Affiliated Managers Group, Inc. (AMG) operates via a unique partnership model that maintains the independence and significant equity ownership of its investment firm Affiliates, simultaneously providing strategic resources to bolster growth. This structure underpinned AMG’s robust historical operating income and net income growth, with a notable 61.1% and 40.1% year-over-year increase in FY2025, respectively, driven by diversification across alternative and long-only asset classes. AMG’s capital allocation exhibits discipline, balancing investments in new and existing Affiliates with returning capital through share repurchases and dividends, supported by strong cash flow generation and a healthy return on equity around 22%. Ongoing challenges include client retention risks due to contractual termination rights and fee pressures amid rising competition from passive products.