Release Details

BOSTON--(BUSINESS WIRE)--Jan. 25, 2001--Affiliated Managers Group, Inc. (NYSE: AMG), an asset management holding company, today reported its financial and operating results for the fourth quarter and full year 2000.

Cash earnings per share ("Cash EPS," as defined in Note C to the Financial Highlights) for the fourth quarter and full year 2000 were $1.01 and $3.85, respectively, compared to $2.22 and $4.33 for the same periods of 1999. The Company believes that Cash EPS is the most appropriate measure of its financial performance, given the substantial non-cash charges in its financial statements resulting from amortization of intangible assets.

While the Company achieved growth of over 35 percent in its Cash EPS from asset-based fees for the full year 2000 over 1999, performance fee revenues were materially lower in the fourth quarter of 2000 than the same period of 1999. Because of the reduced level of performance fee revenues in 2000, the Company believes that comparisons with 1999 for quarter-to-quarter or year-to-year results are less meaningful. Performance fee revenues are inherently dependent upon investment results and therefore may not recur to the same magnitude from year to year.

Diluted earnings per share for the fourth quarter and full year 2000 were $0.65 and $2.49, respectively, compared to $1.92 and $3.18 for the same periods of 1999. For the fourth quarter of 2000, Cash Net Income (as defined in Note B to the Financial Highlights) was $22.8 million, while EBITDA (as defined in Note A to the Financial Highlights) was $36.4 million, compared to $51.6 million and $92.0 million for the same periods of 1999. Revenues for the fourth quarter of 2000 were $114.8 million, compared to $286.6 million for the fourth quarter 1999. Net income for the fourth quarter of 2000 was $14.8 million, compared to $44.7 million for the same period of 1999.

For the year ended December 31, 2000, Cash Net Income was $87.7 million, while EBITDA was $142.4 million. These results compare to $98.3 million and $166.8 million for the same period of 1999.

Aggregate net client cash flows for the fourth quarter were a positive $114 million of which a positive $77 million were in directly managed accounts and a positive $37 million were in overlay accounts. These aggregate net client cash flows for the quarter resulted in a net increase of approximately $2 million to the Company's annualized EBITDA. Aggregate assets under management at AMG's 15 Affiliates on December 31, 2000 were $77.5 billion, compared to $85.1 billion on September 30, 2000. This decline in assets under management resulted from negative aggregate investment performance amid broad declines in the equity markets, partially offset by positive net client cash flows.

"Our Affiliates performed exceptionally well in the quarter, particularly given the adverse equity market environment," stated Sean Healey, President and Chief Operating Officer. "The majority of our Affiliates had positive net flows in the quarter, which helped counter the effect of market-related declines in assets under management. The results for the quarter also reflect a continued positive shift in the underlying mix of Affiliate assets under management in favor of higher margin products." Mr. Healey continued, "We are pleased with our Affiliates' generally strong investment performance relative to their benchmarks and competitors. Among a number of stellar performers, Tweedy, Browne, one of our largest Affiliates by EBITDA contribution, was recognized for the outstanding results in its global product by being named `International Fund Manager of the Year' by Morningstar."

"We are very pleased with our results for the full year," stated William J. Nutt, Chairman and Chief Executive Officer. "The strong and consistent growth achieved by our Affiliates, particularly in the face of volatile markets, attests to the success of our approach to investing in a diverse group of high quality, mid-sized investment management firms." Mr. Nutt added, "In the three years since our initial public offering (in November of 1997), AMG's Cash EPS has grown at a compound annual rate of nearly 50 percent. Looking to 2001, we continue to focus on our strategy of growth through the internal development of existing Affiliates and potential investments in new ones."

AMG addresses the succession and transition issues facing the principals of growing mid-sized investment management firms. The Company's strategy is to generate growth through investments in new Affiliates, as well as through the internal growth of its existing Affiliates. AMG's innovative transaction structure allows individual members of each Affiliate's management to retain or receive significant direct ownership in their firm while maintaining operating autonomy. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development, and operations.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interest in investment management firms, the investment performance of our Affiliates and their ability to effectively market their investment strategies, and other risks detailed from time to time in AMG's filings with the Securities and Exchange Commission. Reference is hereby made to the "Cautionary Statements" set forth in the Company's Form 10-K for the year ended December 31, 1999.

The sources for the Morningstar reference in this press release are articles provided by Morningstar, Inc. in its publications and at www.morningstar.com. Chicago-based Morningstar is the leading provider of mutual fund, stock, and variable-insurance investment information. An independent company, Morningstar does not own, operate, or hold any interest in mutual funds, stocks, or insurance products.

Financial Tables follow

A teleconference will be held with AMG's management at 11:00 a.m. (Eastern Time) today. Parties interested in listening to the teleconference can dial 1-800-982-3472 (domestic calls) or 1-703-871-3022 (international calls) starting at 10:45 a.m. (Eastern Time). Those wishing to listen to the teleconference should dial the appropriate number at least ten minutes before the call begins. The teleconference will be available for replay until 5:00 p.m. (Eastern Time) on Thursday, February 1, 2001. To access the replay, please dial 1-888-266-2086, passcode 4884366. The live call and the replay (through February 1, 2001) can also be accessed via the Web at www.amg.com and www.vcall.com.

For more information on Affiliated Managers Group, Inc., please visit AMG's Web site at www.amg.com.

Affiliated Managers Group, Inc.
Financial Highlights
(dollars in thousands, except as
indicated and share and per share data)

                        Three Months     Three Months    Three Months
                            Ended           Ended           Ended
                           12/31/99        9/30/00         12/31/00


Revenues                $   286,627     $   118,205     $   114,810

EBITDA (A)              $    91,959     $    36,449     $    36,355

Net Income              $    44,673     $    14,378     $    14,786

Cash Net Income (B)     $    51,551     $    22,376     $    22,818

Average shares
 outstanding - diluted   23,226,904      22,642,345      22,669,670

Earnings per share
 - diluted              $      1.92     $      0.64     $      0.65

Cash earnings per share
 - diluted (C)          $      2.22     $      0.99     $      1.01

                        December 31,    September 30,    December 31,
                            1999            2000             2000

Total debt              $   175,300     $   182,800     $   151,800

Stockholders' equity    $   477,986     $   487,624     $   493,910


Affiliated Managers Group, Inc.
Financial Highlights
(dollars in thousands, except as
indicated and share and per share data)

                              Twelve Months        Twelve Months
                                 Ended                 Ended
                                12/31/99              12/31/00

Revenues                      $   518,726           $   458,708

EBITDA (A)                    $   166,801           $   142,378

Net Income                    $    72,188           $    56,656

Cash Net Income (B)           $    98,318           $    87,676

Average shares outstanding
 - diluted                     22,693,016            22,748,595

Earnings per share
 - diluted                    $      3.18           $      2.49

Cash earnings per share
 - diluted (C)                $      4.33           $      3.85


Affiliated Managers Group, Inc.
Financial Highlights
(dollars in thousands, except as indicated)

                               Three Months          Twelve Months
                                  Ended                 Ended
                                 12/31/00              12/31/00

Assets under management
 (at period end,
 in millions):                  $  77,523             $  77,523

Revenues:                       $ 114,810             $ 458,708

Owners' Allocation (D):         $  56,447             $ 227,977

EBITDA Contribution (E):        $  42,803             $ 164,730

Reconciliation of EBITDA
 Contribution to EBITDA:
  Total EBITDA
   Contribution (as above)      $  42,803             $ 164,730
  Less, holding company
   expenses                        (6,448)              (22,352)

  EBITDA                        $  36,355             $ 142,378

Notes:

(A) EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization.

(B) Cash Net Income represents net income plus depreciation and
amortization.

(C) Cash earnings per share represents Cash Net Income divided by
average shares outstanding.

(D) Owners' Allocation represents the portion of an Affiliate's
revenues which is allocated to the owners of that Affiliate, including
AMG, generally in proportion to their ownership interest, pursuant to
the revenue sharing agreement with such Affiliate.

(E) EBITDA Contribution represents the portion of an Affiliate's
revenues that is allocated to AMG after amounts retained by the
Affiliate for compensation and day-to-day operating and overhead
expenses, but before the interest, income taxes, depreciation and
amortization expenses of the Affiliate.


Affiliated Managers Group, Inc.
Consolidated Statements of Income
(dollars in thousands, except per share data)

               Quarter Ended December 31,   Year to Date December 31,
                   1999         2000           1999          2000

Revenues        $    286,627 $    114,810  $    518,726  $    458,708

Operating
 Expenses:
 Compensation
  and related
  expenses           136,258       41,656       217,780       174,710
 Amortization
  of intangible
  assets               5,729        6,528        22,229        26,409
 Depreciation
  and other
  amortization         1,149        1,504         3,901         4,611
 Selling,
  general and
  administrative      16,427       17,827        53,251        68,216
 Other operating
  expenses             2,744        2,616         8,906        10,327

                     162,307       70,131       306,067       284,273

Operating
 income              124,320       44,679       212,659       174,435

Non-operating
 (income) and
 expenses
 Investment
  and other
  income             (11,698)       1,130       (14,237)       (2,264)
 Interest
  expense              2,809        3,679        11,764        15,750

                      (8,889)       4,809        (2,473)       13,486

Income before
 minority
 interest and
 income taxes        133,209       39,870       215,132       160,949
Minority
 interest            (50,937)     (15,226)      (86,225)      (65,341)

Income before
 income taxes         82,272       24,644       128,907        95,608

Income taxes          37,599        9,858        56,719        38,952

Net income      $     44,673 $     14,786  $     72,188  $     56,656

Average shares
 outstanding
 - basic          23,079,572   22,180,827    22,180,112    22,307,476
Average shares
 outstanding
 - diluted        23,226,904   22,669,670    22,693,016    22,748,595

Earnings per
 share - basic  $       1.94 $       0.67  $       3.25  $       2.54
Earnings per
 share
 - diluted      $       1.92 $       0.65  $       3.18  $       2.49

Affiliated Managers Group, Inc.
Consolidated Balance Sheets
(in thousands)
                                        December 31,    December 31,
                                           1999             2000

Assets
Current assets:
Cash and cash equivalents                 $ 53,879         $ 31,612
Investment advisory fees receivable        239,383           66,126
Other current assets                         6,705           15,448

Total current assets                       299,967          113,186

Fixed assets, net                           12,321           15,346
Equity investment in Affiliate               1,563            1,816
Acquired client relationships, net         186,499          199,354
Goodwill, net                              385,382          444,116
Other assets                                23,341           19,912

Total assets                             $ 909,073        $ 793,730

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses    $ 170,299         $ 86,800

Total current liabilities                  170,299           86,800

Senior bank debt                           174,500          151,000
Deferred taxes                              25,346           31,907
Other long-term liabilities                  1,346            2,636
Subordinated debt                              800              800

Total liabilities                          372,291          273,143

Minority interest                           58,796           26,677

Stockholders' equity:
Common stock                                   235              235
Additional paid-in capital on common
 stock                                     405,883          407,057
Foreign translation adjustment                 (55)            (342)
Retained earnings                           83,857          140,513

                                           489,920          547,463
Treasury stock                             (11,934)         (53,553)
Total stockholders' equity                 477,986          493,910

Total liabilities and stockholders'
 equity                                  $ 909,073        $ 793,730

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