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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)  
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to          
Commission File Number 001-13459
amglogoa81.jpg
AFFILIATED MANAGERS GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 04-3218510
(State or other jurisdiction
of incorporation or organization)		 (IRS Employer Identification Number)
777 South Flagler Drive, West Palm Beach, Florida 33401
(Address of principal executive offices)
(800) 345-1100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.01 par value)AMGNew York Stock Exchange
5.875% Junior Subordinated Notes due 2059MGRNew York Stock Exchange
4.750% Junior Subordinated Notes due 2060MGRBNew York Stock Exchange
4.200% Junior Subordinated Notes due 2061MGRDNew York Stock Exchange


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒ Accelerated filer ☐ Non-accelerated filer 
☐ Smaller reporting company☐Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
There were 35,046,930 shares of the registrant’s common stock outstanding on August 3, 2023.

FORM 10-Q
TABLE OF CONTENTS


PART I—FINANCIAL INFORMATION
Item 1.Financial Statements
AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
(unaudited)
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2022202320222023
Consolidated revenue$604.1 $512.5 $1,211.4 $1,029.9 
Consolidated expenses:
Compensation and related expenses268.2 228.9 523.2 451.2 
Selling, general and administrative93.1 85.2 182.6 182.3 
Intangible amortization and impairments12.5 12.5 25.0 25.0 
Interest expense 27.3 30.9 56.4 61.3 
Depreciation and other amortization4.7 3.3 8.1 7.0 
Other expenses (net)(5.2)13.8 0.4 28.3 
Total consolidated expenses400.6 374.6 795.7 755.1 
Equity method income (net)30.5 55.8 79.1 114.5 
Investment and other income (expense)(22.0)26.5 (8.4)64.3 
Income before income taxes212.0 220.2 486.4 453.6 
Income tax expense 38.0 32.8 93.8 77.7 
Net income 174.0 187.4 392.6 375.9 
Net income (non-controlling interests)(64.6)(62.1)(137.2)(116.1)
Net income (controlling interest)$109.4 $125.3 $255.4 $259.8 
Average shares outstanding (basic)38.7 35.9 39.2 35.9 
Average shares outstanding (diluted)44.5 42.1 48.1 40.2 
Earnings per share (basic)$2.83 $3.49 $6.52 $7.23 
Earnings per share (diluted)$2.68 $3.25 $6.10 $6.74 

The accompanying notes are an integral part of the Consolidated Financial Statements.
2
AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2022202320222023
Net income $174.0 $187.4 $392.6 $375.9 
Other comprehensive income (loss), net of tax:  
Foreign currency translation gain (loss)(73.4)24.5 (85.2)51.3 
Change in net realized and unrealized gain (loss) on derivative financial instruments(0.6)0.5 (0.6)0.7 
Change in net unrealized gain (loss) on available-for-sale debt securities— (0.6)— (0.2)
Other comprehensive income (loss), net of tax(74.0)24.4 (85.8)51.8 
Comprehensive income 100.0 211.8 306.8 427.7 
Comprehensive income (non-controlling interests)(43.1)(69.4)(109.2)(125.7)
Comprehensive income (controlling interest)$56.9 $142.4 $197.6 $302.0 

The accompanying notes are an integral part of the Consolidated Financial Statements.
3
AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
December 31,
2022		June 30,
2023
Assets  
Cash and cash equivalents$429.2 $785.5 
Receivables316.0 487.1 
Investments in marketable securities716.9 444.2 
Goodwill2,648.7 2,659.6 
Acquired client relationships (net)1,876.0 1,863.1 
Equity method investments in Affiliates (net)2,139.5 1,943.8 
Fixed assets (net)68.5 66.3 
Other investments421.6 457.0 
Other assets264.6 259.5 
Total assets$8,881.0 $8,966.1 
Liabilities and Equity 
Payables and accrued liabilities$778.3 $602.5 
Debt2,535.3 2,536.4 
Deferred income tax liability (net)464.7 487.6 
Other liabilities461.7 470.3 
Total liabilities4,240.0 4,096.8 
Commitments and contingencies (Note 8)
Redeemable non-controlling interests465.4 500.9 
Equity: 
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares issued in 2022 and 2023)
0.6 0.6 
Additional paid-in capital695.5 651.9 
Accumulated other comprehensive loss(203.4)(161.2)
Retained earnings5,718.2 5,977.2 
6,210.9 6,468.5 
Less: Treasury stock, at cost (22.7 shares in 2022 and 23.1 shares in 2023)
(2,980.6)(3,070.5)
Total stockholders' equity3,230.3 3,398.0 
Non-controlling interests945.3 970.4 
Total equity4,175.6 4,368.4 
Total liabilities and equity$8,881.0 $8,966.1 

The accompanying notes are an integral part of the Consolidated Financial Statements.
4
AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions)
(unaudited)
Three Months Ended June 30, 2022Total Stockholders’ Equity  
 Common
Stock		Additional
Paid-In
Capital		Accumulated
Other
Comprehensive
Loss		Retained
Earnings		Treasury
Stock at
Cost		Non-
controlling
Interests		Total
Equity
March 31, 2022$0.6 $557.4 $(93.2)$4,719.4 $(2,515.4)$924.4 $3,593.2 
Net income — — — 109.4 — 64.6 174.0 
Other comprehensive loss, net of tax— — (52.5)— — (21.5)(74.0)
Share-based compensation— 15.1 — — — — 15.1 
Common stock issued under share-based incentive plans— (0.2)— — 1.2 — 1.0 
Share repurchases— — — — (80.0)— (80.0)
Dividends ($0.01 per share)
— — — (0.3)— — (0.3)
Affiliate equity activity:
Affiliate equity compensation— 2.0 — — — 12.1 14.1 
Issuances— 0.1 — — — 1.4 1.5 
Purchases— (2.5)— — — 2.5 — 
Changes in redemption value of Redeemable non-controlling interests— 79.9 — — — — 79.9 
Transfers to Redeemable non-controlling interests— — — — — (1.8)(1.8)
Capital contributions and other— — — — — 10.4 10.4 
Distributions to non-controlling interests— — — — — (89.3)(89.3)
June 30, 2022$0.6 $651.8 $(145.7)$4,828.5 $(2,594.2)$902.8 $3,643.8 
Three Months Ended June 30, 2023Total Stockholders’ Equity  
 Common
Stock		Additional
Paid-In
Capital		Accumulated
Other
Comprehensive
Income (Loss)		Retained
Earnings		Treasury
Stock at
Cost		Non-
controlling
Interests		Total
Equity
March 31, 2023$0.6 $563.9 $(178.3)$5,852.3 $(2,966.6)$947.5 $4,219.4 
Net income — — — 125.3 — 62.1 187.4 
Other comprehensive income, net of tax— — 17.1 — — 7.3 24.4 
Share-based compensation— 14.7 — — — — 14.7 
Common stock issued under share-based incentive plans— (0.2)— — 0.1 — (0.1)
Share repurchases— 59.1 — — (104.0)— (44.9)
Dividends ($0.01 per share)
— — — (0.4)— — (0.4)
Affiliate equity activity:
Affiliate equity compensation— 7.6 — — — 10.6 18.2 
Issuances— (4.5)— — — 5.9 1.4 
Purchases— 6.8 — — — (1.8)5.0 
Changes in redemption value of Redeemable non-controlling interests— 4.5 — — — — 4.5 
Transfers to Redeemable non-controlling interests— — — — — (0.1)(0.1)
Capital contributions and other— — — — — 15.8 15.8 
Distributions to non-controlling interests— — — — — (76.9)(76.9)
June 30, 2023$0.6 $651.9 $(161.2)$5,977.2 $(3,070.5)$970.4 $4,368.4 
The accompanying notes are an integral part of the Consolidated Financial Statements.


5

AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions)
(unaudited)
Six Months Ended June 30, 2022Total 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, 2021$0.6 $651.6 $(87.9)$4,569.5 $(2,347.4)$924.2 $3,710.6 
Impact of adoption of new accounting standards (ASU 2020-06)— (80.6)— 4.5 — — (76.1)
Net income — — — 255.4 — 137.2 392.6 
Other comprehensive loss, net of tax— — (57.8)— — (28.0)(85.8)
Share-based compensation— 29.8 — — — — 29.8 
Common stock issued under share-based incentive plans— (30.1)— — 17.8 — (12.3)
Share repurchases— — — — (264.6)— (264.6)
Dividends ($0.02 per share)
— — — (0.9)— — (0.9)
Affiliate equity activity:
Affiliate equity compensation— 3.0 — — — 26.6 29.6 
Issuances— (6.8)— — — 22.5 15.7 
Purchases— (2.0)— — — (0.4)(2.4)
Changes in redemption value of Redeemable non-controlling interests— 86.9 — — — — 86.9 
Transfers to Redeemable non-controlling interests— — — — — (1.8)(1.8)
Capital contributions and other— — — — — 34.3 34.3 
Distributions to non-controlling interests— — — — — (211.8)(211.8)
June 30, 2022$0.6 $651.8 $(145.7)$4,828.5 $(2,594.2)$902.8 $3,643.8 
Six Months Ended June 30, 2023Total Stockholders' Equity  
Common
Stock		Additional
Paid-In
Capital		Accumulated
Other
Comprehensive
Income (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 — — — 259.8 — 116.1 375.9 
Other comprehensive income, net of tax— — 42.2 — — 9.6 51.8 
Share-based compensation— 29.4 — — — — 29.4 
Common stock issued under share-based incentive plans— (39.3)— — 14.1 — (25.2)
Share repurchases— 59.1 — — (104.0)— (44.9)
Dividends ($0.02 per share)
— — — (0.8)— — (0.8)
Affiliate equity activity:
Affiliate equity compensation— 6.7 — — — 21.9 28.6 
Issuances— (8.3)— — — 23.0 14.7 
Purchases— 6.0 — — — (1.5)4.5 
Changes in redemption value of Redeemable non-controlling interests— (97.2)— — — — (97.2)
Transfers to Redeemable non-controlling interests— — — — — (0.1)(0.1)
Capital contributions and other— — — — — 12.5 12.5 
Distributions to non-controlling interests— — — — — (156.4)(156.4)
June 30, 2023$0.6 $651.9 $(161.2)$5,977.2 $(3,070.5)$970.4 $4,368.4 
The accompanying notes are an integral part of the Consolidated Financial Statements.
6
AFFILIATED MANAGERS GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 For the Six Months Ended June 30,
 20222023
Cash flow from (used in) operating activities:
Net income $392.6 $375.9 
Adjustments to reconcile Net income to cash flow from (used in) operating activities: 
Intangible amortization and impairments25.0 25.0 
Depreciation and other amortization8.1 7.0 
Deferred income tax expense31.0 24.2 
Equity method income (net)(79.1)(114.5)
Distributions received from equity method investments276.4 350.9 
Share-based compensation and Affiliate equity compensation expense56.7 57.4 
Net realized and unrealized losses (gains) on investment securities8.4 (48.2)
Other non-cash items(8.0)(0.1)
Changes in assets and liabilities: 
Purchases of securities by consolidated Affiliate sponsored investment products(29.4)(21.4)
Sales of securities by consolidated Affiliate sponsored investment products21.7 24.6 
Decrease (increase) in receivables0.5 (163.8)
Decrease in other assets9.4 10.0 
Decrease in payables, accrued liabilities, and other liabilities(206.8)(201.5)
Cash flow from operating activities506.5 325.5 
Cash flow from (used in) investing activities: 
Investments in Affiliates, net of cash acquired(147.8)— 
Return of capital from equity method investments0.8 — 
Purchase of fixed assets(6.1)(4.0)
Purchase of investment securities(35.3)(215.0)
Maturities and sales of investment securities16.4 510.1 
Cash flow (used in) from investing activities(172.0)291.1 
Cash flow from (used in) financing activities: 
Borrowings of senior bank debt— 25.0 
Repayments of senior bank debt and junior convertible securities(58.0)(25.0)
Repurchases of common stock (net)(279.9)(44.3)
Dividends paid on common stock(0.8)(0.8)
Distributions to non-controlling interests(211.8)(156.4)
Affiliate equity (purchases) / issuances (net)(19.1)(8.4)
Subscriptions (redemptions) to consolidated Affiliate sponsored investment products, net6.9 (5.3)
Other financing items(53.5)(50.0)
Cash flow used in financing activities(616.2)(265.2)
Effect of foreign currency exchange rate changes on cash and cash equivalents(20.0)6.1 
Net (decrease) increase in cash and cash equivalents(301.7)357.5 
Cash and cash equivalents at beginning of period908.5 429.2 
Effect of deconsolidation of Affiliates— (1.2)
Cash and cash equivalents at end of period$606.8 $785.5 
                                            

The accompanying notes are an integral part of the Consolidated Financial Statements.
7
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


1.Basis of Presentation and Use of Estimates
The Consolidated Financial Statements of Affiliated Managers Group, Inc. (“AMG” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for full year financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair statement of the Company’s interim financial position and results of operations have been included and 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. Operating results for interim periods are not necessarily indicative of the results that may be expected for any other period or for the full year. The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 includes additional information about its operations, financial position, and accounting policies, and should be read in conjunction with this Quarterly Report on Form 10-Q.
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.
All amounts in these notes, except per share data in the text and tables herein, are stated in millions unless otherwise indicated.
2.Accounting Standards and Policies
Recent Accounting Developments
In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and requires specific disclosures related to such an equity security. The standard is effective for interim and annual periods beginning after December 15, 2023 for the Company, and is effective for interim and annual periods beginning after December 15, 2024 for the Company’s Affiliates. The Company is evaluating the impact of this standard and it currently does not expect the adoption to have a material impact on its Consolidated Financial Statements.
3.Investments in 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,
2022		June 30,
2023
Cost$394.4 $80.1 
Unrealized gains59.9 17.0 
Unrealized losses(6.4)(1.3)
Fair value$447.9 $95.8 
As of December 31, 2022 and June 30, 2023, investments in equity securities include ordinary shares of EQT AB (“EQT”), a public company listed on Nasdaq Stockholm (EQT.ST), with fair values of $405.1 million and $49.9 million, respectively. The Company received the EQT shares through the sale of its equity interest in Baring Private Equity Asia (“BPEA”), in connection with the strategic combination of BPEA and EQT, which was completed in the fourth quarter of 2022. In July 2023, the Company sold its remaining 2.6 million ordinary shares of EQT.
As of December 31, 2022 and June 30, 2023, investments in equity securities include consolidated Affiliate sponsored investment products with fair values of $23.5 million and $20.6 million, respectively.
For the three and six months ended June 30, 2022, the Company recognized net unrealized losses on equity securities still held as of June 30, 2022 of $18.7 million and $24.9 million, respectively. For the three and six months ended June 30, 2023,
8
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

the Company recognized net unrealized gains on equity securities still held as of June 30, 2023 of $2.6 million and $3.9 million, respectively.
Debt Securities
The following table summarizes the cost, unrealized losses, and fair value of investments in U.S. Treasury securities classified as available-for-sale, of which $176.5 million mature in 2023 and $152.6 million mature in 2024, and consolidated Affiliate sponsored investment products classified as trading:
 Available-for-SaleTrading
 December 31,
2022		June 30,
2023		December 31,
2022		June 30,
2023
Cost$252.3 $330.8 $19.7 $20.3 
Unrealized losses(1.3)(1.7)(1.7)(1.0)
Fair value$251.0 $329.1 $18.0 $19.3 
For the three months ended June 30, 2022 and 2023, and for the six months ended June 30, 2022 there were no maturities or sales of available-for-sale securities. For the six months ended June 30, 2023, the Company received $101.7 million of proceeds from the maturity of available-for-sale securities.
For the three and six months ended June 30, 2022, the Company recognized net unrealized losses on debt securities classified as trading still held as of June 30, 2022 of $1.9 million and $2.7 million, respectively. For the three and six months ended June 30, 2023, the Company recognized net unrealized gains (losses) on debt securities classified as trading still held as of June 30, 2023 of $0.0 million and $(0.0) million, respectively.
4.Other Investments
Other investments consists primarily of investments in funds advised by the Company’s Affiliates that are carried at net asset value (“NAV”) as a practical expedient and other investments without readily determinable fair values. Any gain or loss related to these investments is recorded in Investment and other income on the Consolidated Statements of Income.
Investments Measured at NAV as a Practical Expedient
The Company’s Affiliates sponsor funds in which the Company and its Affiliates may make general partner and seed capital investments. These funds operate in partnership form and apply the specialized fair value accounting for investment companies. The Company accounts for its interests in these funds using the equity method of accounting and is required to retain the specialized fair value accounting of the investment companies. Because the funds’ investments do not have readily determinable fair values, the Company uses the NAV of these investments as a practical expedient for their fair values. The following table summarizes the fair values of these investments and any related unfunded commitments:    
 December 31, 2022June 30, 2023
Fair ValueUnfunded
Commitments		Fair ValueUnfunded
Commitments
Private equity funds(1)
$356.4 $158.3 $378.5 $154.3 
Investments in other strategies(2)
14.8 — 28.1 — 
Total(3)
$371.2 $158.3 $406.6 $154.3 
___________________________
(1)The Company accounts for the majority of its interests in private equity funds one quarter in arrears (adjusted for current period calls and distributions). These funds primarily invest in a broad range of third-party funds and direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years.
(2)These are multi-disciplinary funds that invest across various asset classes and strategies, including equity, credit, and real estate. Investments are generally redeemable on a daily, monthly, or quarterly basis.
(3)Fair value attributable to the controlling interest was $275.1 million and $295.7 million as of December 31, 2022 and June 30, 2023, respectively.
9
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Investments Without Readily Determinable Fair Values
The Company made an investment in a private corporation where it does not exercise significant influence. Because this investment does not have a readily determinable fair value, the Company has elected to measure this investment at its cost minus impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments in the private corporation. The following table summarizes the cost, cumulative unrealized gains, and carrying amount of investments without readily determinable fair values:
 December 31,
2022		June 30,
2023
Cost$8.5 $8.5 
Cumulative unrealized gains41.9 41.9 
Carrying amount$50.4 $50.4 
For the three and six months ended June 30, 2023, the Company recorded no gains or losses on the underlying investment.
The following table presents the changes in Other investments:
For the Three Months Ended June 30,
20222023
Measured at NAV as a Practical ExpedientWithout Readily Determinable Fair ValuesTotalMeasured at NAV as a Practical ExpedientWithout Readily Determinable Fair ValuesTotal
Balance, beginning of period$343.7 $50.4 $394.1 $375.6 $50.4 $426.0 
Purchases and commitments12.1 — 12.1 36.2 — 36.2 
Sales and distributions(7.8)— (7.8)(17.4)— (17.4)
Net realized and unrealized (losses) gains(13.7)— (13.7)$12.2 $— $12.2 
Balance, end of period$334.3 $50.4 $384.7 $406.6 $50.4 $457.0 
For the Six Months Ended June 30,
20222023
Measured at NAV as a Practical ExpedientWithout Readily Determinable Fair ValuesTotalMeasured at NAV as a Practical ExpedientWithout Readily Determinable Fair ValuesTotal
Balance, beginning of period$324.8 $50.4 $375.2 $371.2 $50.4 $421.6 
Purchases and commitments27.1 — 27.1 46.0 — 46.0 
Sales and distributions(19.3)— (19.3)(28.9)— (28.9)
Net realized and unrealized gains1.7 — 1.7 $18.3 $— $18.3 
Balance, end of period$334.3 $50.4 $384.7 $406.6 $50.4 $457.0 
5.Fair Value Measurements
The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis:
10
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

  Fair Value Measurements
 December 31,
2022
 Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets    
Investments in equity securities(1)
$447.9 $305.6 $142.3 $— 
Investments in debt securities(1)
269.0 — 269.0 — 
Derivative financial instruments(2)
0.5 — 0.5 — 
Financial Liabilities(3)
    
Contingent payment obligations$21.0 $— $— $21.0 
Affiliate equity purchase obligations24.5 — — 24.5 
Derivative financial instruments0.9 — 0.9 — 
  Fair Value Measurements
 June 30,
2023
 Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets    
Investments in equity securities(1)
$95.8 $95.8 $— $— 
Investments in debt securities(1)
348.4 — 348.4 — 
Derivative financial instruments(2)
1.9 — 1.9 — 
Financial Liabilities(3)
    
Contingent payment obligations$23.4 $— $— $23.4 
Affiliate equity purchase obligations68.4 — — 68.4 
Derivative financial instruments1.5 — 1.5 — 
__________________________
(1)Amounts are presented within Investments in marketable securities on the Consolidated Balance Sheets.
(2)Amounts are presented within Other assets on the Consolidated Balance Sheets.
(3)Amounts are presented within Other liabilities on the Consolidated Balance Sheets.
Level 3 Financial Liabilities
The following table presents the changes in level 3 liabilities:
 For the Three Months Ended June 30,
20222023
Contingent Payment ObligationsAffiliate
Equity Purchase Obligations		Contingent Payment ObligationsAffiliate
Equity Purchase Obligations
Balance, beginning of period$31.4 $47.6 $22.9 $60.9 
Purchases and issuances(1)
— 7.9 — 26.8 
Settlements and reductions— (26.9)— (16.8)
Net realized and unrealized (gains) losses(2)
(17.2)(3.6)0.5 (2.5)
Balance, end of period$14.2 $25.0 $23.4 $68.4 
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(1)
$(17.2)$(3.5)$0.5 $(1.8)
11
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 For the Six Months Ended June 30,
20222023
Contingent Payment ObligationsAffiliate
Equity Purchase Obligations		Contingent Payment ObligationsAffiliate
Equity Purchase Obligations
Balance, beginning of period$40.3 $12.6 $21.0 $24.5 
Purchases and issuances(1)
— 48.5 — 71.0 
Settlements and reductions— (32.2)— (24.3)
Net realized and unrealized (gains) losses(2)
(26.1)(3.9)2.4 (2.8)
Balance, end of period$14.2 $25.0 $23.4 $68.4 
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(1)
$(26.1)$(3.8)$2.4 $(2.1)
___________________________
(1)Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests.
(2)Gains and losses resulting from changes to expected payments are included in Other expenses (net) on the Consolidated Statements of Income and the accretion of these obligations is included in Interest expense on the Consolidated Statements of Income.
The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s level 3 fair value measurements:
 Quantitative Information About Level 3 Fair Value Measurements
December 31, 2022June 30, 2023
 Valuation
Techniques		Unobservable
Input		Fair ValueRange
Weighted Average(1)
Fair Value Range
Weighted Average(1)
Contingent payment obligationsMonte Carlo SimulationVolatility$21.0 
18% - 25%
18 %$23.4 
20% - 25%
20 %
 Discount rates 
6%
6 % 
5% - 7%
6 %
Affiliate equity purchase obligationsDiscounted cash flow
Growth rates(2)
$24.5 
(3)% - 6%
1 %$68.4 
(9)% - 6%
(2)%
 Discount rates 
14% - 17%
14 % 
12% - 17%
14 %
___________________________
(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. Changes to assumed growth rates and discount rates change the fair value of the Affiliate equity purchase obligations. Increases to the assumed growth rates would result in higher fair values, while increases to the discount rates used would result in lower fair values.
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:
12
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 December 31, 2022June 30, 2023
Carrying ValueFair ValueCarrying ValueFair ValueFair Value Hierarchy
Senior notes$1,098.7 $1,024.6 $1,099.0 $1,019.9 Level 2
Junior subordinated notes765.9 552.3 765.9 594.6 Level 2
Junior convertible securities341.7 346.9 341.7 343.0 Level 2
The Company has other financial assets and liabilities that are not required to be carried at fair value, but are required to be disclosed at fair value. 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 notes receivable, which is reported in Other assets, approximates fair value because interest rates and other terms are at market rates. The carrying value of the credit facilities (as defined in Note 7) approximates fair value because the credit facilities have variable interest based on selected short-term rates.
6.Investments in Affiliates and Affiliate Sponsored Investment Products
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.
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.
Investments 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 presented within 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 that are under common control, any gains or losses attributable to these transactions are required to be included in Additional paid-in capital in the Consolidated Balance Sheets, net of any related income tax effects in the period the transaction occurs.
13
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

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 reported in Equity method investments in Affiliates (net) in the Consolidated Balance Sheets. Deferred taxes recorded on intangible assets upon acquisition of an Affiliate accounted for under the equity method are presented on a gross basis within Equity method investments in Affiliates (net) and Deferred income tax liability (net) in the Consolidated Balance Sheets. The Company’s share of income taxes incurred directly by Affiliates accounted for under the equity method is recorded in Income tax expense in the Consolidated Statements of Income.
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. Where the Company believes that such declines may have occurred, the Company determines the amount of impairment using valuation methods, such as discounted cash flow analyses. Impairments are recorded as an expense in Equity method income (net) to reduce the carrying value of the Affiliate to its fair value.
The unconsolidated assets, net of liabilities and non-controlling interests of Affiliates accounted for under the equity method considered VIEs, and the Company’s carrying value and maximum exposure to loss, were as follows:
 December 31, 2022June 30, 2023
Unconsolidated
VIE Net Assets		Carrying Value and
Maximum Exposure
to Loss		Unconsolidated
VIE Net Assets		Carrying Value and
Maximum Exposure
to Loss
Affiliates accounted for under the equity method$1,273.5 $2,051.6 $916.9 $1,846.8 
As of December 31, 2022 and June 30, 2023, the carrying value and maximum exposure to loss for all of the Company’s Affiliates accounted for under the equity method was $2,139.5 million and $1,943.8 million, respectively, including Affiliates accounted for under the equity method considered VREs of $87.9 million and $97.0 million, respectively.
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 VIE that is more than insignificant, though generally only for a short period while the product is established and has yet to attract significant other 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 in marketable securities, with corresponding changes in the investments’ fair values included in Investment and other income. Purchases and sales of securities are presented within purchases and sales 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.
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. The net assets of unconsolidated VIEs attributable to Affiliate sponsored investment products, and the Company’s carrying value and maximum exposure to loss, were as follows:
 December 31, 2022June 30, 2023
Unconsolidated
VIE Net Assets		Carrying Value and
Maximum Exposure
to Loss		Unconsolidated
VIE Net Assets		Carrying Value and
Maximum Exposure
to Loss
Affiliate sponsored investment products$4,878.6 $15.3 $5,600.1 $22.5 
14
AFFILIATED MANAGERS GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)


7.Debt
The following table summarizes the Company’s Debt:
December 31,
2022		June 30,
2023
Senior bank debt$349.9 $349.9 
Senior notes1,095.2 1,096.0 
Junior subordinated notes751.6 751.8 
Junior convertible securities338.6 338.7 
Debt$2,535.3 $2,536.4 
The Company’s senior notes, junior subordinated notes, and junior convertible securities are carried at amortized cost. Unamortized discounts and debt issuance costs are presented within the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt.
Senior Bank Debt
The Company has a $1.25 billion senior unsecured multicurrency revolving credit facility (the “revolver”) and a $350.0 million senior unsecured term loan facility (the “term loan” and, together with the revolver, the “credit facilities”). The revolver matures on October 25, 2027 and the term loan matures on October 23, 2026. Subject to certain conditions, the Company may increase the commitments under the revolver by up to an additional $500.0 million and may borrow up to an additional $75.0 million under the term loan. The Company pays interest on any outstanding obligations under the credit facilities at specified rates, 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 rating. As of June 30, 2023, the interest rate for the Company’s outstanding borrowings under the term loan was term-SOFR plus a SOFR adjustment of 0.10% plus the marginal rate of 0.85%. As of December 31, 2022 and June 30, 2023, the Company had no outstanding borrowings under the revolver.
Senior Notes
As of June 30, 2023, the Company had senior notes outstanding. The carrying values of the senior notes are accreted to their principal amount at maturity over the remaining life of the underlying instrument. The principal terms of the senior notes outstanding as of June 30, 2023 were as follows:
2024
Senior Notes		2025
Senior Notes		2030
Senior Notes
Issue dateFebruary 2014February 2015June 2020
Maturity dateFebruary 2024August 2025June 2030
Par value (in millions)$400.0 $350.0 $350.0 
Stated coupon4.25 %3.50 %3.30 %
Coupon frequencySemi-annuallySemi-annuallySemi-annually
Potential call dateAny timeAny timeAny time
Call priceAs definedAs definedAs defined
The senior notes may be redeemed, in whole or in part, at any time, in the case of the 2024 and 2025 senior notes, and at any time prior to March 15, 2030, in the case of the 2030 senior notes. In each case, the senior notes may be redeemed at a make-whole redemption price, plus accrued and unpaid interest. 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 at the applicable treasury rate plus 0.25%, in the case of the 2024 and the 2025 senior notes, and 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.
Junior Subordinated Notes