What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-07 · 303 added, 168 removed, 496 unchanged (49% of the section changed)

41 unchanged sentences

planning, and strategic advisory to expand their reach, diversify their business, and enhance their long-term success.

March 31, 2026 , our aggregate assets under management were approximately $882 billion across a diverse range of private

June 30, 2026 , our aggregate assets under management were approximately $942 billion across a diverse range of private

markets, liquid alternative, and differentiated long-only investment strategies.

20 unchanged sentences

As of and for the Three

Months Ended March 31,

Months Ended June 30,

As of and for the Six

Months Ended June 30,

(in billions, except as noted)

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Our Affiliates earn asset-

based fees on the capital that they manage and certain of our Affiliate’s strategies earn performance-based fees based on the

based fees on the capital that they manage and certain of our Affiliates’ strategies earn performance-based fees based on the

performance generated by their investment products.

For the three months ended March 31, 2026 , assets under management

increased $68.7 billion or 8.4% driven by net client cash inflows and the addition of assets associated with new partnerships.

We continue to see client demand for alternative strategies with broad-based demand for our Affiliates’ liquid alternative and

private markets strategies generating strong net inflows in the quarter, while our equity strategies experienced net outflows in

line with trends across the industry .

As we continue to execute our growth strategy by investing in new and existing Affiliates,

as well as in AMG’s strategic capabilities, we expect our business mix to further evolve, expanding our exposure to in-demand

strategies in both private markets and liquid alternatives, better positioning AMG to continue to benefit from industry growth

trends with an increasingly diversified business profile.

The following table presents changes in our assets under management by strategy for the three months ended March 31,

For the three months ended June 30, 2026 , assets under management

increased $60.4 billion or 7% , and for the six months ended June 30, 2026 , assets under management increased $129.1 billion

These increases were driven by net client cash flows and market appreciation, and for the six months ended June 30,

2026, the increase was also due to the addition of assets associated with new Affiliate investments.

We continue to see client

demand for alternative strategies;

broad-based demand for our Affiliates’ liquid alternative and private markets strategies

generated strong net inflows in the quarter, while our Affiliates’ equity strategies experienced net outflows in line with trends

across the industry .

As we continue to execute our growth strategy by investing in new and existing Affiliates, as well as in

AMG’s strategic capabilities, we expect our business mix to further evolve and diversify, expanding our exposure to in-demand

strategies in both private markets and liquid alternatives, and better positioning AMG to continue to benefit from industry

growth trends.

The following tables present changes in our assets under management by strategy for the three and six months ended

June 30, 2026 :

Differentiated Long-Only

1 unchanged sentence

Multi-Asset &

March 31, 2026

Client cash inflows and commitments

Client cash outflows

Net client cash flows

Affiliate transactions (1)

Market changes

Foreign exchange (2)

Realizations and distributions (net)

June 30, 2026

Differentiated Long-Only

(in billions)

Multi-Asset &

December 31, 2025

3 unchanged sentences

New investments (4)

Affiliate transactions (1)

Market changes

1 unchanged sentence

Realizations and distributions (net)

March 31, 2026

June 30, 2026

_________________________

(1) Attributable to BBH Credit Partners and HighBrook as of their respective closing dates.

(1) Attributable to the myCIO Transaction as of the closing date.

(2) Foreign exchange reflects the impact of translating the assets under management of our Affiliates whose functional

2 unchanged sentences

(3) Other includes product transitions and reclassifications.

(4) Attributable to BBH Credit Partners and HighBrook as of their respective closing dates.

The following tables present performance of our investment strategies, where available, measured by the percentage of

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(1) Past performance is not indicative of future results.

Performance and AUM information is as of March 31, 2026 and is

based on data available at the time of calculation.

Performance and AUM information is as of June 30, 2026 and is based

on data available at the time of calculation.

Product returns are sourced from Affiliates while benchmark returns are

46 unchanged sentences

period because they inherently depend on investment performance.

As of March 31, 2026 , approximately 27% of our total

assets under management could potentially earn performance-based fees.

These percentages were approximately 12% and 40%

of our assets under management for our consolidated Affiliates and Affiliates accounted for under the equity method,

respectively.

As of June 30, 2026 , approximately 27% of our total assets

under management could potentially earn performance-based fees.

These percentages were approximately 12% and 39% of our

assets under management for our consolidated Affiliates and Affiliates accounted for under the equity method, respectively.

We anticipate performance-based fees will be a recurring component of our aggregate fees;

however we do not

anticipate these fees to be a significant component of our Consolidated revenue as these fees are predominately earned by our

Affiliates accounted for under the equity method.

Aggregate fees were $1,909.9 million for the three months ended March 31, 2026 , an increase of $639.5 million or 50% as

compared to the three months ended March 31, 2025 .

The increase in aggregate fees was due to a $400.5 million or 31%

increase from asset-based fees and a $239.0 million or 19% increase from performance-based fees, primarily in liquid

alternative strategies.

however we do not anticipate these

fees to be a significant component of our Consolidated revenue as these fees are predominately earned by our Affiliates

accounted for under the equity method.

Aggregate fees were $1,661.5 million for the three months ended June 30, 2026 , an increase of $488.0 million or 42% as

compared to the three months ended June 30, 2025 .

The increase in aggregate fees was due to a $437.5 million or 37% increase

from asset-based fees and a $50.5 million or 5% increase from performance-based fees, primarily in private markets strategies.

The increase in asset-based fees was principally due to an increase in our Affiliates’ average assets under management,

primarily in liquid alternative and multi-asset and fixed income strategies, including the impact of our investments in new

Affiliates and market appreciation, and changes in the composition of our assets under management, including net client cash

flows from our Affiliates managing alternative strategies, which typically have higher fee rates.

Aggregate fees were $3,571.4 million for the six months ended June 30, 2026 , an increase of $1,127.5 million or 46% as

compared to the six months ended June 30, 2025 .

The increase in aggregate fees was due to an $838.0 million or 34% increase

from asset-based fees and a $289.5 million or 12% increase from performance-based fees, primarily in liquid alternative

The increase in asset-based fees was principally due to an increase in our Affiliates’ average assets under

management, primarily in liquid alternative and multi-asset and fixed income strategies, including the impact of our

investments in new Affiliates, and changes in the composition of our assets under management, including net client cash flows

from our Affiliates managing alternative strategies, which typically have higher fee rates.

investments in new Affiliates and market appreciation, and changes in the composition of our assets under management,

including net client cash flows from our Affiliates managing alternative strategies, which typically have higher fee rates.

Financial and Supplemental Financial Performance Measures

1 unchanged sentence

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months Ended

(in millions)

3 unchanged sentences

___________________________

(1) Percent change is not meaningful.

(2) Adjusted EBITDA (controlling interest) and Economic net income (controlling interest) are non-GAAP performance

measures and are discussed in “Supplemental Financial Performance Measures.”

Net income (controlling interest) increased $38.0 million or 52% for the three months ended March 31, 2026 .

increase was primarily due to a $72.1 million increase in Equity method income (net) and a $32.7 million decrease in Intangible

amortization and impairments attributable to the controlling int erest, partially o ffset by a $34.6 million increase in Affiliate

equity expense attributable to the controlling interest and a $21.0 million increase in Income tax expense attributable to the

controlling interest.

Net income (controlling interest) increased $101.6 million for the three months ended June 30, 2026 .

This increase was

primarily due to the impact of a $147.5 million increase in Consolidated revenue, a $59.3 million increase in Equity method

income (net), and a $38.3 million decrease in Affiliate equity expense attributable to the controlling interest, partially o ffset by

a $32.4 million increase in Income tax expense attributable to the controlling interest.

Net income (controlling interest) increased $139.7 million or 89% for the six months ended June 30, 2026 .

This increase

was primarily due to the impact of a $195.8 million increase in Consolidated revenue and a $131.3 million increase in Equity

method income (net), partially offset by a $53.3 million increase in Income tax expense attributable to the controlling interest.

Adjusted EBITDA (controlling interest) is an important supplemental financial performance measure for management.

Our Adjusted EBITDA (controlling interest) increased $89.1 million or 39% f or the three months ended March 31, 2026 ,

Our Adjusted EBITDA (controlling interest) increased $96.3 million or 44% f or the three months ended June 30, 2026 ,

primarily due to a $488.0 million or 42% increase in aggregate fees.

Adjusted EBITDA (controlling interest) increased $185.4 million or 41% for the six months ended June 30, 2026 ,

primarily due to a $1,127.5 million or 46% increase in aggregate fees.

Adjusted EBITDA (controlling interest) increased less

than aggregate fees on a percentage basis primarily due to an increase in earnings at certain Affiliates, many of which manage

alternative strategies and are accounted for under the equity method, and therefore we own less of an economic interest.

than aggregate fees on a percentage basis primarily due to the recognition of performance-based fees earned by Affiliates in

which we hold a lesser economic interest.

We believe Economic net income (controlling interest) is an important supplemental financial performance measure

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improves comparability of performance between periods.

For the three months ended March 31, 2026 , our Economic net

income (controlling interest) increased $65.9 million or 42% , primarily due to an $89.1 million or 39% increase in Adjusted

EBITDA (controlling interest).

For the three months ended June 30, 2026 , our Economic net income

(controlling interest) increased $62.2 million or 39% , primarily due to a $96.3 million or 44% increase in Adjusted EBITDA

(controlling interest).

Economic net income (controlling interest) increased $128.2 million or 40% for the six months ended June 30, 2026 ,

primarily due to a $185.4 million or 41% increase in Adjusted EBITDA (controlling interest).

Results of Operations

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For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions, except as noted)

Consolidated Affiliate average assets under management (in billions)

Consolidated Affiliate average assets under

management (in billions)

Consolidated revenue

Consolidated revenue increased $48.3 million or 10% for the three months ended March 31, 2026 , due to a $54.9 million or

11% increase from asset-based fees, partially offset by a $6.6 million or 1% decrease from performance-based fees, primarily in

private markets strategies.

The increase in asset-based fees was principally due to an increase in our consolidated Affiliates’

average assets under management, primarily in private markets and multi-asset and fixed income strategies, and changes in the

composition of our assets under management.

Consolidated revenue increased $147.5 million or 30% for the three months ended June 30, 2026 , due to an $86.3 million

or 18% increase from asset-based fees, and a $61.2 million or 12% increase from performance-based fees, primarily in private

markets strategies.

The increase in asset-based fees was principally due to an increase in our consolidated Affiliates’ average

assets under management, primarily in private markets and multi-asset and fixed income strategies, including the impact of

market appreciation, and changes in the composition of our assets under management.

Consolidated revenue increased $195.8 million or 20% for the six months ended June 30, 2026 , due to a $141.3 million or

14% increase from asset-based fees and a $54.5 million or 6% increase from performance-based fees, primarily in private

markets strategies.

The increase in asset-based fees was principally due to an increase in our consolidated Affiliates’ average

assets under management, primarily in private markets and multi-asset and fixed income strategies, including the impact of

market appreciation, and changes in the composition of our assets under management.

Consolidated Expenses

1 unchanged sentence

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

6 unchanged sentences

Total consolidated expenses

Compensation and related expenses increased $56.8 million or 25% for the three months ended March 31, 2026 , primarily

due to a $33.7 million increase in Affiliate equity expense and a $27.0 million increase in compensation accruals, partially

offset by a $3.9 million decrease in share-based compensation.

Selling, general and administrative expenses increased $12.7 million or 13% for the three months ended March 31, 2026 ,

primarily due to a $7.1 million increase in distribution and investment-related expenses, principally as a result of the increase in

average assets under management on which these expenses are incurred, and a $5.6 million increase in professional fees.

Intangible amortization and impairments decreased $34.1 million or 41% for the three months ended March 31, 2026 ,

primarily due to a $34.0 million decrease in expenses to reduce the carrying value of indefinite-lived acquired client

relationships for certain mutual fund assets to fair value.

Interest expense increased $4.3 million or 13% for the three months ended March 31, 2026 , primarily due to a $6.0 million

increase from our 5.50% senior unsecured notes issued in December 2025 (the “2036 senior notes”) and a $5.8 million increase

from borrowings under our senior unsecured multicurrency revolving credit facility (the “revolver”).

Compensation and related expenses increased $52.4 million or 20% for the three months ended June 30, 2026 , primarily

due to a $90.7 million increase i n compensation accruals, partially offset by a $37.6 million decrease in Affiliate equity

Compensation and related expenses increased $109.1 million or 22% for the six months ended June 30, 2026 , primarily due

to a $117.6 million increase in compensation accruals, partially offset by a $4.6 million decrease in share-based compensation

and a $3.9 million decrease in Affiliate equity expense.

Selling, general and administrative expenses increased $11.7 million or 12% for the three months ended June 30, 2026 ,

primarily due to a $10.3 million increase in distribution and investment-related expenses, principally as a result of the increase

in average assets under management on which these expenses are incurred .

Selling, general and administrative expenses increased $24.3 million or 13% for the six months ended June 30, 2026 ,

primarily due to a $17.4 million increase in distribution and investment-related expenses, principally as a result of the increase

in average assets under management on which these expenses are incurred , and a $6.2 million increase in professional fees.

Intangible amortization and impairments increased $0.9 million or 14% for the three months ended June 30, 2026 ,

primarily due to a $0.9 million increase in amortization expense due to an increase in actual and expected client attrition for

certain definite-lived acquired client relationships.

Intangible amortization and impairments decreased $33.1 million or 37% for the six months ended June 30, 2026 , primarily

due to a $34.0 million decrease in expenses to reduce the carrying value of indefinite-lived acquired client relationships for

certain mutual fund assets to fair value.

Interest expense increased $6.0 million or 17% for the three months ended June 30, 2026 , primarily due to a $7.7 million

increase from borrowings under our senior unsecured multicurrency revolving credit facility (the “revolver”) and a $6.0 million

increase from our 5.50% senior unsecured notes issued in December 2025 (the “2036 senior notes”).

These increases were

partially offset by a $4.4 million decrease due to the repayment of our junior convertible trust preferred securities in January

2026 and a $3.2 million decrease due to the maturity of our 3.50% senior notes in August 2025.

There were no significant changes to Depreciation and other amortization for the three months ended March 31, 2026 .

Other expenses (net) increased $9.6 million or 82% for the three months ended March 31, 2026 , primarily due to a $9.3

million increase in expenses related to the settlement of conversions with respect to our former junior convertible securities.

See Note 6 of our Consolidated Financial Statements .

partially offset by a $4.5 million decrease due to the repayment of our junior convertible securities in January 2026 and a $3.2

million decrease due to the maturity of our 3.50% senior notes in August 2025 (the “2025 Senior Notes”).

Interest expense increased $10.3 million or 15% for the six months ended June 30, 2026 , primarily due to a $13.7 million

increase from borrowings under the revolver and an $11.9 million increase from the 2036 senior notes.

These increases were

partially offset by an $8.9 million decrease due to the repayment of our junior convertible securities in January 2026 and a $6.4

million decrease due to the maturity of the 2025 Senior Notes.

There were no significant changes to Depreciation and other amortization for the three and six months ended June 30,

Other expenses (net) increased $3.3 million or 33% for the three months ended June 30, 2026 , primarily due to a $1.1

million increase in rent and related office costs and a $0.7 million increase in expenses related to changes in the values of

contingent payment obligations.

Other expenses (net) increased $13.0 million or 60% for the six months ended June 30, 2026 , primarily due to a $9.3

million increase in expenses related to the settlement of conversions with respect to our junior convertible securities (see Note

6), a $1.7 million increase in rent and related office costs, and a $0.8 million increase in expenses related to changes in the

values of contingent payment obligations.

Equity Method Income (Net)

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For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions, except as noted)

Operating Performance Measures

Equity method Affiliate average assets under management (in billions)

Equity method Affiliate average assets under

management (in billions)

Equity method revenue, net

7 unchanged sentences

(1) Percent change is not meaningful.

E quity method revenue, net increased $591.2 million or 76% for the three months ended March 31, 2026 , due to a $345.6

E quity method revenue, net increased $340.5 million or 50% for the three months ended June 30, 2026 , due to a $351.2

million or 52% increase from asset-based fees, partially offset by a $10.7 million or 2% decrease from performance-based fees,

primarily in liquid alternative strategies.

The increase in asset-based fees was principally due to an increase in our equity

method Affiliates’ average assets under management, primarily in liquid alternative and multi-asset and fixed income strategies,

including the impact of our investments in new Affiliates and market appreciation, and changes in the composition of our assets

under management, including net client cash flows from our equity method Affiliates managing alternative strategies, which

typically have higher fee rates.

For the three months ended June 30, 2026 , pre-tax equity method earnings increased $62.6 million or 67% , primarily due to

a $340.5 million or 50% increase in equity method revenue, net.

Pre-tax equity method earnings increased more than equity

method revenue, net on a percentage basis primarily due to margin expansion at certain Affiliates.

Equity method intangible amortization increased $2.2 million or 8% for the three months ended June 30, 2026 , primarily

due to a $9.7 million increase in amortization expense due to investments in new Affiliates.

This increase was partially offset

by a $5.4 million decrease in amortization expense related to certain definite-lived assets being fully amortized and a $2.4

million decrease due to certain Affiliate transactions.

Equity method revenue, net increased $931.7 million or 64% for the six months ended June 30, 2026 , due to a $696.7

million or 48% increase from asset-based fees and a $235.0 million or 16% increase from performance-based fees, primarily in

2 unchanged sentences

average assets under management, primarily in liquid alternative and multi-asset and fixed income strategies, including the

impact of our investments in new Affiliates, and changes in the composition of our assets under management, including net

client cash flows from our equity method Affiliates managing alternative strategies, which typically have higher fee rates.

Pre-tax equity method earnings increased $86.7 million or 87% for the three months ended March 31, 2026 , primarily due

to a $591.2 million or 76% increase in equity method revenue, net.

impact of our investments in new Affiliates and market appreciation, and changes in the composition of our assets under

management, including net client cash flows from our equity method Affiliates managing alternative strategies, which typically

have higher fee rates.

For the six months ended June 30, 2026 , pre-tax equity method earnings increased $149.4 million or 77% , primarily due to

a $931.7 million or 64% increase in equity method revenue, net.

Pre-tax equity method earnings increased more than equity

method revenue, net on a percentage basis primarily due to margin expansion at certain Affiliates.

Equity method intangible amortization increased $8.0 million or 43% for the three months ended March 31, 2026 ,

primarily due to a $10.8 million increase in amortization expense due to investments in new Affiliates, partially offset by a $1.1

million decrease in amortization expense related to certain definite-lived assets being fully amortized.

Equity method intangible impairments increased $8.0 million for the three months ended March 31, 2026 .

See Note 9 of

our Consolidated Financial Statements.

There were no significant changes to equity method income tax for the three months ended March 31, 2026 .

Equity method intangible amortization increased $10.3 million or 23% for the six months ended June 30, 2026 , primarily

due to a $20.5 million increase in amortization expense due to investments in new Affiliates.

This increase was partially offset

by a $6.4 million decrease in amortization expense related to certain definite-lived assets being fully amortized and a $4.5

million decrease in amortization expense due to certain Affiliate transactions.

Equity method intangible impairments increased $8.0 million for the six months ended June 30, 2026 .

See Note 9 of our

Consolidated Financial Statements.

There were no significant changes to equity method income tax for the three and six months ended June 30, 2026 .

Affiliate Transaction Gains

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

Affiliate transaction gains

___________________________

(1) Percent change is not meaningful.

For the three and six months ended June 30, 2026 , we recorded a $14.6 million gain related to the divestiture of an advisor

team at myCIO Wealth Partners, LLC (“myCIO”) in June 2026 (the "myCIO Transaction") .

See Note 8 of our Consolidated

Financial Statements.

Investment and Other Income

1 unchanged sentence

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

Investment and other income

Investment and other income decreased $5.1 million or 44% for the three months ended March 31, 2026 , primarily due to a

$5.8 million decrease in interest income.

Investment and other income decreased $11.6 million or 45% for the three months ended June 30, 2026 , primarily due to a

$10.9 million decrease in net realized and unrealized gains on other investments.

Investment and other income decreased $16.7 million or 45% for the six months ended June 30, 2026 , primarily due to an

$11.6 million decrease in net realized and unrealized gains on other investments and a $7.7 million decrease in interest income.

These decreases were partially offset by a $3.7 million increase in net realized and unrealized gains on marketable securities.

Income Tax Expense

1 unchanged sentence

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

2 unchanged sentences

attributable to the non-controlling interests.

Income tax expense increased $19.1 million or 70% for the three months ended March 31, 2026 .

Income tax expense increased $34.3 million or 96% for the three months ended June 30, 2026 .

Our effective tax rate

(controlling interest) for the three months ended March 31, 2026 was 29.3% as compared to 25.4% for the three months ended

March 31, 2025 .

The increase in the effective tax rate (controlling interest) was primarily due to expenses attributable to

Affiliate equity awards for which no tax benefit was recorded, partially offset by higher tax windfalls attributable to share-based

compensation for the three months ended March 31, 2026 .

(controlling interest) for the three months ended June 30, 2026 was 26.2% as compared to 28.5% for the three months ended

June 30, 2025 .

The decrease in the effective tax rate (controlling interest) is primarily due to an expense attributable to a

modification of the terms of certain equity awards at an Affiliate for which no tax benefit was recorded, which did not recur,

partially offset by higher tax windfalls attributable to share-based compensation for the three months ended June 30, 2025.

Income tax expense increased $53.4 million or 85% for the six months ended June 30, 2026 .

Our effective tax rate

(controlling interest) for the six months ended June 30, 2026 was 27.4% as compared to 27.1% for the six months ended June

The increase in the effective tax rate (controlling interest) is primarily due to lower tax windfalls attributable to

share-based compensation for the six months ended June 30, 2026 .

The following table presents Net income, Net income (non-controlling interests), and Net income (controlling interest):

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

1 unchanged sentence

Net income (controlling interest)

Net income (controlling interest) increased $38.0 million or 52% for the three months ended March 31, 2026 , primarily due

to an increase in Equity method income (net) and a decrease in Intangible amortization and impairments attributable to the

controlling interest, partially offset by increases in Affiliate equity expense attributable to the controlling interest and Income

___________________________

(1) Percent change is not meaningful.

Net income (controlling interest) increased $101.6 million for the three months ended June 30, 2026 , primarily due to an

increase in Consolidated revenue, an increase in Equity method income (net), and a decrease in Affiliate equity expense

attributable to the controlling interest, partially offset by an increase in Income tax expense attributable to the controlling

Net income (controlling interest) increased $139.7 million or 89% for the six months ended June 30, 2026 , primarily due to

an increase in Consolidated revenue and an increase in Equity method income (net), partially offset by an increase in Income

tax expense attributable to the controlling interest.

21 unchanged sentences

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

3 unchanged sentences

Intangible amortization and impairments (2)

Affiliate transactions (3)

Other items (4)

1 unchanged sentence

___________________________

(1) Includes equity method income tax.

(1) Income taxes include equity method income tax.

(2) Intangible amortization and impairments in our Consolidated Statements of Income include amortization attributable to the

6 unchanged sentences

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions)

Consolidated intangible amortization and impairments

Consolidated intangible amortization and impairments (non-controlling interests)

Consolidated intangible amortization and impairments (non-controlling

Equity method intangible amortization and impairments

(3) The three and six months ended June 30, 2026 include a gain of $14.6 million related to the myCIO Transaction.

(4) Other items include certain non-income based taxes, depreciation, and non-cash items such as certain Affiliate equity-

2 unchanged sentences

capital, general partner commitments, and other strategic investments.

For the three months ended March 31, 2026 , the

increase in other items was predominantly the result of Affiliate equity-related activities .

For the three and six months ended June 30, 2025

and 2026 , other items were predominantly the result of Affiliate equity-related activities .

See Note 12 of our Consolidated

Financial Statements.

Economic Net Income (controlling interest) and Economic Earnings Per Share

22 unchanged sentences

For the Three Months

Ended March 31,

Ended June 30,

For the Six Months

Ended June 30,

(in millions, except per share data)

2 unchanged sentences

Intangible-related deferred taxes (2)

Affiliate transactions (3)

Other economic items (4)

1 unchanged sentence

Average shares outstanding (diluted)

Hypothetical issuance of shares to settle Redeemable non-controlling interests

Hypothetical issuance of shares to settle Redeemable non-controlling

Assumed issuance of junior convertible securities shares

4 unchanged sentences

(1) See note (2) to the table in “Adjusted EBITDA (controlling interest).”

(2) Includes equity method deferred taxes.

(2) Income taxes include equity method deferred taxes.

(3) The three and six months ended June 30, 2026 include a gain of $14.6 million related to the myCIO Transaction , net of

$3.6 million income tax expense.

(4) Other economic items include certain Affiliate equity-related activities, gains and losses related to contingent payment

2 unchanged sentences

capital, general partner commitments, and other strategic investments.

For the three months ended March 31, 2026 , the

increase in other economic items was predominantly the result of Affiliate equity-related activities.

For the three and six months ended June 30, 2025

and 2026 , other economic items were predominantly the result of Affiliate equity-related activities.

See Note 12 of our

Consolidated Financial Statements.

L iquidity and Capital Resources

6 unchanged sentences

Global Ratings.

Cash and cash equivalents were $376.1 million as of March 31, 2026 and were attributable to b oth our controlling and the

Cash and cash equivalents were $411.0 million as of June 30, 2026 and were attributable to b oth our controlling and the

non-controlling interests .

In the three months ended March 31, 2026 , we met our cash requirements primarily through cash

In the six months ended June 30, 2026 , we met our cash requirements primarily through cash

generated by operating activities and senior bank debt borrowings .

Our principal uses of cash in the three months ended

March 31, 2026 were for investments in new Affiliates, settlement of each of our conversion obligations with respect to our

former junior convertible securities , the return of excess capital through share repurchases, distributions to Affiliate equity

holders, and repayment of debt.

Our principal uses of cash in the six months ended June 30,

2026 were for investments in new Affiliates, settlement of each of our conversion obligations with respect to our former junior

convertible securities , the return of excess capital through share repurchases, repayment of debt, and distributions to Affiliate

equity holders.

We expect investments in new Affiliates, investments in existing Affiliates, primarily through purchases of Affiliate equity

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The following table presents operating, investing, and financing cash flow activities:

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in millions)

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cash items, and timing differences in the cash settlement of assets and liabilities.

For the three months ended March 31, 2026 , Cash flows from operating activities were $299.3 million , primarily from

For the six months ended June 30, 2026 , Cash flows from operating activities were $538.3 million , primarily from

distributions of earnings received from equity method investments of $464.5 million and Net income of $383.7 million adjusted

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receivables, other assets, and payables, accrued liabilities, and other liabilities of $113.8 million .

For the three months ended

March 31, 2026 , operating cash flows were primarily attributable to the controlling interest.

For the six months ended

June 30, 2026 , operating cash flows were primarily attributable to the controlling interest.

Investing Cash Flow

For the three months ended March 31, 2026 , Cash flows used in investing activities were $229.0 million , primarily due to

For the six months ended June 30, 2026 , Cash flows used in investing activities were $219.3 million , primarily due to

$242.3 million of investments in Affiliates and $69.1 million of purchases of investment securities.

These items were partially

offset by $35.7 million of maturities and sales of investment securities.

For the three months ended March 31, 2026 , investing

cash flows were primarily attributable to the controlling interest.

offset by $57.2 million of maturities and sales of investment securities and $36.2 million of proceeds received from Affiliate

transactions .

For the six months ended June 30, 2026 , investing cash flows were primarily attributable to the controlling

Financing Cash Flow

For the three months ended March 31, 2026 , Cash flows used in financing activities were $277.3 million , primarily due to

the settlement of junior convertible securities of $514.6 million, $185.1 million of repurchases of common stock, net,

$84.1 million of distributions to non-controlling interests, repayment of senior bank debt borrowings of $60.0 million , $35.2

million of taxes paid on shares withheld for share-based awards, and $29.3 million of Affiliate equity purchases, net of

These items were partially offset by senior bank debt borrowings of $625.0 million .

For the three months ended

March 31, 2026 , financing cash flows were primarily attributable to the controlling interest.

For the six months ended June 30, 2026 , Cash flows used in financing activities were $489.0 million , primarily due to the

settlement of junior convertible securities of $514.6 million, $364.8 million of repurchases of common stock, net, repayment of

senior bank debt borrowings of $170.0 million , $146.3 million of distributions to non-controlling interests, $56.7 million of

Affiliate equity purchases, net of issuances, and $46.7 million of taxes paid on shares withheld for share-based awards .

items were partially offset by senior bank debt borrowings of $820.0 million .

For the six months ended June 30, 2026 ,

financing cash flows were primarily attributable to the controlling interest.

Affiliate Equity

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sell their equity interests to Affiliate partners or other parties, subject to our approval or other restrictions.

As of March 31, 2026 , the current redemption value of Affiliate equity interests was $458.2 million , of which $264.0

million was presented as Redeemable non-controlling interests (including $36.0 million of consolidated Affiliate sponsored

investment products primarily attributable to third-party investors), and $194.2 million was included in Other liabilities on the

Consolidated Balance Sheets.

Although the timing and amounts of these purchases are difficult to predict, we paid $33.2

million for Affiliate equity purchases and received $3.9 million for Affiliate equity issuances during the three months ended

March 31, 2026 , and we expect net purchases of approximately $65 million of Affiliate equity during the remainder of 2026 .

the event of a purchase, we become the owner of the cash flow associated with the purchased equity.

See Notes 11 and 12 of

our Consolidated Financial Statements.

As of June 30, 2026 , the current redemption value of Affiliate equity interests was $470.6 million , of which $270.2 million

was presented as Redeemable non-controlling interests (including $32.9 million of consolidated Affiliate-sponsored investment

products primarily attributable to third-party investors), and $200.4 million was included in Other liabilities on the Consolidated

Balance Sheets.

Although the timing and amounts of these purchases are difficult to predict, we paid $60.9 million for Affiliate

equity purchases and received $4.2 million for Affiliate equity issuances during the six months ended June 30, 2026 , and we

expect net purchases of approximately $35 million of Affiliate equity during the remainder of 2026 .

In the event of a purchase,

we become the owner of the cash flow associated with the purchased equity.

See Notes 11 and 12 of our Consolidated

Financial Statements.

Share Repurchases

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strategies that may include derivative financial instruments.

During the three months ended March 31, 2026 , we repurchased

0.6 million shares of our common stock at an average price per share of $307.01 .

As of March 31, 2026 , there were a total of

5.6 million shares available for repurchase under our share repurchase programs.

During the three and six months ended June 30, 2026 , we

repurchased 0.6 million and 1.2 million shares of our common stock at an average price per share of $313.56 and $310.29 ,

respectively.

As of June 30, 2026 , there were a total of 5.0 million shares available for repurchase under our share repurchase

The following table presents the carrying value of our outstanding indebtedness and a reconciliation to Debt as presented

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Debt issuance costs

As of March 31, 2026 , the weighted average maturity of our outstanding senior and junior subordinated notes is 22 years ,

all of which is maturing in 2030 and beyond.

Our nearest term maturity with respect to our senior and junior subordinated

notes relates to our $350.0 million senior notes due June 2030 (the “2030 senior notes”).

See Note 6 of our Consolidated

Financial Statements.

As of June 30, 2026 , the weighted average maturity of our outstanding senior and junior subordinated notes is 22 years , all

of which is maturing in 2030 and beyond.

Our nearest term maturity with respect to our senior and junior subordinated notes

relates to our $350.0 million senior notes due June 2030 (the “2030 senior notes”).

See Note 6 of our Consolidated Financial

Senior Bank Debt

As of March 31, 2026 , we had a $1.25 billion revolver which matures on November 15, 2029.

Subject to certain

conditions, we may increase the commitments under the revolver by up to an additional $500.0 million .

As of March 31, 2026 , we had outstanding borrowings under the revolver of $565.0 million , and we could borrow all

As of June 30, 2026 , we had a $1.25 billion revolver.

The Company amended and restated the revolver in June 2026,

extending the maturity from November 15, 2029 to June 9, 2031.

Subject to certain conditions, we may increase the

commitments under the revolver by up to an additional $750.0 million .

As of June 30, 2026 , we had outstanding borrowings under the revolver of $650.0 million , and we could borrow all

remaining capacity and maintain compliance with all of the terms of the revolver .

As of March 31, 2026 , we had senior notes outstanding, the respective principal terms of which are presented and

described below:

As of June 30, 2026 , we had senior notes outstanding, the respective principal terms of which are presented and described

December 2025

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Junior Subordinated Notes

As of March 31, 2026 , we had junior subordinated notes outstanding, the respective principal terms of which are presented

As of June 30, 2026 , we had junior subordinated notes outstanding, the respective principal terms of which are presented

and described below:

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Coupon frequency

As of March 31, 2026 , each of the 2059 and the 2060 junior subordinated notes could be redeemed at any time, in whole or

As of June 30, 2026 , each of the 2059 and the 2060 junior subordinated notes could be redeemed at any time, in whole or

The other junior subordinated notes may be redeemed at any time, in whole or in part, on or after September 30, 2026,

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distribution program superseded and replaced our prior equity distribution program.

As of March 31, 2026 , no sales had

occurred under the equity distribution program.

As of June 30, 2026 , no sales had occurred

under the equity distribution program.

See Note 7 of our Consolidated Financial Statements.

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See Notes 4 and 7 of our Consolidated Financial Statements.

As of March 31, 2026 , our lease obligations were $21.8 million for the remainder of 2026 , $61.4 million from 2027

through 2028, $56.2 million from 2029 through 2030, and $60.7 million thereafter.

The portion of these lease obligations

attributable to the controlling interest were $3.3 million for the remainder of 2026 , $6.7 million from 2027 through 2028, $6.5

As of June 30, 2026 , our lease obligations were $14.0 million for the remainder of 2026 , $61.0 million from 2027 through

2028, $57.3 million from 2029 through 2030, and $62.7 million thereafter.

The portion of these lease obligations attributable to

the controlling interest were $1.8 million for the remainder of 2026 , $6.8 million from 2027 through 2028, $6.5 million from

2029 through 2030, and $11.0 million thereafter.

Recent Accounting Developments

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Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to our Quantitative and Qualitative Disclosures About Market Risk for the three

months ended March 31, 2026 .

There have been no material changes to our Quantitative and Qualitative Disclosures About Market Risk for the six months

ended June 30, 2026 .

Please refer to Item 7A of our 2025 Annual Report on Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis