Acadian Asset Management Inc. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company”, “Acadian Asset Management”, “Acadian” or “AAMI” refer to Acadian Asset Management Inc., and references to “we,” “our” and “us” refer to AAMI and its consolidated subsidiaries. References to Hold Co refer to AAMI and its subsidiaries excluding Acadian Asset Management LLC (“Acadian LLC”). Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to “OM plc” refer to Old Mutual plc, our former parent. None of the information in this Quarterly Report on Form 10-Q constitutes either an offer or a solicitation to buy or sell Acadian LLC’s products or services, nor is any such information a recommendation for Acadian LLC’s products or services. The following discussion of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and related notes which appear in this Quarterly Report on Form 10-Q in Item 1, Financial Statements. This discussion contains forward-looking statements that involve risks and uncertainties. See “Forward-Looking Statements” at the end of this Item 2 for more information. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed below. This Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is designed to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A is presented in five sections: • Overview provides a brief description of our business. It includes information on our reporting segment, a summary of The Economics of Our Business and an explanation of How We Measure Performance using a non-GAAP measure which we refer to as economic net income, or ENI. This section also provides a Summary Results of Operations and information regarding our Assets Under Management by strategy, client type and client location, and net flows by segment, client type and client location. • U.S. GAAP Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three and nine months ended September 30, 2025 and 2024, as well as key U.S. GAAP operating metrics. • Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis includes an explanation of the key differences between U.S. GAAP net income and ENI, the key measure management uses to evaluate our performance. This section also provides a reconciliation between U.S. GAAP net income attributable to controlling interests and ENI for the three and nine months ended September 30, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses. This section also provides key non-GAAP operating metrics. In addition, this section provides segment analysis for our business segment. • Capital Resources and Liquidity discusses our key balance sheet data. This section discusses Cash Flows from the business; Adjusted EBITDA; Future Capital Needs; Borrowings and Long-Term Debt; Other Compensation Liabilities. The discussion of Adjusted EBITDA includes an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S. GAAP net income attributable to controlling interests to Adjusted EBITDA. • Critical Accounting Policies and Estimates provides a discussion of the key accounting policies and estimates that we believe are the most critical to an understanding of our results of operations and financial condition. These accounting policies and estimates require complex management judgment regarding matters that are highly uncertain at the time the policies were applied and estimates were made. 28 Table of Contents Overview We are a holding company that operates a systematic investment management business through our majority owned subsidiary, Acadian LLC. Acadian LLC offers institutional investors across the globe access to a diversified array of systematic investment strategies designed to meet a range of risk and return objectives. Acadian LLC is a leading systematic investment manager of active equity products, including global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities. Acadian LLC comprises our Quant & Solutions reportable segment: • Quant & Solutions —incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors; portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities. This segment consists of our ownership interest in Acadian LLC. Hold Co is included within the Unallocated Corporate expenses category. Under U.S. GAAP, Acadian LLC is consolidated into our financial statements. We may also be required to consolidate Acadian LLC’s sponsored investment entities, or Funds, due to the nature of our decision-making rights, our economic interests in these Funds or the rights of third-party clients in those Funds. The Economics of Our Business Our profitability is affected by a variety of factors including the level and composition of our average assets under management, or AUM, fee rates charged on AUM and our expense structure. We earn management fees based on assets under management. The majority of our management fees are calculated based on average AUM (calculated on either a daily or monthly basis) with the remainder of our management fees calculated based on period-end AUM. Changes in the levels of our AUM are driven by market investment performance and net client cash flows. We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns. As of September 30, 2025, approximately $22 billion, or 13%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee. The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis. Our largest expense item is compensation and benefits paid to our employees, which consists of both fixed and variable components. Fixed compensation and benefits represents base salaries and wages, payroll taxes and the costs of our employee benefit programs. Variable compensation is comprised of variable compensation at both Hold Co and Acadian LLC. Hold Co variable compensation includes discretionary annual bonuses and may be paid in the form of cash or AAMI equity. Acadian LLC variable compensation, calculated as described below, may be awarded in cash, equity, or profit interests. The arrangement in place with Acadian LLC results in the sharing of economics between us and key management personnel using a profit-sharing model. Profit sharing affects two elements within our earnings: (i) the calculation of variable compensation and (ii) the level of Acadian LLC’s equity or profit interests distribution to its employees. Variable compensation includes the portion of earnings that is contractually allocated to Acadian LLC employees as a bonus pool, typically representing a percentage of earnings before variable compensation, which is measured as revenues less fixed compensation and benefits and other operating and administrative expenses. Profits after variable compensation are shared between us and Acadian LLC key employee equity holders according to our respective equity or profit interests ownership. The sharing of profits in this manner ensures that the economic interests of Acadian LLC key employees and ours are aligned, both in terms of generating strong annual earnings as well as investing those earnings back into the business in order to generate growth over the long term. We view profit sharing as an attractive operating model, as it allows us to share in the benefits of operating leverage as the business grows, and ensures all equity and profit interests holders are incentivized to achieve that growth. 29 Table of Contents Equity or profit interests owned by Acadian LLC key employees are awarded as part of their variable compensation arrangement. Over time, Acadian LLC key employee-owned equity or profit interests are recycled from one generation of employee-owners to the next, either by the next generation purchasing equity or profit interests directly from retiring principals, or by key employees forgoing cash bonuses in exchange for the equivalent value in Acadian LLC equity or profit interests. The recycling of equity or profit interests is often facilitated by Hold Co; see “U.S. GAAP Results of Operations — U.S. GAAP Expenses — Compensation and Benefits Expense” for a further discussion. How We Measure Performance We manage our business based on one segment, reflecting how our management assesses the performance of our business. In measuring and monitoring the key components of our earnings, our management uses a non-GAAP financial measure, ENI, to evaluate the financial performance of, and to make operational decisions for, our business. We also use ENI to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and Acadian LLC equity distributions, and incentivize management. It is an important measure in evaluating our financial performance because we believe it most accurately represents our operating performance and cash generation capability. ENI differs from net income determined in accordance with U.S. GAAP as a result of both the reclassification of certain income statement items and the exclusion of certain non-cash or non-recurring income statement items. In particular, ENI excludes non-cash charges representing the changes in the value of Acadian LLC equity and profit interests held by key employees, the results of discontinued operations which are no longer part of our business, restructuring costs, capital transaction costs, seed capital and co-investment gains, losses and related financing costs and that portion of consolidated Funds which are not attributable to our stockholders. ENI revenue is primarily comprised of the fee revenues paid to us by our clients for our advisory services. Revenue included within ENI differs from U.S. GAAP revenue in that it excludes amounts from consolidated Funds which are not attributable to our stockholders. ENI expenses are calculated to reflect all usual expenses from ongoing continuing operations attributable to our stockholders. Expenses included within ENI differ from U.S. GAAP expenses in that they exclude amounts from consolidated Funds which are not attributable to our stockholders, revaluations of Acadian LLC key employee owned equity and profit interests, amortization and impairment of acquired intangibles and other acquisition-related items, and certain other non-cash expenses. “Non-controlling interests” is a concept under U.S. GAAP that identifies net components of revenues and expenses that are not attributable to our stockholders. For example, the portion of the net income (loss) of any consolidated Fund that is attributable to the outside investors or clients of the consolidated Fund is included in “Non-controlling interests” in our Condensed Consolidated Financial Statements. Conversely, “controlling interests” is the portion of revenue or expense that is attributable to our stockholders. For a more detailed discussion of the differences between U.S. GAAP net income and economic net income, see “Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis.” 30 Table of Contents Summary Results of Operations The following table summarizes our unaudited results of operations for the three and nine months ended September 30, 2025 and 2024: ($ in millions, unless otherwise noted) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 vs. 2024 2025 2024 2025 vs. 2024 U.S. GAAP Basis Revenue $ 144.2 $ 123.1 $ 21.1 $ 391.5 $ 337.8 $ 53.7 Pre-tax income attributable to controlling interests 22.5 26.3 (3.8) 65.5 63.6 1.9 Net income attributable to controlling interests 15.1 16.9 (1.8) 45.3 42.5 2.8 U.S. GAAP operating margin (1) 18.4 % 21.9 % (349) bps 19.1 % 20.9 % (179) bps Earnings per share, basic ($) $ 0.42 $ 0.46 $ (0.04) $ 1.25 $ 1.12 $ 0.13 Earnings per share, diluted ($) $ 0.42 $ 0.45 $ (0.03) $ 1.25 $ 1.10 $ 0.15 Basic shares outstanding (in millions) 35.8 37.1 (1.3) 36.4 37.9 (1.5) Diluted shares outstanding (in millions) 35.8 37.8 (2.0) 36.4 38.6 (2.2) Economic Net Income Basis (2)(3) (Non-GAAP measure used by management) ENI revenue (4) $ 136.3 $ 122.2 $ 14.1 $ 379.4 $ 335.8 $ 43.6 Pre-tax economic net income (5) 37.8 32.6 5.2 97.2 80.4 16.8 Adjusted EBITDA 45.1 40.4 4.7 119.4 104.3 15.1 ENI operating margin (6) 33.2 % 31.7 % 157 bps 30.9 % 29.0 % 192 bps Economic net income (7) 27.2 22.2 5.0 70.4 56.8 13.6 ENI diluted EPS ($) $ 0.76 $ 0.59 $ 0.17 $ 1.93 $ 1.47 $ 0.46 Other Operational Information Assets under management (AUM) at period end (in billions) $ 166.4 $ 120.3 $ 46.1 $ 166.4 $ 120.3 $ 46.1 Net client cash flows (in billions) 6.4 0.5 5.9 24.0 0.9 23.1 (1) U.S. GAAP operating margin equals operating income divided by total revenue. (2) Economic net income is a non-GAAP measure we use to evaluate the performance of our business. For a reconciliation to U.S. GAAP financial information and a further discussion of economic net income refer to “Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis.” (3) Excludes severance-related items of $(0.2) million for the three months ended September 30, 2025. Excludes severance-related items of $(0.3) million and costs associated with the transfer of an insurance policy from our former parent of $0.3 million for the three months ended September 30, 2024. Excludes severance-related items of $(0.7) million for the nine months ended September 30, 2025. Excludes severance-related items of $(0.8) million, costs associated with the transfer of an insurance policy from our former parent of $0.9 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million for the nine months ended September 30, 2024. (4) ENI revenue is the ENI measure which corresponds to U.S. GAAP revenue. (5) Pre-tax economic net income is the ENI measure which corresponds to U.S. GAAP pre-tax income attributable to controlling interests. 31 Table of Contents (6) ENI operating margin is a non-GAAP efficiency measure, calculated based on ENI operating earnings divided by ENI revenue. ENI operating earnings is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation. The ENI operating margin is most directly comparable to our U.S. GAAP operating margin (excluding the effect of consolidated Funds). (7) Economic net income is the non-GAAP measure which is most directly comparable to U.S. GAAP net income attributable to controlling interests. Assets Under Management In the first quarter of 2025, we changed the presentation of our AUM. The new presentation reflects better alignment of our view on the business and distribution channels. We made certain reclassifications between strategies, client type and client location groupings to better reflect the underlying AUM. In the AUM tables below, all periods have been reclassified to conform to the new presentation. Our total assets under management were $166.4 billion as of September 30, 2025 and $117.3 billion as of December 31, 2024. The following table presents our assets under management by strategy as of each of the dates indicated: ($ in billions) September 30, 2025 December 31, 2024 AUM % of total AUM % of total Non-U.S. Equity $ 35.3 21.2 % $ 26.6 22.7 % Enhanced Equity 34.2 20.6 % 10.8 9.2 % Small Cap Equity 31.7 19.1 % 25.0 21.3 % Global Equity 23.9 14.4 % 19.0 16.2 % Emerging Markets Equity 23.5 14.1 % 18.1 15.4 % Other 17.8 10.6 % 17.8 15.2 % Total assets under management $ 166.4 $ 117.3 The following table shows assets under management by client type as of each of the dates indicated: ($ in billions) September 30, 2025 December 31, 2024 AUM % of total AUM % of total Institutional $ 135.0 81.1 % $ 93.0 79.3 % Sub-Advisory 16.4 9.9 % 13.1 11.2 % Wealth/Other 15.0 9.0 % 11.2 9.5 % Total assets under management $ 166.4 $ 117.3 32 Table of Contents The following table shows assets under management by client location as of each of the dates indicated: ($ in billions) September 30, 2025 December 31, 2024 AUM % of total AUM % of total U.S. $ 94.5 56.8 % $ 74.7 63.7 % EMEA 36.4 21.9 % 16.9 14.4 % Asia Pacific 27.6 16.6 % 18.8 16.0 % Other 7.9 4.7 % 6.9 5.9 % Total assets under management $ 166.4 $ 117.3 AUM flows Net client cash flows for all periods include reinvested income and distributions. Reinvested income and distributions represent investment yield that is reinvested back into the portfolios as opposed to distributed as cash. The following table summarizes our asset flows and market appreciation by segment for each of the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, ($ in billions, unless otherwise noted) 2025 2024 2025 2024 Quant & Solutions Beginning balance $ 151.1 $ 112.6 $ 117.3 $ 103.7 Gross inflows 11.9 3.1 39.4 15.7 Gross outflows (6.5) (3.5) (18.0) (17.3) Reinvested income and distributions 1.0 0.9 2.6 2.5 Net flows 6.4 0.5 24.0 0.9 Market appreciation 8.9 7.2 25.1 15.7 Ending balance $ 166.4 $ 120.3 $ 166.4 $ 120.3 Average AUM $ 156.5 $ 116.4 $ 136.6 $ 110.8 We also analyze our asset flows by client type and client location. Our client types include: i. Institutional, which includes assets managed for public/government pension funds and other investments, including U.S. state and local government funds and non-U.S. sovereign wealth, local government and national investments; also includes corporate and union-sponsored pension plans and other investments; and ii. Sub-advisory, which includes assets managed for third-party mutual funds sponsored by platforms in the U.S. or abroad, where the end client is typically retail; iii. Wealth/other, which includes assets managed for registered investment advisor clients, private banks, high-net-worth clients, and family offices, defined contribution clients on certain platforms, mutual funds directly sponsored by Acadian LLC, and other assets. 33 Table of Contents The following table summarizes our asset flows by client type for each of the periods indicated: ($ in billions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Institutional Beginning balance $ 121.9 $ 90.2 $ 93.0 $ 81.7 Gross inflows 9.4 2.0 33.2 11.9 Gross outflows (4.2) (2.6) (12.9) (12.2) Reinvested income and distributions 0.8 0.7 2.0 1.9 Net flows 6.0 0.1 22.3 1.6 Market appreciation 7.1 5.5 19.7 12.5 Ending balance $ 135.0 $ 95.8 $ 135.0 $ 95.8 Sub-advisory Beginning balance $ 16.0 $ 12.5 $ 13.1 $ 13.6 Gross inflows 1.3 0.6 3.6 1.6 Gross outflows (1.7) (0.5) (3.4) (3.6) Reinvested income and distributions 0.1 0.1 0.3 0.3 Net flows (0.3) 0.2 0.5 (1.7) Market appreciation 0.7 1.0 2.8 1.8 Ending balance $ 16.4 $ 13.7 $ 16.4 $ 13.7 Wealth/Other Beginning balance $ 13.2 $ 9.9 $ 11.2 $ 8.4 Gross inflows 1.2 0.5 2.6 2.2 Gross outflows (0.6) (0.4) (1.7) (1.5) Reinvested income and distributions 0.1 0.1 0.3 0.3 Net flows 0.7 0.2 1.2 1.0 Market appreciation 1.1 0.7 2.6 1.4 Ending balance $ 15.0 $ 10.8 $ 15.0 $ 10.8 Total Beginning balance $ 151.1 $ 112.6 $ 117.3 $ 103.7 Gross inflows 11.9 3.1 39.4 15.7 Gross outflows (6.5) (3.5) (18.0) (17.3) Reinvested income and distributions 1.0 0.9 2.6 2.5 Net flows 6.4 0.5 24.0 0.9 Market appreciation 8.9 7.2 25.1 15.7 Ending balance $ 166.4 $ 120.3 $ 166.4 $ 120.3 34 Table of Contents Our categorization of assets under management by client location includes: i. U.S.-based clients, where the contracting client is based in the United States, and ii. Non-U.S.-based clients, where the contracting client is based outside the United States. The following table summarizes asset flows by client location for each of the periods indicated: ($ in billions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 U.S. Beginning balance $ 86.9 $ 72.9 $ 74.7 $ 70.2 Gross inflows 6.2 2.1 13.6 5.9 Gross outflows (4.3) (2.3) (11.8) (10.0) Reinvested income and distributions 0.6 0.6 1.6 1.6 Net flows 2.5 0.4 3.4 (2.5) Market appreciation 5.1 4.7 16.4 10.3 Ending balance $ 94.5 $ 78.0 $ 94.5 $ 78.0 Non-U.S. Beginning balance $ 64.2 $ 39.7 $ 42.6 $ 33.5 Gross inflows 5.7 1.0 25.8 9.8 Gross outflows (2.2) (1.2) (6.2) (7.3) Reinvested income and distributions 0.4 0.3 1.0 0.9 Net flows 3.9 0.1 20.6 3.4 Market appreciation 3.8 2.5 8.7 5.4 Ending balance $ 71.9 $ 42.3 $ 71.9 $ 42.3 Total Beginning balance $ 151.1 $ 112.6 $ 117.3 $ 103.7 Gross inflows 11.9 3.1 39.4 15.7 Gross outflows (6.5) (3.5) (18.0) (17.3) Reinvested income and distributions 1.0 0.9 2.6 2.5 Net flows 6.4 0.5 24.0 0.9 Market appreciation 8.9 7.2 25.1 15.7 Ending balance $ 166.4 $ 120.3 $ 166.4 $ 120.3 At September 30, 2025, our total assets under management were $166.4 billion, an increase of $15.3 billion, or 10.1%, compared to $151.1 billion at June 30, 2025 and an increase of $46.1 billion, or 38.3%, compared to $120.3 billion at September 30, 2024. The increase in assets under management compared to September 30, 2024 was driven by the equity market appreciation and positive net client cash flows in the last twelve months. The change in assets under management during the three months ended September 30, 2025 reflects net market appreciation of $8.9 billion, and net inflows of $6.4 billion. Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM. Given a substantial portion of our AUM is denominated in foreign currencies, foreign exchange rate movements during the period can impact AUM when the strength of the U.S. dollar changes relative to other currencies. 35 Table of Contents For the three months ended September 30, 2025, our net inflows were $6.4 billion compared to $0.5 billion for the three months ended September 30, 2024. Reinvested income and distributions of $1.0 billion and $0.9 billion are reflected in the net flows for the three months ended September 30, 2025 and September 30, 2024, respectively. For the nine months ended September 30, 2025, our net inflows were $24.0 billion compared to $0.9 billion for the nine months ended September 30, 2024. The change in net flows during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily driven by strong gross inflows, which increased to $39.4 billion in the nine months ended September 30, 2025. Reinvested income and distributions of $2.6 billion and $2.5 billion are reflected in the net inflows for the nine months ended September 30, 2025 and September 30, 2024, respectively. Strategies representing 73%, 94%, 95%, and 94% of revenue were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2025. As of September 30, 2025 the 5-year revenue weighted annualized return in excess of benchmark was 4.5%. Assets representing 76%, 91%, 92%, and 90% of assets under management were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2025. As of September 30, 2025 the 5-year asset weighted annualized return in excess of benchmark was 3.5%. 36 Table of Contents U.S. GAAP Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 Our U.S. GAAP results of operations were as follows for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions, unless otherwise noted) 2025 2024 Increase (Decrease) 2025 2024 Increase (Decrease) U.S. GAAP Statement of Operations (1) Management fees $ 136.1 $ 112.1 $ 24.0 $ 371.3 $ 319.8 $ 51.5 Performance fees 0.2 10.1 (9.9) 8.1 16.0 (7.9) Consolidated Funds’ revenue 7.9 0.9 7.0 12.1 2.0 10.1 Total revenue 144.2 123.1 21.1 391.5 337.8 53.7 Compensation and benefits 84.7 69.6 15.1 229.3 189.9 39.4 General and administrative expense 23.5 21.8 1.7 67.6 62.9 4.7 Depreciation and amortization 4.1 4.5 (0.4) 12.5 14.1 (1.6) Consolidated Funds’ expense 5.3 0.2 5.1 7.4 0.4 7.0 Total operating expenses 117.6 96.1 21.5 316.8 267.3 49.5 Operating income 26.6 27.0 (0.4) 74.7 70.5 4.2 Investment income — 1.5 (1.5) 0.1 2.5 (2.4) Interest income 0.9 0.6 0.3 2.8 2.8 — Interest expense (4.6) (4.7) 0.1 (14.7) (15.0) 0.3 Net consolidated Funds’ investment gains 11.5 4.0 7.5 27.2 6.5 20.7 Income before taxes 34.4 28.4 6.0 90.1 67.3 22.8 Income tax expense 7.4 9.4 (2.0) 20.2 21.1 (0.9) Net income 27.0 19.0 8.0 69.9 46.2 23.7 Net income attributable to redeemable non-controlling interests in consolidated Funds 11.9 2.1 9.8 24.6 3.7 20.9 Net income attributable to controlling interests $ 15.1 $ 16.9 $ (1.8) $ 45.3 $ 42.5 $ 2.8 Basic earnings per share ($) $ 0.42 $ 0.46 $ (0.04) $ 1.25 $ 1.12 $ 0.13 Diluted earnings per share ($) 0.42 0.45 (0.03) 1.25 1.10 0.15 Weighted average shares of common stock outstanding—basic 35.8 37.1 (1.3) 36.4 37.9 (1.5) Weighted average shares of common stock outstanding—diluted 35.8 37.8 (2.0) 36.4 38.6 (2.2) U.S. GAAP operating margin (2) 18.4 % 21.9 % 19.1 % 20.9 % (1) Certain Funds have been consolidated due to our seed capital investments in the Funds. (2) U.S. GAAP operating margin equals operating income divided by total revenue. 37 Table of Contents The following table reconciles our net income attributable to controlling interests to our pre-tax income attributable to controlling interests: ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, U.S. GAAP Consolidated Statements of Operations 2025 2024 2025 2024 Net income attributable to controlling interests $ 15.1 $ 16.9 $ 45.3 $ 42.5 Add: Income tax expense 7.4 9.4 20.2 21.1 Pre-tax income attributable to controlling interests $ 22.5 $ 26.3 $ 65.5 $ 63.6 U.S. GAAP Revenues Our U.S. GAAP revenues principally consist of: i. management fees earned based on our overall weighted average fee rate charged to our clients and the level of assets under management; ii. performance fees earned when our investment performance over agreed time periods for certain clients has differed from predetermined hurdles; and iii. revenue from consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds. Management Fees Our management fees are a function of the fee rates charged to our clients, which are typically expressed in basis points, and the levels of our assets under management. Our effective management fee rate will vary from period to period based on several factors, including changes in the mix of assets under management caused by market movements and client flows. Average basis points earned on average assets under management were 34.5 bps and 36.5 bps for the three and nine months ended September 30, 2025, respectively, and 38.3 bps and 38.4 bps for the three and nine months ended September 30, 2024, respectively. The overall weighted average fee rate decrease for the three and nine months ended September 30, 2025 is the result of changes in the mix of assets under management caused by client flows and market movements. Three months ended September 30, 2025 compared to three months ended September 30, 2024: Management fees increased $24.0 million, or 21.4%, from $112.1 million for the three months ended September 30, 2024 to $136.1 million for the three months ended September 30, 2025. The increase was mainly driven by higher levels of average assets under management. Average assets under management increased 34.5%, from $116.4 billion for the three months ended September 30, 2024 to $156.5 billion for the three months ended September 30, 2025, mainly due to the positive equity market and strong net inflows in the past twelve months. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Management fees increased $51.5 million, or 16.1%, from $319.8 million for the nine months ended September 30, 2024 to $371.3 million for the nine months ended September 30, 2025. The increase was primarily driven by higher levels of average assets under management. Average assets under management increased 23.3%, from $110.8 billion for the nine months ended September 30, 2024 to $136.6 billion for the nine months ended September 30, 2025, mainly due to the positive equity market and positive net flows in the past twelve months. Performance Fees Approximately $22 billion, or 13% of our AUM, were in accounts with performance fee features in which we participate. Performance fees are typically shared with key employees through various contractual compensation and profit-sharing arrangements. 38 Table of Contents Three months ended September 30, 2025 compared to three months ended September 30, 2024: Performance fees decreased $(9.9) million, or (98.0)%, from $10.1 million for the three months ended September 30, 2024 to $0.2 million for the three months ended September 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Performance fees decreased $(7.9) million, or (49.4)%, from $16.0 million for the nine months ended September 30, 2024 to $8.1 million for the nine months ended September 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods. U.S. GAAP Expenses Our U.S. GAAP expenses principally consist of: i. compensation paid to our investment professionals and other employees, including base salary, benefits, sales-based compensation, variable compensation, Acadian LLC key employee distributions, and revaluation of key employee-owned Acadian LLC equity and profit interests; ii. general and administrative expenses; iii. depreciation and amortization charges; and iv. expenses of consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds. Compensation and Benefits Expense Our most significant category of expense is compensation and benefits awarded to our employees. The following table presents the components of U.S. GAAP compensation expense for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Fixed compensation and benefits (1) $ 28.0 $ 24.5 $ 77.3 $ 72.3 Sales-based compensation (2) 3.4 3.3 10.4 6.9 Variable compensation (3) 31.8 29.4 93.6 83.7 Acadian LLC key employee distributions (4) 5.2 3.1 12.3 7.4 Non-cash Acadian LLC key employee equity revaluations (5) 16.3 9.3 35.7 19.6 Total U.S. GAAP compensation and benefits expense $ 84.7 $ 69.6 $ 229.3 $ 189.9 (1) Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided. (2) Sales-based compensation is paid to our sales and distribution teams and represents compensation earned by our sales professionals, paid over a multi-year period, related to revenue earned on new sales. Its variability is based upon the structure of sales-based compensation due on inflows of assets under management and market-based movement in both current and prior periods. 39 Table of Contents (3) Variable compensation includes the portion of earnings that is contractually allocated to Acadian LLC employees as a bonus pool, plus Hold Co bonuses. Variable compensation may be paid in the form of cash or non-cash equity or profit interests awards. We have a contractual split of performance fees between Acadian LLC employees and AAMI. Acadian LLC’s share of performance fees, which ranges between 60%-75% of the total, is allocated entirely to variable compensation. The variable compensation earned on performance fees vests over three-years and compensation expense is recognized over that service period. Hold Co variable compensation includes cash and our equity. Non-cash variable compensation awards typically vest over several years and are recognized as compensation expense over that service period. Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Cash variable compensation $ 30.0 $ 27.8 $ 89.5 $ 78.5 Non-cash equity-based award amortization 1.8 1.6 4.1 5.2 Total variable compensation (a) $ 31.8 $ 29.4 $ 93.6 $ 83.7 (a) For the three and nine months ended September 30, 2025, $32.1 million and $94.4 million, respectively, of variable compensation expense (of the $31.8 million and $93.6 million above) is included within economic net income. The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of variable compensation associated with restructuring. For the three and nine months ended September 30, 2024, $29.6 million and $83.6 million, respectively, of variable compensation expense (of the $29.4 million and $83.7 million above) is included with economic net income. The three months ended September 30, 2024 excludes $(0.3) million of severance-related items at Acadian LLC. The nine months ended September 30, 2024 excludes $(0.8) million of severance related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format. (4) Acadian LLC key employee distributions represent the share of Acadian LLC profits after variable compensation that is attributable to key employee equity and profit interests holders, according to their ownership interests. Acadian LLC key employee distribution ratio is calculated as Acadian LLC key employee distributions divided by ENI operating earnings. Within Acadian LLC we have a tiered equity structure, where AAMI and other classes of employee equity holders are entitled to an initial proportionate preference over profits after variable compensation, structured such that before a preference threshold is reached, there would be no required key employee distributions to the tiered equity holders, whereas for profits above the threshold, the key employee distribution amount to the tiered equity holders would be calculated based on the tiered key employee ownership percentages. (5) Non-cash Acadian LLC key employee equity revaluations represent changes in the value of Acadian LLC equity and profit interests held by key employees. These ownership interests may in certain circumstances be repurchased by Hold Co at a value based on a pre-determined fixed multiple of twelve-month earnings and as such a liability is carried on our balance sheet based on the expected cash to be paid. However, any equity or profit interests repurchased by Hold Co can be used to fund a portion of future variable compensation awards, resulting in savings in cash variable compensation that offset the negative cash effect of repurchasing the equity. The Acadian LLC equity and profit interest plans have been designed to ensure Hold Co is not required to repurchase more equity than we can reasonably recycle through variable compensation awards in any given twelve-month period. 40 Table of Contents Fluctuations in compensation and benefits expense for the periods presented are discussed below. Three months ended September 30, 2025 compared to three months ended September 30, 2024: Compensation and benefits expense increased $15.1 million, or 21.7%, from $69.6 million for the three months ended September 30, 2024 to $84.7 million for the three months ended September 30, 2025. Fixed compensation and benefits increased $3.5 million, or 14.3%, from $24.5 million for the three months ended September 30, 2024 to $28.0 million for the three months ended September 30, 2025, primarily reflecting cost of living increases, higher payroll taxes and benefits. Variable compensation increased $2.4 million, or 8.2%, from $29.4 million for the three months ended September 30, 2024 to $31.8 million for the three months ended September 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the three months ended September 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $0.1 million, or 3.0%, from $3.3 million for the three months ended September 30, 2024 to $3.4 million for the three months ended September 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $2.1 million, or 67.7%, from $3.1 million for the three months ended September 30, 2024 to $5.2 million for the three months ended September 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the current period is driven by higher operating earnings in the current period and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $7.0 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the three months ended September 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Compensation and benefits expense increased $39.4 million, or 20.7%, from $189.9 million for the nine months ended September 30, 2024 to $229.3 million for the nine months ended September 30, 2025. Fixed compensation and benefits increased $5.0 million, or 6.9%, from $72.3 million for the nine months ended September 30, 2024 to $77.3 million for the nine months ended September 30, 2025, primarily reflecting cost of living increases, higher payroll taxes and benefits. Variable compensation increased $9.9 million, or 11.8%, from $83.7 million for the nine months ended September 30, 2024 to $93.6 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the nine months ended September 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $3.5 million or 50.7% from $6.9 million for the nine months ended September 30, 2024 to $10.4 million for the nine months ended September 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $4.9 million, or 66.2%, from $7.4 million for the nine months ended September 30, 2024 to $12.3 million for the nine months ended September 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the nine months ended September 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $16.1 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the nine months ended September 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates. General and Administrative Expense Three months ended September 30, 2025 compared to three months ended September 30, 2024: General and administrative expense increased $1.7 million, or 7.8%, from $21.8 million for the three months ended September 30, 2024 to $23.5 million for the three months ended September 30, 2025. The increase in general and administrative expenses primarily reflects higher portfolio administrative, consulting, and system costs, partially offset by the impact of foreign currency changes. 41 Table of Contents Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: General and administrative expense increased $4.7 million, or 7.5%, from $62.9 million for the nine months ended September 30, 2024 to $67.6 million for the nine months ended September 30, 2025. The increase was primarily due to higher system, recruiting, portfolio administrative, and consulting costs, partially offset by the impact of foreign currency changes. Depreciation and Amortization Expense Three months ended September 30, 2025 compared to three months ended September 30, 2024: Depreciation and amortization expense decreased $(0.4) million, or (8.9)% from $4.5 million for the three months ended September 30, 2024 to $4.1 million for the three months ended September 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Depreciation and amortization expense decreased $(1.6) million, or (11.3)%, from $14.1 million for the nine months ended September 30, 2024 to $12.5 million for the nine months ended September 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated. U.S. GAAP Other Non-Operating Items of Income and Expense Other non-operating items of income and expense consist of: i. investment income (loss); ii. interest income; and iii. interest expense. Investment Income Three months ended September 30, 2025 compared to three months ended September 30, 2024: Investment income decreased $(1.5) million, from $1.5 million for the three months ended September 30, 2024 to $0.0 million for the three months ended September 30, 2025, reflecting the change in returns generated by seed capital investments in Funds that are not consolidated by the Company. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Investment income decreased $(2.4) million, or (96.0)%, from $2.5 million for the nine months ended September 30, 2024 to $0.1 million for the nine months ended September 30, 2025, reflecting a decrease in returns generated by seed capital investments in Funds that are not consolidated by the Company. Interest Income Three months ended September 30, 2025 compared to three months ended September 30, 2024: Interest income increased $0.3 million, or 50.0% from $0.6 million for the three months ended September 30, 2024 compared to $0.9 million for the three months ended September 30, 2025. The increase reflects the change in short-term investment returns in the three months ended September 30, 2025. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Interest income remained flat at $2.8 million for both the nine months ended September 30, 2024 and September 30, 2025, respectively. 42 Table of Contents Interest Expense Three months ended September 30, 2025 compared to three months ended September 30, 2024: Interest expense decreased $(0.1) million, or (2.1)%, from $(4.7) million for the three months ended September 30, 2024 compared to $(4.6) million for the three months ended September 30, 2025, reflecting a lower balance drawn on the revolving credit facility in the three months ended September 30, 2025. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Interest expense decreased $(0.3) million, or (2.0)%, from $15.0 million for the nine months ended September 30, 2024 compared to $14.7 million for the nine months ended September 30, 2025, reflecting a lower balance drawn on the revolving credit facility in the nine months ended September 30, 2025. U.S. GAAP Income Tax Expense Our effective tax rate has been impacted by state and local tax obligations, changes in liabilities for uncertain tax positions, tax effects of stock-based compensation, limitations on executive compensation, and the mix of income earned in the United States versus foreign jurisdictions. Our effective tax rate could be impacted in the future by these items as well as further changes in tax laws and regulations in jurisdictions in which we operate. On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”), was enacted in the U.S., which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international). The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. The OBBBA did not have a material impact to the income tax expense during the current period. We will continue to evaluate the impact of the legislative changes on future periods as additional guidance becomes available. Three months ended September 30, 2025 compared to three months ended September 30, 2024: Income tax expense decreased $(2.0) million, from $9.4 million for the three months ended September 30, 2024 to $7.4 million for the three months ended September 30, 2025. The decrease in income tax expense primarily relates to a decrease in both pretax income attributable to controlling interest and state tax expense in the three months ended September 30, 2025. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024 : Income tax expense decreased $(0.9) million, from $21.1 million for the nine months ended September 30, 2024 to $20.2 million for the nine months ended September 30, 2025. The decrease in income tax expense primarily relates to a decrease in state tax expense, partially offset by an increase in pretax income attributable to controlling interest in the nine months ended September 30, 2025. U.S. GAAP Consolidated Funds The net income or loss of all consolidated Funds, excluding any income or loss attributable to seed capital or co-investments we make in the Funds, is included in non-controlling interests in our Consolidated Financial Statements and is not included in net income attributable to controlling interests or in management fees. 43 Table of Contents Three months ended September 30, 2025 compared to three months ended September 30, 2024: Consolidated Funds’ revenue increased $7.0 million, from $0.9 million for the three months ended September 30, 2024 to $7.9 million for the three months ended September 30, 2025. Consolidated Funds’ expense increased $5.1 million, from $0.2 million for the three months ended September 30, 2024 to $5.3 million for the three months ended September 30, 2025. Net consolidated Funds’ investment gain increased $7.5 million from $4.0 million for the three months ended September 30, 2024 to $11.5 million for the three months ended September 30, 2025. These movements relate to the underlying activity of our consolidated Funds. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024 : Consolidated Funds’ revenue increased $10.1 million, from $2.0 million for the nine months ended September 30, 2024 to $12.1 million for the nine months ended September 30, 2025. Consolidated Funds’ expense increased $7.0 million, from $0.4 million for the nine months ended September 30, 2024 to $7.4 million for the nine months ended September 30, 2025. Net consolidated Funds’ investment gain increased $20.7 million from $6.5 million for the nine months ended September 30, 2024 to $27.2 million for the nine months ended September 30, 2025. These movements relate to the underlying activity of our consolidated Funds. Key U.S. GAAP Operating Metrics The following table shows our key U.S. GAAP operating metrics for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Numerator: Operating income $ 26.6 $ 27.0 $ 74.7 $ 70.5 Denominator: Total revenue $ 144.2 $ 123.1 $ 391.5 $ 337.8 U.S. GAAP operating margin (1) 18.4 % 21.9 % 19.1 % 20.9 % Numerator: Total operating expenses (2) $ 112.3 $ 95.9 $ 309.4 $ 266.9 Denominator: Management fee revenue $ 136.1 $ 112.1 $ 371.3 $ 319.8 U.S. GAAP operating expense / management fee revenue (3) 82.5 % 85.5 % 83.3 % 83.5 % Numerator: Variable compensation $ 31.8 $ 29.4 $ 93.6 $ 83.7 Denominator: Operating income before variable compensation and Acadian LLC key employee distributions (2)(4)(5) $ 61.0 $ 58.8 $ 175.9 $ 160.0 U.S. GAAP variable compensation ratio (3) 52.1 % 50.0 % 53.2 % 52.3 % Numerator: Acadian LLC key employee distributions $ 5.2 $ 3.1 $ 12.3 $ 7.4 Denominator: Operating income before Acadian LLC key employee distributions (2)(4)(5) $ 29.2 $ 29.4 $ 82.3 $ 76.3 U.S. GAAP Acadian LLC key employee distributions ratio (3) 17.8 % 10.5 % 14.9 % 9.7 % (1) Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin is 17.6% for the three months ended September 30, 2025, 21.5% for the three months ended September 30, 2024, 18.5% for the nine months ended September 30, 2025, and 20.5% for the nine months ended September 30, 2024. 44 Table of Contents (2) Excludes consolidated Funds’ expense of $5.3 million for the three months ended September 30, 2025, $0.2 million for the three months ended September 30, 2024, $7.4 million for the nine months ended September 30, 2025, and $0.4 million for the nine months ended September 30, 2024. (3) Excludes the effect of Funds consolidation for the three and nine months ended September 30, 2025 and 2024. (4) Excludes consolidated Funds’ revenue of $7.9 million for the three months ended September 30, 2025, $0.9 million for the three months ended September 30, 2024, $12.1 million for the nine months ended September 30, 2025, and $2.0 million for the nine months ended September 30, 2024. (5) The following table identifies the components of operating income before variable compensation and Acadian LLC key employee distributions, as well as operating income before Acadian LLC key employee distributions: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Operating income $ 26.6 $ 27.0 $ 74.7 $ 70.5 Acadian LLC key employee distributions 5.2 3.1 12.3 7.4 Operating income of consolidated Funds (2.6) (0.7) (4.7) (1.6) Operating income before Acadian LLC key employee distributions 29.2 29.4 82.3 76.3 Variable compensation 31.8 29.4 93.6 83.7 Operating income before variable compensation and Acadian LLC key employee distributions $ 61.0 $ 58.8 $ 175.9 $ 160.0 Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis As supplemental information, we provide a non-GAAP performance measure that we refer to as economic net income, or ENI, which represents our management’s view of the underlying economic earnings generated by us. We define economic net income as ENI revenue less (i) ENI operating expenses, (ii) variable compensation, (iii) key employee distributions, (iv) net interest and (v) taxes, each as further discussed in this section. ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP. ENI is an important measure to investors because it is used by us to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management. It is also an important measure because it assists management in evaluating our operating performance and is presented in a way that most closely reflects the key elements of our profit share operating model with Acadian LLC. For a further discussion of how we use ENI and why ENI is useful to investors, see “Overview — How We Measure Performance.” 45 Table of Contents To calculate economic net income, we re-categorize certain line items on our Condensed Consolidated Statements of Operations to reflect the following: • We exclude the effect of Funds’ consolidation by removing the portion of Fund revenues, expenses and investment return which were not attributable to our stockholders. • We include within management fee revenue any fees paid to the Company by consolidated Funds. • We treat sales-based compensation as a general and administrative expense, rather than part of fixed compensation and benefits. • We identify separately from operating expenses variable compensation and Acadian LLC key employee distributions, which represent Acadian LLC earnings shared with key employees. We also make the following adjustments to U.S. GAAP results to more closely reflect our economic results: i. We exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by key employees. These ownership interests may in certain circumstances be repurchased by Hold Co at a value based on a pre-determined fixed multiple of trailing earnings and as such this value is carried on our balance sheet as a liability. Non-cash movements in the value of this liability are treated as compensation expense under U.S. GAAP. However, any equity or profit interests repurchased by Hold Co can be used to fund a portion of future variable compensation awards, resulting in savings in cash variable compensation that offset the negative cash effect of repurchasing the equity. Our equity and profit interest plans have been designed to ensure Hold Co is never required to repurchase more equity than we can reasonably recycle through variable compensation awards in any given twelve-month period. ii. We exclude non-cash amortization or impairment expenses related to acquired goodwill and other intangibles as these are non-cash charges that do not result in an outflow of tangible economic benefits from the business. iii. We exclude capital transaction costs, including the costs of raising debt or equity, gains or losses realized as a result of redeeming debt or equity and direct incremental costs associated with acquisitions of businesses or assets. iv. We exclude seed capital and co-investment gains, losses, and related financing costs. The net returns on these investments are considered and presented separately from ENI because ENI is primarily a measure of our earnings from managing client assets, which therefore differs from earnings generated by our investments, which can be variable from period to period. v. We include cash tax benefits associated with deductions allowed for acquired intangibles and goodwill that may not be recognized or have timing differences compared to U.S. GAAP. vi. We exclude the results of discontinued operations attributable to controlling interests since they are not part of our ongoing business and restructuring costs incurred in continuing operations. vii. We exclude deferred tax resulting from changes in tax law and expiration of statutes, adjustments for uncertain tax positions, deferred tax attributable to intangible assets and other unusual items not related to current operating results to reflect ENI tax normalization. We also adjust our income tax expense to reflect any tax impact of our ENI adjustments. 46 Table of Contents Reconciliation of U.S. GAAP Net Income to Economic Net Income for the Three and Nine Months Ended September 30, 2025 and 2024 The following table reconciles net income attributable to controlling interests to economic net income for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 U.S. GAAP net income attributable to controlling interests $ 15.1 $ 16.9 $ 45.3 $ 42.5 Adjustments to reflect the economic earnings of the Company: i. Non-cash key employee-owned equity and profit interest revaluations 16.3 9.3 35.7 19.6 ii. Amortization of acquired intangible assets — — — — iii. Capital transaction costs 0.1 — 0.2 0.2 iv. Seed/Co-investment (gains) losses and financings (1) (0.9) (3.0) (3.5) (4.4) v. Tax benefit of goodwill and acquired intangibles deductions 0.3 0.4 0.8 1.2 vi. Discontinued operations attributable to controlling interests and restructuring (2) (0.2) — (0.7) 1.4 vii. ENI tax normalization 0.7 0.3 1.3 0.9 Tax effect of above adjustments, as applicable (3) (4.2) (1.7) (8.7) (4.6) Economic net income $ 27.2 $ 22.2 $ 70.4 $ 56.8 (1) The net return on seed/co-investment (gains) losses and financings for the three and nine months ended September 30, 2025 and 2024 is shown in the following table: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Seed/Co-investment gains $ (2.2) $ (4.1) $ (7.4) $ (6.9) Financing costs: Seed/Co-investment average balance 79.6 65.5 79.8 50.1 Blended interest rate* 6.5 % 6.5 % 6.5 % 6.5 % Financing costs 1.3 1.1 3.9 2.5 Net seed/co-investment gains and financing $ (0.9) $ (3.0) $ (3.5) $ (4.4) * The blended rate is based on the weighted average rate of the long-term debt. (2) The three months ended September 30, 2025 includes severance-related items of $(0.2) million. The three months ended September 30, 2024 includes severance-related items of $(0.3) million and costs associated with the transfer of an insurance policy from our former parent of $0.3 million. The nine months ended September 30, 2025 includes severance-related items of $(0.7) million. The nine months ended September 30, 2024 includes severance-related items of $(0.8) million, costs associated with the transfer of an insurance policy from our former parent of $0.9 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million. (3) Reflects the sum of lines (i), (ii), (iii), (iv) and the restructuring component of line (vi) multiplied by the 27.3% U.S. statutory tax rate (including state tax). 47 Table of Contents Limitations of Economic Net Income Economic net income is the key measure our management uses to evaluate the financial performance of, and make operational decisions for, our business. Economic net income is not audited and is not a substitute for net income or other performance measures that are derived in accordance with U.S. GAAP. Furthermore, our calculation of economic net income may differ from similarly titled measures provided by other companies. Because the calculation of economic net income excludes certain ongoing expenses, including amortization expense and certain compensation costs, it has certain material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures of earnings. ENI Revenues The following table reconciles U.S. GAAP revenue to ENI revenue for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 U.S. GAAP revenue $ 144.2 $ 123.1 $ 391.5 $ 337.8 Exclude revenue from consolidated Funds (7.9) (0.9) (12.1) (2.0) ENI revenue $ 136.3 $ 122.2 $ 379.4 $ 335.8 The following table identifies the components of ENI revenue: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Management fees (1) $ 136.1 $ 112.1 $ 371.3 $ 319.8 Performance fees (2) 0.2 10.1 8.1 16.0 ENI revenue $ 136.3 $ 122.2 $ 379.4 $ 335.8 (1) ENI management fees correspond to U.S. GAAP management fees. (2) ENI performance fees correspond to U.S. GAAP performance fees. ENI Operating Expenses The largest difference between U.S. GAAP operating expense and ENI operating expense relates to compensation. As shown in the following reconciliation, we exclude the impact of key employee equity revaluations. Variable compensation and Acadian LLC key employee distributions are also segregated out of U.S. GAAP operating expense in order to align with the manner in which these items are contractually calculated. 48 Table of Contents The following table reconciles U.S. GAAP operating expense to ENI operating expense for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 U.S. GAAP operating expense $ 117.6 $ 96.1 $ 316.8 $ 267.3 Less: items excluded from economic net income Non-cash key employee equity and profit interest revaluations (16.3) (9.3) (35.7) (19.6) Restructuring costs (1) 0.2 — 0.8 (1.4) Funds’ operating expense (5.3) (0.2) (7.4) (0.4) Less: items segregated out of U.S. GAAP operating expense Variable compensation (2) (32.1) (29.6) (94.4) (83.6) Acadian LLC key employee distributions (5.2) (3.1) (12.3) (7.4) ENI operating expense $ 58.9 $ 53.9 $ 167.8 $ 154.9 (1) The three months ended September 30, 2025 includes $(0.2) million of severance-related items. The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million costs associated with the transfer of an insurance policy from our former parent. The nine months ended September 30, 2025 includes $(0.7) million of severance-related items. The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million. (2) The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that is included within restructuring costs. The three and nine months ended September 30, 2024 excludes $(0.3) million and $(0.8) million, respectively, of severance-related items that is included within restructuring costs. The nine months ended September 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format that is included with restructuring costs. 49 Table of Contents The following table identifies the components of ENI operating expense: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Fixed compensation & benefits (1) $ 28.0 $ 24.5 $ 77.3 $ 72.3 General and administrative expenses (2) 26.8 24.9 78.0 68.9 Depreciation and amortization 4.1 4.5 12.5 13.7 ENI operating expense $ 58.9 $ 53.9 $ 167.8 $ 154.9 (1) Fixed compensation and benefits include base salaries, payroll taxes and the cost of benefit programs provided. The following table reconciles U.S. GAAP compensation and benefits expense for the three and nine months ended September 30, 2025 and 2024 to ENI fixed compensation and benefits expense: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Total U.S. GAAP compensation and benefits expense $ 84.7 $ 69.6 $ 229.3 $ 189.9 Non-cash key employee equity and profit interest revaluations excluded from ENI (16.3) (9.3) (35.7) (19.6) Sales-based compensation reclassified to ENI general & administrative expenses (3.4) (3.3) (10.4) (6.9) Acadian LLC key employee distributions (5.2) (3.1) (12.3) (7.4) Restructuring expenses (a) 0.3 0.2 0.8 (0.1) Variable compensation (32.1) (29.6) (94.4) (83.6) ENI fixed compensation and benefits $ 28.0 $ 24.5 $ 77.3 $ 72.3 (a) The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that is included within restructuring costs. The three and nine months ended September 30, 2024 excludes $(0.3) million and $(0.8) million, respectively, of severance-related items that is included within restructuring costs. The nine months ended September 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format that is included with restructuring costs. (2) The following table reconciles U.S. GAAP general and administrative expense to ENI general and administrative expense: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 U.S. GAAP general and administrative expense $ 23.5 $ 21.8 $ 67.6 $ 62.9 Sales-based compensation 3.4 3.3 10.4 6.9 Restructuring costs (a) (0.1) (0.2) — (0.9) ENI general and administrative expense $ 26.8 $ 24.9 $ 78.0 $ 68.9 (a) Reflects $0.3 million and $0.9 million, respectively, of costs associated with the transfer of an insurance policy from our former parent for the three and nine months ended September 30, 2024. 50 Table of Contents Key Non-GAAP Operating Metrics The following table shows our key non-GAAP operating metrics for the three and nine months ended September 30, 2025 and 2024. We present these metrics because they are the measures our management uses to evaluate the profitability of our business and are useful to investors because they represent the key drivers and measures of economic performance within our business model. Please see the footnotes below for an explanation of each ratio, its usefulness in measuring the economics and operating performance of our business, and a reference to the most closely related U.S. GAAP measure: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Numerator: ENI operating earnings (1) $ 45.3 $ 38.7 $ 117.2 $ 97.3 Denominator: ENI revenue $ 136.3 $ 122.2 $ 379.4 $ 335.8 ENI operating margin (2) 33.2 % 31.7 % 30.9 % 29.0 % Numerator: ENI operating expense $ 58.9 $ 53.9 $ 167.8 $ 154.9 Denominator: ENI management fee revenue (3) $ 136.1 $ 112.1 $ 371.3 $ 319.8 ENI operating expense ratio (4) 43.3 % 48.1 % 45.2 % 48.4 % Numerator: ENI variable compensation $ 32.1 $ 29.6 $ 94.4 $ 83.6 Denominator: ENI earnings before variable compensation (1)(5) $ 77.4 $ 68.3 $ 211.6 $ 180.9 ENI variable compensation ratio (6) 41.5 % 43.3 % 44.6 % 46.2 % Numerator: Acadian LLC key employee distributions $ 5.2 $ 3.1 $ 12.3 $ 7.4 Denominator: ENI operating earnings (1) $ 45.3 $ 38.7 $ 117.2 $ 97.3 ENI Acadian LLC key employee distributions ratio (7) 11.5 % 8.0 % 10.5 % 7.6 % (1) ENI operating earnings represents ENI earnings before Acadian LLC key employee distributions and is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation. It differs from economic net income because it does not include the effects of Acadian LLC key employee distributions, net interest expense or income tax expense. 51 Table of Contents The following table reconciles U.S. GAAP operating income to ENI operating earnings: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 U.S. GAAP operating income $ 26.6 $ 27.0 $ 74.7 $ 70.5 Exclude the impact of: Acadian LLC key employee-owned equity and profit interest revaluations 16.3 9.3 35.7 19.6 Goodwill impairment and amortization of acquired intangible assets — — — — Restructuring costs (a) (0.2) — (0.8) 1.4 Acadian LLC key employee distributions 5.2 3.1 12.3 7.4 Variable compensation 32.1 29.6 94.4 83.6 Funds’ operating income (2.6) (0.7) (4.7) (1.6) ENI earnings before variable compensation 77.4 68.3 211.6 180.9 Less: ENI variable compensation (b) (32.1) (29.6) (94.4) (83.6) ENI operating earnings 45.3 38.7 117.2 97.3 Less: ENI Acadian LLC key employee distributions (5.2) (3.1) (12.3) (7.4) ENI earnings after Acadian LLC key employee distributions $ 40.1 $ 35.6 $ 104.9 $ 89.9 (a) The three months ended September 30, 2025 includes $(0.2) million of severance-related items. The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million costs associated with the transfer of an insurance policy from our former parent. The nine months ended September 30, 2025 includes $(0.7) million of severance-related items. The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and $1.3 million of costs associated with the wind-down of the MACS business in the standalone format. (b) The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that are included within restructuring costs. The three and nine months ended September 30, 2024 excludes $(0.3) million and $(0.8) million, respectively, of severance-related items that are included within restructuring costs. The nine months ended September 30, 2024 excludes $0.9 million of costs associated with the wind-down of the MACS business in the standalone format. (2) The ENI operating margin, which is calculated before Acadian LLC key employee distributions, is used by management and is useful to investors to evaluate the overall operating margin of the business. The ENI operating margin is most comparable to our U.S. GAAP operating margin. Our U.S. GAAP operating margin, excluding the effect of consolidated Funds, is 17.6% for the three months ended September 30, 2025, 21.5% for the three months ended September 30, 2024, 18.5% for the nine months ended September 30, 2025, and 20.5% for the nine months ended September 30, 2024. The ENI operating margin is important because it gives investors an understanding of the profitability of the total business relative to revenue, irrespective of the ownership position which we have in Acadian LLC. Management and investors use this ratio when comparing our profitability relative to our peer group and evaluating our ability to manage the cost structure and profitability of our business under different operating environments. (3) ENI management fee revenue corresponds to U.S. GAAP management fee revenue. 52 Table of Contents (4) The ENI operating expense ratio is used by management and is useful to investors to evaluate the level of operating expense as measured against our recurring management fee revenue. We have provided this ratio since many operating expenses, including fixed compensation and benefits and general and administrative expense, are generally linked to the overall size of the business. We track this ratio as a key measure of scale economies because in our profit-sharing economic model, scale benefits both the Acadian LLC employees and our stockholders. The ENI operating expense ratio is most comparable to the U.S. GAAP operating expense / management fee revenue ratio. (5) ENI earnings before variable compensation is calculated as ENI revenue, less ENI operating expense. (6) The ENI variable compensation ratio is used by management and is useful to investors to evaluate consolidated variable compensation as measured against our ENI earnings before variable compensation. Variable compensation is primarily comprised of a contractual percentage of Acadian LLC’s ENI earnings before variable compensation and may be paid in the form of cash or non-cash Acadian LLC equity or profit interests. Hold Co variable compensation includes cash and AAMI equity. Non-cash variable compensation awards typically vest over several years and are recognized as compensation expense over that service period. The variable compensation ratio is calculated as variable compensation divided by ENI earnings before variable compensation. The ENI variable compensation ratio is most comparable to the U.S. GAAP variable compensation ratio. (7) The ENI Acadian LLC key employee distribution ratio is used by management and is useful to investors to evaluate Acadian LLC key employee distributions as measured against our ENI operating earnings. Acadian LLC key employee distributions represent the share of profits after variable compensation that is attributable to Acadian LLC key employee equity and profit interests holders, according to their ownership interests. It is calculated as Acadian LLC key employee distributions divided by ENI operating earnings. Within Acadian LLC, we have a tiered equity structure, where AAMI and other classes of employee equity holders are entitled to an initial proportionate preference over profits after variable compensation, structured such that before a preference threshold is reached, there would be no required key employee distributions to the tiered equity holders, whereas for profits above the threshold the key employee distribution amount to the tiered equity holders would be calculated based on the tiered key employee ownership percentages. The ENI Acadian LLC key employee distributions ratio is most comparable to the U.S. GAAP Acadian LLC key employee distributions ratio. Tax on Economic Net Income The following table reconciles the United States statutory tax to tax on economic net income: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Pre-tax economic net income (1) $ 37.8 $ 32.6 $ 97.2 $ 80.4 Taxes at the U.S. federal and state statutory rates (2) (10.4) (8.9) (26.6) (22.0) Other reconciling tax adjustments (0.2) (1.5) (0.2) (1.6) Tax on economic net income (10.6) (10.4) (26.8) (23.6) Economic net income $ 27.2 $ 22.2 $ 70.4 $ 56.8 Economic net income effective tax rate (3) 28.0 % 31.9 % 27.6 % 29.4 % (1) Includes interest income and third-party ENI interest expense, as shown in the following table: 53 Table of Contents Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 U.S. GAAP interest income $ 0.9 $ 0.6 $ 2.8 $ 2.8 U.S. GAAP interest expense (4.6) (4.7) (14.7) (15.0) U.S. GAAP net interest expense (3.7) (4.1) (11.9) (12.2) Other ENI interest expense exclusions (a) 1.4 1.1 4.2 2.7 ENI net interest expense (2.3) (3.0) (7.7) (9.5) ENI earnings after Acadian LLC key employee distributions (b) 40.1 35.6 104.9 89.9 Pre-tax economic net income $ 37.8 $ 32.6 $ 97.2 $ 80.4 (a) Other ENI interest expense exclusions represent cost of financing on seed capital and co-investments and amortization of debt issuance costs. (b) ENI earnings after Acadian LLC key employee distributions is calculated as ENI operating income (ENI revenue, less ENI operating expense, less ENI variable compensation), less Acadian LLC key employee distributions. Refer to “Key Non-GAAP Operating Metrics” for a reconciliation from U.S. GAAP operating income to ENI earnings after Acadian LLC key employee distributions. (2) Taxed at U.S. Federal and State statutory rate of 27.3%. (3) The economic net income effective tax rate is calculated by dividing the tax on economic net income by pre-tax economic net income. Investments The value of our seed capital investments was $95.1 million as of September 30, 2025 and $90.3 million as of December 31, 2024, including direct investments in consolidated Funds. Total seed capital investments represents our seed capital invested within Acadian LLC’s investment products. The following table reconciles the investments balance per our Condensed Consolidated Balance Sheets to the total value of our seed capital investments as of each of the dates indicated: ($ in millions) September 30, 2025 December 31, 2024 Investments per Condensed Consolidated Balance Sheets $ 40.8 $ 67.9 Seed capital investment in consolidated Funds 91.7 70.9 Investments related to long-term incentive compensation plans (37.4) (48.5) Total seed capital investments $ 95.1 $ 90.3 54 Table of Contents Segment Analysis We operate our business through the following reportable segment: • Quant & Solutions —incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors; portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities. This segment consists of our ownership interest in Acadian LLC. The corporate holding company (“Hold Co”) is included within the Unallocated Corporate expense category. The Hold Co expenses are not allocated to the Company’s business segment, but the CODM does consider the cost structure of the corporate head office when evaluating the financial performance of our segment. The CODM is the Company’s Chief Executive Officer. The primary measure used by the CODM in measuring performance and allocating resources to the segment is ENI. ENI is used to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management. We define economic net income for the segment as ENI revenue less ENI operating expenses. The ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses recognized under U.S. GAAP. ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to the Company by consolidated Funds. Significant segment ENI expenses include fixed compensation and benefits, variable compensation, Acadian LLC key employee distributions, depreciation and amortization, and general and administrative expense under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, capital transaction costs, and restructuring costs. ENI segment results are also adjusted to exclude consolidated Funds’ revenues, consolidated Funds’ expenses and investment return recorded under U.S. GAAP. Refer to the reconciliations of U.S. GAAP revenue to ENI revenue, U.S. GAAP Operating expense to ENI Operating expense, variable compensation and Acadian LLC key employee distributions disclosed previously within this section. 55 Table of Contents Segment ENI Revenue The following table identifies the components of Quant & Solutions segment ENI revenue for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Management fees $ 136.1 $ 112.1 $ 371.3 $ 319.8 Performance fees 0.2 10.1 8.1 16.0 Segment ENI revenue $ 136.3 $ 122.2 $ 379.4 $ 335.8 Quant & Solutions Segment ENI Revenue Three months ended September 30, 2025 compared to three months ended September 30, 2024: Quant & Solutions ENI revenue increased $14.1 million, or 11.5%, from $122.2 million for the three months ended September 30, 2024 to $136.3 million for the three months ended September 30, 2025. The increase was mainly attributable to 21.4% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, offset by (98.0)% lower performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Quant & Solutions ENI revenue increased $43.6 million, or 13.0%, from $335.8 million for the nine months ended September 30, 2024 to $379.4 million for the nine months ended September 30, 2025. The increase was attributable to 16.1% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, offset by (49.4)% lower performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods. Segment ENI Expense The following table identifies the components of Quant & Solutions segment ENI expense for the three and nine months ended September 30, 2025 and 2024: ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Fixed compensation & benefits $ 26.4 $ 22.7 $ 72.7 $ 66.9 Variable compensation 31.1 29.0 91.3 81.8 Acadian LLC key employee distributions 5.2 3.1 12.3 7.4 Depreciation and amortization 4.1 4.5 12.5 13.7 General and administrative expense 25.3 22.7 72.2 62.7 Segment ENI expenses $ 92.1 $ 82.0 $ 261.0 $ 232.5 56 Table of Contents Quant & Solutions Segment ENI Expense Three months ended September 30, 2025 compared to three months ended September 30, 2024: Quant & Solutions segment ENI expenses increased $10.1 million, or 12.3%, from $82.0 million for the three months ended September 30, 2024 to $92.1 million for the three months ended September 30, 2025. Quant & Solutions ENI fixed compensation and benefits expense increased 16.3%, reflecting cost of living increases, higher payroll taxes and employee benefits. Quant & Solutions ENI variable compensation expense is based on contractual percentage of earnings before variable compensation, and also includes a formulaic split of performance fee revenue that gets deferred and recognized as variable compensation expense over a three-year vesting period. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Quant & Solutions ENI variable compensation expense increased 7.2% as a result of higher earnings before variable compensation, and changes in deferred compensation expense earned on current and prior year performance fee revenues in the three months ended September 30, 2025. Acadian LLC key employee distributions attributable to Quant & Solutions increased 67.7%. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the current period is driven by higher operating earnings and the leveraged nature of this distribution share. Quant & Solutions ENI general and administrative expense increased 11.5%, reflecting higher portfolio administrative, consulting and system costs, partially offset by the impact of foreign currency changes. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Quant & Solutions segment ENI expenses increased $28.5 million, or 12.3%, from $232.5 million for the nine months ended September 30, 2024 to $261.0 million for the nine months ended September 30, 2025. Quant & Solutions ENI fixed compensation and benefits expense increased 8.7%, reflecting cost of living increases, higher payroll taxes and employee benefits. Quant & Solutions ENI variable compensation expense is based on contractual percentage of earnings before variable compensation, and also includes a formulaic split of performance fee revenue that gets deferred and recognized as variable compensation expense over a three-year vesting period. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Quant & Solutions ENI variable compensation expense increased 11.6% as a result of higher earnings before variable compensation, and changes in deferred compensation expense earned on current and prior year performance fee revenues in the nine months ended September 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. Acadian LLC key employee distributions attributable to Quant & Solutions increased 66.2%. The change in Acadian LLC key employee distributions during the nine months ended September 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share. Quant & Solutions ENI general and administrative expense increased 15.2% primarily due to higher sales-based compensation, system, recruiting, portfolio administrative, and consulting costs, partially offset by the impact of foreign currency changes. Unallocated corporate expense The following table identifies unallocated corporate expense for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Unallocated corporate expenses (1) $ 4.2 $ 4.9 $ 13.5 $ 14.3 (1) Unallocated corporate expenses are presented on a U.S. GAAP basis. 57 Table of Contents Three months ended September 30, 2025 compared to three months ended September 30, 2024: Unallocated corporate expense decreased $(0.7) million, or (14.3)%, from $4.9 million for the three months ended September 30, 2024 to $4.2 million for the three months ended September 30, 2025. The decrease was driven by lower general and administrative expense, slightly offset by higher compensation and benefits expense. Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Unallocated corporate expense decreased $(0.8) million, or (5.6)%, from $14.3 million for the nine months ended September 30, 2024 to $13.5 million for the nine months ended September 30, 2025. The decrease was driven by lower general and administrative expense, slightly offset by higher compensation and benefits expense. Capital Resources and Liquidity Cash Flows The following table summarizes certain key financial data relating to cash flows. All amounts presented exclude consolidated Funds: Nine Months Ended September 30, ($ in millions) 2025 2024 Cash provided by (used in) (1) Operating activities $ 63.5 $ 59.1 Investing activities 8.7 (48.3) Financing activities (50.1) (104.1) (1) Excludes consolidated Funds. Comparison for the nine months ended September 30, 2025 and 2024 Net cash from operating activities, excluding consolidated Funds, increased $4.4 million, from net cash provided of $59.1 million for the nine months ended September 30, 2024 to net cash provided of $63.5 million for the nine months ended September 30, 2025, driven by changes in net income offset by changes in operating assets and liabilities period-over-period. In the nine months ended September 30, 2025, net cash from investing activities, excluding consolidated Funds, changed by $57.0 million, from $(48.3) million used in the nine months ended September 30, 2024 to $8.7 million provided in the nine months ended September 30, 2025, driven by higher net sales of investment securities in the nine months ended September 30, 2025. Net cash used in financing activities, excluding consolidated Funds, changed by $54.0 million, from $(104.1) million used in the nine months ended September 30, 2024 to $(50.1) million used in the nine months ended September 30, 2025, primarily due to higher share repurchases in the nine months ended September 30, 2024. Supplemental Liquidity Measure — Adjusted EBITDA As supplemental information, we provide information regarding Adjusted EBITDA, which we define as economic net income before net interest, income taxes, depreciation, and amortization. Adjusted EBITDA is a non-GAAP liquidity measure that we provide in addition to, but not as a substitute for, cash flows from operating activities. It should be noted that our calculation of Adjusted EBITDA may not be consistent with Adjusted EBITDA as calculated by other companies. We believe Adjusted EBITDA is a useful liquidity metric because it indicates our ability to make further investments in our business, service debt and meet working capital requirements. 58 Table of Contents The following table reconciles our U.S. GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three and nine months ended September 30, 2025 and 2024. Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2025 2024 2025 2024 Net income attributable to controlling interests $ 15.1 $ 16.9 $ 45.3 $ 42.5 Net interest expense to third parties 3.7 4.1 11.9 12.2 Income tax expense 7.4 9.4 20.2 21.1 Depreciation and amortization 4.1 4.5 12.5 14.1 EBITDA $ 30.3 $ 34.9 $ 89.9 $ 89.9 Non-cash compensation costs, including revaluation of Acadian LLC key employee-owned equity and profit interests 17.2 9.4 37.6 20.2 Gain on seed and co-investments (2.2) (4.1) (7.4) (6.9) Restructuring (1) (0.2) 0.2 (0.7) 1.1 Adjusted EBITDA $ 45.1 $ 40.4 $ 119.4 $ 104.3 ENI net interest expense to third parties (2.3) (3.0) (7.7) (9.5) Depreciation and amortization (2) (5.0) (4.8) (14.5) (14.4) Tax on economic net income (10.6) (10.4) (26.8) (23.6) Economic net income $ 27.2 $ 22.2 $ 70.4 $ 56.8 (1) The three months ended September 30, 2025 includes $(0.2) million of severance-related items. The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million of costs associated with the transfer of an insurance policy from our former parent. The nine months ended September 30, 2025 includes $(0.7) million of severance-related items. The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $0.9 million. (2) Includes non-cash equity-based award amortization expense. Limitations of Adjusted EBITDA As a non-GAAP, unaudited liquidity measure and derivation of EBITDA, Adjusted EBITDA has certain material limitations. It does not include cash costs associated with capital transactions and excludes certain U.S. GAAP expenses that fall outside the definition of EBITDA. Each of these categories of expense represents costs to us of doing business, and therefore any measure that excludes any or all of these categories of expense has material limitations. Future Capital Needs We believe that our available cash and cash equivalents to be generated from operations, supplemented by short-term and long-term financing, as necessary, will be sufficient to fund current operations and capital requirements for at least the next twelve months, as well as our day-to-day operations and future investment requirements. Our ability to secure short-term and long-term financing in the future will depend on several factors, including our future profitability, our relative levels of debt and equity and the overall condition of the credit markets. As of September 30, 2025, we have $117.3 million in cash and cash equivalents and $95.1 million in seed capital investments. On October 30, 2025, we issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of our 4.80% Senior Notes due July 27, 2026 (the “2026 Notes”). 59 Table of Contents Borrowings and Long-Term Debt The following table summarizes our financing arrangements as of the dates indicated: ($ in millions) September 30, 2025 December 31, 2024 Interest rate Maturity Revolving credit facility: $140 million revolving credit facility (1) $ — $ — Variable rate August 29, 2027 Total revolving credit facility $ — $ — Third party borrowings: $275 million 4.80% Senior Notes Due 2026 (2) $ 274.6 $ 274.3 4.80% July 27, 2026 Total third party borrowings $ 274.6 $ 274.3 (1) On October 28, 2025, Acadian LLC’s $140 million revolving credit facility was terminated and replaced with a new $175 million revolving credit facility. On October 28, 2025, Acadian LLC also entered into a $200 million delayed draw term loan facility. (2) On October 30, 2025, we issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of our 2026 Notes. Revolving Credit Facility On August 29, 2024, Acadian LLC, Royal Bank of Canada, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., the Bank of New York Mellon, Bank of America N.A., as an issuing bank, and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian LLC Credit Agreement”), which replaced Acadian LLC’s revolving credit facility dated as of March 7, 2022 (the “Prior Credit Agreement”). The maturity date of the Prior Credit Agreement was March 7, 2025, and the maturity date of the Acadian LLC Credit Agreement was August 29, 2027. On October 28, 2025, Acadian LLC terminated the Acadian LLC Credit Agreement, as described below. Borrowings under the Acadian LLC Credit Agreement bore interest, at Acadian LLC’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian LLC’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian LLC’s Leverage Ratio. In addition, Acadian LLC was charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian LLC Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio. Under the Acadian LLC Credit Agreement, the ratio of Acadian LLC’s third-party borrowings to Acadian LLC’s trailing twelve months Adjusted EBITDA, as defined by the Acadian LLC Credit Agreement (the “Leverage Ratio”), could not exceed 2.5x and the ratio of Acadian LLC’s trailing twelve months Adjusted EBITDA to Acadian LLC’s interest expense (the “Interest Coverage Ratio”) could not be less than 4.0x. At September 30, 2025, Acadian LLC’s Leverage Ratio was 0.0x and Acadian LLC’s Interest Coverage Ratio was 142.0x. 60 Table of Contents On October 28, 2025 (the “Closing Date), Acadian LLC entered into a Delayed Draw Term Loan Credit Agreement (the “DDTL Credit Agreement”) and a Revolving Credit Agreement (the “Revolving Credit Agreement”). The DDTL Credit Agreement provides for a delayed draw term loan facility in an aggregate principal amount, as of the Closing Date, of up to $200 million (the “Term Facility”). The term loans mature on October 28, 2028. Subject to certain conditions, Acadian LLC may increase the size of the Term Facility to an aggregate maximum principal amount of $275 million. None of the lenders under the Term Facility are obligated to provide such additional commitments to Acadian LLC. Proceeds of the Term Facility are intended to fund, in part, the redemption of the Company’s 2026 Notes, as described below. Loans under the DDTL Credit Agreement bear interest, at Acadian LLC’s option, at a rate per annum equal to (i) Term SOFR for the applicable interest period plus an applicable margin equal to a range of 1.5% to 2.0% depending on Acadian LLC’s consolidated leverage ratio or (ii) an alternate base rate (defined as a rate equal to the highest of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America’s published “prime rate” and (iii) Term SOFR plus 1.0%) plus an applicable margin equal to a range of 0.5% to 1.0% depending on Acadian LLC’s consolidated leverage ratio. Financial covenants under the Term Facility include the quarterly maintenance by the Company of (i) a maximum Consolidated Net Leverage Ratio (as defined in the DDTL Credit Agreement) of not greater than 2.5x and (ii) a minimum Consolidated Interest Coverage Ratio (calculated as the ratio of Acadian LLC Consolidated EBITDA (as defined in the DDTL Credit Agreement), divided by Acadian LLC interest expense for the four consecutive fiscal quarters ended on or immediately prior to the date of determination) of not less than 4.0x. For purposes of calculating the Consolidated Net Leverage Ratio, the DDTL Credit Agreement refers to Consolidated Funded Indebtedness (as defined in the DDTL Credit Agreement) minus unrestricted cash at Acadian LLC. On the Closing Date, Acadian LLC terminated the Acadian LLC Credit Agreement and entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”), among Acadian LLC, the lenders from time to time party thereto, Bank of America, N.A., as the Administrative Agent and a L/C Issuer and the other L/C Issuers from time to time party thereto. The Revolving Credit Agreement provides for senior unsecured revolving credit commitments as of the Closing Date in an aggregate principal amount, as of the Closing Date, of up to $175 million (the “Revolving Facility”). The revolving commitments mature on October 28, 2028. Subject to certain conditions, Acadian LLC may increase the size of the Revolving Facility to an aggregate maximum principal amount of $275 million, which may be established in the form of revolving commitments or term loan commitments. None of the lenders under the Revolving Facility are obligated to provide such additional commitments to Acadian LLC. Borrowings under the Revolving Credit Agreement bear interest, at Acadian LLC's option, at a rate per annum equal to (i) Term SOFR (as defined in the Revolving Credit Agreement) for the applicable interest period plus an applicable margin equal to a range of 1.5% to 2.0% depending on Acadian LLC’s consolidated leverage ratio or (ii) an alternate base rate (defined as a rate equal to the highest of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America's published "prime rate" and (iii) Term SOFR plus 1.0%) plus an applicable margin equal to a range of 0.5% to 1.0% depending on Acadian LLC’s consolidated leverage ratio. The Company is required to pay a commitment fee at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio on the daily undrawn amount of the revolving commitments, and customary letter of credit participation and fronting fees. Redemption of 4.80% Senior Notes On October 30, 2025, the Company issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of its 2026 Notes. 61 Table of Contents Other Compensation Liabilities Other compensation liabilities principally consist of cash-settled Acadian LLC equity and profit interests liabilities held by certain key employees, and voluntary deferred compensation plans. The following table summarizes our other compensation liabilities as of each of the dates indicated: September 30, 2025 December 31, 2024 ($ in millions) Share-based payments liability $ 34.0 $ 25.4 Profit interests liability 44.3 18.7 Employee equity 78.3 44.1 Voluntary deferral plan liability 37.2 48.4 Total $ 115.5 $ 92.5 Share-based payments liability represents the value of Acadian LLC key employee-owned equity that may under certain circumstances be repurchased by us that is considered an equity award under U.S. GAAP based on the terms and conditions attached to these interests. Acadian LLC profit interests liability represents the value of Acadian LLC key employee-owned equity that may under certain circumstances be repurchased by us that is not considered an equity award under U.S. GAAP, but rather a form of compensation arrangement, based on the terms and conditions attached to these interests. Our obligation in any given period in respect of funding these potential repurchases of Acadian LLC equity is limited to only that portion that may be put to us by Acadian LLC key employees, which is typically capped annually under the terms of these arrangements such that we are not required to repurchase more than we can reasonably recycle by re-granting the interests in lieu of cash variable compensation owed to Acadian LLC key employees. Certain of our employees are eligible to participate in our voluntary deferral plan, or VDP, which provides our senior personnel the opportunity to voluntarily defer a portion of their compensation. There is a voluntary deferral plan investment balance included in investments on the Condensed Consolidated Balance Sheets that corresponds to this deferral liability. Additionally, we have recorded accrued incentive compensation of $96.2 million and $119.6 million on the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively. Included within the accrued incentive compensation balance is the vested portion of our deferred compensation pool. The deferred compensation pool is based on a contractual percentage of Acadian LLC performance fee revenues and post-bonus profits, and is subject to a three-year vesting period. Compensation expense is recognized over the requisite service period. Unamortized compensation expense related to the unvested portion of the deferred compensation pool of $5.9 million, $13.9 million and $0.0 million is expected to be recognized in the years ending December 31, 2025, 2026 and 2027, respectively. Critical Accounting Policies and Estimates There have been no significant changes to the critical accounting policies and estimates disclosed in our most recent Form 10-K for the year ended December 31, 2024. Critical accounting policies and estimates are those that require 62 Table of Contents management’s most difficult, subjective or complex judgments and would therefore be deemed the most critical to an understanding of our results of operations and financial condition. Recent Accounting Developments See discussion of Recent Accounting Developments in Note 2 of the accompanying Condensed Consolidated Financial Statements. Forward Looking Statements This Quarterly Report on Form 10-Q includes forward-looking statements, which may include, from time to time, anticipated revenues, margins, cash flows or earnings, anticipated future performance of our business, our expected future net cash flows, our anticipated expense levels, capital management, financial condition, results of operations and cash flows, expected use of capital resources and/or expectations regarding market conditions. The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “can be,” “may be,” “aim to,” “may affect,” “may depend,” “intends,” “expects,” “believes,” “estimate,” “plan,” “project,” and other similar expressions are intended to identify such forward-looking statements. Such statements are subject to various known and unknown risks and uncertainties and we caution readers that any forward-looking information provided by or on behalf of us is not a guarantee of future performance. Actual results may differ materially from those in forward-looking information as a result of various factors, some of which are beyond our control, including but not limited to those discussed above and elsewhere in this Quarterly Report on Form 10-Q, in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 27, 2025, and subsequent SEC filings. Due to such risks and uncertainties and other factors, we caution each person receiving such forward-looking information not to place undue reliance on such statements. Further, such forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and we undertake no obligations to update any forward looking statement to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events. 63 Table of Contents