Affiliated Managers Group (AMG) risk factors, FY2024 10-K

RISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

1. 01Our financial results depend on our Affiliates’ receipt of asset- and performance-based fees, and are impacted by investment performance, as well as changes in fee levels, product mix, and the relative levels of assets under management among our Affiliates
2. 02Our financial results could be adversely affected by any reduction in our assets under management, which could reduce the asset- and performance-based fees earned by our Affiliates
3. 03If our or our Affiliates’ reputations are harmed, we could suffer losses in our business and financial results
4. 04The investment management industry is highly competitive
5. 05Investment management contracts are subject to termination on short notice
6. 06We may need to raise additional capital in the future, and existing or future resources may not be available to us in sufficient amounts or on acceptable terms
7. 07Our debt agreements impose certain covenants relating to the conduct of our business, including financial covenants under our revolver, any breach of which could result in the acceleration of the repayment of any amounts borrowed or outstanding thereunder
8. 08We have substantial intangibles on our balance sheet, and any impairment of our intangibles could adversely affect our financial condition and results of operations
9. 09Market risk management activities may adversely affect our liquidity and results of operations

RISKS RELATED TO OUR STRATEGY AND OUR STRUCTURED PARTNERSHIPS WITH AFFILIATES

1. 10Our growth strategy depends in part upon our ability to identify and consummate investments in suitable independent investment firms
2. 11Our growth strategy also includes selectively pursuing strategic partnerships, transactions, and initiatives, which could involve additional risks and uncertainties
3. 12The form of our structured partnership interests in our Affiliates differs from Affiliate to Affiliate, and may change during the course of our investment
4. 13We may reposition or divest our equity interests in our Affiliates, and we cannot be certain that any such repositioning or divestment will benefit us in the near- or long-term
5. 14We and our Affiliates rely on certain key personnel and cannot guarantee their continued service

RISKS RELATED TO OUR COMMON STOCK

1. 15Equity markets and our common stock have been volatile
2. 16The sale or issuance of substantial amounts of our common stock, or the expectation that such sales or issuances will occur, could adversely impact the price of our common stock
3. 17Additionally, we have the right to settle certain Affiliate equity purchase obligations with shares of our common stock
4. 18Provisions in our organizational documents, Delaware law, and other factors could delay or prevent a change in control of the Company, or adversely affect our financial results in periods prior to and following a change in control
5. 19Any of the forgoing factors may inhibit a change in control in circumstances that could give our stockholders the opportunity to realize a premium over the market price of our common stock, or may result in negative impacts on our financial results in periods prior to and following a change in control

LEGAL AND REGULATORY RISKS

1. 20Our and our Affiliates’ businesses are highly regulated
2. 21Our and our Affiliates’ international operations are subject to foreign risks, including political, regulatory, economic, and currency risks
3. 22Changes in tax laws or exposure to additional tax liabilities could have an adverse impact on our business, financial condition, and results of operations
4. 23In addition, we and our Affiliates may be subject to tax examinations by certain federal, state, and foreign tax authorities
5. 24We or our Affiliates may be involved in legal proceedings and regulatory matters from time to time, and we may be held responsible for liabilities incurred by certain of our Affiliates
6. 25Our or our Affiliates’ controls and procedures and risk management policies may be inadequate, fail or be circumvented, and operational risk could adversely affect our or our Affiliates’ reputation and financial position
7. 26Failure to maintain and properly safeguard an adequate technology infrastructure may limit our or our Affiliates’ growth, result in losses or disrupt our or our Affiliates’ businesses