2 unchanged sentences
References to the holding company or “Center” excluding the Affiliates refer to BrightSphere Inc., or “BSUS,” a Delaware corporation and wholly owned subsidiary of BSIG.
−Removed: Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to “Affiliates” or an “Affiliate” refer to the asset management firms in which we have or had an ownership interest.
+Added: Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to “Affiliates” or an “Affiliate” refer to the asset management firms in which we have or previously had an ownership interest.
References in this Quarterly Report on Form 10-Q to “OM plc” refer to Old Mutual plc, our former parent.
−Removed: None of the information in this Quarterly Report on Form 10-Q constitutes either an offer or a solicitation to buy or sell any of our Affiliate’s products or services, nor is any such information a recommendation for any of our Affiliate’s products or services.
−Removed: 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 elsewhere in this Quarterly Report on Form 10-Q.
+Added: None of the information in this Quarterly Report on Form 10-Q constitutes either an offer or a solicitation to buy or sell Acadian’s products or services, nor is any such information a recommendation for Acadian’s products or services.
+Added: 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.
5 unchanged sentences
It includes information on our reporting segment and underlying Affiliate, 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.
−Removed: This section also provides a Summary Results of Operations and information regarding our Assets Under Management by strategy, client type and location, and net flows by segment, client type and client location.
−Removed: GAAP Results of Operations for the Three and Nine Months Ended September 30, 2023 and 2022 includes an explanation of changes in our U.S.
−Removed: GAAP revenue, expense and other items for the three and nine months ended September 30, 2023 and 2022, as well as key U.S.
+Added: 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.
+Added: GAAP Results of Operations for the Three Months Ended March 31, 2024 and 2023 includes an explanation of changes in our U.S.
+Added: GAAP revenue, expense and other items for the three months ended March 31, 2024 and 2023, as well as key U.S.
GAAP operating metrics.
2 unchanged sentences
This section also provides a reconciliation between U.S.
−Removed: GAAP net income attributable to controlling interests and ENI for the three and nine months ended September 30, 2023 and 2022, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses.
+Added: GAAP net income attributable to controlling interests and ENI for the three months ended March 31, 2024 and 2023, 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.
10 unchanged sentences
We are a global asset management holding company headquartered in Boston, Massachusetts.
−Removed: We historically held interests in a group of investment management firms (the “Affiliates”) individually headquartered in the United States.
−Removed: We have completed the disposition of certain Affiliates and currently operate our business through the following segment:
+Added: We operate a differentiated investment management business through our majority owned subsidiary, Acadian Asset Management LLC (“Acadian” or the “Affiliate”), a leading systematic manager of active global, international equity and alternative strategies.
+Added: Acadian comprises our Quant & Solutions reportable segment:
• Quant & Solutions —comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S.
−Removed: and small-cap equities, as well as managed volatility, multi-asset, equity alternatives, and long/short strategies.
−Removed: This segment is comprised of our interest in our sole Affiliate, Acadian Asset Management LLC (“Acadian”).
+Added: and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies.
+Added: This segment is comprised of our interest in our sole Affiliate, Acadian.
Through Acadian, we offer a diverse range of actively-managed investment strategies and products to institutional investors around the globe.
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We earn management fees based on assets under management.
−Removed: Approximately 80% of our management fees for the three months ended September 30, 2023 were 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.
+Added: Approximately 80% of our management fees for the three months ended March 31, 2024 were 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.
−Removed: We may also earn performance fees, or adjust management fees, when certain accounts differ in relation to relevant benchmarks or exceed or fail to exceed required returns.
+Added: We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed or fail to exceed required returns.
Approximately $15 billion, or 14%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee.
3 unchanged sentences
Variable compensation, calculated as described below, may be awarded in cash, equity, or profit interests.
−Removed: The arrangements in place with Acadian result in the sharing of economics between BSUS and Acadian’s key management personnel using a profit-sharing model.
+Added: The arrangement in place with Acadian results in the sharing of economics between BSUS and Acadian’s key management personnel using a profit-sharing model.
Profit sharing affects two elements within our earnings:
−Removed: (i) the calculation of variable compensation and (ii) the level of equity or profit interests distribution to our employees.
−Removed: Variable compensation is the portion of earnings that is contractually allocated to Acadian employees as a bonus pool, typically representing a fixed percentage of earnings before variable compensation, which is measured as revenues less fixed compensation and benefits and other operating and administrative expenses.
+Added: (i) the calculation of variable compensation and (ii) the level of Acadian’s equity or profit interests distribution to its employees.
+Added: Variable compensation is the portion of earnings that is contractually allocated to Acadian 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 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 key employees and those of BSUS 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.
−Removed: 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.
−Removed: Equity or profit interests owned by Acadian key employees are awarded as part of their variable compensation arrangements.
−Removed: Over time, 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 equity or profit interests.
+Added: We view profit sharing as an
+Added: 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.
+Added: Equity or profit interests owned by Acadian key employees are awarded as part of their variable compensation arrangement.
+Added: Over time, Acadian 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 Acadian key employees forgoing cash bonuses in exchange for the equivalent value in Acadian equity or profit interests.
The recycling of equity or profit interests is often facilitated by BSUS;
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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.
−Removed: 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 equity distributions, and incentivize management.
+Added: 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 Affiliate 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.
2 unchanged sentences
In particular, ENI excludes non-cash charges representing the changes in the value of Affiliate equity and profit interests held by Affiliate 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.
−Removed: ENI revenue is primarily comprised of the fee revenues paid to us by our clients for our advisory services and earnings from our equity-accounted Affiliate.
+Added: 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.
−Removed: GAAP revenue in that it excludes amounts from consolidated Funds which are not attributable to our stockholders and it includes our share of earnings from our equity-accounted Affiliate.
+Added: 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.
8 unchanged sentences
Summary Results of Operations
−Removed: The following table summarizes our unaudited results of operations for the three and nine months ended September 30, 2023 and 2022:
−Removed: ($ in millions, unless otherwise noted) Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 vs.
+Added: The following table summarizes our unaudited results of operations for the three months ended March 31, 2024 and 2023:
+Added: ($ in millions, unless otherwise noted) Three Months Ended March 31,
2024 2023 2024 vs.
3 unchanged sentences
GAAP operating margin (1)
−Removed: 28.1 % 34.7 % (653) bps 23.8 % 40.7 % (1691) bps
+Added: 21.7 % 21.6 % 10 bps
Earnings per share, basic ($) $ 0.37 $ 0.29 $ 0.08
10 unchanged sentences
ENI operating margin (6)
−Removed: 28.7 % 25.9 % 281 bps 24.8 % 30.5 % (575) bps
+Added: 27.7 % 22.8 % 490 bps
Economic net income (7)
12 unchanged sentences
GAAP financial information and a further discussion of economic net income refer to “—Non-GAAP Supplemental Performance Measure—Economic Net Income and Segment Analysis.”
−Removed: (3) Excludes costs associated with the transfer of an insurance policy from our former parent of $0.3 million for the three months ended September 30, 2023.
−Removed: Excludes restructuring costs of $0.1 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, 2022.
−Removed: Excludes costs associated with the transfer of an insurance policy from our former Parent of $0.9 million for the nine months ended September 30, 2023.
−Removed: Excludes restructuring costs of $0.2 million and costs associated with the transfer of an insurance policy from our former Parent of $0.9 million for the nine months ended September 30, 2022.
+Added: (3) Excludes severance-related items at Acadian of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million for the three months ended March 31, 2024.
+Added: Excludes costs associated with the transfer of an insurance policy from our former parent of $0.4 million for the three months ended March 31, 2023.
(4) ENI revenue is the ENI measure which corresponds to U.S.
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ENI operating earnings is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation.
−Removed: The ENI operating margin corresponds to our U.S.
+Added: The ENI operating margin is most directly comparable to our U.S.
GAAP operating margin (excluding the effect of consolidated Funds).
−Removed: (7) Economic net income is the ENI measure which is most directly comparable to U.S.
+Added: (7) Economic net income is the non-GAAP measure which is most directly comparable to U.S.
GAAP net income attributable to controlling interests.
−Removed: (8) Annualized revenue impact of net flows represents annualized management fees expected to be earned on new accounts and net assets contributed to existing accounts, less the annualized management fees lost on terminated accounts or net assets withdrawn from existing accounts, plus revenue impact from reinvested income and distribution.
+Added: (8) Annualized revenue impact of net flows represents annualized management fees expected to be earned on new accounts and net assets contributed to existing accounts, less the annualized management fees lost on terminated accounts or net assets withdrawn from existing accounts, plus revenue impact from reinvested income and distributions.
The annualized management fees are calculated by multiplying the annual gross fee rate for the relevant account by the net assets gained in the account in the event of a positive flow, excluding any current or future market appreciation or depreciation, or the net assets lost in the account in the event of an outflow, excluding any current or future market appreciation or depreciation.
−Removed: In addition, reinvested income and distribution for the segment is multiplied by average fee rate for the segment to compute the revenue impact.
+Added: In addition, reinvested income and distributions are multiplied by the average fee rate to compute the revenue impact.
For a further discussion of the uses and limitations of the annualized revenue impact of net flows, see “Assets Under Management” herein.
1 unchanged sentence
The following table presents our assets under management as of each of the dates indicated:
−Removed: ($ in billions) September 30, 2023 December 31, 2022
+Added: ($ in billions) March 31, 2024 December 31, 2023
Acadian Asset Management $ 110.4 $ 103.7
3 unchanged sentences
The following table presents our assets under management by strategy as of each of the dates indicated:
−Removed: ($ in billions) September 30, 2023 December 31, 2022
+Added: ($ in billions) March 31, 2024 December 31, 2023
Developed Markets $ 87.2 $ 80.7
2 unchanged sentences
The following table shows assets under management by client type as of each of the dates indicated:
−Removed: ($ in billions) September 30, 2023 December 31, 2022
+Added: ($ in billions) March 31, 2024 December 31, 2023
AUM % of total AUM % of total
8 unchanged sentences
The following table shows assets under management by client location as of each of the dates indicated:
−Removed: ($ in billions) September 30, 2023 December 31, 2022
+Added: ($ in billions) March 31, 2024 December 31, 2023
AUM % of total AUM % of total
18 unchanged sentences
The following table summarizes our asset flows and market appreciation (depreciation) by segment for each of the periods indicated:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in billions, unless otherwise noted) 2024 2023
5 unchanged sentences
Net flows 0.4 0.1
−Removed: Market appreciation (depreciation) (2.0) (7.8) 4.1 (29.5)
+Added: Market appreciation 6.3 3.8
Ending balance $ 110.4 $ 97.5
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The following table summarizes our asset flows by client type for each of the periods indicated:
−Removed: ($ in billions) Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 2022
+Added: ($ in billions) Three Months Ended March 31,
Beginning balance $ 12.8 $ 11.8
3 unchanged sentences
Net flows (0.4) (0.2)
−Removed: Market appreciation (depreciation) (0.3) (0.9) 0.2 (3.3)
+Added: Market appreciation 0.6 0.3
Ending balance $ 13.0 $ 11.9
5 unchanged sentences
Net flows 1.2 0.2
−Removed: Market appreciation (depreciation) (1.7) (6.4) 3.5 (24.6)
+Added: Market appreciation 5.1 3.4
Ending balance $ 90.6 $ 80.8
4 unchanged sentences
Net flows (0.4) 0.1
−Removed: Market appreciation (depreciation) — (0.5) 0.4 (1.6)
+Added: Market appreciation 0.6 0.1
Ending balance $ 6.8 $ 4.8
4 unchanged sentences
Net flows 0.4 0.1
−Removed: Market appreciation (depreciation) (2.0) (7.8) 4.1 (29.5)
+Added: Market appreciation 6.3 3.8
Ending balance 110.4 97.5
−Removed: Our categorization by client location includes:
+Added: Our categorization of assets under management by client location includes:
U.S.-based clients, where the contracting client is based in the United States, and
1 unchanged sentence
The following table summarizes asset flows by client location for each of the periods indicated:
−Removed: ($ in billions) Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 2022
+Added: ($ in billions) Three Months Ended March 31,
Beginning balance $ 69.9 $ 62.7
3 unchanged sentences
Net flows (1.1) (0.3)
−Removed: Market appreciation (depreciation) (1.1) (5.5) 2.9 (20.2)
+Added: Market appreciation 4.2 2.6
Ending balance $ 73.0 $ 65.0
4 unchanged sentences
Net flows 1.5 0.4
−Removed: Market appreciation (depreciation) (0.9) (2.3) 1.2 (9.3)
+Added: Market appreciation 2.1 1.2
Ending balance $ 37.4 $ 32.5
4 unchanged sentences
Net flows 0.4 0.1
−Removed: Market appreciation (depreciation) (2.0) (7.8) 4.1 (29.5)
+Added: Market appreciation 6.3 3.8
Ending balance $ 110.4 $ 97.5
−Removed: At September 30, 2023, our total assets under management were $97.4 billion, a decrease of $(2.5) billion, or (2.5)%, compared to $99.9 billion at June 30, 2023 and an increase of $14.1 billion, or 16.9%, compared to $83.3 billion at September 30, 2022.
−Removed: The increase in assets under management compared to September 30, 2022 is a result of equity market appreciation in 2023.
−Removed: The change in assets under management during the three months ended September 30, 2023 reflects net market depreciation of $(2.0) billion, and net outflows of $(0.5) billion.
−Removed: The change in assets under management during the nine months ended September 30, 2023 reflects net market appreciation of $4.1 billion and net outflows of $(0.3) billion.
+Added: At March 31, 2024, our total assets under management were $110.4 billion, an increase of $6.7 billion, or 6.5%, compared to $103.7 billion at December 31, 2023 and an increase of $12.9 billion, or 13.2%, compared to $97.5 billion at March 31, 2023.
+Added: The increase in assets under management compared to March 31, 2023 was driven by the equity market appreciation in the last twelve months.
+Added: The change in assets under management during the three months ended March 31, 2024 reflects net market appreciation of $6.3 billion and net inflows of $0.4 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.
1 unchanged sentence
dollar changes relative to other currencies.
−Removed: For the three months ended September 30, 2023, our net flows were $(0.5) billion compared to $0.6 billion for the three months ended September 30, 2022.
−Removed: The change in net flows during the three months ended September 30, 2023 compared to the three months ended September 30, 2022 was primarily due to increased outflows in the three months ended September 30, 2023.
−Removed: Reinvested income and distributions of $0.9 billion and $0.9 billion are reflected in the net flows for the three months ended September 30, 2023 and September 30, 2022, respectively.
−Removed: For the three months ended September 30, 2023, the annualized revenue impact of the net flows was $(0.3) million compared to $0.3 million for the three months ended September 30, 2022.
−Removed: Gross inflows of $2.5 billion in the three months ended September 30, 2023 yielded approximately 51 bps compared to $2.0 billion yielding approximately 44 bps in the year-ago period.
−Removed: Gross outflows of $(3.9) billion yielded approximately 42 bps in the three months ended September 30, 2023 compared to $(2.3) billion yielding approximately 52 bps in the year-ago period.
−Removed: For the nine months ended September 30, 2023, our net flows were $(0.3) billion compared to $(4.4) billion for the nine months ended September 30, 2022.
−Removed: The change in net flows during the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 was primarily driven by reduced sizable outflows in the nine months ended September 30, 2023.
−Removed: Reinvested income and distributions of $2.7 billion and $2.8 billion are reflected in the net flows for the nine months ended September 30, 2023 and September 30, 2022, respectively.
−Removed: For the nine months ended September 30, 2023, the annualized revenue impact of the net flows was $1.6 million compared to $(8.2) million for the nine months ended September 30, 2022.
−Removed: Gross inflows of $6.7 billion in the nine months ended September 30, 2023 yielded approximately 46 bps compared to $8.0 billion yielding approximately 49 bps in the year-ago period.
−Removed: Gross outflows of $(9.7) billion yielded approximately 41 bps in the nine months ended September 30, 2023 compared to $(15.2) billion yielding approximately 38 bps in the year-ago period.
−Removed: GAAP Results of Operations for the Three and Nine Months Ended September 30, 2023 and 2022
−Removed: GAAP results of operations were as follows for the three and nine months ended September 30, 2023 and 2022:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: For the three months ended March 31, 2024, our net flows were $0.4 billion compared to $0.1 billion for the three months ended March 31, 2023.
+Added: The change in net flows during the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily driven by increased sales in the three months ended March 31, 2024.
+Added: Reinvested income and distributions of $0.8 billion and $0.9 billion are reflected in the net flows for the three months ended March 31, 2024 and March 31, 2023, respectively.
+Added: For the three months ended March 31, 2024, the annualized revenue impact of the net flows was $(0.2) million compared to $1.0 million for the three months ended March 31, 2023.
+Added: Gross inflows of $4.3 billion in the three months ended March 31, 2024 yielded approximately 40 bps compared to $2.2 billion yielding approximately 41 bps in the year-ago period.
+Added: Gross outflows of $(4.7) billion yielded approximately 44 bps in the three months ended March 31, 2024 compared to $(3.0) billion yielding approximately 39 bps in the year-ago period.
+Added: GAAP Results of Operations for the Three Months Ended March 31, 2024 and 2023
+Added: GAAP results of operations were as follows for the three months ended March 31, 2024 and 2023:
+Added: Three Months Ended March 31,
($ in millions, unless otherwise noted) 2024 2023 Increase
−Removed: (Decrease) 2023 2022 Increase
GAAP Statement of Operations (1)
5 unchanged sentences
General and administrative expense 20.0 18.4 1.6
−Removed: Amortization of acquired intangibles
−Removed: — 0.1 (0.1) — 0.1 (0.1)
Depreciation and amortization 4.6 3.8 0.8
2 unchanged sentences
Operating income 22.9 19.8 3.1
−Removed: Investment income (loss) (0.3) (0.4) 0.1 0.2 (1.2) 1.4
+Added: Investment income 0.9 0.3 0.6
Interest income 1.3 1.1 0.2
Interest expense (5.0) (4.9) (0.1)
−Removed: Loss on extinguishment of debt — — — — (3.2) 3.2
Net consolidated Funds’ investment gains 1.7 0.8 0.9
13 unchanged sentences
21.7 % 21.6 %
+Added: (1) Certain Funds have been consolidated due to our seed capital investments in the Funds.
GAAP operating margin equals operating income divided by total revenue.
1 unchanged sentence
($ in millions) Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
GAAP Statement of Operations 2024 2023
9 unchanged sentences
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.
−Removed: Average basis points earned on average assets under management were 37.6 bps and 37.9 bps for the three and nine months ended September 30, 2023, respectively, and 37.6 bps and 37.1 bps for the three and nine months ended September 30, 2022, respectively.
−Removed: There was no change to the overall weighted average fee rate for the three months ended September 30, 2023.
−Removed: The overall weighted average fee rate increase for the nine months ended September 30, 2023 is the result of changes in the mix of assets under management caused by market movements and client flows.
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Management fees increased $9.6 million, or 11.2%, from $85.7 million for the three months ended September 30, 2022 to $95.3 million for the three months ended September 30, 2023.
+Added: Average basis points earned on average assets under management were 38.2 bps for the three months ended March 31, 2024 and 38.1 bps for the three months ended March 31, 2023.
+Added: The overall weighted average fee rate increase for the three months ended March 31, 2024 is the result of changes in the mix of assets under management caused by market movements and client flows.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Management fees increased $11.6 million, or 12.8%, from $90.6 million for the three months ended March 31, 2023 to $102.2 million for the three months ended March 31, 2024.
The increase was due to higher levels of average assets under management.
−Removed: Average assets under management increased 11.3%, from $90.3 billion for the three months ended September 30, 2022 to $100.5 billion for the three months ended September 30, 2023, mainly due to the positive market impact in 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Management fees decreased $(2.7) million, or (1.0)%, from $281.4 million for the nine months ended September 30, 2022 to $278.7 million for the nine months ended September 30, 2023.
−Removed: The decrease was due to lower levels of average assets under management.
−Removed: Average assets under management decreased (2.7)%, from $100.9 billion for the nine months ended September 30, 2022 to $98.2 billion for the nine months ended September 30, 2023, mainly due to the equity market decline in 2022.
+Added: Average assets under management increased 11.6%, from $96.4 billion for the three months ended March 31, 2023 to $107.6 billion for the three months ended March 31, 2024, mainly due to the positive equity market in the past twelve months.
Performance Fees
1 unchanged sentence
Performance fees are typically shared with our Affiliate key employees through various contractual compensation and profit-sharing arrangements.
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Performance fees increased $10.1 million, from $1.1 million for the three months ended September 30, 2022 to $11.2 million for the three months ended September 30, 2023, primarily due to strong performance relative to market in certain strategies.
−Removed: Performance fees can be variable and are contractually triggered based on investment performance results over agreed upon time periods.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Performance fees increased $0.8 million, from $13.1 million for the nine months ended September 30, 2022 to $13.9 million for the nine months ended September 30, 2023, primarily due to strong performance relative to market in certain strategies.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Performance fees increased $2.6 million, from $0.5 million for the three months ended March 31, 2023 to $3.1 million for the three months ended March 31, 2024, primarily due to strong performance relative to market in certain strategies.
Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.
3 unchanged sentences
general and administrative expenses;
−Removed: amortization of acquired intangibles expense;
+Added: amortization of acquired intangible assets;
depreciation and amortization charges;
3 unchanged sentences
The following table presents the components of U.S.
−Removed: GAAP compensation expense for the three and nine months ended September 30, 2023 and 2022:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP compensation expense for the three months ended March 31, 2024 and 2023:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
2 unchanged sentences
Sales-based compensation (2)
−Removed: 1.2 1.7 4.7 5.7
Variable compensation (3)
−Removed: 28.5 19.8 74.4 70.4
Affiliate key employee distributions (4)
−Removed: 1.5 1.1 3.9 3.5
Non-cash Affiliate key employee equity revaluations (5)
−Removed: (1.3) (9.2) (2.6) (34.8)
GAAP compensation and benefits expense
4 unchanged sentences
(3) Variable compensation is contractually set and calculated individually for our Affiliate, plus Center bonuses.
−Removed: Variable compensation is awarded based on a contractual percentage of Affiliate ENI profits before variable compensation and may be paid in the form of cash or non-cash Affiliate equity or profit interests.
+Added: Variable compensation is usually awarded based on a contractual percentage of Affiliate ENI profits before variable compensation and may be paid in the form of cash or non-cash Affiliate equity or profit interests.
With our Affiliate, we have a contractual split of performance fees between Affiliate employees and BSUS.
−Removed: The Affiliate’s share of performance fees, which ranges from 60%-75% of the total, is allocated entirely to variable compensation.
−Removed: The variable compensation earned on performance fees vests over three-years and compensation is recognized over that service period.
+Added: The Affiliate’s share of performance fees, which ranges between 60%-75% of the total, is allocated entirely to variable compensation.
+Added: The variable compensation earned on performance fees vests over three-years and compensation expense is recognized over that service period.
Center 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.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
1 unchanged sentence
Non-cash equity-based award amortization 1.7 1.6
−Removed: Total variable compensation $ 28.5 $ 19.8 $ 74.4 $ 70.4
+Added: Total variable compensation (a)
+Added: $ 26.4 $ 23.2
+Added: (a) For the three months ended March 31, 2024, $26.6 million of variable compensation expense (of the $26.4 million above) is included within economic net income, which excludes $(0.2) million of variable compensation associated with restructuring at Acadian.
(4) Affiliate key employee distributions represent the share of Affiliate profits after variable compensation that is attributable to Affiliate key employee equity and profit interests holders, according to their ownership interests.
6 unchanged sentences
Fluctuations in compensation and benefits expense for the periods presented are discussed below.
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Compensation and benefits expense increased $18.1 million, or 51.9%, from $34.9 million for the three months ended September 30, 2022 to $53.0 million for the three months ended September 30, 2023.
−Removed: Fixed compensation and benefits increased $1.6 million, or 7.4%, from $21.5 million for the three months ended September 30, 2022 to $23.1 million for the three months ended September 30, 2023, primarily reflecting cost of living increases and the cost of new hires supporting our growth initiatives.
−Removed: Variable compensation increased $8.7 million, or 43.9%, from $19.8 million for the three months ended September 30, 2022 to $28.5 million for the three months ended September 30, 2023.
−Removed: The increase was primarily attributable to higher pre-variable compensation earnings and the inclusion of deferred compensation expense earned on current and prior year performance fee revenues, of which the Affiliate’s share is determined by a contractual split and recognized as compensation expense over a vesting period.
−Removed: Sales-based compensation decreased $(0.5) million, or (29.4)%, from $1.7 million for the three months ended September 30, 2022 to $1.2 million for the three months ended September 30, 2023, as a result of the structure of sales-based compensation programs, driven by the timing of asset inflows which trigger sales-based compensation in both current and prior periods.
−Removed: Affiliate key employee distributions increased $0.4 million, or 36.4%, from $1.1 million for the three months ended September 30, 2022 to $1.5 million for the three months ended September 30, 2023, as a result of changes in underlying operating earnings at our consolidated Affiliate and the leveraged nature of the distribution share.
−Removed: Revaluations of Affiliate equity changed by $7.9 million, reflecting fluctuations in the value of key employee ownership interests at our consolidated Affiliate, as the value of Affiliate equity decreased $(9.2) million for the three months ended September 30, 2022 and decreased $(1.3) million for the three months ended September 30, 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Compensation and benefits expense increased $41.9 million, or 38.5%, from $108.7 million for the nine months ended September 30, 2022 to $150.6 million for the nine months ended September 30, 2023.
−Removed: Fixed compensation and benefits increased $6.3 million, or 9.9%, from $63.9 million for the nine months ended September 30, 2022 to $70.2 million for the nine months ended September 30, 2023, primarily reflecting cost of living increases and the cost of new hires supporting our growth initiatives.
−Removed: Variable compensation increased $4.0 million, or 5.7%, from $70.4 million for the nine months ended September 30, 2022 to $74.4 million for the nine months ended September 30, 2023.
−Removed: The increase was primarily attributable to the inclusion of deferred compensation expense earned on current and prior year performance fee revenues, of which the Affiliate’s share is determined by a contractual split and recognized as compensation expense over a vesting period.
−Removed: Sales-based compensation decreased $(1.0) million or (17.5)% from $5.7 million for the nine months ended September 30, 2022 to $4.7 million for the nine months ended September 30, 2023, as a result of the structure of sales-based compensation programs, driven by the timing of asset inflows which trigger sales-based compensation in both current and prior periods.
−Removed: Affiliate key employee distributions increased $0.4 million, or 11.4%, from $3.5 million for the nine months ended September 30, 2022 to $3.9 million for the nine months ended September 30, 2023.
−Removed: Revaluations of Affiliate equity changed $32.2 million, reflecting fluctuations in the value of key employee ownership interests at our consolidated Affiliate, as the value of Affiliate equity decreased $(34.8) million for the nine months ended September 30, 2022 and decreased $(2.6) million for the nine months ended September 30, 2023.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Compensation and benefits expense increased $9.0 million, or 18.3%, from $49.1 million for the three months ended March 31, 2023 to $58.1 million for the three months ended March 31, 2024.
+Added: Fixed compensation and benefits increased $0.1 million, or 0.4%, from $23.4 million for the three months ended March 31, 2023 to $23.5 million for the three months ended March 31, 2024, primarily reflecting cost of living increases and the cost of new hires supporting our growth initiatives, partially offset by cost savings realized from restructuring at our Affiliate in late 2023.
+Added: Variable compensation increased $3.2 million, or 13.8%, from $23.2 million for the three months ended March 31, 2023 to $26.4 million for the three months ended March 31, 2024.
+Added: The increase was primarily attributable to higher pre-bonus profits in the three months ended March 31, 2024.
+Added: Sales-based compensation decreased $(0.3) million or (15.8)% from $1.9 million for the three months ended March 31, 2023 to $1.6 million for the three months ended March 31, 2024, as a result of the structure of sales-based compensation programs, driven by the timing of asset inflows which trigger sales-based compensation in both current and prior periods.
+Added: Affiliate key employee distributions increased $1.0 million, or 83.3%, from $1.2 million for the three months ended March 31, 2023 to $2.2 million for the nine months ended March 31, 2024, driven by higher operating earnings in the three months ended March 31, 2024.
+Added: Revaluations of Affiliate equity changed $5.0 million, reflecting fluctuations in the value of key employee ownership interests at our consolidated Affiliate, as the value of Affiliate equity decreased $(0.6) million for the three months ended March 31, 2023 and increased $4.4 million for the three months ended March 31, 2024.
General and Administrative Expense
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: General and administrative expense increased $1.3 million, or 7.4%, from $17.5 million for the three months ended September 30, 2022 to $18.8 million for the three months ended September 30, 2023.
−Removed: The increase in general and administrative expenses primarily reflects an increase in inflation, the impact of foreign currency changes, and our investment in growth initiatives and capabilities.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: General and administrative expense increased $8.1 million, or 15.9%, from $50.9 million for the nine months ended September 30, 2022 to $59.0 million for the nine months ended September 30, 2023.
−Removed: The increase in general and administrative expenses primarily reflects an increase in inflation, the impact of foreign currency changes, and our investment in growth initiatives and capabilities.
−Removed: Amortization of Acquired Intangibles Expense
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Amortization of acquired intangibles expense was $0.1 million for the three months ended September 30, 2022.
−Removed: There was no amortization of acquired intangible expense for the three months ended September 30, 2023.
−Removed: This account reflects the amortization of intangible assets acquired by Acadian.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Amortization of acquired intangibles expense was $0.1 million for the nine months ended September 30, 2022.
−Removed: There was no amortization of acquired intangible expense for the nine months ended September 30, 2023.
−Removed: This account primarily reflects the amortization of intangible assets acquired by Acadian.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: General and administrative expense increased $1.6 million, or 8.7%, from $18.4 million for the three months ended March 31, 2023 to $20.0 million for the three months ended March 31, 2024.
+Added: The increase was primarily due to higher systems, outside services and portfolio administrative costs, as well as our continued investment in growth initiatives and capabilities.
Depreciation and Amortization Expense
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Depreciation and amortization expense increased $0.3 million, or 7.1%, from $4.2 million for the three months ended September 30, 2022 to $4.5 million for the three months ended September 30, 2023.
−Removed: The increase was primarily due to additional software and technology investments in the business.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Depreciation and amortization expense decreased $(2.1) million, or (14.2)%, from $14.8 million for the nine months ended September 30, 2022 to $12.7 million for the nine months ended September 30, 2023.
−Removed: The decrease was primarily attributable to the effect of certain assets becoming fully depreciated.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Depreciation and amortization expense increased $0.8 million, or 21.1%, from $3.8 million for the three months ended March 31, 2023 to $4.6 million for the three months ended March 31, 2024.
+Added: The increase was primarily attributable to additional software and technology investments in the business.
GAAP Other Non-Operating Items of Income and Expense
3 unchanged sentences
interest expense.
−Removed: loss on extinguishment of debt.
Investment Income
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Investment income (loss) decreased $0.1 million, from $(0.4) million for the three months ended September 30, 2022 to $(0.3) million for the three months ended September 30, 2023, reflecting the change in returns generated by seed capital investments..
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Investment income (loss) increased $1.4 million, from $(1.2) million for the nine months ended September 30, 2022 to $0.2 million for the nine months ended September 30, 2023, reflecting an increase in returns generated by seed capital investments due to market appreciation.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Investment income increased $0.6 million, from $0.3 million for the three months ended March 31, 2023 to $0.9 million for the three months ended March 31, 2024, reflecting an increase in returns generated by seed capital investments due to market appreciation.
Interest Income
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Interest income increased $1.5 million from $0.2 million for the three months ended September 30, 2022 compared to $1.7 million for the three months ended September 30, 2023.
−Removed: The increase was due to higher average cash balances and increases in short-term investment returns in the three months ended September 30, 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Interest income increased $4.0 million, from $0.3 million for the nine months ended September 30, 2022 compared to $4.3 million for the nine months ended September 30, 2023.
−Removed: The increase was due to higher average cash balances and increases in short-term investment returns in the nine months ended September 30, 2023.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Interest income increased $0.2 million, or 18.2%, from $1.1 million for the three months ended March 31, 2023 compared to $1.3 million for the three months ended March 31, 2024.
+Added: The increase was due to an increases in short-term investment returns in the three months ended March 31, 2024.
Interest Expense
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Interest expense increased $0.2 million, or 4.3%, from $4.6 million for the three months ended September 30, 2022 to $4.8 million for the three months ended September 30, 2023, reflecting an increase in interest rates on the revolving credit facility, slightly offset by a lower balance drawn on the revolving credit facility in 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Interest expense decreased $(0.8) million, or (5.0)%, from $15.9 million for the nine months ended September 30, 2022 to $15.1 million for the nine months ended September 30, 2023, primarily due to the $1.3 million of additional interest expense incurred for the nine months ended September 30, 2022 related to the amortization of the cash flow hedge associated with the $125 million aggregate principal amount outstanding of our 5.125% Senior Notes due August 1, 2031 that we redeemed in January 2022.
−Removed: Loss on Extinguishment of Debt
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: There was no loss on extinguishment of debt in the three months ended September 30, 2022 or the three months ended September 30, 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: There was $(3.2) million loss on extinguishment of debt in the nine months ended September 30, 2022 as a result of the full redemption of the $125 million aggregate principal amount outstanding of our 5.125% Senior Notes due August 1, 2031 that we redeemed in January 2022.
−Removed: There was no loss on extinguishment of debt incurred for the nine months ended September 30, 2023.
−Removed: GAAP Income Tax Expense (Benefit)
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Interest expense increased $0.1 million, or 2.0%, from $4.9 million for the three months ended March 31, 2023 to $5.0 million for the three months ended March 31, 2024, reflecting an increase in interest rates on the revolving credit facility in the three months ended March 31, 2024.
+Added: 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.
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Income tax expense increased $0.2 million, from $7.5 million for the three months ended September 30, 2022 to $7.7 million for the three months ended September 30, 2023.
−Removed: The increase in income tax expense primarily relates to an increase in income before income taxes in the three months ended September 30, 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022 :
−Removed: Income tax expense decreased $(11.5) million, from $29.8 million for the nine months ended September 30, 2022 to $18.3 million for the nine months ended September 30, 2023.
−Removed: The decrease in income tax expense primarily relates to a decrease in income before income taxes during the nine months ended September 30, 2023.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023 :
+Added: Income tax expense increased $1.0 million, from $5.1 million for the three months ended March 31, 2023 to $6.1 million for the three months ended March 31, 2024.
+Added: The increase in income tax expense primarily relates to the increase in income before income taxes during the three months ended March 31, 2024.
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.
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: There were no consolidated Funds for the three months ended September 30, 2022.
−Removed: Consolidated Funds’ revenue was $0.8 million for the three months ended September 30, 2023.
−Removed: Consolidated Funds’ expense was $0.8 million for the three months ended September 30, 2023.
−Removed: Net consolidated Funds’ investment gain was $0.7 million for the three months ended September 30, 2023.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022 :
−Removed: There were no consolidated Funds for the nine months ended September 30, 2022.
−Removed: Consolidated Funds’ revenue was $2.8 million for the nine months ended September 30, 2023.
−Removed: Consolidated Funds’ expense was $2.7 million for the nine months ended September 30, 2023.
−Removed: Net consolidated Funds’ investment gain was $1.8 million for the nine months ended September 30, 2023.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023 :
+Added: Consolidated Funds’ revenue decreased $(0.3) million, from $0.7 million for the three months ended March 31, 2023 to $0.4 million for the three months ended March 31, 2024.
+Added: Consolidated Funds’ expense decreased $(0.6) million, from $0.7 million for the three months ended March 31, 2023 to $0.1 million for the three months ended March 31, 2024.
+Added: Net consolidated Funds’ investment gain increased $0.9 million from $0.8 million for the three months ended March 31, 2023 to $1.7 million for the three months ended March 31, 2024.
GAAP Operating Metrics
The following table shows our key U.S.
−Removed: GAAP operating metrics for the three and nine months ended September 30, 2023 and 2022.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP operating metrics for the three months ended March 31, 2024 and 2023.
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
17 unchanged sentences
GAAP Affiliate key employee distributions ratio (3)
−Removed: 4.7 % 3.5 % 5.3 % 2.8 %
(1) Excluding the effect of Funds’ consolidation in the applicable periods, the U.S.
−Removed: GAAP operating margin is 28.4% for the three months ended September 30, 2023, 34.7% for the three months ended September 30, 2022, 24.0% for the nine months ended September 30, 2023, and 40.7% for the nine months ended September 30, 2022.
−Removed: (2) Excludes consolidated Funds’ expense of $0.8 million and $2.7 million for the three and nine months ended September 30, 2023, respectively.
−Removed: We did not consolidate results from operations of any Funds in the three and nine months ended September 30, 2022.
−Removed: (3) Excludes the effect of Funds consolidation for the three and nine months ended September 30, 2023.
−Removed: We did not consolidate results from operations of any Funds in the three and nine months ended September 30, 2022.
−Removed: (4) Excludes consolidated Funds’ revenue of $0.8 million and $2.8 million for the three and nine months ended September 30, 2023, respectively.
−Removed: We did not consolidate results from operations of any Funds in the three and nine months ended September 30, 2022.
+Added: GAAP operating margin is 21.5% for the three months ended March 31, 2024, and 21.7% for the three months ended March 31, 2023.
+Added: (2) Excludes consolidated Funds’ expense of $0.1 million for the three months ended March 31, 2024, and $0.7 million for the three months ended March 31, 2023.
+Added: (3) Excludes the effect of Funds consolidation for the three months ended March 31, 2024 and 2023.
+Added: (4) Excludes consolidated Funds’ revenue of $0.4 million for the three months ended March 31, 2024, and $0.7 million for the three months ended March 31, 2023.
(5) The following table identifies the components of operating income before variable compensation and Affiliate key employee distributions, as well as operating income before Affiliate key employee distributions:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
2 unchanged sentences
Affiliate key employee distributions
−Removed: 1.5 1.1 3.9 3.5
Operating (income) loss of consolidated Funds (0.3) —
Operating income before Affiliate key employee distributions
−Removed: 31.7 31.2 74.2 123.5
Variable compensation 26.4 23.2
13 unchanged sentences
• 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.
−Removed: • We include within management fee revenue any fees paid to Affiliate by consolidated Funds, which are viewed as investment income under U.S.
+Added: • We include within management fee revenue any fees paid to Affiliate by consolidated Funds.
• We include our share of earnings from our equity-accounted Affiliate within other income in ENI revenue, rather than investment income.
17 unchanged sentences
Reconciliation of U.S.
−Removed: GAAP Net Income to Economic Net Income for the Three and Nine Months Ended September 30, 2023 and 2022
−Removed: The following table reconciles net income attributable to controlling interests to economic net income for the three and nine months ended September 30, 2023 and 2022:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP Net Income to Economic Net Income for the Three Months Ended March 31, 2024 and 2023
+Added: The following table reconciles net income attributable to controlling interests to economic net income for the three months ended March 31, 2024 and 2023:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
4 unchanged sentences
Capital transaction costs
−Removed: — 0.1 0.2 5.1
Seed/Co-investment (gains) losses and financings (1)
−Removed: 0.1 0.4 (0.8) 1.4
Tax benefit of goodwill and acquired intangibles deductions 0.4 0.4
Discontinued operations attributable to controlling interests and restructuring (2)
−Removed: 0.3 0.4 0.9 1.1
ENI tax normalization
−Removed: — 0.4 0.7 1.7
Tax effect of above adjustments, as applicable (3)
−Removed: 0.2 2.2 0.6 7.4
Economic net income
$ 17.4 $ 11.8
−Removed: (1) The net return on seed/co-investment (gains) losses and financings for the three and nine months ended September 30, 2023 and 2022 is shown in the following table:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: (1) The net return on seed/co-investment (gains) losses and financings for the three months ended March 31, 2024 and 2023 is shown in the following table:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
−Removed: Seed/Co-investment (gains) losses $ (0.2) $ 0.4 $ (1.8) $ 1.2
+Added: Seed/Co-investment gains $ (1.8) $ (1.1)
Financing costs:
2 unchanged sentences
Financing costs 0.6 0.3
−Removed: Net seed/co-investment (gains) losses and financing $ 0.1 $ 0.4 $ (0.8) $ 1.4
+Added: Net seed/co-investment gains and financing $ (1.2) $ (0.8)
* The blended rate is based on the weighted average rate of the long-term debt.
−Removed: (2) The three months ended September 30, 2023 includes costs associated with the transfer of an insurance policy from our former parent of $0.3 million.
−Removed: The three months ended September 30, 2022 includes restructuring costs of $0.1 million and costs associated with the transfer of an insurance policy from our former parent of $0.3 million.
−Removed: The nine months ended September 30, 2023 includes costs associated with the transfer of an insurance policy from our former parent of $0.9 million.
−Removed: The nine months ended September 30, 2022 includes restructuring costs of $0.2 million and costs associated with the transfer of an insurance policy from our former parent of $0.9 million.
+Added: (2) The three months ended March 31, 2024 includes severance-related items at Acadian of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million.
+Added: The three months ended March 31, 2023 includes costs associated with the transfer of an insurance policy from our former parent of $0.4 million.
(3) Reflects the sum of lines (i), (ii), (iii), (iv) and the restructuring component of line (vi) multiplied by the 27.3% U.S.
7 unchanged sentences
The following table reconciles U.S.
−Removed: GAAP revenue to ENI revenue for the three and nine months ended September 30, 2023 and 2022:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP revenue to ENI revenue for the three months ended March 31, 2024 and 2023:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
1 unchanged sentence
Exclude revenue from consolidated Funds attributable to non-controlling interests
−Removed: (0.8) — (2.8) —
ENI revenue $ 105.3 $ 91.1
The following table identifies the components of ENI revenue:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
2 unchanged sentences
Performance fees (2)
−Removed: 11.2 1.1 13.9 13.1
ENI revenue $ 105.3 $ 91.1
10 unchanged sentences
The following table reconciles U.S.
−Removed: GAAP operating expense to ENI operating expense for the three and nine months ended September 30, 2023 and 2022.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP operating expense to ENI operating expense for the three months ended March 31, 2024 and 2023.
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
2 unchanged sentences
Non-cash key employee equity and profit interest revaluations
−Removed: 1.3 9.2 2.6 34.8
−Removed: Amortization of acquired intangible assets
−Removed: — (0.1) — (0.1)
Restructuring costs (1)
−Removed: (0.2) (0.4) (0.9) (1.1)
Funds’ operating expense (0.1) (0.7)
2 unchanged sentences
Variable compensation (2)
+Added: (26.6) (23.2)
Affiliate key employee distributions (2.2) (1.2)
ENI operating expense $ 49.5 $ 47.1
−Removed: (1) The three months ended September 30, 2023 includes $0.3 million costs associated with the transfer of an insurance policy from our former parent.
−Removed: The three months ended September 30, 2022 includes restructuring costs of $0.1 million and $0.3 million costs associated with the transfer of an insurance policy from our former parent.
−Removed: The nine months ended September 30, 2023 includes $0.9 million of costs associated with the transfer of an insurance policy from our former parent.
−Removed: The nine months ended September 30, 2022 includes $0.2 million of restructuring costs and $0.9 million costs associated with the transfer of an insurance policy from our former parent.
+Added: (1) The three months ended March 31, 2024 includes $(0.2) million of severance-related items at Acadian and $0.2 million of costs associated with the transfer of an insurance policy from our former parent.
+Added: The three months ended March 31, 2023 includes $0.4 million costs associated with the transfer of an insurance policy from our former parent.
+Added: (2) The three months ended March 31, 2024 excludes $(0.2) million severance-related items at Acadian that is included within Restructuring costs.
The following table identifies the components of ENI operating expense:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
2 unchanged sentences
General and administrative expenses (2)
−Removed: 19.8 18.8 62.8 55.5
Depreciation and amortization 4.6 3.8
2 unchanged sentences
The following table reconciles U.S.
−Removed: GAAP compensation and benefits expense for the three and nine months ended September 30, 2023 and 2022 to ENI fixed compensation and benefits expense:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP compensation and benefits expense for the three months ended March 31, 2024 and 2023 to ENI fixed compensation and benefits expense:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
1 unchanged sentence
Non-cash key employee equity and profit interest revaluations excluded from ENI
−Removed: 1.3 9.2 2.6 34.8
Sales-based compensation reclassified to ENI general & administrative expenses
−Removed: (1.2) (1.7) (4.7) (5.7)
Affiliate key employee distributions
−Removed: (1.5) (1.1) (3.9) (3.5)
+Added: Restructuring expenses 0.2 —
Variable compensation
3 unchanged sentences
GAAP general and administrative expense to ENI general and administrative expense:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
5 unchanged sentences
Key Non-GAAP Operating Metrics
−Removed: The following table shows our key non-GAAP operating metrics for the three and nine months ended September 30, 2023 and 2022.
+Added: The following table shows our key non-GAAP operating metrics for the three months ended March 31, 2024 and 2023.
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.
1 unchanged sentence
GAAP measure:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
17 unchanged sentences
Affiliate key employee distributions
−Removed: $ 1.5 $ 1.1 $ 3.9 $ 3.5
ENI operating earnings (1)
1 unchanged sentence
ENI Affiliate key employee distributions ratio (7)
−Removed: 4.9 % 4.9 % 5.4 % 3.9 %
(1) ENI operating earnings represents ENI earnings before Affiliate key employee distributions and is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation.
2 unchanged sentences
GAAP operating income to ENI operating earnings:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
4 unchanged sentences
Restructuring costs (a)
−Removed: 0.2 0.4 0.9 1.1
Affiliate key employee distributions 2.2 1.2
2 unchanged sentences
ENI earnings before variable compensation 55.8 44.0
−Removed: ENI variable compensation (28.5) (19.8) (74.4) (70.4)
+Added: ENI variable compensation (b)
+Added: (26.6) (23.2)
ENI operating earnings 29.2 20.8
1 unchanged sentence
ENI earnings after Affiliate key employee distributions $ 27.0 $ 19.6
−Removed: (a) The three months ended September 30, 2023 includes $0.3 million costs associated with the transfer of an insurance policy from our former parent.
−Removed: The three months ended September 30, 2022 includes restructuring costs of $0.1 million and $0.3 million of costs associated with the transfer of an insurance policy from our former parent.
−Removed: The nine months ended September 30, 2023 includes $0.9 million of costs associated with the transfer of an insurance policy from our former parent.
−Removed: The nine months ended September 30, 2022 includes $0.2 million of restructuring costs and $0.9 million of costs associated with the transfer of an insurance policy from our former parent.
+Added: (a) The three months ended March 31, 2024 includes $(0.2) million of severance-related items at Acadian and $0.2 million of costs associated with the transfer of an insurance policy from our former parent.
+Added: The three months ended March 31, 2023 includes $0.4 million of costs associated with the transfer of an insurance policy from our former parent.
+Added: (b) The three months ended March 31, 2024 excludes $(0.2) million severance-related items at Acadian.
(2) The ENI operating margin, which is calculated before Affiliate key employee distributions, is used by management and is useful to investors to evaluate the overall operating margin of the business.
1 unchanged sentence
GAAP operating margin.
−Removed: GAAP operating margin, excluding the effect of consolidated Funds, is 28.4% for the three months ended September 30, 2023, 34.7% for the three months ended September 30, 2022, 24.0% for the nine months ended September 30, 2023, and 40.7% for the nine months ended September 30, 2022.
+Added: GAAP operating margin, excluding the effect of consolidated Funds, is 21.5% for the three months ended March 31, 2024, and 21.7% for the three months ended March 31, 2023.
The ENI operating margin is important because it gives investors an understanding of the profitability of the total business relative to revenue, irrespective of the ownership position which we have in our Affiliate.
24 unchanged sentences
The following table reconciles the United States statutory tax to tax on economic net income:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
3 unchanged sentences
federal and state statutory rates (2)
−Removed: (7.2) (4.7) (16.1) (19.9)
Other reconciling tax adjustments — —
4 unchanged sentences
(1) Includes interest income and third-party ENI interest expense, as shown in the following table:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
3 unchanged sentences
Other ENI interest expense exclusions (a)
−Removed: 0.4 0.1 1.2 2.1
ENI net interest expense (3.0) (3.4)
ENI earnings after Affiliate key employee distributions (b)
−Removed: 29.1 21.4 68.6 86.4
Pre-tax economic net income $ 24.0 $ 16.2
6 unchanged sentences
(3) The economic net income effective tax rate is calculated by dividing the tax on economic net income by pre-tax economic net income.
−Removed: The value of our seed capital investments was $25.3 million as of September 30, 2023 and $22.9 million as of December 31, 2022, including direct investments in consolidated Funds.
+Added: The value of our seed capital investments was $43.2 million as of March 31, 2024 and $41.4 million as of December 31, 2023, including direct investments in consolidated Funds.
Total seed capital investments represents our seed capital invested within our Affiliate’s investment products.
The following table reconciles the investments balance per our Condensed Consolidated Balance Sheets to the total value of our seed capital investments as of each of the dates indicated:
−Removed: ($ in millions) September 30,
+Added: ($ in millions) December 31,
2023 December 31,
6 unchanged sentences
• Quant & Solutions —comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S.
−Removed: and small-cap equities, as well as managed volatility, multi-asset, equity alternatives, and long/short strategies.
+Added: and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies.
This segment is comprised of our interest in Acadian.
8 unchanged sentences
ENI revenue includes management fees, performance fees and other revenue under U.S.
−Removed: GAAP, adjusted to include management fees paid to our Affiliate by consolidated Funds and our share of earnings from our equity-accounted Affiliate.
+Added: GAAP, adjusted to include management fees paid to our Affiliate by consolidated Funds.
ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S.
−Removed: GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, and restructuring costs.
+Added: GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, capital transaction costs, and restructuring costs.
Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses.
4 unchanged sentences
Segment ENI Revenue
−Removed: The following table identifies the components of segment ENI revenue for the three months ended September 30, 2023 and 2022:
−Removed: Three Months Ended September 30,
−Removed: ($ in millions) 2023 2022
−Removed: Quant & Solutions Total Quant & Solutions Total
−Removed: Management fees $ 95.3 $ 95.3 $ 85.7 $ 85.7
−Removed: Performance fees
−Removed: 11.2 11.2 1.1 1.1
−Removed: ENI revenue $ 106.5 $ 106.5 $ 86.8 $ 86.8
−Removed: The following table identifies the components of segment ENI revenue for the nine months ended September 30, 2023 and 2022:
−Removed: Nine Months Ended September 30,
+Added: The following table identifies the components of segment ENI revenue for the three months ended March 31, 2024 and 2023:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
5 unchanged sentences
Quant & Solutions Segment ENI Revenue
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Quant & Solutions ENI revenue increased $19.7 million, or 22.7%, from $86.8 million for the three months ended September 30, 2022 to $106.5 million for the three months ended September 30, 2023.
−Removed: The increase was mainly attributable to 11.2% higher management fees driven by higher average AUM resulting from positive markets in 2023, and higher performance fees due to strong performance relative to market in certain strategies.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Quant & Solutions ENI revenue decreased $(1.9) million, or (0.6)%, from $294.5 million for the nine months ended September 30, 2022 to $292.6 million for the nine months ended September 30, 2023.
−Removed: The decrease was attributable to (1.0)% lower management fees, driven by lower average AUM, partially offset by higher performance fees that are variable and are contractually triggered based on investment performance results over agreed upon time periods.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Quant & Solutions ENI revenue increased $14.2 million, or 15.6%, from $91.1 million for the three months ended March 31, 2023 to $105.3 million for the three months ended March 31, 2024.
+Added: The increase was attributable to 12.8% higher management fees, driven by higher average AUM and higher performance fees that are variable and are contractually triggered based on investment performance results over agreed upon time periods.
Segment ENI Expense
−Removed: The following table identifies the components of segment ENI expense for the three months ended September 30, 2023 and 2022:
−Removed: Three Months Ended September 30,
−Removed: ($ in millions) 2023 2022
−Removed: Quant & Solutions Other Total Quant & Solutions Other Total
−Removed: Fixed compensation & benefits
−Removed: $ 21.5 $ 1.6 $ 23.1 $ 19.9 $ 1.6 $ 21.5
−Removed: General and administrative expense 18.0 1.8 19.8 16.4 2.4 18.8
−Removed: Depreciation and amortization
−Removed: 4.5 — 4.5 4.1 0.1 4.2
−Removed: Total ENI operating expenses
−Removed: $ 44.0 $ 3.4 $ 47.4 $ 40.4 $ 4.1 $ 44.5
−Removed: Variable compensation
−Removed: 27.8 0.7 28.5 18.9 0.9 19.8
−Removed: Affiliate key employee distributions
−Removed: 1.5 — 1.5 1.1 — 1.1
−Removed: Total expenses
−Removed: $ 73.3 $ 4.1 $ 77.4 $ 60.4 $ 5.0 $ 65.4
−Removed: The following table identifies the components of segment ENI expense for the nine months ended September 30, 2023 and 2022:
−Removed: Nine Months Ended September 30,
+Added: The following table identifies the components of segment ENI expense for the three months ended March 31, 2024 and 2023:
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
12 unchanged sentences
Quant & Solutions Segment ENI Expense
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Quant & Solutions ENI operating expense increased $3.6 million, or 8.9%, from $40.4 million for the three months ended September 30, 2022 to $44.0 million for the three months ended September 30, 2023.
−Removed: The increase was driven by 9.8% higher ENI general and administrative expense resulting from increased system and portfolio costs driven by inflation, including the impact of changes in foreign currency.
−Removed: Quant & Solutions ENI fixed compensation and benefits expense increased 8.0% due to higher salaries and new hires, and the investment in Acadian’s growth initiatives.
−Removed: 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.
−Removed: Quant & Solutions ENI variable compensation expense increased 47.1% as a result of higher earnings before variable compensation and the inclusion of deferred compensation expense earned on current and prior year performance fee revenues.
−Removed: Affiliate key employee distributions attributable to Quant & Solutions increased 36.4%, impacted by the leveraged nature of the distribution share.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Quant & Solutions ENI operating expense increased $13.7 million, or 11.3%, from $121.2 million for the nine months ended September 30, 2022 to $134.9 million for the nine months ended September 30, 2023.
−Removed: The increase was driven by 18.0% higher ENI general and administrative expense primarily due to higher systems, consultant and portfolio costs driven by inflation, including the impact of changes in foreign currency.
−Removed: ENI fixed compensation and benefits expense increased 11.7%, driven by cost of living increases and the cost of new hires supporting Acadian’s growth initiatives.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Quant & Solutions ENI operating expense increased $2.1 million, or 4.8%, from $43.6 million for the three months ended March 31, 2023 to $45.7 million for the three months ended March 31, 2024.
+Added: The increase was driven by 7.1% higher ENI general and administrative expense primarily due to higher systems, outside services, and portfolio administrative costs and continued investment in growth initiatives and capabilities.
+Added: Quant & Solutions ENI fixed compensation and benefits expense was unchanged at $21.6 million for the three months ended March 31, 2024 and 2023, respectively, reflecting cost of living increases and the cost of new hires supporting our growth initiatives, offset by cost savings realized from restructuring in late 2023.
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.
−Removed: Quant & Solutions ENI variable compensation expense increased 8.1% as a result of the inclusion of deferred compensation expense earned on current and prior year performance fee revenues.
−Removed: Affiliate key employee distributions attributable to Quant & Solutions increased 11.4%, impacted by the leveraged nature of the distribution share.
+Added: Quant & Solutions ENI variable compensation expense increased 15.6% as a result of higher earnings before variable compensation in the three months ended March 31, 2024.
+Added: Affiliate key employee distributions attributable to Quant & Solutions increased 83.3%, as a result of higher operating earnings, impacted by the leveraged nature of the distribution share.
Other ENI Expense
−Removed: Three months ended September 30, 2023 compared to three months ended September 30, 2022:
−Removed: Other ENI operating expense decreased $(0.7) million, or (17.1)%, from $4.1 million for the three months ended September 30, 2022 to $3.4 million for the three months ended September 30, 2023.
−Removed: The decrease was driven by (25.0)% lower general and administrative expense resulting from cost-saving initiatives.
−Removed: Other ENI variable compensation expense decreased (22.2)% due to lower non-cash equity compensation amortization at the corporate head office.
−Removed: Nine months ended September 30, 2023 compared to nine months ended September 30, 2022:
−Removed: Other ENI operating expense decreased $(2.2) million, or (16.9)%, from $13.0 million for the nine months ended September 30, 2022 to $10.8 million for the nine months ended September 30, 2023.
−Removed: The decrease was driven by (8.9)% lower fixed compensation and benefit expense due to lower headcount at the corporate head office and (19.7)% lower general and administrative expense resulting from cost-saving initiatives.
+Added: Three months ended March 31, 2024 compared to three months ended March 31, 2023:
+Added: Other ENI operating expense increased $0.3 million, or 8.6%, from $3.5 million for the three months ended March 31, 2023 to $3.8 million for the three months ended March 31, 2024.
+Added: The increase was driven by 5.6% higher fixed compensation and benefit expense due to cost of living and employee benefit increases driven by inflation and 11.8% higher general and administrative expense driven by an increase in rent expense.
Other ENI variable compensation expense decreased (14.3)% due to lower non-cash equity compensation amortization at the corporate head office.
2 unchanged sentences
All amounts presented exclude consolidated Funds:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
4 unchanged sentences
(1) Excludes consolidated Funds.
−Removed: Comparison for the nine months ended September 30, 2023 and 2022
−Removed: Net cash from operating activities decreased $(27.5) million, from net cash provided of $63.3 million for the nine months ended September 30, 2022 to net cash provided of $35.8 million for the nine months ended September 30, 2023, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.
−Removed: In the nine months ended September 30, 2023, net cash from investing activities changed by $(1.9) million, from $(9.3) million used in the nine months ended September 30, 2022 to $(11.2) million used in the nine months ended September 30, 2023, driven by higher net purchases of investment securities in the nine months ended September 30, 2023.
−Removed: Net cash from financing activities increased $214.9 million, from $(204.7) million used in the nine months ended September 30, 2022 to $10.2 million provided in the nine months ended September 30, 2023, primarily due to the repayment of third party borrowings and higher share repurchases in the nine months ended September 30, 2022.
+Added: Comparison for the three months ended March 31, 2024 and 2023
+Added: Net cash from operating activities decreased $(5.0) million, from net cash used of $34.3 million for the three months ended March 31, 2023 to net cash used of $39.3 million for the three months ended March 31, 2024, driven by changes in net income offset by changes in operating assets and liabilities period-over-period.
+Added: In the three months ended March 31, 2024, net cash from investing activities increased by $4.2 million, from $(5.6) million used in the three months ended March 31, 2023 to $(1.4) million used in the three months ended March 31, 2024, driven by higher net sales of investment securities and lower fixed asset additions in the three months ended March 31, 2024.
+Added: Net cash from financing activities decreased $89.2 million, from $85.5 million provided in the three months ended March 31, 2023 to $(3.7) million used in the three months ended March 31, 2024, primarily due to the repayment of third party borrowings and higher share repurchases in the three months ended March 31, 2024.
Supplemental Liquidity Measure — Adjusted EBITDA
4 unchanged sentences
The following table reconciles our U.S.
−Removed: GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three and nine months ended September 30, 2023 and 2022.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three months ended March 31, 2024 and 2023.
+Added: Three Months Ended March 31,
($ in millions) 2024 2023
5 unchanged sentences
Non-cash compensation costs, including revaluation of Affiliate key employee-owned equity and profit interests
−Removed: (1.0) (8.8) (1.6) (33.0)
−Removed: (Gain) loss on seed and co-investments (0.2) 0.4 (1.8) 1.2
+Added: Gain on seed and co-investments (1.8) (1.1)
Restructuring expenses (1)
−Removed: 0.3 0.4 0.9 1.1
Capital transaction costs — —
3 unchanged sentences
Depreciation and amortization (2)
−Removed: (4.9) (4.6) (13.7) (16.6)
Tax on economic net income (6.6) (4.4)
1 unchanged sentence
$ 17.4 $ 11.8
−Removed: (1) The three months ended September 30, 2023 includes $0.3 million of costs associated with the transfer of an insurance policy from our former parent.
−Removed: The three months ended September 30, 2022 includes restructuring costs of $0.1 million and $0.3 million of costs associated with the transfer of an insurance policy from our former parent.
−Removed: The nine months ended September 30, 2023 includes $0.9 million of costs associated with the transfer of an insurance policy from our former parent.
−Removed: The nine months ended September 30, 2022 includes restructuring costs of $0.2 million and costs associated with the transfer of an insurance policy from our former parent of $0.9 million.
+Added: (1) The three months ended March 31, 2024 includes $(0.2) million of severance-related items at Acadian and $0.2 million of costs associated with the transfer of an insurance policy from our former parent.
+Added: The three months ended March 31, 2023 includes costs associated with the transfer of an insurance policy from our former parent of $0.4 million.
(2) Includes non-cash equity-based award amortization expense.
9 unchanged sentences
The following table summarizes our financing arrangements as of the dates indicated:
−Removed: ($ in millions) September 30,
+Added: ($ in millions) March 31,
2024 December 31,
6 unchanged sentences
4.80% Senior Notes Due 2026 $ 274.0 $ 273.9 4.80% July 27, 2026
−Removed: 5.125% Senior Notes Due 2031 (1)
−Removed: — — 5.125% August 1, 2031
Total third party borrowings $ 274.0 $ 273.9
−Removed: (1) On January 18, 2022, the Company completed the full redemption of the $125 million aggregate principal amount outstanding of its 5.125% Senior Notes due August 1, 2031.
−Removed: As a result of this transaction, the Company recorded $3.2 million of loss on extinguishment of debt within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2022.
Revolving Credit Facility
4 unchanged sentences
Under the Acadian Credit Agreement, the ratio of Acadian’s third-party borrowings to Acadian’s trailing twelve months Adjusted EBITDA, as defined by the Acadian Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the ratio of Acadian’s trailing twelve months Adjusted EBITDA to Acadian’s interest expense (the “Interest Coverage Ratio”) must be not less than 4.0x.
−Removed: At September 30, 2023, Acadian’s Leverage Ratio was 0.1x and Acadian’s Interest Coverage Ratio was 54.3x.
+Added: At March 31, 2024, Acadian’s Leverage Ratio was 0.5x and Acadian’s Interest Coverage Ratio was 57.6x.
Other Compensation Liabilities
1 unchanged sentence
The following table summarizes our other long-term liabilities as of each of the dates indicated:
−Removed: September 30,
2024 December 31,
10 unchanged sentences
Our obligation in any given period in respect of funding these potential repurchases of Affiliate equity is limited to only that portion that may be put to us by Affiliate 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 Affiliate key employees.
−Removed: Certain of our and our Affiliate’s key 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.
+Added: Certain of our and Acadian’s key 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.
−Removed: Additionally, we have recorded accrued incentive compensation of $71.8 million and $92.5 million on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.
+Added: Additionally, we have recorded accrued incentive compensation of $30.2 million and $101.3 million on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, respectively.
Included within the accrued incentive compensation balance is the vested portion of Acadian’s deferred compensation pool.
15 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.