating to the impairment assessment for indefinite-lived acquired client relationships is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the indefinite-lived acquired client relationships, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management’s significant assumptions related to the discount rates, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s impairment assessment for the indefinite-lived acquired client relationships, including controls over the significant assumptions related to the discount rates. These procedures also included, among others, (i) testing management’s process for developing the fair value estimate of the indefinite-lived acquired client relationships, (ii) testing the completeness and accuracy of certain underlying data used in the discounted cash flow analyses, and (iii) the involvement of professionals with specialized skill and knowledge to assist in evaluating (a) the appropriateness of the discounted cash flow analyses and (b) the reasonableness of the significant assumptions used by management related to the discount rates. /s/ PricewaterhouseCoopers LLP Boston, Massachusetts February 17, 2026 We have served as the Company’s auditor since 1993. 44 Table of Contents AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) For the Years Ended December 31, 2023 2024 2025 Consolidated revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,057.8 $ 2,040.9 $ 2,074.4 Consolidated expenses: Compensation and related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 907.5 915.3 1,019.8 Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358.2 376.5 408.6 Intangible amortization and impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.3 29.0 160.3 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.8 133.3 136.5 Depreciation and other amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.0 13.4 10.4 Other expenses (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.8 40.3 69.8 Total consolidated expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,496.6 1,507.8 1,805.4 Equity method income (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280.0 312.7 462.9 Affiliate transaction gains (Notes 7 and 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.1 — 371.3 Investment and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117.1 77.4 83.1 Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,091.4 923.2 1,186.3 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185.3 182.6 282.3 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 906.1 740.6 904.0 Net income (non-controlling interests) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 233.2 ) ( 229.0 ) ( 187.4 ) Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 672.9 $ 511.6 $ 716.6 Average shares outstanding (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.1 31.1 28.5 Average shares outstanding (diluted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 36.1 33.0 Earnings per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19.18 $ 16.45 $ 25.18 Earnings per share (diluted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17.42 $ 15.13 $ 22.74 The accompanying notes are an integral part of the Consolidated Financial Statements. 45 Table of Contents AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) For the Years Ended December 31, 2023 2024 2025 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 906.1 $ 740.6 $ 904.0 Other comprehensive income, net of tax: Foreign currency translation gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.1 1.5 70.2 Change in net realized and unrealized gain (loss) on derivative financial instruments . . 0.3 0.5 ( 0.9 ) Change in net unrealized gain (loss) on available-for-sale debt securities . . . . . . . . . . . 0.5 0.1 0.4 Other comprehensive income, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.9 2.1 69.7 Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 948.0 742.7 973.7 Comprehensive income (non-controlling interests) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 239.3 ) ( 227.1 ) ( 200.3 ) Comprehensive income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 708.7 $ 515.6 $ 773.4 The accompanying notes are an integral part of the Consolidated Financial Statements. 46 Table of Contents AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED BALANCE SHEETS (in millions, except par value) December 31, 2024 2025 Assets Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 950.0 $ 586.0 Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409.7 496.2 Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595.6 711.6 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,504.9 2,531.2 Acquired client relationships (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,777.8 1,639.3 Equity method investments in Affiliates (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,246.6 2,870.4 Fixed assets (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.6 54.4 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288.7 318.3 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,830.9 $ 9,207.4 Liabilities and Equity Payables and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 639.1 $ 806.9 Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,620.2 2,691.3 Deferred tax liability (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520.5 533.1 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.4 754.0 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,182.2 4,785.3 Commitments and contingencies (Note 6) Redeemable non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350.5 246.8 Equity: Common stock ( $ 0.01 par value, 153.0 shares authorized; 58.5 shares issued as of December 31, 2024 and 2025 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.6 Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733.1 616.1 Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 163.6 ) ( 106.8 ) Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,899.8 7,615.4 7,469.9 8,125.3 Less: Treasury stock, at cost ( 28.9 shares in 2024 and 31.5 shares in 2025 ) . . . . . . . . . . . . . . . . . ( 4,124.6 ) ( 4,886.9 ) Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,345.3 3,238.4 Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 952.9 936.9 Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,298.2 4,175.3 Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,830.9 $ 9,207.4 The accompanying notes are an integral part of the Consolidated Financial Statements. 47 Table of Contents AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in millions, except dividends per share) Total Stockholders’ Equity Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock at Cost Non- controlling Interests Total Equity December 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.6 $ 695.5 $ ( 203.4 ) $ 5,718.2 $ ( 2,980.6 ) $ 945.3 $ 4,175.6 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 672.9 — 233.2 906.1 Other comprehensive income, net of tax . . . . . . . . . . . . . . — — 35.8 — — 6.1 41.9 Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . — 59.4 — — — — 59.4 Common stock issued under share-based incentive plans . — ( 47.2 ) — — 15.9 — ( 31.3 ) Share repurchases, inclusive of excise tax . . . . . . . . . . . . . — 59.1 — — ( 411.4 ) — ( 352.3 ) Dividends ( $ 0.04 per share) . . . . . . . . . . . . . . . . . . . . . . . . — — — ( 1.5 ) — — ( 1.5 ) Affiliate equity-related activities: Affiliate equity expense . . . . . . . . . . . . . . . . . . . . . . . . . — 13.4 — — — 39.1 52.5 Issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 13.7 ) — — — 30.1 16.4 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 13.6 — — — ( 5.5 ) 8.1 Changes in redemption value of Redeemable non- controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 55.5 ) — — — — ( 55.5 ) Transfers from Redeemable non-controlling interests . . — — — — — 8.9 8.9 Capital contributions and other . . . . . . . . . . . . . . . . . . . . — — — — — 13.5 13.5 Distributions to non-controlling interests . . . . . . . . . . . . — — — — — ( 271.3 ) ( 271.3 ) Effect of deconsolidation of Affiliates . . . . . . . . . . . . . . . . — 16.8 — — — ( 17.2 ) ( 0.4 ) December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.6 $ 741.4 $ ( 167.6 ) $ 6,389.6 $ ( 3,376.1 ) $ 982.2 $ 4,570.1 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 511.6 — 229.0 740.6 Other comprehensive income (loss), net of tax . . . . . . . . . — — 4.0 — — ( 1.9 ) 2.1 Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . — 52.0 — — — — 52.0 Common stock issued under share-based incentive plans . — ( 44.2 ) — — ( 42.5 ) — ( 86.7 ) Share repurchases, inclusive of excise tax . . . . . . . . . . . . . — — — — ( 706.0 ) — ( 706.0 ) Dividends ( $ 0.04 per share) . . . . . . . . . . . . . . . . . . . . . . . . — — — ( 1.4 ) — — ( 1.4 ) Affiliate equity-related activities: Affiliate equity expense . . . . . . . . . . . . . . . . . . . . . . . . . — 15.6 — — — 39.4 55.0 Issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 4.3 ) — — — 10.6 6.3 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 3.5 ) — — — ( 20.5 ) ( 24.0 ) Changes in redemption value of Redeemable non- controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 23.9 ) — — — — ( 23.9 ) Transfers to Redeemable non-controlling interests . . . . . — — — — — ( 1.7 ) ( 1.7 ) Capital contributions and other . . . . . . . . . . . . . . . . . . . . — — — — — ( 26.2 ) ( 26.2 ) Distributions to non-controlling interests . . . . . . . . . . . . — — — — — ( 258.0 ) ( 258.0 ) December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.6 $ 733.1 $ ( 163.6 ) $ 6,899.8 $ ( 4,124.6 ) $ 952.9 $ 4,298.2 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 716.6 — 187.4 904.0 Other comprehensive income, net of tax . . . . . . . . . . . . . . — — 56.8 — — 12.9 69.7 Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . — 59.2 — — — — 59.2 Common stock issued under share-based incentive plans . — ( 48.5 ) — — ( 56.7 ) — ( 105.2 ) Conversion premium on junior convertible securities, net of tax (Note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 116.6 ) — — — — ( 116.6 ) Share repurchases, inclusive of excise tax . . . . . . . . . . . . . — — — — ( 705.6 ) — ( 705.6 ) Dividends ( $ 0.04 per share) . . . . . . . . . . . . . . . . . . . . . . . . — — — ( 1.0 ) — — ( 1.0 ) Affiliate equity-related activities: Affiliate equity expense . . . . . . . . . . . . . . . . . . . . . . . . . — 30.7 — — — 32.2 62.9 Issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 20.5 ) — — — 32.4 11.9 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 60.8 — — — ( 77.4 ) ( 16.6 ) Changes in redemption value of Redeemable non- controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 82.1 ) — — — — ( 82.1 ) Transfers from Redeemable non-controlling interests . . — — — — — 53.0 53.0 Capital contributions and other . . . . . . . . . . . . . . . . . . . . — — — — — ( 4.2 ) ( 4.2 ) Distributions to non-controlling interests . . . . . . . . . . . . — — — — — ( 252.3 ) ( 252.3 ) December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.6 $ 616.1 $ ( 106.8 ) $ 7,615.4 $ ( 4,886.9 ) $ 936.9 $ 4,175.3 The accompanying notes are an integral part of the Consolidated Financial Statements. 48 Table of Contents AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Years Ended December 31, 2023 2024 2025 Cash flow from (used in) operating activities: Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 906.1 $ 740.6 $ 904.0 Adjustments to reconcile Net income to cash flow from (used in) operating activities: Intangible amortization and impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.3 29.0 160.3 Depreciation and other amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.0 13.4 10.4 Deferred income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 60.6 83.8 Equity method income (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 280.0 ) ( 312.7 ) ( 462.9 ) Distributions received from equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490.8 403.9 467.8 Affiliate transaction gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 133.1 ) — ( 371.3 ) Share-based compensation and Affiliate equity expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112.1 111.6 202.8 Net realized and unrealized gains on investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 84.2 ) ( 39.3 ) ( 55.7 ) Other non-cash items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 10.8 ) ( 3.9 ) 8.1 Changes in assets and liabilities: Purchases of securities by consolidated Affiliate sponsored investment products . . . . . . . . . . . . . . . . . . . . . . . . ( 45.0 ) ( 76.5 ) ( 100.6 ) Sales of securities by consolidated Affiliate sponsored investment products . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.3 62.2 72.7 Increase in receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 48.4 ) ( 44.2 ) ( 49.8 ) Decrease (increase) in other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2 6.6 ( 28.1 ) (Decrease) increase in payables, accrued liabilities, and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 189.4 ) ( 19.2 ) 131.7 Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 874.3 932.1 973.2 Cash flow from (used in) investing activities: Investments in Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 294.7 ) ( 5.9 ) ( 776.0 ) Proceeds from Affiliate transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294.0 — 403.8 Return of capital from equity method investments in Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.7 9.8 Purchases of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 12.4 ) ( 3.4 ) ( 6.1 ) Purchases of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 731.1 ) ( 510.4 ) ( 103.8 ) Maturities and sales of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,008.5 898.1 266.2 Cash flow from (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264.5 379.1 ( 206.1 ) Cash flow from (used in) financing activities: Borrowings of senior bank debt, senior notes, and junior subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.0 847.6 899.3 Repayments of senior bank debt, junior convertible securities, and senior notes . . . . . . . . . . . . . . . . . . . . . . . . . ( 25.0 ) ( 750.0 ) ( 826.1 ) Repurchases of common stock, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 341.9 ) ( 709.8 ) ( 706.3 ) Dividends paid on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1.5 ) ( 1.4 ) ( 1.0 ) Distributions to non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 271.3 ) ( 258.0 ) ( 252.3 ) Affiliate equity purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 67.4 ) ( 106.5 ) ( 176.7 ) Affiliate equity issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.4 6.3 6.4 (Redemptions) subscriptions to consolidated Affiliate sponsored investment products, net . . . . . . . . . . . . . . . . ( 12.6 ) ( 6.4 ) 21.2 Settlement of deferred payments, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 21.7 ) ( 98.7 ) — Taxes paid on shares withheld on share-based awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 31.4 ) ( 87.1 ) ( 108.0 ) Other financing items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 23.9 ) ( 11.9 ) ( 5.2 ) Cash flow used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 758.3 ) ( 1,175.9 ) ( 1,148.7 ) Effect of foreign currency exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9 ( 4.2 ) 11.6 Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387.4 131.1 ( 370.0 ) Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429.2 813.6 950.0 Effect of consolidation (deconsolidation) of Affiliates and Affiliate sponsored investment products . . . . . . . . . . ( 3.0 ) 5.3 6.0 Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 813.6 $ 950.0 $ 586.0 Supplemental disclosure of cash flow information: Income taxes paid, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 314.5 $ 142.5 $ 110.7 Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110.4 138.2 137.9 Operating lease liabilities paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.7 39.4 35.4 Supplemental disclosure of non-cash investing and financing activities: Shares received from Affiliate transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 154.0 Conversion premium obligations on junior convertible securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 164.7 Stock issued upon vesting of restricted stock units and exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . 55.0 114.4 137.5 Payables recorded for Affiliate equity purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.0 35.0 131.4 Stock received for tax withholdings on share-based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 87.1 108.0 Stock received for the exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 113.9 103.1 Payables recorded for investments in Affiliates and contingent payment obligations . . . . . . . . . . . . . . . . . . . . . 57.6 7.0 83.7 Right-of-use assets obtained in exchange for new operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.5 8.8 13.0 The accompanying notes are an integral part of the Consolidated Financial Statements. 49 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Business and Summary of Significant Accounting Policies (a) Organization and Nature of Operations Affiliated Managers Group, Inc. (“AMG” or the “Company”) is a strategic partner to leading independent investment management firms globally. AMG’s strategy is to generate long-term value by investing in high-quality independent partner- owned firms, which the Company refers to as “Affiliates.” The Company’s Affiliates provide a comprehensive and diverse range of differentiated investment strategies designed to assist institutional and wealth clients worldwide in achieving their investment objectives. Each of the Company’s Affiliates operates through distinct legal entities, which affords the Company the flexibility to design a separate operating agreement for each Affiliate. Each operating agreement reflects the specific terms of the Company’s economic participation in the Affiliate, which, in each case, uses a “structured partnership interest.” The form of the Company’s structured partnership interests in Affiliates differs from Affiliate to Affiliate and ranges from structures where the Company contractually shares in the Affiliate’s revenue without regard to expenses, comprising Affiliates that contribute a majority of the Company’s Consolidated revenue, to others where the Company contractually shares in the Affiliate’s revenue less agreed-upon expenses. Further, the structure at a particular Affiliate, or the expenses that the Company agrees to share in, may change during the course of the Company’s investment. Where the Company shares in the Affiliate’s revenue without regard to expenses, the Affiliate allocates a specified percentage of its revenue to the Company and Affiliate management, while using the remainder for operating expenses and additional distributions to Affiliate management. The Company 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, the Company’s contractual share of revenue generally has priority over distributions to Affiliate management. Where the Company shares in the Affiliate’s revenue less agreed-upon expenses, the Company benefits from any increase in revenue or any decrease in the agreed-upon expenses, but also has exposure to any decrease in revenue or any increase in such agreed-upon expenses. The degree of the Company’s exposure to agreed-upon expenses from these structured partnership interests varies by Affiliate. (b) Basis of Presentation and Use of Estimates The Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All intercompany balances and transactions have been eliminated. Certain reclassifications have been made to the prior period’s financial statements to conform to the current period’s presentation. All dollar amounts, except per share, per unit, and per option data in the text and tables herein, are stated in millions unless otherwise indicated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. (c) Pr inciples of Consolidation In evaluating whether an investment must be consolidated, the Company evaluates the risk, rewards, and significant terms of each of its Affiliates and other investments to determine if an investment is considered a voting rights entity (“VRE”) or a variable interest entity (“VIE”). An entity is a VRE when the total equity investment at risk is sufficient to enable the entity to finance its activities independently, and when the equity holders have the obligation to absorb losses, the right to receive residual returns, and the right to direct the activities of the entity that most significantly impact its economic performance. An entity is a VIE when it lacks one or more of the characteristics of a VRE, which, for the Company, are Affiliate investments structured as partnerships (or similar entities) where the Company is a limited partner and lacks substantive kick-out or substantive participation rights over the general partner. Assessing whether an entity is a VRE or VIE involves judgment. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a VRE or a VIE. The Company consolidates VREs when it has control over significant operating, financial, and investing decisions of the entity. When the Company lacks such control, but is deemed to have significant influence, the Company accounts for the VRE under the equity method. Investments with readily determinable fair values in which the Company does not have rights to exercise significant influence are recorded at fair value on the Consolidated Balance Sheets, with changes in fair value included in Investment and other income on the Consolidated Statements of Income. 50 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company consolidates VIEs when it is the primary beneficiary of the entity, which is defined as having the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Substantially all of the Company’s consolidated Affiliates considered VIEs are controlled because the Company holds a majority of the voting interests or it is the managing member or general partner. Furthermore, an Affiliate’s assets can be used for purposes other than the settlement of the respective Affiliate’s obligations. The Company applies the equity method of accounting to VIEs where the Company is not the primary beneficiary, but has the ability to exercise significant influence over operating and financial matters of the VIE. See Note 4. In vestments in Affiliates Substantially all of the Company’s Affiliates are considered VIEs and are either consolidated or accounted for under the equity method. A limited number of the Company’s Affiliates are considered VREs and most of these are accounted for under the equity method. When an Affiliate is consolidated, the portion of the earnings attributable to Affiliate management’s and any co-investor’s equity ownership is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Undistributed earnings attributable to Affiliate management’s and any co-investor’s equity ownership, along with their share of any tangible or intangible net assets, are included in Non-controlling interests on the Consolidated Balance Sheets. Affiliate equity interests where the holder has certain rights to demand settlement are presented, at their current redemption values, as Redeemable non-controlling interests or Other liabilities on the Consolidated Balance Sheets. The Company periodically issues, sells, and purchases the equity of its consolidated Affiliates. Because these transactions take place between entities under common control, any gains or losses attributable to these transactions are required to be included in Additional paid-in capital on the Consolidated Balance Sheets, net of any related income tax effects in the period the transaction occurs. When an Affiliate is accounted for under the equity method, the Company’s share of an Affiliate’s earnings or losses, net of amortization and impairments, is included in Equity method income (net) in the Consolidated Statements of Income and the carrying value of the Affiliate is recorded in Equity method investments in Affiliates (net) in the Consolidated Balance Sheets. The Company periodically performs assessments to determine if the fair value of an investment may have declined below its related carrying value for its Affiliates accounted for under the equity method for a period that the Company considers to be other-than-temporary. The Company performs these assessments if certain triggering events occur or annually during the fourth quarter. The Company first considers whether certain qualitative factors indicate an increased likelihood of a decline in the fair value of an Affiliate during the reporting period. If such a decline is identified, and it is likely that an investment’s fair value may have declined below its carrying value, the Company performs a quantitative assessment to determine if an impairment exists. Impairments are recorded as an expense in Equity method income (net) to reduce the carrying value of the Affiliate to its fair value. Affiliate Sponsored Investment Products The Company’s Affiliates sponsor various investment products where the Affiliate also acts as the investment adviser. These investment products are typically owned primarily by third-party investors; however, certain products are funded with general partner and seed capital investments from the Company and its Affiliates. Third-party investors in Affiliate sponsored investment products are generally entitled to substantially all of the economics of these products, except for the asset- and performance-based fees earned by the Company’s Affiliates or any gains or losses attributable to the Company’s or its Affiliates’ investments in these products. As a result, the Company generally does not consolidate these products. However, for certain products, the Company’s consolidated Affiliates, as the investment manager, have the power to direct the activities of the investment product and have an exposure to the economics of the product that is more than insignificant, though generally only for a short period while the product is established and has yet to attract significant third-party investors. When the products are consolidated, the Company retains the specialized investment company accounting principles of the underlying products, and all of the underlying investments are carried at fair value in Investments on the Consolidated Balance Sheets, with corresponding changes in the investments’ fair values included in Investment and other income. Purchases and sales of securities are included in purchases and sales of securities by consolidated Affiliate sponsored investment products in the Consolidated Statements of Cash Flows, respectively, and the third-party investors’ interests are recorded in Redeemable non-controlling interests. When the Company or its consolidated Affiliates no longer control these products, due to a reduction in ownership or other reasons, the products are deconsolidated with only the Company’s or its consolidated Affiliate’s investment in the product reported from the date of deconsolidation. 51 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (d) Ca sh and Cash Equivalents The Company considers certain highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. Money market mutual funds with a floating net asset value (“NAV”) would not meet the definition of a cash equivalent if the fund has enacted liquidity fees or redemption gates . (e) Re ceivables The Company’s Affiliates earn asset- and performance-based fees, which are billed based on the terms of the related contracts. Billed but uncollected asset- and performance-based fees are recorded in Receivables on the Consolidated Balance Sheets and are generally short-term in nature. Certain of the Company’s Affiliates in the UK act as intermediaries between clients and their sponsored investment products. Normal settlement periods on transactions initiated by these clients with the sponsored investment products result in unsettled fund share receivables and payables that are presented on a gross basis within Receivables and Payables and accrued liabilities on the Consolidated Balance Sheets. The gross presentation of these receivables and offsetting payables reflects the legal relationship between the underlying investors, the Company’s Affiliates, and the sponsored investment products. (f) In vestments Marketable securities Equity securities Equity securities are measured at fair value which reflects the cost of the investment as well as unrealized gains and losses which are recorded in Investment and other income. Realized gains and losses on equity securities are recorded in Investment and other income on the trade date on a specific identification basis, except for consolidated Affiliate sponsored investment products which use an average cost basis. Debt securities Debt securities are classified as either trading, available-for-sale, or held-to-maturity based on the Company’s intent and ability to hold the security. Securities classified as trading are measured at fair value which reflects the cost of the investment as well as unrealized gains and losses which are recorded in Investment and other income. Securities classified as available-for- sale are measured at fair value which reflects amortized cost of the investment as well as unrealized gains and losses which are recorded in Accumulated other comprehensive loss as a separate component of stockholders’ equity on the Consolidated Balance Sheets. Securities classified as held-to-maturity are measured at amortized cost. Realized gains and losses on debt securities are recorded in Investment and other income. Other investments Investments Measured at NAV as a Practical Expedient The Company’s Affiliates sponsor investment products in which the Company and its Affiliates may make general partner and seed capital investments. These products generally operate in partnership form and apply the specialized fair value accounting for investment companies . Because the products’ investments do not have readily determinable fair values, the Company uses the NAV of these investments as a practical expedient for their fair values. Investments Without Readily Determinable Fair Values When an investment does not have a readily determinable fair value and does not qualify for the practical expedient to estimate fair value, such as an investment in a private corporation where the Company does not exercise significant influence, the Company generally elects to measure such investments at cost minus impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Realized and unrealized gains and losses related to other investments are recorded in Investment and other income. (g) Fair Value Measurements The Company determines the fair value of certain investment securities and other financial and non-financial assets and liabilities. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an 52 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) orderly transaction between market participants in the principal or most advantageous market at the measurement date, utilizing a hierarchy of three different valuation techniques: Level 1 - Unadjusted quoted market prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs, or significant value drivers, are observable; and Level 3 - Prices that reflect the Company’s own assumptions concerning unobservable inputs to the valuation model. In these valuation models, the Company is required to make judgments about growth rates of assets under management, client attrition, asset- and performance-based fee rates, and expenses. These valuation models also require judgments about tax benefits, credit risk, interest rates, tax rates, discount rates, volatility, and discounts for lack of marketability. These inputs require significant management judgment and reflect the Company’s assumptions that the Company believes market participants would use in pricing the asset or liability. (h) Acquired Client Relationships and Goodwill Each Affiliate in which the Company makes an investment has identifiable assets arising from contractual or other legal rights with their clients (“acquired client relationships”). In determining the value of acquired client relationships, the Company analyzes the net present value of these Affiliates’ existing client relationships based on a number of factors, including: the Affiliate’s historical and potential future operating performance; the Affiliate’s historical and potential future rates of attrition of existing clients; the stability and longevity of existing client relationships; the Affiliate’s recent, as well as long-term, investment performance; the characteristics of the firm’s products and investment styles; the stability and depth of the Affiliate’s management team; and the Affiliate’s history and perceived franchise or brand value. The Company has determined that certain of its acquired client relationships meet the criteria to be considered indefinite- lived assets because the Company expects the contracts to be renewed annually and, therefore, the cash flows generated by these contracts to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead assesses these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived acquired client relationship may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred that indicate that the indefinite life criteria are no longer met. The Company has determined that certain of its acquired client relationships meet the criteria to be considered definite- lived assets, including investment advisory contracts between its Affiliates and their underlying investors, and are amortized over their expected period of economic benefit. The expected period of economic benefit of definite-lived acquired client relationships is a judgment based on the historical and projected attrition rates of each Affiliate’s existing clients, and other factors that may influence the expected future economic benefit the Company will derive from these relationships. The expected lives of definite-lived acquired client relationships are analyzed annually or more frequently whenever events or circumstances have occurred that indicate the expected period of economic benefit may no longer be appropriate. The Company assesses for the possible impairment of indefinite- and definite-lived acquired client relationships annually or more frequently whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If such indicators exist, the Company considers various qualitative and quantitative factors (including market multiples) to determine if the fair value of each asset is greater than its carrying value. If the carrying value is greater than the fair value, an expense would be recorded in Intangible amortization and impairments in the Consolidated Statements of Income to reduce the carrying value of the asset to fair value. Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not separately recognized. Goodwill is not amortized, but is instead reviewed for impairment. The Company performs an impairment assessment annually or more frequently whenever events or circumstances occur indicating that the carrying value of its single reporting unit is in excess of its fair value. In this assessment, the Company typically measures the fair value of its reporting unit using various qualitative and quantitative factors (including the Company’s market capitalization and market multiples for asset management businesses). If a potential impairment is more-likely-than-not, then the Company will perform a single step assessment with any excess of carrying value over fair value recorded as an expense in Intangible amortization and impairments. (i) Fi xed Assets Fixed assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from two years to ten years and three years to ten 53 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) years , respectively. Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, which is generally two years to five years . Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease. Buildings are amortized over their expected useful lives, generally not to exceed 39 years . The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land and artwork are not depreciated; artwork is included in Other assets on the Consolidated Balance Sheets. (j) Le ases Leases are classified as either operating leases or finance leases. The Company and its Affiliates currently lease office space and equipment primarily under operating lease arrangements. As these leases expire, it is expected that, in the normal course of business, they will be renewed or replaced. Whether a lease is classified as an operating lease or a finance lease, the Company and its Affiliates must record a right-of-use asset and a lease liability at the commencement date of the lease, other than for leases with an initial term of 12 months or less. The Company and its Affiliates elect not to record short-term leases with an initial lease term less than 12 months on the Consolidated Balance Sheets. Right-of-use assets and lease liabilities are included in Other assets and Other liabilities, respectively. A lease liability is initially and subsequently reported at the present value of the outstanding lease payments determined by discounting those lease payments over the remaining lease term using the incremental borrowing rate of the legal entity entering into the lease as of the commencement date. A right-of-use asset is initially reported at the present value of the corresponding lease liability plus any prepaid lease payments and initial direct costs of entering into the lease, and reduced by any lease incentives. Subsequently, a right-of-use asset is reported at the present value of the lease liability adjusted for any prepaid or accrued lease payments, remaining balances of any lease incentives received, unamortized initial direct costs of entering into the lease, and any impairments of the right-of-use asset. The Company and its Affiliates test for possible impairments of right-of-use assets annually or more frequently whenever events or changes in circumstances indicate that the carrying value of a right-of-use asset may exceed its fair value. If the carrying value of the right-of-use asset exceeds its fair value, then the carrying value of the right-of-use asset is reduced to its fair value and the expense is recorded in Other expenses (net) in the Consolidated Statements of Income. Subsequent to an impairment, the carrying value of the right-of-use asset is amortized on a straight-line basis over the remaining lease term. Lease liabilities and right-of-use assets based on variable lease payments that depend on an index or rate are initially measured using the index or rate at the commencement date with any subsequent changes in variable lease payments recorded in Other expenses (net) as incurred. Most lease agreements for office space that are classified as operating leases contain renewal options, rent escalation clauses, or other lease incentives provided by the lessor. Lease expense is accrued to recognize lease escalation provisions and renewal options that are reasonably certain to be exercised, as well as lease incentives provided by the lessor, on a straight-line basis over the lease term and is recorded in Other expenses (net). If a right-of-use asset is impaired, the lease expense is subsequently recorded in Other expenses (net) as the straight-line amortization of the right-of-use asset and the accretion of the lease liability, thereby transitioning to a front-loaded expense recognition profile for the associated lease. The Company and its Affiliates combine lease and non-lease components for their office space leases and separate non- lease components for their equipment leases in calculating their lease liabilities. Sublease income is recorded in Investment and other income. (k) Debt The Company’s debt instruments are carried at amortized cost. Unamortized discounts and debt issuance costs associated with its debt instruments, with the exception of the Company’s senior unsecured multicurrency revolving credit facility (the “revolver”), are presented on the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt. The carrying value of the debt is accreted to the principal amount at maturity over the remaining life of the underlying debt. The accretion of the debt and the amortization of debt issuance costs, are recorded in Interest expense in the Consolidated Statements of Income, using the effective interest method. Unamortized issuance costs associated with the revolver are recorded in Other assets and amortized over the remaining term of the revolver to Interest expense. Gains and losses on repurchases or settlement of debt are recorded in Interest expense. 54 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (l) De rivative Financial Instruments The Company and its Affiliates may use derivative financial instruments to offset exposure to changes in interest rates, foreign currency exchange rates, and markets. The Company records derivatives on the Consolidated Balance Sheets at fair value. The Company assesses hedge effectiveness at derivative inception and on a quarterly basis. Changes in fair value of a hedging instrument that are excluded from the assessment of hedge effectiveness, also known as excluded components, are recorded in earnings on a straight-line basis over the respective period of the contracts. For derivative financial instruments designated as cash flow hedges, the Company uses a qualitative method of assessing hedge effectiveness by comparing the notional amounts, timing of payments, currencies (for forward foreign currency contracts), and interest rates (for interest rate swaps). The effective portion of the unrealized gain or loss is recorded in Accumulated other comprehensive loss as a separate component of stockholders’ equity and reclassified to earnings with the hedged item. If the qualitative assessment indicates ineffectiveness, then the Company performs a quantitative assessment which is generally measured by comparing the present value of the cumulative change in the expected future cash flows of the hedged contract with the present value of the cumulative change in the expected future cash flows of the hedged item. Upon termination of these instruments or the repayment of the Company’s outstanding Secured Overnight Financing Rate (“SOFR”)- based borrowings, any gain or loss recorded in Accumulated other comprehensive loss will be reclassified into earnings. Changes in the fair values of cash flow hedges are recorded in Change in net realized and unrealized gain (loss) on derivative financial instruments in the Consolidated Statements of Comprehensive Income. For net investment hedges, hedge effectiveness is measured using the spot rate method. The effective portion of the unrealized gain or loss is recorded in Accumulated other comprehensive loss as a separate component of stockholders’ equity and reclassified to earnings with the hedged item. Changes in the fair values of the effective net investment hedges are recorded in Foreign currency translation gain in the Consolidated Statements of Comprehensive Income. Upon the sale or liquidation of the underlying investment, any gain or loss remaining in Accumulated other comprehensive loss will be reclassified to earnings. If the Company’s or its Affiliates’ derivative financial instruments do not qualify as effective hedges, changes in the fair value of the derivatives are recorded as a gain or loss in Investment and other income. (m) Revenue Recognition Consolidated revenue primarily represents asset- and performance-based fees earned by the Company and its consolidated Affiliates for managing the assets of clients. Substantially all of the Company’s and its Affiliates’ contracts contain a single performance obligation, which is the provision of investment management services. Investment management, broker-dealer, and administrative services are performed and consumed simultaneously and, therefore, the Company recognizes these asset- based fees ratably over time. Substantially all the Company’s asset-based fees for services are based on the value of client assets over time, which are typically determined using observable market data, or on committed capital. Services may be invoiced in advance or in arrears and are payable upon receipt. Any asset-based fees collected in advance are deferred and recognized as the services are performed and consumed. Consolidated revenue recognized by the Company is adjusted for any expense reimbursement arrangements. The Company’s Affiliates may periodically either waive or reduce fees in order to attract or retain client assets or for other reasons. Fee waivers or reductions are presented as a reduction to Consolidated revenue in the Consolidated Statements of Income. Performance-based fees, including carried interest, are recognized upon the satisfaction of performance obligations, the resolution of any constraints, which include exceeding performance benchmarks or hurdle rates that may extend over one or more reporting periods, and when it is improbable that there will be a significant reversal in the amount of revenue recognized. As a result, any performance-based fees or carried interest recognized in the current reporting period may relate to performance obligations satisfied in a previous reporting period. The Company and its Affiliates have contractual arrangements with third-parties to provide distribution-related services. Fees received and expenses incurred under these arrangements are primarily based on the value of client assets over time. Distribution-related fees are recorded in Consolidated revenue gross of any related expenses when the Company and its consolidated Affiliates are the principal in their role as primary obligor under their distribution-related services arrangements. Distribution-related expenses are recorded in Selling, general and administrative in the Consolidated Statements of Income. The Company and its Affiliates may enter into contracts for which the costs to obtain or fulfill the contract are based upon a percentage of the value of a client’s future assets under management. The Company records these variable costs when incurred because they are subject to market volatility and are not estimable upon the inception of a contract with a client. Any 55 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) expenses paid in advance are capitalized and amortized on a systematic basis, consistent with the transfer of services, which is the equivalent of recognizing the costs as incurred. (n) Co ntingent Payment Obligations The Company periodically enters into contingent payment obligations in connection with its investments in Affiliates. In these obligations, the Company agrees to pay additional consideration to the sellers to the extent that certain specified financial targets are achieved. For consolidated Affiliates, the Company estimates the fair value of these potential future obligations at the time the investment in an Affiliate is consummated and records a liability in Other liabilities. The Company then accretes the obligation to its expected payment amount over the period until the arrangement is measured. If the Company’s expected payment amount subsequently changes, the obligation is reduced or increased in the current period resulting in a gain or loss, respectively. Gains and losses resulting from changes to expected payments are included in Other expenses (net) and the accretion of these obligations to their expected payment amounts are included in Interest expense. For Affiliates accounted for under the equity method, the Company records a liability in Other liabilities when a payment becomes probable, with a corresponding increase to the carrying value of the Affiliate in Equity method investments in Affiliates (net). (o) In come Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial reporting bases of assets and liabilities and their respective tax bases, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in Income tax expense in the Consolidated Statements of Income in the period when the change is enacted. The Company regularly assesses the recoverability of its deferred tax assets to determine whether these assets are more- likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If the Company determines it would not be able to realize its deferred tax assets, it records a valuation allowance to reflect the deferred tax assets at their current value. The recording of adjustments to the valuation allowance will generally increase or decrease Income tax expense. The Company records unrecognized tax benefits based on whether it is more-likely-than-not that the uncertain tax positions will be sustained on the basis of the technical merits of the position. If it is determined that an uncertain tax position is more- likely-than-not to be sustained, the Company records the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority in Income tax expense. Interest and penalties related to unrecognized tax benefits are also recorded in Income tax expense. The Company has elected to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense . (p) Fo reign Currency Translation Assets and liabilities denominated in a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the Consolidated Balance Sheet date. Revenue and expenses denominated in a functional currency other than the U.S. dollar are translated into U.S. dollars using average exchange rates for the relevant period. Because of the long-term nature of the Company’s investments in its Affiliates, net translation exchange gains and losses resulting from foreign currency translation are recorded in Accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in Investment and other income. (q) Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments and derivative financial instruments. The Company and its Affiliates maintain cash and cash equivalents, investments, and, at times, certain derivative financial instruments with various high credit-quality financial institutions. These financial institutions are typically located in countries in which the Company and its Affiliates operate. For the Company and certain of its Affiliates, cash deposits at a financial institution may, from time to time, exceed insurance limits (similar to Federal Deposit Insurance Corporation insurance limits). 56 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (r) Earnings Per Share The calculation of Earnings per share (basic) is based on the weighted average number of shares of the Company’s common stock outstanding during the period. Earnings per share (diluted) is similar to Earnings per share (basic), but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company’s common stock. The Company had share-based compensation awards outstanding during the periods presented with vesting provisions subject to certain performance conditions. These awards are excluded from the calculation of Earnings per share (diluted) if the performance condition has not been met as of the end of the reporting period. The Company has agreements with Affiliate equity holders that provide the Company a conditional right to call and holders a conditional right to put their interests to the Company at certain intervals. These arrangements are presented at their current redemption value as Redeemable non-controlling interests. The Company may settle these interests in cash or, subject to the terms of the applicable agreement, shares of its common stock, or other forms of consideration, at its option. The Company must assume the settlement of all of its Redeemable non-controlling interests using the maximum number of shares permitted under its arrangements. Purchases are assumed to occur at the beginning of the reporting period. The Company acquires the rights to the underlying Affiliate equity when purchased, and therefore, the earnings that would be acquired (net of tax) are assumed to increase Net income (controlling interest) in the computation of Earnings per share (diluted) . The issuance of shares and the related income acquired are excluded from the calculation if an assumed purchase of Redeemable non- controlling interests would be anti-dilutive to diluted earnings per share. The Company had junior convertible securities outstanding during the periods presented and is required to apply the if- converted method to these securities in its calculation of Earnings per share (diluted) for the period in which they were outstanding. Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into the Company’s common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest) in the Consolidated Statements of Income, reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share. (s) Sh are-Based Compensation Plans The Company recognizes expenses for all share-based compensation arrangements based on the number of awards expected to vest. The expense for awards without performance conditions is recognized on a straight-line basis over the requisite service period, including grants that are subject to graded vesting. The Company recognizes expenses for all other arrangements on a straight-line basis for each separately vesting portion of the award. Tax windfalls or shortfalls are recorded in Income tax expense and have been classified as operating activities in the Consolidated Statements of Cash Flows. Taxes paid by the Company when it withholds shares to satisfy tax withholding obligations are classified as a financing activity in the Consolidated Statements of Cash Flows. (t) Re cently Adopted Accounting Standards and Developments Recently Adopted Accounting Standards Effective for the financial year ended December 31, 2024 and for interim periods beginning January 1, 2025, the Company adopted Accounting Standard Update (“ASU”) 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. Effective January 1, 2025, the Company adopted ASU 2024-01, Compensation — Stock Compensation: Scope Application of Profits Interest and Similar Awards. Effective for the financial year ended December 31, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, using a retrospective method, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The adoption of these standards did not have a material impact on the Company’s Consolidated Financial Statements. R ecent Accounting Development s In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires improved disclosure of the nature and disaggregation of income statement expenses. The standard is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 57 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2027. The Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial Statements. In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which revises guidance on how an entity should identify the accounting acquirer in a business combination in which the legal acquiree is a VIE. The standard is effective for annual periods beginning after December 15, 2026 and interim periods within those annual reporting periods. The Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial Statements. In September 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which increases the operability of the recognition guidance considering different methods of software development. The standard is effective for annual periods beginning after December 15, 2027 and interim periods within those annual reporting periods. The Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial Statements. In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which amends certain aspects of the hedge accounting guidance to more closely align hedge accounting with the economics of an entity’s risk management activities. The standard is effective for annual reporting periods beginning after December 15, 2026 and interim periods within those annual reporting periods. The Company is currently evaluating the potential impact that this standard may have on its Consolidated Financial Statements. 2. Investments The following table summarizes the Company’s Investments: December 31, 2024 2025 Marketable securities Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32.3 $ 34.8 Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.3 50.0 Total marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.6 84.8 Other investments Investments measured at NAV as a practical expedient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488.6 576.4 Investments without readily determinable fair values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.4 50.4 Total other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539.0 626.8 Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 595.6 $ 711.6 Marketable Securities Equity Securities The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in equity securities: December 31, 2024 2025 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30.0 $ 37.5 Unrealized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 6.1 Unrealized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1.4 ) ( 8.8 ) Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32.3 $ 34.8 As of December 31, 2024 and 2025 , investments in equity securities include consolidated Affiliate sponsored investment products with fair values of $ 10.9 million and $ 9.2 million , respectively. For the years ended December 31, 2023 , 2024 , and 2025 , the Company recognized net unrealized gains on equity securities still held as of December 31, 2023 , 2024 , and 2025 of $ 2.9 million , $ 1.2 million , and $ 5.5 million , respectively. 58 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Debt Securities The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in consolidated Affiliate sponsored investment products classified as trading: December 31, 2024 2025 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24.6 $ 49.4 Unrealized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1.1 Unrealized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.3 ) ( 0.5 ) Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24.3 $ 50.0 For the years ended December 31, 2023 , 2024 , and 2025 , the Company recognized net unrealized gains on debt securities classified as trading still held as of December 31, 2023 , 2024 , and 2025 of $ 0.8 million , $ 0.5 million , and $ 2.8 million , respectively . For the years ended December 31, 2023 and 2024 , the Company received $ 511.1 million and $ 825.2 million of proceeds from the maturities of available-for-sale securities, respectively. For the year ended December 31, 2025 , there were no maturities of available-for-sale securities. Other Investments Investments Measured at NAV as a Practical Expedient The following table summarizes the fair values of investments that are measured at NAV as a practical expedient and any related unfunded commitments: December 31, 2024 December 31, 2025 Fair Value Unfunded Commitments Fair Value Unfunded Commitments Investments with limited liquidity (1) . . . . . . . . . . . . . . . . . . . . $ 486.9 $ 205.5 $ 535.7 $ 258.3 Investments with periodic liquidity (2) . . . . . . . . . . . . . . . . . . . 1.7 — 40.7 24.7 Total (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 488.6 $ 205.5 $ 576.4 $ 283.0 ___________________________ (1) The Company expects to receive distributions related to its interests in investments with limited liquidity as the underlying assets are liquidated over the life of the investments, which is generally up to 15 years . The Company accounts for the majority of its interests in investments with limited liquidity one quarter in arrears (adjusted for current period calls and distributions). (2) Investments with periodic liquidity are generally redeemable on a daily, monthly, or quarterly basis. (3) Investments measured at NAV as a practical expedient primarily invest in a broad range of private markets. Fair value attributable to the controlling interest was $ 370.1 million and $ 456.6 million as of December 31, 2024 and 2025 , respectively. Investments Without Readily Determinable Fair Values The following table summarizes the cost, cumulative unrealized gains, and carrying amount of the Company’s investment in a private corporation where it does not exercise significant influence, and does not have a readily determinable fair value: December 31, 2024 2025 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8.5 $ 8.5 Cumulative unrealized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.9 41.9 Carrying amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50.4 $ 50.4 59 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the years ended December 31, 2023 , 2024 , and 2025 , the Company did not recognize any net unrealized gains or losses on the underlying investment still held as of December 31, 2023 , 2024 , and 2025 , respectively. The following table presents the changes in other investments: For the Years Ended December 31, 2024 2025 Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Balance, beginning of period . . . . . . . $ 430.5 $ 50.4 $ 480.9 $ 488.6 $ 50.4 $ 539.0 Purchases and commitments funded (1) 92.0 — 92.0 147.6 — 147.6 Sales and distributions . . . . . . . . . . . . ( 62.2 ) — ( 62.2 ) ( 105.5 ) — ( 105.5 ) Net realized and unrealized gains . . . 28.3 — 28.3 45.7 — 45.7 Balance, end of period . . . . . . . . . . . . $ 488.6 $ 50.4 $ 539.0 $ 576.4 $ 50.4 $ 626.8 ___________________________ (1) For the year ended December 31, 2025, purchases and commitments funded includes the transfer of $ 53.4 million of interests from Equity method investments in Affiliates (net) associated with the Comvest Transaction. See Note 8. 3. Fair Value Measurements The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements December 31, 2024 Level 1 Level 2 Level 3 Financial Assets (1) Investments in equity securities . . . . . . . . . . . . . . . . . . . . . . $ 32.3 $ 32.3 $ — $ — Investments in debt securities . . . . . . . . . . . . . . . . . . . . . . . 24.3 — 24.3 — Financial Liabilities (2) Contingent payment obligations . . . . . . . . . . . . . . . . . . . . . $ 5.7 $ — $ — $ 5.7 Affiliate equity purchase obligations . . . . . . . . . . . . . . . . . . 54.8 — — 54.8 Fair Value Measurements December 31, 2025 Level 1 Level 2 Level 3 Financial Assets (1) Investments in equity securities . . . . . . . . . . . . . . . . . . . . . . $ 34.8 $ 34.8 $ — $ — Investments in debt securities . . . . . . . . . . . . . . . . . . . . . . . 50.0 — 50.0 — Financial Liabilities (2) Contingent payment obligations . . . . . . . . . . . . . . . . . . . . . $ 0.0 $ — $ — $ 0.0 Affiliate equity purchase obligations . . . . . . . . . . . . . . . . . . 161.2 — — 161.2 ___________________________ (1) Amounts are recorded in Investments. (2) Amounts are recorded in Other liabilities . 60 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Level 3 Financial Liabilities The following table presents the changes in Level 3 liabilities: For the Years Ended December 31, 2024 2025 Contingent Payment Obligations Affiliate Equity Purchase Obligations Contingent Payment Obligations Affiliate Equity Purchase Obligations Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . $ 14.7 $ 53.9 $ 5.7 $ 54.8 Purchases and issuances (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 110.0 — 240.5 Settlements and reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 108.7 ) ( 4.9 ) ( 176.5 ) Net realized and unrealized (gains) losses (2) . . . . . . . . . . . . . . ( 9.0 ) ( 0.4 ) ( 0.8 ) 42.4 Balance, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.7 $ 54.8 $ 0.0 $ 161.2 Net change in unrealized (gains) losses relating to instruments still held at the reporting date (1) . . . . . . . . . . . . . . $ ( 9.0 ) $ 0.1 $ ( 0.1 ) $ 43.3 ___________________________ (1) Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests. (2) Gains and losses resulting from changes to expected payments related to contingent payment obligations and the accretion of these obligations are included in Other expenses (net) and included in Interest expense, respectively. Changes to the redemption value of Affiliate equity purchase obligations are included in Compensation and related expenses in the Consolidated Statements of Income. The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s recurring Level 3 fair value measurements: Quantitative Information about Level 3 Fair Value Measurements December 31, 2024 December 31, 2025 Valuation Techniques Unobservable Input Fair Value Range Weighted Average (1) Fair Value Range Weighted Average (1) Contingent payment obligations . . . . . . . . . Monte Carlo simulation Volatility $ 5.7 18 % 18 % $ 0.0 13 % 13 % Discount rates 4 % 4 % 5 % 5 % Affiliate equity purchase obligations . . Discounted cash flow Growth rates (2) $ 45.2 ( 4 )% - 9 % ( 1 ) % $ 113.0 ( 10 )% - 11 % 3 % Discount rates 12 % - 19 % 14 % 11 % - 18 % 14 % Monte Carlo simulation Volatility $ 9.6 10 % - 15 % 11 % $ 48.2 15 % 15 % Discount rates 6 % 6 % 5 % 5 % ___________________________ (1) Calculated by comparing the relative fair value of an obligation to its respective total. (2) Represents growth rates of asset- and performance-based fees. Contingent payment obligations represent the fair value of the expected future settlement amounts related to the Company’s investments in its consolidated Affiliates. Changes to assumed volatility and discount rates change the fair value of contingent payment obligations. Increases to the volatility rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values. Affiliate equity purchase obligations include agreements to purchase Affiliate equity and represent the fair value of the expected future settlement amounts. When using a discounted cash flow valuation technique, increases to the assumed growth rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values. When using a Monte Carlo valuation technique, changes to assumed volatility and discount rates change the fair value of Affiliate equity purchase obligations. Increases to the volatility rates used would result in higher fair values, while increases to the 61 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) discount rates used would result in lower fair values. As of December 31, 2025 , there were no changes to valuation inputs that had a significant impact to Affiliate equity purchase obligations recorded in prior periods. Other Financial Assets and Liabilities Not Carried at Fair Value The following table summarizes the Company’s other financial liabilities not carried at fair value: December 31, 2024 December 31, 2025 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,097.4 $ 1,062.9 $ 1,172.0 $ 1,171.0 Level 2 Junior subordinated notes . . . . . . . . . . . . . . . 1,216.0 1,035.6 1,216.1 995.2 Level 2 The carrying amount of Cash and cash equivalents, Receivables, Payables and accrued liabilities, and certain Other liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of the revolver approximates fair value because the revolver has variable interest based on selected short-term rates. 4. Investments in Affiliates and Affiliate Sponsored Investment Products Investments in Affiliates The Company’s Affiliates are consolidated or accounted for under the equity method, depending upon the underlying structure of and relationship with each Affiliate. Substantially all of the Company’s consolidated Affiliates are VIEs. The Company’s Affiliates accounted for under the equity method considered VIEs generally require minimal levels of working capital on each Affiliate’s balance sheet. Certain of the Company’s Affiliates accounted for under the equity method hold general partner and seed investments, which may be significant. As of December 31, 2024 and 2025 , the Company’s carrying value and maximum exposure to loss attributable to its Affiliates accounted for under the equity method considered VIEs was $ 2,135.2 million and $ 2,763.6 million , respectively. As of December 31, 2024 and 2025 , the carrying value and maximum exposure to loss for all of the Company’s Affiliates accounted for under the equity method was $ 2,246.6 million and $ 2,870.4 million , respectively, including Affiliates accounted for under the equity method considered VREs of $ 111.4 million and $ 106.8 million , respectively. Affiliate Sponsored Investment Products The Company’s carrying value and maximum exposure to loss from unconsolidated Affiliate sponsored investment products, is its or its consolidated Affiliates’ interests in the unconsolidated net assets of the respective products. These products vary in size from early-stage products with few initial investors to mature products with a large population of investors. As of December 31, 2024 and 2025 , the Company’s carrying value and maximum exposure to loss attributable to Affiliate sponsored investment products, which are unconsolidated VIEs, was $ 28.0 million and $ 88.9 million , respectively. 5. Debt The following table summarizes the Company’s Debt: December 31, 2024 2025 Senior bank debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — Senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,092.1 1,163.8 Junior subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,189.0 1,189.3 Junior convertible securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339.1 338.2 Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,620.2 $ 2,691.3 Senior Bank Debt As of December 31, 2025 , the Company had a $ 1.25 billion revolver which matures on November 15, 2029. Subject to certain conditions, the Company may increase the commitments under the revolver by up to an additional $ 500.0 million . The Company pays interest on any outstanding obligations under the revolver at a specified rate, currently based either on an applicable term-SOFR plus a SOFR adjustment of 0.10 % , or prime rate, plus a marginal rate determined based on its credit 62 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) rating. Prior to the repayment of the Company’s senior unsecured term loan facility in the third quarter of 2024 , the interest rate for its outstanding borrowings was term-SOFR plus a SOFR adjustment of 0.10 % , plus the marginal rate of 0.85 % . The revolver contains financial covenants with respect to leverage and interest coverage, as well as customary affirmative and negative covenants, including limitations on priority indebtedness, asset dispositions, and fundamental corporate changes, and certain customary events of default. As of December 31, 2024 and 2025 , the Company had no outstanding borrowing s under the revolver. The Company pays commitment fees on the unused portion of its revolver. For the years ended December 31, 2024 and 2025 , these fees amounted to $ 1.3 million and $ 1.2 million , respectively . As of the date of this Annual Report on Form 10-K, the Company had outstanding borrowings of $ 475.0 million under the revolver. Senior Notes In the third quarter of 2025, the Company’s $ 350.0 million 3.50 % senior notes matured and were fully repaid. As of December 31, 2025 , the Company had senior notes outstanding, the respective principal terms and effective interest rates of which are presented and described below: 2030 Senior Notes 2034 Senior Notes 2036 Senior Notes Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 2020 August 2024 December 2025 Maturity date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 2030 August 2034 February 2036 Par value (in millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350.0 $ 400.0 $ 425.0 Stated coupon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.30 % 5.50 % 5.50 % Coupon frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Semi-annually Semi-annually Semi-annually Effective interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.39 % 5.64 % 5.60 % On December 11, 2025, the Company issued $ 425.0 million aggregate principal amount of senior unsecured notes with a maturity date of February 15, 2036 (the “2036 senior notes”). Interest is payable beginning August 15, 2026. In addition to customary event of default provisions, the indenture governing the senior notes, including the applicable supplemental indentures with respect to the 2030, 2034, and 2036 senior notes, limits the Company’s ability to consolidate, merge, or sell all or substantially all of its assets, and requires the Company to make an offer to repurchase the applicable senior notes at 101 % of the principal amount, plus any accrued and unpaid interest thereon to, but not including, the date of repurchase, upon certain change of control triggering events. The senior notes may be redeemed, in whole or in part, at a make- whole redemption price (plus accrued and unpaid interest), at any time prior to March 15, 2030, in the case of the 2030 senior notes, at any time prior to May 20, 2034, in the case of the 2034 senior notes, and at any time prior to November 15, 2035, in the case of the 2036 senior notes. The make-whole redemption price, in each case, is equal to the greater of 100 % of the principal amount of the notes to be redeemed and the remaining principal and interest payments on the notes being redeemed (excluding accrued but unpaid interest to, but not including, the redemption date) discounted to their present value as of the redemption date on a semi-annual basis at the applicable Treasury rate plus 0.40 % , in the case of the 2030 senior notes, and plus 0.25 % , in the case of the 2034 and 2036 senior notes. In addition, the 2030, 2034, and 2036 senior notes may be redeemed, in whole or in part, at any time, on or after March 15, 2030, May 20, 2034, and November 15, 2035, respectively, at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. 63 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Junior Subordinated Notes As of December 31, 2025 , the Company had junior subordinated notes outstanding, the respective principal terms and effective interest rates of which are presented and described below: 2059 Junior Subordinated Notes 2060 Junior Subordinated Notes 2061 Junior Subordinated Notes 2064 Junior Subordinated Notes Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . . March 2019 September 2020 July 2021 March 2024 Maturity date . . . . . . . . . . . . . . . . . . . . . . . . . March 2059 September 2060 September 2061 March 2064 Par value (in millions) . . . . . . . . . . . . . . . . . . $ 300.0 $ 275.0 $ 200.0 $ 450.0 Stated coupon . . . . . . . . . . . . . . . . . . . . . . . . . 5.875 % 4.75 % 4.20 % 6.75 % Coupon frequency . . . . . . . . . . . . . . . . . . . . . Quarterly Quarterly Quarterly Quarterly NYSE Symbol . . . . . . . . . . . . . . . . . . . . . . . . MGR MGRB MGRD MGRE Effective interest rate . . . . . . . . . . . . . . . . . . . 5.91 % 4.78 % 4.23 % 6.76 % As of December 31, 2025 , each of the 2059 and 2060 junior subordinated notes could be redeemed at any time, in whole or in part. The other junior subordinated notes may be redeemed at any time, in whole or in part, on or after September 30, 2026, in the case of the 2061 junior subordinated notes, and on or after March 30, 2029, in the case of the 2064 junior subordinated notes. In each case, the junior subordinated notes may be redeemed at 100 % of the principal amount of the notes being redeemed, plus any accrued and unpaid interest thereon. Prior to the applicable redemption date, at the Company’s option, the applicable junior subordinated notes may also be redeemed, in whole but not in part, at 100 % of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations, or interpretations occur; or at 102 % of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the applicable notes. The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. Junior Convertible Securities As of December 31, 2025 , the Company had $ 340.6 million of principal outstanding on its junior convertible trust preferred securities (the “junior convertible securities”). Prior to their redemption by the Company, as described below, the junior convertible securities bore interest at a rate of 5.15 % per annum, which interest payments were payable quarterly in cash. The junior convertible securities were considered contingent payment debt instruments under federal income tax regulations, which required the Company to deduct interest in an amount greater than its reported interest expense (“excess interest expense deductions”). As of December 31, 2024 and 2025 , the unamortized issuance costs related to the junior convertible securities were $ 2.7 million and $ 2.4 million , respectively. The following table presents interest expense recorded in connection with the junior convertible securities: For the Years Ended December 31, 2023 2024 2025 Contractual interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17.6 $ 17.6 $ 16.9 Amortization of debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.2 0.2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17.8 $ 17.8 $ 17.1 Effective interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.21 % 5.21 % 5.00 % In November 2025, pursuant to the terms of the junior convertible securities, the Company adjusted the conversion rate of the securities to 0.2582 shares of common stock per $ 50.00 junior convertible security, equivalent to an adjusted conversion price of $ 193.65 per share. The adjustment was the result of the Company’s cumulative declared dividends on its common stock since the prior adjustment. 64 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) On December 8, 2025, the Company delivered notice that it had elected to redeem all of the outstanding junior convertible securities on December 29, 2025 (the “Redemption Date”), and announced its intention to settle any and all conversion obligations in cash. Substantially all holders of the junior convertible securities delivered requests to convert their securities prior to the Redemption Date. On December 15, 2025 (the “Election Date”), the Company made an irrevocable election to settle its conversion obligations in cash by reference to the daily volume weighted average price of the Company’s common stock during each applicable ten trading day conversion reference period. These conversions resulted in a settlement value in excess of the associated carrying value (the “conversion premium”). As of December 31, 2025, the conversion premium of $ 155.5 million was recorded within Other liabilities, with a corresponding reduction to Additional paid-in capital. In addition, the conversion resulted in a reduction to Deferred tax liability (net) on the Consolidated Balance Sheets of $ 38.9 million , with a corresponding increase to Additional paid-in capital. The Company’s election to settle each applicable conversion premium in cash using a ten-day reference period was accounted for as a forward sale contract, which resulted in a $ 9.2 million expense recorded in Other expenses (net), in the fourth quarter of 2025. On the Redemption Date, the Company redeemed $ 1.1 million of junior convertible securities which were not converted, reflecting the principal amount of the redeemed securities, plus accrued and unpaid interest, up to, but not including, the Redemption Date. In January 2026, the Company settled each of its applicable conversion obligations in cash for an aggregate amount of $ 514.6 million which resulted in an incremental expense related to the forward sale contract of $ 9.3 million . As a result of the settlement of these securities, the Company expects to incur a current cash tax liability of approximately $ 56.0 million in 2026, reflective of the recapture of excess interest expense deductions. As of the date of this Annual Report on Form 10-K, none of the Company's junior convertible securities are outstanding. 6. Commitments and Contingencies From time to time, the Company and its Affiliates may be subject to claims, legal proceedings, and other contingencies in the ordinary course of their business activities. Any such matters are subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company or its Affiliates. The Company and its Affiliates establish accruals, as necessary, for matters for which the outcome is probable and the amount of the liability can be reasonably estimated. For matters for which the outcome is probable but not reasonably estimable or where the outcome is reasonably possible but not probable, the Company provides disclosure related to such matters, as necessary. The Company has committed to co-invest in certain Affiliate sponsored investment products. As of December 31, 2025 , these unfunded commitments were $ 285.0 million and may be called in future periods. As of December 31, 2025 , the Company was contingently liable to make payments in connection with a consolidated Affiliate, which are included in Other liabilities. The Company is contingently liable to make maximum contingent payments of up to $ 100.0 million ( $ 24.9 million attributable to a co-investor). The fair value of contingent payment obligation was $ 0.0 million . The final measurement date of the contingent payment obligation is in July 2026. As of December 31, 2025 , the Company was obligated to make deferred payments of $ 85.8 million related to certain of its investments in Affiliates accounted for under the equity method, of which $ 56.4 million is payable in 2026 and $ 29.4 million is payable in 2027. Deferred payment obligations are included in Other liabilities . As of December 31, 2025 , the Company was contingently liable to make payments of $ 451.7 million related to the achievement of specified financial targets by certain of its Affiliates accounted for under the equity method, of which $ 4.0 million may become payable in 2026, $ 366.4 million may become payable in 2027, $ 35.9 million may become payable in 2028, and $ 22.7 million may become payable in each of 2029 and 2030. Affiliate equity interests provide holders at consolidated Affiliates with a conditional right to put their interests to the Company over time. See Note 14. The Company and certain of its consolidated Affiliates operate under regulatory authorities that require the maintenance of minimum financial or capital requirements. The Company’s management is not aware of any significant violations of such requirements. 65 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 7. Goodwill and Acquired Client Relationships The following table presents the changes in the Company’s Goodwill: Goodwill 2024 2025 Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,523.6 $ 2,504.9 Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 18.7 ) 26.3 Balance, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,504.9 $ 2,531.2 As of September 30, 2025 , the Company completed its annual impairment assessment on goodwill and no impairment was indicated. The following table presents the changes in the Company’s components of Acquired client relationships (net): Acquired Client Relationships (Net) Definite-lived Indefinite-lived Total Gross Carrying Value Accumulated Amortization Net Carrying Value Carrying Value Carrying Value Balance, as of December 31, 2023 . . . . . . . . $ 1,260.5 $ ( 1,051.2 ) $ 209.3 $ 1,603.1 $ 1,812.4 Intangible amortization and impairments . . — ( 29.0 ) ( 29.0 ) — ( 29.0 ) Foreign currency translation . . . . . . . . . . . . ( 5.0 ) 5.0 — ( 5.6 ) ( 5.6 ) Balance, as of December 31, 2024 . . . . . . . . $ 1,255.5 $ ( 1,075.2 ) $ 180.3 $ 1,597.5 $ 1,777.8 Intangible amortization and impairments . . — ( 25.3 ) ( 25.3 ) ( 135.0 ) ( 160.3 ) Foreign currency translation . . . . . . . . . . . . 11.9 ( 11.9 ) — 21.8 21.8 Balance, as of December 31, 2025 . . . . . . . . $ 1,267.4 $ ( 1,112.4 ) $ 155.0 $ 1,484.3 $ 1,639.3 Definite-lived acquired client relationships at the Company’s consolidated Affiliates are amortized over their expected period of economic benefit. The Company recorded amortization expense in Intangible amortization and impairments for these relationships of $ 48.3 million , $ 29.0 million , and $ 25.3 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. Based on relationships existing as of December 31, 2025 , the Company estimates that its consolidated amortization expense will be approximately $ 25 million in each of 2026, 2027, and 2028, approximately $ 15 million in 2029, and approximately $ 10 million in 2030. As of December 31, 2025 , no impairments of definite-lived acquired client relationships were indicated. In the first quarter of 2025, the Company completed an impairment assessment of the indefinite-lived acquired client relationships for certain mutual fund assets and determined that the fair value of the assets had declined below their carrying values. Accordingly, the Company recorded an expense in Intangible amortization and impairments of $ 59.2 million attributable to the controlling interest ( $ 70.0 million in aggregate) to reduce the carrying value of the assets to fair value. The decline in the fair value was a result of current and projected declines in assets under management that decreased the forecasted revenue associated with the assets. The most relevant assumptions used in these analyses were revenue growth rates over the next five years ranging from ( 21 )% to 0 % , long-term revenue growth rates of 0 % , and discount rates of 11.0 % . In the first quarter of 2025, the Company also recorded an expense in Intangible amortization and impairments of $ 4.0 million attributable to the controlling interest ( $ 7.0 million in aggregate) to reduce the carrying value of an indefinite-lived acquired client relationship to zero due to the closure of one of its Affiliate’s mutual fund products. In the fourth quarter of 2025, the Company completed its annual impairment assessment of its indefinite-lived acquired client relationships and determined that the fair value of certain mutual fund assets had declined below their carrying values. Accordingly, the Company recorded an expense in Intangible amortization and impairments of $ 37.0 million attributable to the controlling interest ( $ 58.0 million in aggregate) to reduce the carrying value of the assets to fair value. The decline in the fair value was a result of current and projected declines in assets under management that decreased the forecasted revenue associated with the assets. The most relevant assumptions used in these analyses were revenue growth rates over the next five years ranging from ( 34 )% to 0 % , long-term revenue growth rates of 0 % , and discount rates of 10.5 % . 66 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the year ended December 31, 2025 , no other impairments were indicated for the Company’s indefinite-lived acquired client relationships. In the third quarter of 2023, the Company completed the sale of its equity interest in Veritable, LP (“Veritable”), one of the Company’s consolidated Affiliates, (the “Veritable Transaction”). Pursuant to the terms of the agreement, under which a third party acquired 100 % of the outstanding equity interests in Veritable, the Company received $ 287.4 million in cash, net of transaction costs. Veritable is included in the Company’s results through the closing date, and the Company’s gain from the transaction was $ 133.1 million , which is recorded in Affiliate transaction gains in the Consolidated Statements of Income. 8. Equity Method Investments in Affiliate s Certain of the Company’s investments in Affiliates are accounted for under the equity method. Th e Company had 22 equity method Affiliates a s of December 31, 2024 and 2025 . The majority of these Affiliates are partnerships with structured interests that define how the Company will participate in Affiliate earnings, typically based upon a fixed percentage of the Affiliate’s revenue less agreed-upon expenses. The partnership agreements do not define a fixed percentage for the Company’s ownership of the equity of the Affiliate. These percentages would be subject to a separate future negotiation if an Affiliate were to be sold or liquidated. The financial results of certain Affiliates accounted for under the equity method are recognized in the Consolidated Financial Statements one quarter in arrears. T he following tables present summarized financial information of the Company’s Affiliates accounted for under the equity method: For the Years Ended December 31, 2023 2024 2025 Revenue (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,115.6 $ 3,212.0 $ 5,326.0 Net income (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,313.0 1,506.4 1,971.2 ___________________________ (1) Revenue and net income include asset- and performance-based fees, the impact of consolidated sponsored investment products, and new Affiliate investments for the full-year, regardless of the date of the Company’s investment. December 31, 2024 2025 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,348.2 $ 4,539.9 Liabilities and Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,262.9 2,114.1 The following table presents the changes in Equity method investments in Affiliates (net): Equity Method Investments in Affiliates (Net) 2024 2025 Balance, beginning of period (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,288.5 $ 2,246.6 Investments in Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.3 857.6 Affiliate transactions (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 187.5 ) Earnings, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442.7 561.0 Intangible amortization and impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 130.0 ) ( 98.1 ) Distributions of earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 402.7 ) ( 465.9 ) Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.7 ) ( 9.8 ) Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.5 19.9 Other (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — ( 53.4 ) Balance, end of period (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,246.6 $ 2,870.4 ___________________________ (1) Includes undistributed earnings of $ 168.0 million , $ 206.1 million , and $ 280.4 million as of December 31, 2023 , 2024 , and 2025 , respectively. 67 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (2) Represents the Company’s equity method investments in Peppertree, Comvest’s private credit business, and Montrusco Bolton as of their respective closing date s. (3) For t he year ended December 31, 2025, Other includes the transfer of $ 53.4 million of interests to Investments associated with the Comvest Transaction. In the first quarter of 2025, the Company completed its minority investment in NorthBridge Partners, LLC (“NorthBridge”), a private markets manager specializing in industrial logistics real estate assets, and in the second quarter of 2025, the Company completed its minority investment in Verition Fund Management LLC (“Verition”), a global multi-strategy investment firm. In the fourth quarter of 2025, the Company completed its minority investments in Montefiore Investment (“Montefiore”), a European private equity firm focused on the services sector, and Qualitas Energy, a renewables-focused global infrastructure manager specializing in energy transition. A portion of the consideration paid for NorthBridge and the majority of the consideration paid for Verition will be deductible for U.S. tax purposes over a 15-year life. The Company’s purchase price allocations for each investment were measured using discounted cash flow analyses that included assumptions of expected market performance, net client cash flows, and discount rates. In the third quarter of 2025, the Company completed the sale of its minority equity interest in Peppertree Capital Management, Inc. (“Peppertree”), as part of the announced acquisition of Peppertree by TPG Inc. (“TPG”), a public company listed on the Nasdaq Global Select Market. Pursuant to the terms of the agreement with TPG, under which the Company and each of the other owners agreed to sell their respective equity interests in Peppertree, the Company received total consideration of $ 253.2 million , net of transaction costs, which included $ 99.8 million in cash and 2.9 million TPG Class A common shares, all of which the Company has since sold. Peppertree is included in the Company’s results through the closing date and the Company’s gain from the transaction was $ 127.6 million , which is recorded in Affiliate transaction gains. In November 2025, Comvest Partners (“Comvest”) completed the previously announced agreement to sell its private credit business to Manulife Financial Corporation. Pursuant to the terms of the agreement, the Company received total cash consideration of $ 282.0 million for its portion of Comvest’s private credit business. Comvest’s private credit business is included in the Company’s results through the closing date and the portion retained will continue to be included going forward. The Company’s gain from the transaction was $ 227.6 million , which is recorded in Affiliate transaction gain s. In December 2025, the Company completed the sale of its minority equity interest in Montrusco Bolton Investments Inc. (“Montrusco Bolton”) to Walter Global Asset Management Inc. Pursuant to the terms of the agreement, the Company received total cash consideration of $ 22.0 million . Montrusco Bolton is included in the Company’s results through the closing date and the Company’s gain from the transaction was $ 16.2 million , which is recorded in Affiliate transaction gains. D efinite-lived acquired client relationships at the Company’s Affiliates accounted for under the equity method are amortized over their expected period of economic benefit. The Company recorded amortization expense for these relationships of $ 86.0 million , $ 90.1 million , and $ 98.1 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. Based on relationships existing as of December 31, 2025 , the Company estimates the amortization expense attributable to its Affiliates accounted for under the equity method will be approximately $ 100 million in each of 2026 and 2027, approximately $ 85 million in 2028, and approximately $ 70 million in each of 2029 and 2030 . In the second quarter of 2024, the Company recorded a $ 39.9 million expense to reduce the carrying value of an Affiliate to fair value. The decline in the fair value was a result of an anticipated decline in assets under management, which decreased the forecasted income associated with the investment. The fair value of the investment was determined using a discounted cash flow analysis, a Level 3 fair value measurement that included a projected compounded growth in assets under management over the next ten years of ( 2.5 )% , long-term growth rate of 3 % , discount rates of 12 % and 20 % for asset- and performance-based fees, respectively, and a market participant tax rate of 21 % . Based on the discounted cash flow analysis, the Company concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than- temporary. For the year ended December 31, 2025 , the Company completed its annual assessme nt of its investments in Affiliates accounted for under the equity method and no impairments were indicated. In January 2026, the Company completed the previously announced agreement with Brown Brothers Harriman (“BBH”), a privately held global financial services firm, to acquire a minority equity interest in BBH Credit Partners, a newly formed subsidiary of BBH focused on structured and alternative credit investment strategies. Following the close of 68 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) the transaction, BBH partners continue to direct day-to-day operations and the Company’s ownership is limited to a minority interest in the BBH Credit Partners subsidiary. On February 12, 2026, the Company announced the completion of its additional minority investment in Garda Capital Partners LP (“Garda”), a liquid alternatives manager specializing in fixed income relative value strategies and an Affiliate since 2019, and its minority investment in HighBrook Investors (“HighBrook”), a private markets manager specializing in real estate assets. Following the close of the transactions, the Company’s investment in Garda continues to be accounted for under the equity method and Affiliate management continues to hold a majority of the equity of the respective businesses and directs the day-to-day operations. 9. Lease Commitments The Company and its Affiliates currently lease office space and equipment under various operating leasing arrangements. The following table presents total lease costs, net: For the Years Ended December 31, 2023 2024 2025 Operating lease costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36.4 $ 34.6 $ 33.6 Short-term lease costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 1.2 0.5 Variable lease costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 0.0 Sublease income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 6.5 ) ( 6.6 ) ( 5.9 ) Total lease costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31.0 $ 29.2 $ 28.2 As of December 31, 2024 and 2025 , the Company’s and its Affiliates’ weighted average operating lease term was seven years and six years , respectively, and the weighted average operating lease discount rate was 3 % . As of December 31, 2025 , the maturities of lease liabilities were as follows: Operating Leases 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30.4 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.3 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.9 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.3 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4 Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.2 Total undiscounted lease liabilities (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 162.5 ___________________________ (1) Total undiscounted lease liabilities were $ 23.5 million greater than the operating leases recorded in Other liabilities primarily due to present value discounting. Both amounts exclude leases with initial terms of 12 months or less and leases that have not yet commenced. 69 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 10. Fixed Assets Fixed assets (net) consisted of the following: December 31, 2024 2025 Buildings and leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 110.0 $ 112.4 Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.2 43.5 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.2 18.7 Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.5 17.6 Land, improvements and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.7 20.9 Fixed assets, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.6 213.1 Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 156.0 ) ( 158.7 ) Fixed assets (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57.6 $ 54.4 11. Payables and Accrued Liabilities P ayables and accrued liabilities consisted of the following: December 31, 2024 2025 Accrued compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 322.3 $ 329.7 Other (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316.8 477.2 Payables and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 639.1 $ 806.9 ___________________________ (1) Other primarily includes unsettled fund shares payable, accrued income taxes, and other accrued liabilities. 12. Related Party Transactions The Company has related party transactions in association with its deferred and contingent payment obligations, and Affiliate equity transactions, as more fully described in Notes 6, 13, and 14. From time to time, certain funds of the Company’s consolidated Affiliates may make tax distributions to partners subject to clawback. As of December 31, 2024 and 2025 , the total receivable was $ 59.2 million and $ 68.6 million , respectively, and was included in Other assets, and the total payable was $ 87.8 million and $ 99.3 million , respectively, and was included in Other liabilities. These amounts were primarily attributable to the non-controlling interests. A prior owner of one of the Company’s consolidated Affiliates retains interests in certain of the Affiliate’s private equity partnerships and, as a result, is a related party of the Company. The prior owner’s interests are included in Other liabilities and were $ 14.5 million and $ 11.7 million as of December 31, 2024 and 2025 , respectively. The Company may invest from time to time in funds or products advised by its Affiliates. The Company’s executive officers and directors may invest from time to time in funds advised or products offered by its Affiliates, or receive other investment services provided by its Affiliates, on substantially the same terms as other participating investors. The Company and its Affiliates earn asset- and performance-based feed and incur distribution and other expenses for services provided to Affiliate sponsored investment products. In addition, the Company and its Affiliates earn fees or incur expenses related to the Company’s efforts to develop and distribute Affiliate products. Affiliate management owners and the Company’s officers may serve as trustees or directors of certain investment vehicles from which the Company or an Affiliate earns fees. From time to time, the Company may enter into ordinary course engagements for capital markets, banking, brokerage, and other services with beneficial owners of 5 % or more of the Company’s voting securities. 13. Redeemable Non-Controlling Interests Affiliate equity interests provide holders with an equity interest in one of the Company’s consolidated Affiliates, consistent with the structured partnership interests in place at the respective Affiliate. Affiliate equity holders generally have a conditional 70 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) right to put their interests to the Company at certain intervals (between five years and 15 years from the date the equity interest is received by the Affiliate equity holder or on an annual basis following an Affiliate equity holder’s departure). Prior to becoming redeemable, the Company’s Affiliate equity is included in Non-controlling interests. Upon becoming redeemable, these interests are reclassified to Redeemable non-controlling interests at their current redemption values. Changes in the current redemption value are recorded to Additional paid-in capital. When the Company has an unconditional obligation to purchase Affiliate equity interests, the interests are reclassified from Redeemable non-controlling interests to Other liabilities at current fair value. Changes in fair value are recorded to Other expenses (net). The following table presents the changes in Redeemable non-controlling interests: Redeemable Non-controlling Interests 2024 2025 Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 393.4 $ 350.5 Increase attributable to consolidated Affiliate sponsored investment products . . . . . . . . . . . . . 1.1 19.3 Transfers to Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 69.6 ) ( 152.1 ) Transfers from (to) Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 ( 53.0 ) Changes in redemption value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.9 82.1 Balance, end of period (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350.5 $ 246.8 __________________________ (1) As of December 31, 2024 and 2025 , Redeemable non-controlling interests includes consolidated Affiliate sponsored investment products primarily attributable to third-party investors of $ 12.9 million and $ 32.2 million , respectively. 14. Affiliate Equity Affiliate equity interests are allocated income in a manner that is consistent with the structured partnership interests in place at the respective Affiliate. The Company’s consolidated Affiliates generally pay quarterly distributions to Affiliate equity holders. Distributions paid to non-controlling interest Affiliate equity holders were $ 271.3 million , $ 258.0 million , and $ 252.3 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. Affiliate equity interests provide the Company a conditional right to call (following an Affiliate equity holder’s departure) and Affiliate equity holders have a conditional right to put their interests at certain intervals (including on an annual basis following an Affiliate equity holder’s departure). The Company has the right to settle a portion of these purchases in shares of its common stock. For Affiliates accounted for under the equity method, the Company does not typically have such put and call arrangements. The purchase price of these conditional purchases are generally calculated based upon a multiple of cash flow distributions, which is intended to represent fair value. Affiliate equity holders are also permitted to sell their equity interests to other individuals or entities in certain cases, subject to the Company's approval or other restrictions. The Company, at its option, may pay for Affiliate equity purchases in cash, shares of its common stock, or other forms of consideration, and can consent to the transfer of these interests to Affiliate partners and other parties. The Company periodically purchases Affiliate equity from and issues Affiliate equity to the Company’s consolidated Affiliate partners and other parties. The amount of cash paid for purchases was $ 67.4 million , $ 106.5 million , and $ 176.7 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. The total amount of cash received for issuances was $ 13.4 million , $ 6.3 million , and $ 6.4 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. Sales and purchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its consolidated Affiliate partners and other parties as a form of compensation. If the equity is issued for consideration below the fair value of the equity, or purchased for consideration above the fair value of the equity, the difference is recorded as an expense in Compensation and related expenses over the requisite service period. 71 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table presents Affiliate equity expense: For the Years Ended December 31, 2023 2024 2025 Controlling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13.6 $ 20.2 $ 111.4 Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.1 39.4 32.2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52.7 $ 59.6 $ 143.6 In the second quarter of 2025, the terms of certain equity awards at an Affiliate were modified. The modification included a mandatory repurchase provision upon termination of employment that changed the awards classification from equity to liability and as a result, the Company recorded incremental Affiliate equity expense of $ 30.5 million attributable to the controlling interest. The following table presents unrecognized Affiliate equity expense: Controlling Interest Remaining Life Non-controlling Interests Remaining Life 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30.6 5 years $ 235.7 6 years 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.7 3 years 206.0 6 years 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.7 2 years 159.5 5 years The Company records amounts receivable from, and payable to, Affiliate equity holders in connection with the transfer of Affiliate equity interests that have not settled at the end of the period. The total receivable was $ 7.9 million and $ 4.7 million as of December 31, 2024 and 2025 , respectively, and was included in Other assets. The total payable was $ 54.8 million and $ 161.2 million as of December 31, 2024 and 2025 , respectively, and was included in Other liabilities. Effects of Changes in the Company’s Ownership in Affiliates The Company periodically acquires interests from, and transfers interests to, Affiliate equity holders. Because these transactions do not result in a change of control, any gain or loss related to these transactions is recorded to Additional paid-in capital, which increases or decreases the controlling interest’s equity. No gain or loss related to these transactions is recorded in the Consolidated Statements of Income or the Consolidated Statements of Comprehensive Income. While the Company presents the current redemption value of Affiliate equity within Redeemable non-controlling interests, with changes in the current redemption value increasing or decreasing the controlling interest’s equity over time, the following table presents the cumulative effect that ownership changes had on the controlling interest’s equity related only to Affiliate equity transactions that occurred during the applicable periods: For the Years Ended December 31, 2023 2024 2025 Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 672.9 $ 511.6 $ 716.6 Decrease in controlling interest paid-in capital from Affiliate equity issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 13.5 ) ( 3.1 ) ( 18.4 ) Decrease in controlling interest paid-in capital from Affiliate equity purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 50.4 ) ( 32.6 ) ( 47.9 ) Net income (controlling interest) including the net impact of Affiliate equity transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 609.0 $ 475.9 $ 650.3 15. Stockholders’ Equity Preferred Stock The Company is authorized to issue up to 5.0 million shares of preferred stock. Any such preferred stock issued by the Company may rank prior to common stock as to dividend rights, liquidation preference or both, may have full or limited voting rights, and may be convertible into shares of common stock. As of December 31, 2025 , the Company had no shares of preferred stock outstanding . 72 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Common Stock The Company is authorized to issue up to 150.0 million shares of voting common stock and 3.0 million shares of class B non-voting common stock. The Company’s Board of Directors authorized a share repurchase program in July 2024 to repurchase up to 5.4 million shares of its common stock and this authorization has no expiry. Purchases may be made from time to time, at management’s discretion, in the open market or in privately negotiated transactions, including through the use of trading plans, as well as pursuant to accelerated share repurchase programs or other share repurchase strategies that may include derivative financial instruments. For the year ended December 31, 2025 , the Company repurchased 3.3 million shares of its common stock at an average price per share of $ 212.92 . As of December 31, 2025 , there were a total of 2.0 million shares available for repurchase under the Company’s July 2024 share repurchase program. The Company’s Board of Directors authorized an additional share repurchase program in January 2026 to repurchase up to 4.2 million shares of the Company’s common stock. The following table summarizes the Company's share repurchase activity : Shares Repurchased Average Price Per Share 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 $ 132.99 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 162.65 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 212.92 Equity Distribution Program In the first quarter of 2025, the Company entered into an equity distribution agreement and forward sale agreements with several major securities firms under which it may, from time to time, issue and sell shares of its common stock (immediately or on a forward basis) having an aggregate sales price of up to $ 500.0 million (the “equity distribution program”). This equity distribution program superseded and replaced the Company’s prior equity distribution program. As of December 31, 2025 , no sales had occurred under the equity distribution program. Financial Instruments The equity distribution program meets the definition of equity and is not required to be accounted for separately as a derivative financial instrument. Prior to the Election Date, the Company’s junior convertible securities, which contained an embedded right for holders to receive shares of the Company’s common stock under certain conditions, met the definition of equity and were not required to be accounted for separately as derivative financial instruments. Subsequently, the Company’s election to settle each applicable conversion premium in cash using a ten-day reference period was accounted for as a forward sale contract. See Note 5. 16. Share-Based Compensation Share-Based Incentive Plans The Company has established various plans under which it is authorized to grant restricted stock, restricted stock units, stock options, and stock appreciation rights. The Company may also grant cash awards that can be notionally invested in one or more specified measurement funds, including the Company’s common stock. Awards granted under the Company’s share- based incentive plans typically participate in any dividends declared, but such amounts are deferred until delivery of the shares and are forfeitable if the requisite service is not satisfied. Dividends may accrue in cash or may be reinvested in the Company’s common stock. 73 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Share-Based Compensation The following table presents share-based compensation expense: Share-Based Compensation Expense Tax Benefit 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 59.4 $ 7.4 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.0 6.3 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59.2 5.2 The excess tax benefit recognized from share-based incentive plans was $ 4.4 million , $ 10.3 million , and $ 20.3 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. As of December 31, 2024 , the Company had unrecognized share-based compensation expense of $ 38.1 million . As of December 31, 2025 , the Company had unrecognized share-based compensation of $ 70.2 million , which will be recognized over a weighted average period of approximately three years (assuming no forfeitures). Restricted Stock The following table summarizes transactions in the Company’s restricted stock units: Restricted Stock Units Weighted Average Grant Date Value Per Unit Unvested units, as of December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 $ 147.46 Units granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 167.96 Units vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.4 ) 137.69 Units forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.0 ) 154.29 Performance condition changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 164.94 Unvested units, as of December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 $ 161.80 The Company granted restricted stock units with fair values of $ 49.3 million , $ 31.3 million , and $ 54.8 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. These restricted stock units were valued based on the closing price of the Company’s common stock on the grant date and the number of shares expected to vest. Restricted stock units containing vesting conditions generally require service over a period of three years to four years and may also require the satisfaction of certain performance conditions. For awards with performance conditions, the number of restricted stock units expected to vest may change over time depending upon the performance level expected to be achieved. The total fair value of restricted stock units vested was $ 86.2 million , $ 50.5 million , and $ 59.0 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. As of December 31, 2025 , the Company had 1.6 million shares available for grant under its plans. 74 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Stock Options The following table summarizes transactions in the Company’s stock options: Stock Options Weighted Average Exercise Price Per Option Weighted Average Remaining Contractual Life (Years) Unexercised options outstanding, as of December 31, 2024 . . . . . . . . . . . . . . 1.7 $ 78.45 Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — Options exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1.4 ) 75.69 Options forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — Options expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.0 ) 203.22 Performance condition changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 129.17 Unexercised options outstanding, as of December 31, 2025 . . . . . . . . . . . . . . 0.3 $ 92.73 1.4 Exercisable at December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 $ 76.60 0.7 The Company did not grant any stock options for the years ended December 31, 2023 , 2024 , and 2025 . Stock options generally vest over a period of four years to five years and expire seven years after the grant date. All stock options have been granted with exercise prices equal to the closing price of the Company’s common stock on the grant date. Substantially all of the Company’s outstanding stock options contain both service and performance conditions. For awards with performance conditions, the number of stock options expected to vest may change over time depending upon the performance level expected to be achieved. The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of stock options exercised for the years ended December 31, 2023 , 2024 , and 2025 was $ 0.2 million , $ 150.7 million , and $ 187.6 million , respectively. The cash received for stock options exercised was zero , $ 0.3 million , and $ 2.8 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. As of December 31, 2025 , the intrinsic value of exercisable stock options outstanding was $ 37.0 million , and 1.1 million options were available for grant under the Company’s option plans. 17. Benefit Plans The Company has a defined contribution plan that is a qualified employee profit-sharing plan, covering substantially all of its employees. Under this plan, the Company is able to make discretionary contributions for the benefit of its employees that are qualified plan participants, up to Internal Revenue Service (“IRS”) limits. The Company’s consolidated Affiliates generally have their own qualified defined contribution retirement plans covering their respective employees or, for several Affiliates, had their employees covered under the Company’s plan until February or March 2023, as applicable . In each case, the relevant Affiliate was able to make discretionary contributions for the benefit of its employees, as applicable, that were qualified plan participants, up to IRS limits. Consolidated expenses related to these plans were $ 24.8 million , $ 24.9 million , and $ 24.5 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. The controlling interest’s portion of expenses related to these plans were $ 3.6 million , $ 4.6 million , and $ 4.0 million for the years ended December 31, 2023 , 2024 , and 2025 , respectively. 18. Income Taxes The Company’s consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to the non-controlling interests. 75 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table presents the consolidated provision for income taxes: For the Years Ended December 31, 2023 2024 2025 Controlling interest (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 178.3 $ 174.8 $ 272.2 Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0 7.8 10.1 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185.3 $ 182.6 $ 282.3 Income before income taxes (controlling interest) . . . . . . . . . . . . . . . . . . . . . . $ 851.2 $ 686.4 $ 988.8 Effective tax rate (controlling interest) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.9 % 25.5 % 27.5 % ___________________________ (1) For the years ended December 31, 2023 , 2024 , and 2025 , income tax expense (controlling interest) included intangible- related deferred tax expense of $ 29.8 million , $ 66.7 million , and $ 53.1 million , respectively. (2) Taxes attributable to the controlling interest divided by income before income taxes (controlling interest). The consolidated provision for income taxes consisted of the following: For the Years Ended December 31, 2023 2024 2025 Current Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 105.2 $ 59.6 $ 95.2 State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.8 16.6 19.9 Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.9 45.8 83.4 Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153.9 122.0 198.5 Deferred Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.3 52.5 78.5 State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0 11.9 18.9 Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2.9 ) ( 3.8 ) ( 13.6 ) Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 60.6 83.8 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185.3 $ 182.6 $ 282.3 For financial reporting purposes, Income before income taxes consisted of the following : For the Years Ended December 31, 2023 2024 2025 Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 782.3 $ 678.5 $ 1,005.7 International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309.1 244.7 180.6 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,091.4 $ 923.2 $ 1,186.3 The following table presents consolidated income taxes paid , net by jurisdiction: For the Years Ended December 31, 2023 2024 2025 U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240.3 $ 82.9 $ 52.6 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3 39.0 43.0 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.9 20.6 15.1 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 314.5 $ 142.5 $ 110.7 76 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate: For the Years Ended December 31, 2023 2024 2025 $ % $ % $ % Statutory U.S. federal tax . . . . . . . . . . . . . . . . $ 229.2 21.0 % $ 193.9 21.0 % $ 249.1 21.0 % State income taxes, net of federal benefit (1) . . 14.1 1.3 % 19.2 2.1 % 26.0 2.1 % Foreign tax effects: United Kingdom Affiliate equity expense . . . . . . . . . . . . . . . 0.8 0.1 % 1.4 0.2 % 19.2 1.7 % Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 0.3 % 7.0 0.8 % 1.8 0.1 % Other foreign jurisdictions . . . . . . . . . . . . . . ( 25.3 ) ( 2.4 ) % ( 9.1 ) ( 1.0 ) % ( 7.4 ) ( 0.6 ) % Effect of cross-border tax laws . . . . . . . . . . . . ( 4.4 ) ( 0.4 ) % 6.5 0.7 % 9.1 0.8 % Nontaxable or nondeductible items . . . . . . . . 5.1 0.5 % 4.2 0.5 % 5.2 0.4 % Change in valuation allowance . . . . . . . . . . . . 0.6 0.1 % 0.3 0.0 % 0.2 0.0 % Unrecognized tax benefits . . . . . . . . . . . . . . . 5.1 0.5 % 1.2 0.1 % 10.5 0.9 % Other adjustments: Effect of income from non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 43.4 ) ( 4.0 ) % ( 42.0 ) ( 4.5 ) % ( 31.4 ) ( 2.6 ) % Effective tax . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185.3 17.0 % $ 182.6 19.9 % $ 282.3 23.8 % ___________________________ (1) The state and local jurisdictions that make up the majority of the effect of the state and local income tax include Massachusetts, California, and New York . The Company’s effective tax rate (controlling interest) in 2023 is lower than the marginal tax rate of 24.5 %, primarily due to discrete benefits from foreign operations. The effective tax rate (controlling interest) in 2024 is higher than the marginal tax rate of 24.5%, primarily due to an expense to reduce the carrying value of a foreign Affiliate to fair value for which no tax benefit was recorded, partially offset by tax windfalls attributable to share-based compensation. The effective tax rate (controlling interest) in 2025 is higher than the marginal tax rate of 24.5%, primarily due to unrecognized tax benefits and non- deductible compensation expense, partially offset by tax windfalls attributable to share-based compensation. The Company’s effective tax rate reflects the relative contributions of earnings in the jurisdictions in which the Company and its Affiliates operate and is impacted by changes in the jurisdictional mix of income before taxes. 77 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Deferred tax liability (net) reflects the expected future tax consequences of temporary differences between the financial reporting bases and tax bases of the Company’s assets and liabilities. The significant components of the Company’s Deferred tax liability (net) are as follows: December 31, 2024 2025 Deferred Tax Assets State net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13.8 $ 13.7 Foreign loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.7 19.6 Foreign tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 16.5 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.5 22.5 Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.3 72.3 Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 44.8 ) ( 47.0 ) Deferred tax assets, net of valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.5 25.3 Deferred Tax Liabilities Intangible asset amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 353.0 ) ( 392.6 ) Non-deductible intangible amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 101.4 ) ( 82.9 ) Junior convertible securities interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 92.6 ) ( 58.3 ) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 8.0 ) ( 22.8 ) Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 555.0 ) ( 556.6 ) Deferred tax liability (net) (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ( 518.5 ) $ ( 531.3 ) ___________________________ (1) As of December 31, 2024 and 2025 , foreign loss carryforwards of $ 17.7 million (net of a $ 15.7 million valuation allowance) and $ 19.6 million (net of a $ 17.8 million valuation allowance), respectively, are included in Other assets as they represent a net deferred tax asset in a foreign jurisdiction. As of December 31, 2025 , the Company had available state net operating loss carryforwards of $ 213.3 million , a majority of which will expire over four years to seven years , foreign loss carryforwards of $ 73.9 million , of which $ 51.5 million will expire over ten years to 14 years and $ 22.4 million will carry forward indefinitely, and foreign tax credit carryforwards of $ 16.5 million , a majority of which will expire over five years to seven years . The Company believed it was more-likely-than-not that the benefit from certain state and foreign loss carryforwards and foreign tax credit carryforwards would not be fully realized, and, as of December 31, 2025 , had valuation allowances of $ 12.7 million , $ 17.8 million , and $ 16.5 million on the state and foreign loss carryforwards and the foreign tax credit carryforwards, respectively. For the years ended December 31, 2024 and 2025 , the Company decreased its valuation allowance $ 2.8 million and increased its valuation allowance $ 2.2 million , respectively. The Company’s estimates and assumptions regarding the realization of its state and foreign loss carryforwards do not contemplate certain changes in ownership of the Company’s stock which could limit the utilization of these carryforwards. The Company provides for U.S. income taxes on all foreign earnings. The Company does not provide for U.S. income taxes on the portion of the excess of the financial reporting bases over tax bases in the Company’s investments in foreign subsidiaries considered permanent in duration. Such amount would generally become taxable upon the repatriation of assets from, or a sale or liquidation of, the foreign subsidiaries. A determination of the potential amount of unrecognized U.S. income tax related to these amounts is not practicable because of the numerous assumptions associated with this hypothetical calculation. 78 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table presents the changes in unrecognized tax benefits: For the Years Ended December 31, 2023 2024 2025 Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49.6 $ 37.8 $ 37.3 Additions based on current year tax positions . . . . . . . . . . . . . . . . . . . . . . . . . 6.4 0.5 5.7 Additions based on prior years’ tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 3.5 9.8 Reduction for prior years’ tax positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 13.5 ) ( 0.8 ) — Lapse of the statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4.8 ) ( 2.5 ) ( 7.3 ) Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1.3 ) — — Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 ( 1.2 ) 0.5 Balance, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37.8 $ 37.3 $ 46.0 Included in the balance of unrecognized tax benefits as of December 31, 2023 , 2024 , and 2025 were $ 37.8 million , $ 37.3 million , and $ 46.0 million , respectively, of tax benefits that, if recognized, would favorably affect the Company’s effective tax rate (controlling interest). As of December 31, 2025 , certain of these benefits, if realized, would be offset by the utilization of indirect tax benefits, for which the Company had accrued deferred tax assets of $ 7.0 million . The Company records accrued interest and penalties related to unrecognized tax benefits in Income tax expense. For the years ended December 31, 2023 , 2024 , and 2025 , interest and penalties related to unrecognized tax benefits were $ 0.8 million , $( 0.5 ) million , and $( 0.1 ) million , respectively. As of December 31, 2024 and 2025 , the Company had accrued interest and penalties related to unrecognized tax benefits of $ 13.9 million and $ 13.8 million , respectively. The Company is subject to U.S. federal, state and local, and foreign income tax in multiple jurisdictions and is periodically subject to tax examinations in these jurisdictions. The completion of examinations may result in the payment of additional taxes and/or the recognition of tax benefits. The Company is generally no longer subject to income tax examinations by U.S. federal, state and local, or foreign taxing authorities for periods prior to 2019. The Company continues to monitor and evaluate legislative developments related to the Organization for Economic Co- operation and Development’s Pillar Two directive (“Pillar Two”), which establishes a framework for a global minimum corporate tax rate of 15%. Several countries in which the Company or its Affiliates operate are adopting legislation to implement Pillar Two. The Company currently does not expect Pillar Two to have a material impact on its Consolidated Financial Statements. 19. Earnings Per Share The calculation of Earnings per share (basic) is based on the weighted average number of shares of the Company’s common stock outstanding during the period. Earnings per share (diluted) is similar to Earnings per share (basic), but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company’s common stock. 79 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders: For the Years Ended December 31, 2023 2024 2025 Numerator Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 672.9 $ 511.6 $ 716.6 Income from hypothetical settlement of Redeemable non-controlling interests, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.0 20.5 20.5 Interest expense on junior convertible securities, net of taxes . . . . . . . . . . . . . 13.4 13.4 12.9 Net income (controlling interest), as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . $ 735.3 $ 545.5 $ 750.0 Denominator Average shares outstanding (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.1 31.1 28.5 Effect of dilutive instruments: Stock options and restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.7 0.9 Hypothetical issuance of shares to settle Redeemable non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 1.6 1.9 Assumed issuance of junior convertible securities shares . . . . . . . . . . . . . . . 1.7 1.7 1.7 Average shares outstanding (diluted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 36.1 33.0 Average shares outstanding (diluted) in the table above excludes stock options and restricted stock units that have not met certain performance conditions and instruments that have an anti-dilutive effect on Earnings per share (diluted). The following table presents a summary of items excluded from the denominator in the table above: For the Years Ended December 31, 2023 2024 2025 Stock options and restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.2 0.1 Shares issuable to settle Redeemable non-controlling interests . . . . . . . . . . . . 0.7 2.0 0.3 20. Comprehensive Income The following tables present the tax effects allocated to each component of Other comprehensive income: For the Year Ended December 31, 2023 Pre-Tax Tax (Expense) Benefit Net of Tax Foreign currency translation gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44.8 $ ( 3.7 ) $ 41.1 Change in net realized and unrealized gain (loss) on derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.0 0.3 Change in net unrealized gain (loss) on available-for-sale debt securities . . . . 0.5 0.0 0.5 Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45.6 $ ( 3.7 ) $ 41.9 For the Year Ended December 31, 2024 Pre-Tax Tax Expense Net of Tax Foreign currency translation gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11.0 $ ( 9.5 ) $ 1.5 Change in net realized and unrealized gain (loss) on derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 — 0.5 Change in net unrealized gain (loss) on available-for-sale debt securities . . . . 0.5 ( 0.4 ) 0.1 Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12.0 $ ( 9.9 ) $ 2.1 80 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Year Ended December 31, 2025 Pre-Tax Tax Benefit Net of Tax Foreign currency translation gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69.2 $ 1.0 $ 70.2 Change in net realized and unrealized gain (loss) on derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.9 ) — ( 0.9 ) Change in net unrealized gain (loss) on available-for-sale debt securities . . . . 0.4 — 0.4 Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68.7 $ 1.0 $ 69.7 The components of accumulated other comprehensive loss, net of taxes, were as follows: Foreign Currency Translation Adjustment Realized and Unrealized Gain (Loss) on Derivative Financial Instruments Unrealized Gain (Loss) on Available- for-Sale Debt Securities Total Balance, as of December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ( 255.3 ) $ ( 0.1 ) $ ( 0.5 ) $ ( 255.9 ) Other comprehensive income (loss) before reclassifications . . . . . . . . . . 1.5 ( 0.2 ) 0.1 1.4 Amounts reclassified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 0.7 — 0.7 Net other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 0.5 0.1 2.1 Balance, as of December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ( 253.8 ) $ 0.4 $ ( 0.4 ) $ ( 253.8 ) Other comprehensive income (loss) before reclassifications . . . . . . . . . . 71.0 ( 1.2 ) 0.4 70.2 Amounts reclassified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 0.8 ) 0.3 — ( 0.5 ) Net other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.2 ( 0.9 ) 0.4 69.7 Balance, as of December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ( 183.6 ) $ ( 0.5 ) $ — $ ( 184.1 ) 21. Segment and Geographic Informatio n The Company operates in one segment. Accordingly, the Company’s Consolidated revenue, Net income, and Total assets reflect the revenue, profit, and assets of the Company’s single segment, respectively. The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”). The CODM uses Net income in assessing the performance and in determining the allocation of resources of the Company’s reportable segment. The CODM is regularly provided expense information consistent with the expense categories presented in the Company’s Consolidated Statements of Income. 81 Table of Contents AFFILIATED MANAGERS GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following tables present Consolidated revenue and Fixed assets (net) of the Company by geographic location. For Affiliates, this information is primarily based on the location of the Affiliates’ headquarters. For the Years Ended December 31, 2023 2024 2025 Consolidated revenue United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,519.3 $ 1,485.2 $ 1,486.9 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498.3 500.5 527.0 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.2 55.2 60.5 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,057.8 $ 2,040.9 $ 2,074.4 December 31, 2024 2025 Fixed assets (net) United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48.9 $ 43.9 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5 10.2 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.3 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57.6 $ 54.4 82 Table of Contents Schedule II Valuation and Qualifying Accounts (in millions) Balance Beginning of Period Additions Charged to Costs and Expenses Additions Charged to Other Accounts Deductions Balance End of Period Income Tax Valuation Allowance Years Ending December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48.1 $ 0.6 $ 0.4 $ ( 1.5 ) $ 47.6 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.6 0.3 0.0 ( 3.1 ) 44.8 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.8 1.5 0.8 ( 0.1 ) 47.0 Other Allowances (1) Years Ending December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.5 $ 1.5 $ — $ ( 1.2 ) $ 3.8 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 — — ( 1.5 ) 2.3 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 5.1 — ( 1.0 ) 6.4 ___________________________ (1) Other allowances represents reserves on notes received in connection with transfers of the Company’s interests in certain Affiliates, as well as other receivable amounts, which the Company considered uncollectible. Deductions represent the reversal of such reserves upon collection of the amounts due. 83 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.