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WEST PALM BEACH, Fla. - Affiliated Managers Group, Inc. (NYSE: AMG), a global asset management company with a market capitalization of $4.49 billion, has announced an agreement to acquire a minority equity interest in Verition Fund Management LLC, a multi-strategy investment firm. The transaction, expected to close in the second quarter of 2025, will see Verition’s management retain the majority of the firm’s equity and continue its independent operation, adhering to AMG’s partnership approach. According to InvestingPro data, AMG maintains a robust financial position with liquid assets exceeding short-term obligations.
Verition, which manages approximately $12.6 billion in assets as of April 1, 2025, is known for its diversified investment strategies and consistent performance with limited volatility. The firm’s co-founders, Nicholas Maounis and Josh Goldstein, have committed to long-term agreements and will reinvest in the fund, signaling continued confidence in the company’s direction and alignment with investor interests. AMG’s strong financial health score of 2.76 (rated as GOOD by InvestingPro) and attractive P/E ratio of 10.56 suggest solid fundamentals supporting this strategic move.
Jay C. Horgen, President and CEO of AMG, praised Verition’s leadership in the multi-strategy space and its alignment with AMG’s growth-focused partnership model. Nicholas Maounis expressed enthusiasm for the partnership, highlighting AMG’s long-term orientation and respect for Verition’s independence as key factors in the decision.
This strategic move diversifies AMG’s portfolio, enhancing its exposure to alternative strategies and potentially bolstering its position in the investment management industry. The terms of the deal were not disclosed. For deeper insights into AMG’s valuation and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.
AMG, with $708 billion in aggregate assets under management as of December 31, 2024, partners with independent investment firms to foster growth and support operational independence. The company has demonstrated strong performance with impressive five-year returns, and current analysis suggests the stock is undervalued based on InvestingPro’s Fair Value calculations. Verition employs a multi-manager hedge fund approach, focusing on global investment strategies and maintaining offices in major financial hubs worldwide.
This news is based on a press release statement from Affiliated Managers Group, Inc.
In other recent news, Affiliated Managers Group (AMG) reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $6.86, compared to the forecasted $6.02. However, the company’s revenue fell short of projections, totaling $502.7 million against an anticipated $531.53 million. In a strategic move, AMG has extended its $500 million Equity Distribution Program, allowing the company to offer and sell shares of its common stock through several financial institutions, including Barclays and Citigroup. Additionally, AMG is considering selling its minority stake in Comvest Partners, potentially valuing Comvest at $700 million or more. On another front, AMG Critical Materials announced the completion of its repurchase of a 40% stake in Graphit Kropfmühl, reinforcing its position in the market for energy storage and CO2 reduction materials. These recent developments highlight AMG’s ongoing efforts to maintain financial flexibility and strengthen its market presence.
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