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Affiliated Managers (AMG) to Partner With Inclusive Capital

Zacks Equity Research
·4 min read

Affiliated Managers Group, Inc. AMG has announced that it will be a minority equity partner to the recently founded San Francisco-based independent investment firm, Inclusive Capital Partners. Notably, Inclusive Capital Partners has been launched, following the completion of ValueAct Capital Management’s long-term succession plan, initially established in 2007.

ValueAct Capital Management is a longtime affiliate of Affiliated Managers. Its founder, Jeffrey W. Ubben, will retire from ValueAct Capital and continue to manage the ValueAct Spring Fund after he transitions to Inclusive Capital Partners.

Affiliated Managers’ president and CEO, Jay C. Horgen, stated, “The success of this generational transition has enabled ValueAct founder Jeff Ubben to retire and launch Inclusive Capital Partners, which will focus on the important mission of allocating capital to corporate leaders who prioritize long-term responsible decision-making. AMG’s investment in ValueAct was the first investment I led upon joining AMG, which has now come full-circle.”

He added, “Long-term sustainability has been at the very heart of AMG’s business strategy since inception, in working closely with Affiliates to design and implement management succession over time and support Affiliate growth initiatives. We are very pleased with the excellent execution of ValueAct’s succession plan over the past decade, which has resulted in the successful transition from the founding generation to a truly outstanding next generation of partners, led by CEO Mason Morfit, and we are highly confident in ValueAct’s forward prospects.”

In fact, Mr. Ubben said, “Inclusive Capital Partners will seek to demonstrate that high returns should accrue to businesses that responsibly and creatively address environmental and societal problems by using sustainable business models, and we have partnered with stakeholders who we believe are world pioneers in wildlife, conservation, governance, and social equality to help encourage companies to embrace these principles. I am thrilled to announce the formation of Inclusive Capital Partners as the next iteration of my investing career.”

Our Take

Supported by a strong balance sheet and liquidity position, Affiliated Managers has considerable capability to invest in other companies and is expected to continue generating meaningful growth through new investments. The company has been targeting investments in alternatives and global strategies, given the strong preference of investors for the same.

Despite the coronavirus outbreak-induced economic uncertainty, rising demand for equity and alternative strategies among institutional clients are expected to aid the company’s profitability, going forward.

Shares of Affiliated Managers have gained 46% over the past three months compared with the industry’s rally of 33.3%.

Currently, the company carries a Zacks Rank #2 (Buy).

A few other stocks from the finance space worth a look are mentioned below.

AllianceBernstein Holding L.P.’s AB earnings estimates for the current year have moved up 6.3% over the past 60 days. The company’s shares have gained 45% over the past three months. At present, it sports a Zacks Rank #1 (Strong Buy).

BlackRock, Inc.’s BLK earnings estimates for the current year have moved 5% upward over the past 60 days. The stock has appreciated 38.1% over the past three months. The company currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GAIN Capital Holdings’ GCAP earnings estimates for 2020 have been raised significantly over the past 60 days. The company’s shares have gained 5.7% over the past three months. At present, it has a Zacks Rank #2.

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