AFFILIATED MANAGERS GROUP, INC.AMG
AFFILIATED MANAGERS GROUP, INC. Fair Value Disclosure
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 | ||||
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(1)Amounts are recorded in Investments.
(2)Amounts are recorded in Other liabilities.
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 | ||||
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(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% | ||||||||||||
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(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
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.