What changed in this filing

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Item 1. Financial Statements

2024-08-08 compared with 2024-05-09 · 174 added, 64 removed, 545 unchanged (30% of the section changed)

46 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Management fees $ 105.5 $ 92.8 $ 207.7 $ 183.4

29 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Net income $ 11.5 $ 11.5 $ 27.2 $ 23.5

1 unchanged sentence

Amortization related to derivative securities, net of tax

0.6 0.6 1.3 1.2

Foreign currency translation adjustment, net of tax

0.2 0.8 — 1.5

Total other comprehensive income 0.8 1.4 1.3 2.7

4 unchanged sentences

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended March 31, 2024 and 2023

For the three months ended June 30, 2024 and 2023

($ in millions except share data, unaudited)

4 unchanged sentences

stockholders’

equity (deficit) Redeemable non-controlling interests in consolidated

equity (deficit) Redeemable non-controlling

Funds Total equity (deficit) and

non-controlling

December 31, 2022 41.4 $ — $ 1.5 $ ( 12.5 ) $ ( 10.6 ) $ ( 21.6 ) $ — $ ( 21.6 )

Issuance of common stock 0.1 — — — — — — —

March 31, 2023 41.5 $ — $ 1.4 $ ( 0.8 ) $ ( 9.3 ) $ ( 8.7 ) $ 0.4 $ ( 8.3 )

Capital contributions — — — — — — 1.8 1.8

3 unchanged sentences

Amortization related to derivatives securities, net of tax — — — — 0.6 0.6 — 0.6

— — — — 0.6 0.6 — 0.6

Withholding tax related to stock option exercise and restricted stock vesting

3 unchanged sentences

Net income — — — 11.4 — 11.4 0.1 11.5

June 30, 2023 41.5 $ — $ 1.5 $ 10.1 $ ( 7.9 ) $ 3.7 2.3 6.0

March 31, 2024 38.0 $ — $ — $ ( 15.5 ) $ ( 6.2 ) $ ( 21.7 ) $ 11.5 $ ( 10.2 )

December 31, 2023 41.4 $ — $ — $ 46.9 $ ( 6.7 ) $ 40.2 $ 9.3 $ 49.5

Issuance of common stock — — — — — — — —

4 unchanged sentences

Foreign currency translation adjustment, net of tax — — — — 0.2 0.2 — 0.2

Amortization related to derivatives securities, net of tax — — — — 0.6 0.6 — 0.6

Withholding tax related to stock option exercise and restricted stock vesting

— — — — — — — —

Amortization related to derivative securities, net of tax

Dividends ($ 0.01 per share)

— — ( 0.4 ) — ( 0.4 ) — ( 0.4 )

Net income — — — 11.0 — 11.0 0.5 11.5

June 30, 2024 37.1 $ — $ — $ ( 25.4 ) $ ( 5.4 ) $ ( 30.8 ) 12.0 $ ( 18.8 )

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the six months ended June 30, 2024 and 2023

($ in millions except share data, unaudited)

(millions) Common stock,

value Additional paid-in capital Retained earnings (deficit) Accumulated

comprehensive

income (loss) Total

stockholders’

equity (deficit) Redeemable non-controlling interests in consolidated

Funds Total equity (deficit) and

non-controlling

December 31, 2022 41.4 $ — $ 1.5 $ ( 12.5 ) $ ( 10.6 ) $ ( 21.6 ) $ — $ ( 21.6 )

Issuance of common stock 0.1 — — — — — — —

Capital contributions — — — — — — 2.2 2.2

Equity-based compensation — — 0.7 — — 0.7 — 0.7

Foreign currency translation adjustment — — — — 1.5 1.5 — 1.5

Amortization related to derivatives securities, net of tax — — — — 1.2 1.2 — 1.2

Withholding tax related to stock option exercise and restricted stock vesting ( 0.7 ) — — ( 0.7 ) ( 0.7 )

2 unchanged sentences

Net income — — — 23.4 — 23.4 0.1 23.5

March 31, 2024 38.0 $ — $ — $ ( 15.5 ) $ ( 6.2 ) $ ( 21.7 ) $ 11.5 $ ( 10.2 )

June 30, 2023 41.5 $ — $ 1.5 $ 10.1 $ ( 7.9 ) $ 3.7 $ 2.3 $ 6.0

December 31, 2023 41.4 $ — $ — $ 46.9 $ ( 6.7 ) $ 40.2 $ 9.3 $ 49.5

Issuance of common stock 0.1 — — — — — — —

Repurchases of common stock including excise taxes ( 4.4 ) — ( 0.4 ) ( 95.3 ) — ( 95.7 ) — ( 95.7 )

Capital contributions — — — — — — 1.1 1.1

Equity-based compensation — — 0.4 — — 0.4 — 0.4

Foreign currency translation adjustment, net of tax — — — — — — — —

Amortization related to derivative securities, net of tax — — — — 1.3 1.3 — 1.3

Withholding tax related to stock option exercise and restricted stock vesting — — — ( 1.8 ) — ( 1.8 ) — ( 1.8 )

Dividends ($ 0.02 per share)

— — — ( 0.8 ) — ( 0.8 ) — ( 0.8 )

Net income — — — 25.6 — 25.6 1.6 27.2

June 30, 2024 37.1 $ — $ — $ ( 25.4 ) $ ( 5.4 ) $ ( 30.8 ) $ 12.0 $ ( 18.8 )

See Notes to Condensed Consolidated Financial Statements

2 unchanged sentences

(in millions, unaudited)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

9 unchanged sentences

Decrease in investment advisory fees receivable 31.1 32.7

Decrease in other receivables, prepayments, deposits and other assets 2.6 0.8

(Increase) decrease in other receivables, prepayments, deposits and other assets ( 7.2 ) 2.1

Decrease in accrued incentive compensation, operating lease liabilities and other liabilities ( 46.6 ) ( 46.3 )

6 unchanged sentences

Sale of investments 35.5 2.4

Increase in receivables and other assets ( 0.4 ) ( 1.0 )

(Increase) decrease in receivables and other assets 0.3 ( 27.8 )

Increase in accounts payable and other liabilities 0.2 24.6

10 unchanged sentences

(in millions, unaudited)

Three Months Ended

Six Months Ended

Cash flows from financing activities:

19 unchanged sentences

Excise tax on repurchases of common stock

Payable for securities purchased by a consolidated Fund $ 0.9 $ —

See Notes to Condensed Consolidated Financial Statements

18 unchanged sentences

On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended.

As of March 31, 2024, Paulson & Co.

(“Paulson”) held approximately 23.6 % of the common stock of the Company.

For the three months ended March 31, 2024, the Company repurchased 3,530,908 shares of common stock at an average price of $ 21.04 per share, or approximately $ 74.4 million in total, including commissions.

For the three months ended March 31, 2023, the Company did not repurchase any shares of common stock.

As of June 30, 2024, Paulson & Co.

(“Paulson”) and related parties thereof held approximately 24.2 % of the common stock of the Company.

For the six months ended June 30, 2024, the Company repurchased 4,445,534 shares of common stock at an average price of $ 21.32 per share, or approximately $ 94.9 million in total, including commissions.

For the six months ended June 30, 2023, the Company did not repurchase any shares of common stock.

All shares of common stock repurchased by the Company were retired.

19 unchanged sentences

New accounting standards not yet adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2023-07 - Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.

The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance.

The amendment is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024.

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.

This amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance.

This amendment is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024.

We are currently evaluating the impact of adopting this standard, but we expect the standard to result in additional segment footnote disclosures.

2 unchanged sentences

2) Basis of Presentation and Significant Accounting Policies (cont.)

In December 2023, the FASB issued Accounting Standards Update No.

2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction.

This amendment is effective for annual periods beginning after December 15, 2024.

We are currently evaluating the impact of adopting this standard and have not yet determined our transition approach.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards.

This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification.

This amendment is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted.

We are in the process of evaluating the impact of adopting this standard and, at this time, do not anticipate it will have a material impact on our condensed consolidated financial statements.

The Company has considered all other newly issued accounting guidance that is applicable to the Company’s operations and the preparation of the unaudited Condensed Consolidated Financial Statements, including those that have not yet been adopted.

3 unchanged sentences

2024 December 31,

Investments of consolidated Funds held at fair value

Investments of consolidated Funds

$ 53.2 $ 33.9

5 unchanged sentences

4) Fair Value Measurements

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2024 (in millions):

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2024 (in millions):

Quoted prices

1 unchanged sentence

(Level II) Significant

(Level III) Uncategorized Total value, March 31,

(Level III) Uncategorized Total value, June 30,

Assets of BSIG and consolidated Funds (1)

53 unchanged sentences

The Company has not made adjustments to the prices provided.

Assets of consolidated Funds also include investments in Corporate bonds.

BrightSphere Investment Group Inc.

5 unchanged sentences

The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures.

(2) Investments in separate accounts of $ 2.3 million at March 31, 2024 consisted of approximately 100 % equity securities.

(2) Investments in separate accounts of $ 2.2 million at June 30, 2024 consisted of approximately 100 % equity securities.

Investments in separate accounts of $ 2.1 million at December 31, 2023 were composed of approximately 1 % cash equivalents and 99 % equity securities.

The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II).

(3) Investments related to long-term incentive compensation plans of $ 46.2 million and $ 44.7 million at March 31, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates.

(3) Investments related to long-term incentive compensation plans of $ 47.1 million and $ 44.7 million at June 30, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates.

Accordingly, the Company has classified these investments as Level I.

(4) The uncategorized amounts of $ 18.5 million and $ 17.9 million at March 31, 2024 and December 31, 2023, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy.

(4) The uncategorized amounts of $ 18.6 million and $ 17.9 million at June 30, 2024 and December 31, 2023, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy.

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets.

2 unchanged sentences

Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $ 3.3 million and $ 3.6 million at March 31, 2024 and December 31, 2023, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds.

The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year from March 31, 2024.

The real estate investment Funds of $ 3.2 million and $ 3.6 million at June 30, 2024 and December 31, 2023, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds.

The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year from June 30, 2024.

The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams.

2 unchanged sentences

In connection with this process, changes in fair value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three months ended March 31, 2024 and 2023.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three and six months ended June 30, 2024 and 2023.

BrightSphere Investment Group Inc.

34 unchanged sentences

The Company’s borrowings and long-term debt were comprised of the following as of the dates indicated (in millions):

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in millions) Carrying Value Fair Value Fair Value Level Carrying Value Fair Value Fair Value Level

21 unchanged sentences

The operating leases have remaining lease terms of less than 1 year to 10 years, some of which include options to extend the leases for up to 5 years.

The following table summarizes information about the Company’s operating leases for the three months ended March 31, 2024 and 2023 (in millions):

Three Months Ended March 31,

The following table summarizes information about the Company’s operating leases for the three and six months ended June 30, 2024 and 2023 (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Operating lease cost $ 2.1 $ 2.1 $ 4.3 $ 4.2

8 unchanged sentences

In determining the incremental borrowing rate, the Company considered the interest rate yield for the specific interest rate environment and the Company’s credit spread at the inception of the lease.

For the three months ended March 31, 2024 and 2023, the weighted average remaining lease term was 9.3 and 10.2 years, respectively, and the weighted average discount rate was 3.52 % and 3.54 %, respectively.

For the six months ended June 30, 2024 and 2023, the weighted average remaining lease term was 9.0 years and 10.0 years, respectively, and the weighted average discount rate was 3.52 % and 3.55 %, respectively.

Maturities of operating lease liabilities were as follows (in millions):

1 unchanged sentence

Year Ending December 31,

2024 (excluding the three months ended March 31, 2024)

2024 (excluding the six months ended June 30, 2024)

Thereafter 41.2

8 unchanged sentences

This guaranty expires in 2033.

There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 related to this guaranty.

There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 related to this guaranty.

The Company is subject to claims, legal proceedings, and other contingencies in the ordinary course of its business activities.

1 unchanged sentence

The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated.

As of March 31, 2024, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.

As of June 30, 2024, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.

BrightSphere Investment Group Inc.

9 unchanged sentences

However, given the fact that uncertainty exists around the requirement, the Company has chosen to evaluate its potential exposure related to non-collection and remittance of these taxes.

At March 31, 2024, management of the Company has estimated the potential maximum exposure and concluded that it is not material.

No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at March 31, 2024.

At June 30, 2024, management of the Company has estimated the potential maximum exposure and concluded that it is not material.

No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at June 30, 2024.

Considerations of credit risk

11 unchanged sentences

The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Net income attributable to controlling interests $ 11.0 $ 11.4 $ 25.6 $ 23.4

17 unchanged sentences

Disaggregation of management fee revenue

The geographic disaggregation of management fee revenue for the three months ended March 31, 2024 and 2023 are as follows (in millions):

Three Months Ended March 31,

The geographic disaggregation of management fee revenue for the three and six months ended June 30, 2024 and 2023 are as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Quant & Solutions

$ 79.5 $ 69.3 $ 156.8 $ 137.3

26.0 23.5 50.9 46.1

Management fee revenue $ 105.5 $ 92.8 $ 207.7 $ 183.4

11) Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2024 and 2023 are as follows (in millions):

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended June 30, 2024 and 2023 are as follows (in millions):

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of March 31, 2024

2.9 ( 9.1 ) ( 6.2 )

Foreign currency translation adjustment before tax

Amortization related to derivatives securities before tax

— $ 0.8 $ 0.8

Tax impact — $ ( 0.2 ) $ ( 0.2 )

Other comprehensive income $ 0.2 $ 0.6 $ 0.8

Balance, as of June 30, 2024

3.1 ( 8.5 ) ( 5.4 )

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of March 31, 2023

2.4 ( 11.7 ) ( 9.3 )

Foreign currency translation adjustment before tax

Amortization related to derivatives securities before tax

— $ 0.8 $ 0.8

Tax impact — $ ( 0.2 ) $ ( 0.2 )

Other comprehensive income $ 0.8 $ 0.6 $ 1.4

Balance, as of June 30, 2023

3.2 ( 11.1 ) ( 7.9 )

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

11) Accumulated Other Comprehensive Income (Loss) (cont.)

The components of accumulated other comprehensive income (loss), net of tax, for the six months ended June 30, 2024 and 2023 are as follows (in millions):

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of December 31, 2023

4 unchanged sentences

Tax impact $ 0.1 $ ( 0.4 ) $ ( 0.3 )

Other comprehensive income (loss) ( 0.2 ) 0.7 0.5

Balance, as of March 31, 2024

Other comprehensive income — 1.3 1.3

Balance, as of June 30, 2024

$ 3.1 $ ( 8.5 ) $ ( 5.4 )

6 unchanged sentences

Other comprehensive income 1.5 1.2 2.7

Balance, as of March 31, 2023

Balance, as of June 30, 2023

$ 3.2 $ ( 11.1 ) $ ( 7.9 )

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

12) Derivatives and Hedging

5 unchanged sentences

The forecasted debt issuances occurred in July 2016 and the Treasury rate lock, which had an accumulated fair value of $( 34.4 ) million, was settled.

As of March 31, 2024, the balance recorded in accumulated other comprehensive income (loss) was $( 9.1 ) million, net of tax.

As of June 30, 2024, the balance recorded in accumulated other comprehensive income (loss) was $( 8.5 ) million, net of tax.

This balance will be reclassified to earnings through interest expense over the life of the issued debt.

The Company reclassified $ 0.9 million and $ 0.8 million for the three months ended March 31, 2024 and 2023, respectively.

The Company reclassified $ 0.8 million and $ 0.8 million for the three months ended June 30, 2024 and 2023, respectively.

Amounts of $ 1.7 million and $ 1.7 million have been reclassified for the six months ended June 30, 2024 and 2023, respectively.

During the next twelve months the Company expects to reclassify approximately $ 3.8 million to interest expense.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information

The Company has the following reportable segment:

15 unchanged sentences

GAAP, adjusted to include management fees paid to the Company’s Affiliate by consolidated Funds.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segments (cont.)

ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S.

2 unchanged sentences

ENI segment results are also adjusted to exclude the portion of consolidated Fund revenues, expenses and investment return recorded under U.S.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

Segment Presentation

1 unchanged sentence

GAAP net income (loss).

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2024 (in millions):

Three Months Ended March 31, 2024

The following table presents the financial data for the Company’s segment for the three months ended June 30, 2024 (in millions):

Three Months Ended June 30, 2024

Quant & Solutions Other Reconciling Adjustments Total U.S.

7 unchanged sentences

Net interest expense — ( 3.5 ) ( 0.9 ) (d)

Net investment income

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.5 ) (e)

Income tax (expense) benefit — ( 6.6 ) 1.0 (f)

Economic net income $ 31.7 $ ( 14.5 ) $ ( 6.2 ) $ 11.0

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

The following table presents the financial data for the Company’s segments for the three months ended June 30, 2023 (in millions):

Three Months Ended June 30, 2023

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 95.0 $ — $ 1.3 (a) $ 96.3

ENI operating expenses 47.3 3.9 0.8 (b)

Earnings before variable compensation 47.7 ( 3.9 ) 0.5 44.3

Variable compensation 22.0 0.7 — 22.7

ENI operating earnings (after variable comp) 25.7 ( 4.6 ) 0.5 21.6

Affiliate key employee distributions 1.2 — — 1.2

Earnings after Affiliate key employee distributions 24.5 ( 4.6 ) 0.5 20.4

Net interest expense — ( 3.5 ) ( 0.4 ) (d) ( 3.9 )

Net investment income — — 0.5 (e)

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.1 ) (e)

Income tax expense — ( 4.4 ) ( 1.1 ) (f)

Economic net income $ 24.5 $ ( 12.5 ) $ ( 0.6 ) $ 11.4

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

The following table presents the financial data for the Company’s segment for the six months ended June 30, 2024 (in millions):

Six Months Ended June 30, 2024

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 213.6 $ — $ 1.1 (a) $ 214.7

ENI operating expenses 93.4 7.6 11.6 (b)

Earnings before variable compensation 120.2 ( 7.6 ) ( 10.5 ) 102.1

Variable compensation 52.8 1.2 0.3 (c)

ENI operating earnings (after variable comp) 67.4 ( 8.8 ) ( 10.8 ) 47.8

Affiliate key employee distributions 4.3 — — 4.3

Earnings after Affiliate key employee distributions 63.1 ( 8.8 ) ( 10.8 ) 43.5

Net interest expense — ( 6.5 ) ( 1.6 ) (d)

Net investment income — — 3.5 (e)

Net income attributable to non-controlling interests in consolidated Funds — — ( 1.6 ) (e)

Income tax (expense) benefit — ( 13.2 ) 1.5 (f)

2 unchanged sentences

Notes to Condensed Consolidated Financial Statements

13) Segments (cont.)

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2023 (in millions):

Three Months Ended March 31, 2023

13) Segment Information (cont.)

The following table presents the financial data for the Company’s segment for the six months ended June 30, 2023 (in millions):

Six Months Ended June 30, 2023

Quant & Solutions Other Reconciling Adjustments Total U.S.

8 unchanged sentences

Net investment income — — 1.6 (e)

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.1 ) (e)

Income tax expense — ( 8.8 ) ( 1.8 ) (f)

23 unchanged sentences

GAAP net income attributable to controlling interests.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles.

1 unchanged sentence

exclude the tax expense or benefits relating to uncertain tax positions, and exclude the tax impact of other unusual items that are not related to current operating results for ENI purposes.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

14) Subsequent Events

During the period from April 1, 2024 through May 7, 2024, the Company repurchased 269,361 shares of common stock at a weighted average price of $ 22.49 per share, or approximately $ 6 million in total, including commissions.

The Company seeded Acadian’s Global High Yield Strategy with $ 15 million of seed capital in April 2024.

The Company seeded Acadian U.S.

Investment Grade Corporate Bond Fund with $ 15 million of seed capital in July 2024.

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.

What changed 10-Q

Item 1. Financial Statements