Affiliated Managers Group’s New Debt & Financing Risk – A Cause for Worry?

Affiliated Managers Group (AMG) has disclosed a new risk, in the Debt & Financing category.

Affiliated Managers Group faces considerable business risk due to the subjective nature of valuations for assets held by its Affiliates in private markets and liquid alternatives. The lack of readily available market prices necessitates reliance on estimates and significant judgment in applying valuation methodologies, potentially leading to discrepancies between reported values and realizable prices upon asset liquidation. This uncertainty, amplified by potential sector volatility, could adversely impact earnings, liquidity management, and the group’s ability to raise capital or launch new products, thereby affecting its overall reputation and financial health.

The average AMG stock price target is $186.00, implying 18.68% upside potential.

To learn more about Affiliated Managers Group’s risk factors, click here.