What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-27 compared with 2024-02-28 · 366 added, 527 removed, 989 unchanged (47% of the section changed)

9 unchanged sentences

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

BrightSphere Investment Group Inc.:

To the Stockholders and Board of Directors

Acadian Asset Management Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of BrightSphere Investment Group Inc.

We have audited the accompanying consolidated balance sheets of Acadian Asset Management Inc.

and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively, the consolidated financial statements).

17 unchanged sentences

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Assessment of the fair value measurement of the cash-settled affiliate awards liability

As discussed in Notes 2, 12 and 19 to the consolidated financial statements, the Company has issued cash-settled equity awards to certain key employees of an affiliate which are liability classified.

Assessment of the fair value measurement of the cash-settled subsidiary awards liability

As discussed in Notes 2, 11 and 18 to the consolidated financial statements, the Company has issued cash-settled equity awards to certain key employees of the subsidiary which are liability classified.

The total liability for these awards was $25.4 million at December 31, 2024.

1 unchanged sentence

The fair value is determined using discounted cash flow analysis which incorporate assumptions for the forecasted earnings information, growth rates, market risk adjustments, discount rates, and when award holders maximize value subject to post-vesting restrictions.

We identified the assessment of the fair value measurement of the cash-settled affiliate awards liability as a critical audit matter.

Complex and subjective auditor judgment was required in evaluating the methodology and key assumptions used in determining the fair value of the liability related to the cash-settled affiliate awards.

We identified the assessment of the fair value measurement of the cash-settled awards liability as a critical audit matter.

Complex and subjective auditor judgment was required in evaluating the methodology and key assumptions used in determining the fair value of the liability related to the cash-settled awards.

The significant assumptions that required complex and subjective auditor judgment include forecasted earnings, growth rates, market risk adjustments, discount rates, and adjustments to reflect the impact of post-vesting restrictions and when award holders will maximize value.

Changes to these assumptions could have had an effect on the Company’s determination of the fair value of the cash-settled affiliate awards liability.

Changes to these assumptions could have had an effect on the Company’s determination of the fair value of the cash-settled awards liability.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s process to determine the fair value of the cash-settled affiliate awards liability, including controls over the significant assumptions noted above.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s process to determine the fair value of the cash-settled awards liability, including controls over the significant assumptions noted above.

We compared forecasted earnings and growth rates to internal financial forecasts and historical results.

11 unchanged sentences

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

BrightSphere Investment Group Inc.:

To the Stockholders and Board of Directors

Acadian Asset Management Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited BrightSphere Investment Group Inc.

We have audited Acadian Asset Management Inc.

and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

16 unchanged sentences

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect

misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that

controls may become inadequate because of changes in conditions, or that the degree of compliance with the

policies or procedures may deteriorate.

Boston, Massachusetts

February 27, 2025

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Consolidated Balance Sheets

15 unchanged sentences

Total assets $ 703.2 $ 611.4

Liabilities and shareholders’ equity

Liabilities and stockholders’ equity

Accounts payable and accrued expenses $ 37.9 $ 39.1

8 unchanged sentences

Accounts payable and accrued expenses 0.5 0.2

Derivative liabilities at fair value 0.1 2.2

Securities sold short at fair value

Other liabilities

Securities sold short

Total liabilities 616.1 561.9

4 unchanged sentences

Additional paid-in capital — —

Retained earnings (deficit)

46.9 ( 12.5 )

Retained earnings

Accumulated other comprehensive loss ( 4.4 ) ( 6.7 )

Total equity and redeemable non-controlling interests in consolidated Funds

49.5 ( 21.6 )

Total liabilities and equity $ 703.2 $ 611.4

See Notes to Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Consolidated Statements of Operations

4 unchanged sentences

Performance fees 71.4 50.4 49.4

Other revenue — — 5.7

Consolidated Funds’ revenue 3.1 3.0 0.4

14 unchanged sentences

Loss on extinguishment of debt — — ( 3.2 )

Gain on sale of subsidiaries — — 48.6

Net consolidated Funds’ investment gains (losses) 3.9 4.1 ( 0.4 )

1 unchanged sentence

( 9.8 ) ( 9.5 ) ( 23.1 )

Income from continuing operations before taxes 96.5 144.8 178.1

Income before taxes

125.7 96.5 144.8

Income tax expense 38.9 29.4 44.2

Income from continuing operations 67.1 100.6 128.1

Income from discontinued operations, net of tax — — 77.3

Gain on disposal of discontinued operations, net of tax — — 691.0

Net income 86.8 67.1 100.6

3 unchanged sentences

Earnings per share (diluted) attributable to controlling interests 2.22 1.55 2.33

Continuing operations earnings per share (basic) attributable to controlling interests 1.59 2.39 1.66

Continuing operations earnings per share (diluted) attributable to controlling interests 1.55 2.33 1.59

Weighted average shares outstanding 37.8 41.5 42.1

1 unchanged sentence

See Notes to Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Consolidated Statements of Comprehensive Income

12 unchanged sentences

See Notes to Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Consolidated Statements of Changes in Stockholders’ Equity

6 unchanged sentences

stockholders’

interests Non-controlling

equity Redeemable non-controlling interests in consolidated

4 unchanged sentences

Repurchase of common stock ( 4.2 ) — — ( 103.2 ) — ( 103.2 ) — ( 103.2 )

Capital contributions — — — — — — 3.8 29.7 33.5 — 33.5

Equity-based compensation — — 2.4 — — 2.4 — 2.4

2 unchanged sentences

Withholding tax related to stock option exercise — — ( 0.9 ) ( 1.4 ) — ( 2.3 ) — ( 2.3 )

Other changes in non-controlling interests — — — — — — ( 5.5 ) — ( 5.5 ) — ( 5.5 )

Net de-consolidation of Funds

— — — — — — — ( 178.0 ) ( 178.0 ) — ( 178.0 )

Dividends ($ 0.04 per share)

4 unchanged sentences

Repurchase of common stock ( 0.3 ) — ( 0.3 ) ( 4.8 ) — ( 5.1 ) — ( 5.1 )

Capital contributions — — — — — — 9.9 9.9

Equity-based compensation — — 1.2 — — 1.2 — 1.2

Foreign currency translation adjustment — — — — ( 3.1 ) ( 3.1 ) — — ( 3.1 ) — ( 3.1 )

Foreign currency translation adjustment, net of tax

— — — — 1.4 1.4 — 1.4

Amortization related to derivative securities, net of tax — — — — 2.5 2.5 — 2.5

Withholding tax related to stock option exercise — — ( 0.9 ) ( 1.4 ) — ( 2.3 ) — — ( 2.3 ) — ( 2.3 )

Withholding tax related to stock option exercise and restricted stock vesting

— — ( 2.4 ) — — ( 2.4 ) — ( 2.4 )

De-consolidation of Funds

— — — — — — ( 1.9 ) ( 1.9 )

Dividends ($ 0.04 per share)

3 unchanged sentences

Issuance of common stock 0.5 — 0.1 — — 0.1 — 0.1

Repurchase of common stock ( 0.3 ) — ( 0.3 ) ( 4.8 ) — ( 5.1 ) — — ( 5.1 ) — ( 5.1 )

Repurchase of common stock including excise taxes

( 4.4 ) — ( 0.4 ) ( 95.2 ) — ( 95.6 ) — ( 95.6 )

Capital contributions — — — — — — 56.0 56.0

5 unchanged sentences

— — ( 0.6 ) ( 10.8 ) — ( 11.4 ) — ( 11.4 )

De-consolidation of Funds

— — — — — — — — — ( 1.9 ) ( 1.9 )

Dividends ($ 0.04 per share)

3 unchanged sentences

See Notes to Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Consolidated Statements of Cash Flows

4 unchanged sentences

Net income $ 86.8 $ 67.1 $ 100.6

Income from discontinued operations, net of tax — — ( 77.3 )

Net income attributable to non-controlling interests in consolidated Funds from continuing operations

Adjustments to reconcile net income to net cash flows from operating activities from continuing operations:

Net income attributable to redeemable non-controlling interests in consolidated Funds

( 1.8 ) ( 1.3 ) —

Adjustments to reconcile net income to net cash flows from operating activities:

Amortization of acquired intangibles — — 0.1

Gain on sale of discontinued operations — — ( 691.0 )

Loss on extinguishment of debt — — 3.2

Gain on sale of subsidiaries — — ( 48.6 )

Depreciation and amortization 18.5 17.3 18.5

1 unchanged sentence

Amortization and revaluation of non-cash compensation awards 30.5 7.4 ( 30.3 )

Net earnings from Affiliate accounted for using the equity method — — ( 2.6 )

Distributions received from equity method Affiliate — — 4.4

Distributions from discontinued operations — — 52.7

Deferred income taxes ( 10.2 ) ( 6.0 ) 6.4

(Gains) losses on other investments ( 12.5 ) ( 5.6 ) 3.4

Changes in operating assets and liabilities (excluding discontinued operations):

Changes in operating assets and liabilities:

(Increase) decrease in investment advisory fees receivable ( 21.3 ) ( 20.9 ) 44.6

2 unchanged sentences

Increase (decrease) in accounts payable, accrued expenses and accrued income taxes ( 1.2 ) 5.2 2.4

Net cash flows from operating activities of continuing operations, excluding consolidated Funds

Net cash flows from operating activities, excluding consolidated Funds

108.9 77.7 119.0

Net income attributable to non-controlling interests in consolidated Funds from continuing operations

Adjustments to reconcile net income (loss) attributable to non-controlling interests of consolidated Funds to net cash flows from operating activities from continuing operations of consolidated Funds:

Net income attributable to redeemable non-controlling interests in consolidated Funds

Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds:

Purchase of investments ( 167.1 ) ( 19.7 ) ( 0.2 )

Sale of investments 112.3 13.6 0.1

Losses on other investments ( 1.1 ) — —

(Gains) losses on other investments

0.4 ( 1.1 ) —

(Increase) decrease in receivables and other assets ( 0.9 ) ( 3.5 ) ( 2.4 )

Increase (decrease) in accounts payable and other liabilities 0.4 — 0.3

Net cash flows from operating activities of continuing operations of consolidated Funds ( 9.4 ) ( 2.2 ) —

Net cash flows from operating activities of continuing operations

Net cash flows from operating activities of consolidated Funds

( 53.1 ) ( 9.4 ) ( 2.2 )

Net cash flows from operating activities of discontinued operations — — ( 7.1 )

Total net cash flows from operating activities 68.3 116.8 ( 11.5 )

BrightSphere Investment Group Inc.

Net cash flows from operating activities

55.8 68.3 116.8

Acadian Asset Management Inc.

Consolidated Statements of Cash Flows (Continued)

4 unchanged sentences

Additions of fixed assets ( 9.9 ) ( 13.8 ) ( 16.1 )

Proceeds from sale of discontinued operations — — 949.3

Proceeds from sale of subsidiaries — — 61.6

Purchase of investment securities ( 47.7 ) ( 25.8 ) ( 5.5 )

1 unchanged sentence

Cash flows from investing activities of consolidated Funds:

De-consolidation of Funds

Net cash flows from investing activities of continuing operations

Deconsolidation of Funds

Net cash flows from investing activities

( 50.1 ) ( 43.9 ) ( 13.0 )

Net cash flows from investing activities of discontinued operations — — 3.1

Total net cash flows from investing activities ( 43.9 ) ( 13.0 ) 1,039.1

Cash flows from financing activities:

7 unchanged sentences

Repurchases of common stock ( 96.7 ) ( 3.3 ) ( 103.2 )

Repurchases of common stock from related parties — — ( 345.0 )

Dividends paid to shareholders ( 1.4 ) ( 0.8 ) ( 1.9 )

Dividends paid to stockholders

( 0.9 ) ( 1.4 ) ( 0.8 )

Dividends paid to related parties ( 0.6 ) ( 0.6 ) ( 0.4 )

3 unchanged sentences

Redeemable non-controlling interest capital raised 56.0 9.9 —

Net cash flows from financing activities of continuing operations

Net cash flows from financing activities

( 54.4 ) 1.8 ( 233.7 )

Net cash flows from financing activities of discontinued operations — — ( 27.2 )

Total net cash flows from financing activities 1.8 ( 233.7 ) ( 1,179.6 )

Effect of foreign exchange rate changes on cash and cash equivalents ( 0.4 ) 0.2 ( 1.0 )

1 unchanged sentence

Cash and cash equivalents at beginning of period (including restricted cash) 147.6 121.2 252.1

Cash and cash equivalents at beginning of period classified within assets held for sale — — 31.2

Cash and cash equivalents at end of period 147.6 121.2 252.1

cash and cash equivalents at end of period classified within assets held for sale — — —

Cash and cash equivalents at end of period (including restricted cash) $ 98.5 $ 147.6 $ 121.2

3 unchanged sentences

Supplemental disclosure of non-cash investing and financing transactions:

Excise tax on repurchases of common stock

$ 0.7 $ — $ —

Payable for repurchases of common stock

$ — $ ( 1.8 ) $ —

De-consolidation of Funds

Deconsolidation of Funds

$ — $ ( 1.9 ) $ —

See Notes to Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements

1 unchanged sentence

1) Organization and Description of the Business

BrightSphere Investment Group Inc.

(“BrightSphere”, “BSIG” or the “Company”), through its subsidiaries, is a global asset management company.

The Company provides investment management services globally to predominantly institutional investors.

The Company historically held interests in a diverse group of investment management firms (the “Affiliates”) individually headquartered in the United States.

The Company completed the disposition of certain Affiliates and, since 2021, has operated the business through one Affiliate, Acadian Asset Management LLC (“Acadian”).

Acadian comprises the Company’s 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.

and small-cap equities, as well as managed volatility, systematic macro, equity alternatives, and credit strategies.

Acadian is organized as a limited liability company.

Fees for services are largely asset-based and, as a result, revenues fluctuate based on the performance of financial markets and investors’ asset flows in and out of Acadian’s products.

The Company utilizes a profit-sharing model in structuring its compensation and ownership arrangements with Acadian.

Acadian Asset Management Inc.

(“Acadian”, “AAMI” or the “Company”), is a holding company that operates a systematic investment management business through its majority owned subsidiary, Acadian Asset Management LLC (“Acadian LLC”).

Acadian LLC offers institutional investors across the globe access to a diversified array of systematic investment strategies designed to meet a range of risk and return objectives.

Acadian LLC is a leading systematic investment manager of active equity products, including global, emerging market, international, and small cap equities, as well as credit and alternative strategies.

Acadian LLC comprises the Company’s Quant & Solutions reportable segment:

• Quant & Solutions —comprised of strategies that leverage cutting-edge technology to gather and analyze data to identify mispriced assets to deliver attractive risk-adjusted returns for investors;

portfolios include developed and developing markets for equity, credit and alternative strategies.

Acadian LLC is organized as a limited liability company.

Fees for services are largely asset-based and, as a result, revenues fluctuate based on the performance of financial markets and investors’ asset flows in and out of Acadian LLC’s products.

The Company utilizes a profit-sharing model in structuring its compensation and ownership arrangements with Acadian LLC.

Variable compensation is based on the firm’s profitability.

BSIG and Acadian key employees share in profits after variable compensation according to their respective ownership interests.

The profit-sharing model results in the alignment of BSIG and Acadian key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business.

The corporate head office is included within the Other category, along with the Company’s previously disposed Affiliates, Campbell Global, LLC (“Campbell Global”) and Investment Counselors of Maryland (“ICM”) for the year ended December 31, 2021.

The Company and Acadian LLC key employees share in profits after variable compensation according to their respective ownership interests.

The profit-sharing model results in the alignment of the Company and Acadian LLC key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business.

The corporate holding company (“Hold Co”) is included within the Unallocated Corporate expenses category.

Prior to 2014, the Company was a wholly-owned subsidiary of Old Mutual plc (“OM plc”), an international long-term savings, protection, and investment group, listed on the London Stock Exchange.

1 unchanged sentence

As of December 31, 2024, Paulson & Co.

(“Paulson”) held approximately 21.6 % of the common stock of the Company.

BrightSphere Investment Group Inc.

(“Paulson”) and related parties thereof held approximately 23.9 % of the common stock of the Company.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

1) Organization and Description of the Business (cont.)

On November 4, 2021, the Company announced its plan to launch a fixed price tender offer to purchase up to 33,300,000 shares of its common stock (the “Shares”) at a purchase price of $ 31.50 per share.

Under the terms of the tender offer, stockholders who tender their shares would receive a fixed price of $ 31.50 for each share, subject to proration if the tender offer was oversubscribed.

On December 7, 2021, the Company accepted for purchase 34,917,532 shares of common stock in the tender offer for a total cost of approximately $ 1.1 billion excluding fees and expenses relating to the tender offer.

The shares of common stock accepted for purchase includes 1,617,532 shares that the Company elected to purchase pursuant to its right to purchase up to an additional 2 % of its outstanding common stock.

On November 3, 2021, the Company entered into a repurchase agreement with Paulson and certain funds managed by Paulson and its affiliates pursuant to which the Company agreed that, on the 11th day after the expiration date of the tender offer, it would repurchase from Paulson and its affiliates, if necessary, a number of shares, such that, upon the closing of the repurchase, Paulson and its affiliates’ percentage ownership interest in the Company’s total outstanding shares shall not exceed 19.99 %.

In the repurchase agreement, Paulson and its affiliates agreed to tender in the tender offer at least 41.7 % of the total shares held by them.

In accordance therewith, on December 21, 2021, the Company consummated its repurchase of 690,000 shares of common stock from Paulson and its affiliates at $ 31.50 per share, following which Paulson and its affiliates owned 19.99 % of the Company’s total outstanding shares of common stock.

In December 2023, the Company’s Board of Directors authorized a $ 100 million share repurchase program.

2 unchanged sentences

For the year ended December 31, 2023, the Company repurchased 268,800 shares of common stock at an average price of $ 19.03 per share, or approximately $ 5.1 million in total, including commissions.

In connection with these repurchases, a reduction to additional paid-in capital in the amount of $ 0.3 million was recorded until it was depleted, with the remaining $ 4.8 million of repurchases recorded to retained earnings.

For the year ended December 31, 2022, the Company repurchased 4,147,450 shares of common stock at an average price of $ 24.09 per share, or approximately $ 100 million in total, including commissions.

A reduction to retained deficit was recorded for the full amount of these share repurchases.

For the year ended December 31, 2021, the Company did not repurchase any shares of common stock in the open market other than the tender offer noted above.

In connection with the shares repurchased in the tender offer, a reduction to additional paid-in capital in the amount of $ 465.7 million was recorded until it was depleted, with the remaining of $ 655.9 million of share repurchases recorded to retained deficit.

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

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

4 unchanged sentences

These Consolidated Financial Statements reflect the historical balance sheets, statements of operations, statements of comprehensive income, statements of changes in stockholders’ equity and statements of cash flows of the Company.

Within these Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.”

Within these Consolidated Financial Statements, Paulson and its related entities, as defined above, are considered “related parties.”

The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S.

1 unchanged sentence

Transactions between the Company and its related parties are included in the Consolidated Financial Statements;

however, material intercompany balances and transactions among the Company, its consolidated Affiliates and consolidated Funds are eliminated in consolidation.

however, material intercompany balances and transactions among the Company, Acadian LLC and consolidated Funds are eliminated in consolidation.

Revenue recognition

11 unchanged sentences

Management fees are recognized monthly as services are rendered.

Affiliates that manage tangible property may also earn transaction fees at the time the underlying property is bought and sold.

Dividend income received is recorded on the ex-dividend date.

BrightSphere Investment Group Inc.

Performance fees are generally assessed as a percentage of the investment performance realized on a client’s account.

Performance fees are recognized when they (i) become billable to customers (based on contractual terms of agreements) and (ii) are not subject to contingent repayment.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

Performance fees are generally assessed as a percentage of the investment performance realized on a client’s account.

Performance fees are recognized when they (i) become billable to customers (based on contractual terms of agreements) and (ii) are not subject to contingent repayment.

The Company is required to capitalize certain costs directly related to the acquisition or fulfillment of a contract with a customer.

3 unchanged sentences

In instances where a customer reimburses the Company for a cost paid on the customer’s behalf, if the Company is acting as a principal, the reimbursement is recorded on a gross basis and if the Company is acting as an agent, the reimbursement is recorded on a net basis.

Certain Funds reimburse the Company’s Affiliates for certain expenses where the Affiliate is acting as a principal, primarily for compensation expense for field office personnel at several Timber Funds, where revenue is recognized from log and fiber sales upon delivery to the customer.

Revenue from expense reimbursement is accrued at cost as the corresponding reimbursable expenses are incurred and is recorded in other revenue in the Company’s Consolidated Statements of Operations.

Revenue from other sources

Revenue from other sources also includes interest income on cash and cash equivalents and revenue from administration and consulting services.

Revenue from other sources also includes interest income on cash and cash equivalents.

Dividend income received is recorded on the ex-dividend date.

Compensation arrangements

The Company operates short term variable compensation arrangements where generally, a percentage of each Affiliate’s annual pre-variable compensation earnings, as defined in each arrangement, is allocated to a “pool” of each respective Affiliate’s key employees, and subsequently distributed to individuals subject to recommendation and approval of a remuneration committee comprised of both the Company’s and each respective Affiliate’s management.

Additionally, a contractual percentage of Affiliate performance fee revenues and post-bonus profits are included in a deferred compensation pool.

The deferred compensation pool is allocated to Affiliate key employees and is subject to a three-year vesting period.

The Company operates a short term variable compensation arrangement where generally, a percentage of Acadian LLC’s annual pre-variable compensation earnings, as defined in the arrangement, is allocated to a “pool” of Acadian LLC’s key employees, and subsequently distributed to individuals subject to recommendation and approval of a remuneration committee comprised of both the Company’s and Acadian LLC’s management.

Additionally, a contractual percentage of Acadian LLC performance fee revenues and post-bonus profits are included in a deferred compensation pool.

The deferred compensation pool is allocated to Acadian LLC key employees and is subject to a three-year vesting period.

Variable compensation expense is accrued and recognized in the Consolidated Statements of Operations as services are provided by individual employees.

BrightSphere Investment Group Inc.

Variable compensation also includes discretionary annual bonuses at the Hold Co, which may be paid in the form of cash or AAMI equity.

The Company operates a longer term profit-interest plan whereby certain Acadian LLC key employees are granted (or have a right to purchase) awards representing a profits interest in Acadian LLC, as distinct from an equity interest due to the lack of pari passu voting rights.

Under this plan, the Company may award a portion of the aforementioned variable compensation arrangement through issuance of a profits interest in Acadian LLC.

The awards generally have a three-year vesting period from the grant date, and the service period begins at the commencement of the financial period to which the variable compensation relates.

Under this plan, Acadian LLC key employees are eligible to share in the profits of Acadian LLC based on their respective percentage interest held.

In addition, under certain circumstances, Acadian LLC key employees are eligible to receive repurchase payments upon exiting the plan based on a multiple of the last twelve months profits of Acadian LLC, as defined.

Profits allocated and movements in the potential repurchase value, determined based on a fixed multiple times trailing twelve month profits, as defined, are recognized as compensation expense.

Profit interests compensation liabilities are re-measured at each reporting date at the twelve month earnings multiple, with movements treated as compensation expense in the Company’s Consolidated Statements of Operations.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

The Company operates longer term profit-interest plans whereby certain Affiliate key employees are granted (or have a right to purchase) awards representing a profits interest in their respective Affiliate, as distinct from an equity interest due to the lack of pari passu voting rights.

Under these plans, the Company may award a portion of the aforementioned variable compensation arrangement through issuance of a profits interest in the Affiliate.

The awards generally have a three - to five-year vesting period from the grant date, and the service period begins at the commencement of the financial period to which the variable compensation relates.

Under these plans, Affiliate key employees are eligible to share in the profits of their respective Affiliates based on their respective percentage interest held.

In addition, under certain circumstances, Affiliate key employees are eligible to receive repurchase payments upon exiting the plans based on a multiple of the last twelve months profits of their respective Affiliate, as defined.

Profits allocated and movements in the potential repurchase value, determined based on a fixed multiple times trailing twelve month profits, as defined, are recognized as compensation expense.

Share-based compensation plans

8 unchanged sentences

The Company recognizes forfeitures as they occur.

The Company has compensation arrangements with certain of its Affiliates whereby in exchange for continued service, Affiliate equity is either purchased by, or granted to Affiliate key employees and may be repurchased either by Affiliate key employees or by the Company at a future date, subject to service requirements having been met.

Awards of equity made to Affiliate key employees are accounted for as cash settled, with the fair value recognized as compensation expense over the requisite service period, with a corresponding liability carried within other compensation liabilities on the Consolidated Balance Sheets until the award is settled.

The fair value of the liability is determined with the assistance of third party valuation specialists using a discounted cash flow analysis which incorporate assumptions for the forecasted earnings information, growth rates, market risk adjustments, discount rates, when award holders maximize value and post-vesting restrictions.

The Company has compensation arrangements with Acadian LLC whereby in exchange for continued service, Acadian LLC equity is either purchased by, or granted to Acadian LLC key employees and may be repurchased by the Company at a future date, subject to service requirements having been met.

Awards of equity made to Acadian LLC key employees are accounted for as cash settled, with the fair value recognized as compensation expense over the requisite service period, with a corresponding liability carried within other compensation liabilities on the Consolidated Balance Sheets until the award is settled.

The fair value of the liability is determined with the assistance of third party valuation specialists using a discounted cash flow analysis which incorporates assumptions for the forecasted earnings information, growth rates, market risk adjustments, discount rates, when award holders maximize value and post-vesting restrictions.

The liability is revalued at each reporting period, with any movements recorded within compensation expense.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

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

Consolidation

The Company evaluates each of its Affiliates and other operating entities to determine the appropriate method of accounting.

The Company evaluates each of its subsidiaries and other operating entities to determine the appropriate method of accounting.

Generally, majority-owned entities or otherwise controlled investments in which the Company holds a controlling financial interest as the principal shareholder, managing member, or general partner are consolidated.

In the normal course of business, the Company’s Affiliates sponsor and manage certain investment vehicles (the “Funds”).

In the normal course of business, Acadian LLC sponsors and manages certain investment vehicles (the “Funds”).

The Company assesses consolidation requirements with respect to its Funds.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

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

In evaluating whether or not a legal entity must be consolidated, the Company determines if such entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”).

3 unchanged sentences

Factors considered in this assessment include the entity’s legal organization, the entity’s capital structure and equity ownership and any related party or de-facto agent implications of the Company’s involvement with the entity.

Investments that are determined to be VIEs are consolidated if the Company or a consolidated Affiliate is the primary beneficiary of the investment.

Investments that are determined to be VIEs are consolidated if the Company or Acadian LLC is the primary beneficiary of the investment.

In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties on a proportional basis.

5 unchanged sentences

The Company consolidates VOEs when it has control over significant operating, financial and investing decisions of the entity or holds the majority voting interest.

Upon the occurrence of certain events (such as contributions and redemptions, either by the Company, its Affiliates, or third parties, or amendments to the governing documents of the Company’s investees or sponsored Funds) management reviews and reconsiders its previous conclusion regarding the status of an entity as a VIE or a VOE.

Upon the occurrence of certain events (such as contributions and redemptions, either by the Company, Acadian LLC, or third parties, or amendments to the governing documents of the Company’s investees or sponsored Funds) management reviews and reconsiders its previous conclusion regarding the status of an entity as a VIE or a VOE.

Additionally, management continually reconsiders whether the Company is deemed to be a VIE’s primary beneficiary who consolidates such entity.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

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

Investments and Investment Transactions

4 unchanged sentences

See Note 4 for a summary of the inputs utilized to determine the fair value of other investments held at fair value.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

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

Security transactions

8 unchanged sentences

The short sales are secured by the long portfolio and available cash.

The dollar value of which is at least equal to the market value of the security at the time of the short sale.

The Fund records a gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, upon the termination of a short sale.

9 unchanged sentences

The Funds have used foreign exchange forwards to hedge the risk of movement in exchange rates on financial assets on a limited basis.

BrightSphere Investment Group Inc.

The Company’s Funds have not designated any financial instruments for hedge accounting, as defined in the accounting literature, during the periods presented.

The gains or losses on Fund’s derivative instruments not designated for hedge accounting are included as net consolidated Funds gains or losses in the Company’s Consolidated Statements of Operations.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

The Company’s Funds have not designated any financial instruments for hedge accounting, as defined in the accounting literature, during the periods presented.

Foreign currency translation and transactions

4 unchanged sentences

Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings.

Equity method investments

The Company uses the equity method of accounting for investments that provide the Company with the ability to exercise significant influence over an entity, but that do not meet the requirements for consolidation.

Equity method investments includes the Company’s former Affiliate, ICM.

Fair value measurements

11 unchanged sentences

• Level II—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies utilizing observable market inputs other than quoted prices.

Investments which are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

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

Investments which are generally included in this category include corporate bonds, less liquid and restricted equity securities and certain over-the-counter derivatives.

• Level III—Pricing inputs are unobservable for the asset or liability and include assets and liabilities where there is little, if any, market activity for the investment.

4 unchanged sentences

In cases in which the fair value of an investment is established using the net asset value (or its equivalent) as a practical expedient, the investment is not categorized within the fair value hierarchy.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

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

Use of estimates

14 unchanged sentences

Cash held by consolidated Funds is not available to fund general liquidity needs of the Company and is therefore also classified as restricted cash.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

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

Investment advisory fees receivable

3 unchanged sentences

The Company typically does not record an allowance for doubtful accounts or bad debt expense, or any amounts recorded have been immaterial.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

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

Fixed assets are recorded at historical cost and depreciated using the straight-line method over their estimated useful lives.

1 unchanged sentence

Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining term of the lease.

Computer software developed or obtained for internal use capitalized during the application development stage is amortized using the straight-line method over the estimated useful life of the software, which is generally seven years or less.

The costs of improvements that extend the life of a fixed asset are capitalized, while the costs of repairs and maintenance are expensed as incurred.

2 unchanged sentences

Factors that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of the acquired assets in a business combination or the strategy for the Company’s overall business, and significant negative industry or economic trends.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

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

The Company performs its assessment for impairment of goodwill annually as of the first business day of the fourth quarter, or as necessary.

The Company has determined that it had one reporting unit, consisting of Acadian, as of the annual goodwill impairment test date.

The Company has determined that it had one reporting unit, consisting of Acadian LLC, as of the annual goodwill impairment test date.

The Company first considers various qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is greater than its respective carrying amount, including goodwill.

9 unchanged sentences

At the close of each year, management assessed whether there were any conditions present during the fourth quarter that would indicate impairment subsequent to the initial assessment date and concluded that no such conditions were present.

Assets Held for Sale

The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell.

Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met.

Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale.

Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset.

The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale.

Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale on the Consolidated Balance Sheet.

Discontinued Operations

The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations.

Discontinued operations reporting occurs only when the disposal of a component or a group of components of the Company (i) meets the held-for-sale classification criteria, is disposed of by sale, or other than by sale, and (ii) represents a strategic shift that will have a major effect on the Company's operations and financial results.

The results of operations and cash flows of a

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

discontinued operation are restated for all comparative periods presented.

Unless otherwise noted, discussion in the Notes to Consolidated Financial Statements refers to the Company's continuing operations.

See Note 3, Discontinued Operations for additional information.

Contracts are evaluated at inception to determine whether such contract is or contains a lease.

3 unchanged sentences

Renewal options that have been determined to be reasonably certain to be exercised are included in the lease term.

Rights and obligations attributable to identified leases with a term in excess of twelve months are recognized on the Company’s Consolidated Balance Sheets in the form of right‐of‐use (ROU) assets and lease liabilities are recognized as of the date the underlying assets are available for use, which may be the date the Company gains access to begin leasehold improvements.

Rights and obligations attributable to identified leases with a term in excess of twelve months are recognized on the Company’s Consolidated Balance Sheets in the form of right‐of‐use (ROU) assets and operating lease liabilities are recognized as of the date the underlying assets are available for use, which may be the date the Company gains access to begin leasehold improvements.

Lease payments related to short‐term leases with a term of twelve months or less are recognized on a straight‐line basis as short‐term lease expense.

Lease liabilities are initially and subsequently measured as the present value of future lease payments over the lease term.

Operating lease liabilities are initially and subsequently measured as the present value of future lease payments over the lease term.

For the purposes of this calculation, lease payments consist of fixed monthly lease payments related to use of the underlying assets.

8 unchanged sentences

The Company calculates basic and diluted earnings per share (“EPS”) by dividing net income by its shares outstanding as outlined below.

Basic EPS attributable to the Company’s shareholders is calculated by dividing “Net income attributable to controlling interests” by the weighted-average number of shares outstanding.

Basic EPS attributable to the Company’s stockholders is calculated by dividing “Net income attributable to controlling interests” by the weighted-average number of shares outstanding.

Diluted EPS is similar to basic EPS, but adjusts for the effect of potential shares of common stock unless they are antidilutive.

For periods with a net loss, potential shares of common stock are considered antidilutive.

BrightSphere Investment Group Inc.

The Company considers two ways to measure dilution to earnings per share:

(a) calculate the net number of shares that would be issued assuming any related proceeds are used to buy back outstanding shares (the treasury stock method), or (b) assume the gross number of shares are issued and calculate any related effects on net income available for stockholders (the if-converted or two-class method).

As appropriate, the Company’s policy is to apply the more dilutive methodology upon issuance of such instruments.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

The Company considers two ways to measure dilution to earnings per share:

(a) calculate the net number of shares that would be issued assuming any related proceeds are used to buy back outstanding shares (the treasury stock method), or (b) assume the gross number of shares are issued and calculate any related effects on net income available for shareholders (the if-converted or two-class method).

As appropriate, the Company’s policy is to apply the more dilutive methodology upon issuance of such instruments.

Deferred financing costs

16 unchanged sentences

The Company’s accounting policy is to classify interest and related charges as a component of income tax expense.

BrightSphere Investment Group Inc.

Non-controlling interests

For certain entities that are consolidated, but not 100% owned, the Company reports non-controlling interests as equity on its Consolidated Balance Sheets.

The Company's consolidated net income on the Consolidated Statements of Operations includes the income (loss) attributable to non-controlling interest holders of Funds.

Ownership interests held by Acadian LLC key employees are categorized as liabilities on the Consolidated Balance Sheets and are revalued each reporting date, with movements treated as compensation expense in the Consolidated Statements of Operations.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

Non-controlling interests

For certain entities that are consolidated, but not 100% owned, the Company reports non-controlling interests as equity on its Consolidated Balance Sheets.

The Company's consolidated net income on the Consolidated Statements of Operations includes the income (loss) attributable to non-controlling interest holders of the Company's consolidated Affiliates and Funds.

Ownership interests held by Affiliate key employees are categorized as liabilities on the Consolidated Balance Sheets and are revalued each reporting date, with movements treated as compensation expense in the Consolidated Statements of Operations.

Non-controlling interests in consolidated Funds on the Consolidated Balance Sheets include undistributed income owned by the investors in the respective Funds.

7 unchanged sentences

For the Company’s purposes, comprehensive income (loss) represents net income (loss), as presented in the accompanying Consolidated Statements of Operations, adjusted for foreign currency translation adjustments, net of tax and adjustments to the valuation and amortization of certain derivative securities, net of tax.

Recently adopted accounting standards

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.

The Company adopted the updated guidance for the annual reporting period beginning January 1, 2024, which did not result in a material impact to our Consolidated Financial Statements.

Refer to Note 21 for related disclosures about our reportable operating segments.

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 fiscal year beginning after December 15, 2023 and is retrospectively applicable to all prior periods presented in its consolidated financial statements.

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

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

BrightSphere Investment Group Inc.

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.

The Company does not expect the additional disclosure requirements under ASU 2023-09 to have a material impact on the Consolidated Financial Statements.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

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

jurisdiction.

This amendment is effective for fiscal year 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.

The Company does not expect the adoption of ASU 2024-01 to have a material impact on the Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-4):

Disaggregation of Income Statement Expenses, which requires disclosures of additional information and disaggregation of certain expenses included in the income statement.

This amendment is for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027.

The Company is evaluating the impact that the adoption will have on the Consolidated Financial Statements and have not yet determined the transition approach.

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

The Company does not believe that any such guidance has or will have a material effect on its Consolidated Financial Statements and related disclosures.

3) Discontinued Operations

Landmark Partners

On March 30, 2021, the Company entered into a definitive agreement with Ares, pursuant to which Ares agreed to purchase all of the Company’s interests in Landmark Partners (“Landmark”) and the Company’s co-investments in Landmark funds.

On June 2, 2021, the Company completed the sale of all its interests in Landmark to Ares for cash consideration of $ 690.0 million, adjusted for customary closing adjustments.

The Company recognized a gain on disposal of discontinued operations of $ 505.8 million, net of tax of $ 179.5 million for the year ended December 31, 2021.

The divestiture of Landmark met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results.

The Company redeemed co-investments of $ 31.5 million in Landmark’s funds as of June 2, 2021 upon consummation of the sale.

Thompson Siegel & Walmsley, LLC

On May 9, 2021, the Company entered into an agreement with Pendal to sell all of the Company’s interests in Thompson Siegel & Walmsley, LLC (“TSW”) and the Company’s seed investment in TSW strategies.

On July 22, 2021, the Company completed the sale of all its interests in TSW to Pendal for cash consideration of $ 240.0 million.

The Company recognized a gain on disposal of discontinued operations of $ 185.2 million, net of tax of $ 73.9 million for the year ended December 31, 2021.

The divestiture of TSW met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements

December 31, 2023 and 2022

3) Discontinued Operations (cont.)

The major classes of revenue and expenses constituting net income from discontinued operations attributable to controlling interests for Landmark and TSW in the Consolidated Statements of Operations for the years ended December 31 are as follows (in millions):

2023 2022 2021

Revenues $ — $ — $ 115.1

Operating expenses:

Compensation and benefits — — 91.2

General and administrative expenses — — 8.1

Amortization of intangibles — — 2.7

Depreciation and amortization — — 0.5

Consolidated Funds’ expense — — 0.1

Total operating expenses — — 102.6

Operating income — — 12.5

Investment gains of consolidated Funds — — 68.1

Income from discontinued operations before taxes — — 80.6

Income tax expense — — 3.3

Income from discontinued operations, net of tax — — 77.3

Gain on disposal, net of tax of $ 0.0 , $ 0.0 , and $ 253.4

Total discontinued operations — — 768.3

Income from discontinued operations attributable to non-controlling interests — — 68.0

Net income from discontinued operations attributable to controlling interests $ — $ — $ 700.3

Consolidated Funds

In connection with the sale of Landmark on June 2, 2021, the Company transferred its co-investment interests in Landmark funds to Ares for $ 31.5 million.

The redemption resulted in the de-consolidation of consolidated Funds that were considered to be variable interest entities as of June 2, 2021 upon consummation of the sale.

The criteria for discontinued operations accounting treatment were met.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

3) Investments

1 unchanged sentence

Investments of consolidated Funds

$ 154.0 $ 33.9

Other investments 19.4 20.0

1 unchanged sentence

Total investments per Consolidated Balance Sheets $ 221.9 $ 98.6

Investment income is comprised of the following for the years ended December 31 (in millions):

2023 2022 2021

Realized and unrealized gains (losses) on other investments

$ ( 0.1 ) $ 0.2 $ 5.7

Earnings from equity-accounted investment in Affiliate — — 2.6

Total investment income per Consolidated Statements of Operations

$ ( 0.1 ) $ 0.2 $ 8.3

Investment gains (losses) on net consolidated funds is comprised of the following for the years ended December 31 (in millions):

2023 2022 2021

Realized and unrealized gains (losses) on consolidated Funds

$ 4.1 $ ( 0.4 ) $ —

Total net consolidated Funds’ investment gains (losses) per Consolidated Statements of Operations

$ 4.1 $ ( 0.4 ) $ —

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

6 unchanged sentences

(Level III) Uncategorized Total value,

Assets of BSIG and consolidated Funds (1)

Assets of AAMI and consolidated Funds (1)

Common and preferred stock $ 94.2 $ — $ — $ — $ 94.2

3 unchanged sentences

Consolidated Funds total 94.2 59.8 — — 154.0

Investments in separate accounts (2)

2.1 — — — 2.1

Investments related to long-term incentive compensation plans (3)

2 unchanged sentences

— — — 19.4 19.4

BSIG total 46.8 — — 17.9 64.7

48.5 — — 19.4 67.9

Total fair value assets $ 142.7 $ 59.8 $ — $ 19.4 $ 221.9

6 unchanged sentences

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2023 (in millions):

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

5 unchanged sentences

(Level III) Uncategorized Total value,

Assets of BSIG and consolidated Funds (1)

Assets of AAMI and consolidated Funds

Common and preferred stock $ 19.0 $ — $ — $ — $ 19.0

Corporate bonds

— 14.8 — — 14.8

Derivatives — 0.1 — — 0.1

Consolidated Funds total (1)

19.0 14.9 — — 33.9

Investments in separate accounts (2)

4 unchanged sentences

— — — 17.9 17.9

BSIG total 44.2 — — 4.2 48.4

46.8 — — 17.9 64.7

Total fair value assets $ 65.8 $ 14.9 $ — $ 17.9 $ 98.6

Liabilities of consolidated Funds

Securities sold short

$ ( 4.0 ) $ — $ — $ — $ ( 4.0 )

Derivatives — ( 0.1 ) — — ( 0.1 )

Consolidated Funds total (1)

( 4.0 ) ( 0.1 ) — — ( 4.1 )

Total fair value liabilities $ ( 4.0 ) $ ( 0.1 ) $ — $ — $ ( 4.1 )

(1) Assets and liabilities measured at fair value are comprised of financial investments managed by the Company’s Affiliates.

(1) Assets and liabilities measured at fair value are comprised of financial investments managed by Acadian LLC.

Equity securities and derivatives which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation.

3 unchanged sentences

The Company has not made adjustments to the prices provided.

Assets of consolidated Funds also include investments in Corporate bonds.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

4) Fair Value Measurements (cont.)

If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model with unobservable inputs, such securities are classified as Level III.

2 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.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

5) Fair Value Measurements (cont.)

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

Investments in separate accounts of $ 4.2 million at December 31, 2022, consist of approximately 100 % of equity securities and other investments.

(2) 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 $ 44.7 million and $ 40.0 million at December 31, 2023 and December 31, 2022, respectively, are 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 $ 48.5 million and $ 44.7 million at December 31, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian LLC), 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.

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Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $ 3.6 million and $ 4.1 million at December 31, 2023 and December 31, 2022, respectively, are 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 real estate investment Funds of $ 2.9 million and $ 3.6 million at December 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 December 31, 2024.

4 unchanged sentences

There were no significant transfers of financial assets or liabilities between Levels II or III during the year ended December 31, 2024.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

5) Variable Interest Entities

The Company, through its Affiliate, sponsors the formation of various entities considered to be variable interest entities (“VIEs”).

These VIEs are primarily Funds managed by the Company’s Affiliate and other partnership interests typically owned entirely by third-party investors.

Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that have ownership interests in the Affiliate.

The Company, through Acadian LLC, sponsors the formation of various entities considered to be variable interest entities (“VIEs”).

These VIEs are primarily Funds managed by Acadian LLC and other partnership interests typically owned entirely by third-party investors.

Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Acadian LLC key employees and/or individuals that have ownership interests in Acadian LLC.

The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity.

2 unchanged sentences

The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions):

$ 154.0 $ 33.9

Other assets of consolidated Funds 5.3 1.3

2 unchanged sentences

Total Liabilities $ 21.2 $ 4.3

“Investments” consist of investments in equities, corporate bonds and derivative securities.

“Investments” consist of investments in equity securities, corporate bonds and derivative securities.

To the extent the Company also has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above.

5 unchanged sentences

The Company has not issued any investment performance guarantees to these VIEs or their investors.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

6 unchanged sentences

Maximum risk of loss (1)

(1) Includes equity investments the Company has made or is required to make.

(1) Includes equity investments the Company has made.

6) Fixed Assets

7 unchanged sentences

Fixed assets, net $ 35.7 $ 44.2

Depreciation and amortization expense for continuing operations was $ 17.3 million, $ 18.5 million and $ 22.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The Company disposed of property, plant, and equipment with a cost basis of $ 4.4 million and accumulated depreciation of $( 4.4 ) million during the year ended December 31, 2023.

Depreciation and amortization expense was $ 18.5 million, $ 17.3 million and $ 18.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

During the year ended December 31, 2024 and 2023, the Company disposed of property, plant, and equipment with a cost basis of $ 19.0 million and $ 4.4 million, respectively, and accumulated depreciation of $( 19.0 ) million and $( 4.4 ) million, respectively.

These disposals included leasehold improvements, office equipment, furniture and fixtures and software.

There were no gains or losses on disposals recorded.

There were no gains or losses on disposals recorded during the year ended December 31, 2024 and 2023 .

The Company has operating leases for corporate offices, data centers and certain equipment.

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

BrightSphere Investment Group Inc.

The operating leases have remaining lease terms of less than 1 year to 9 years, some of which include options to extend the leases for up to 5 years.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

11 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 years ended December 31, 2023 and 2022, the weighted average remaining lease term was 9.5 and 10.5 years, respectively, and the weighted average discount rate was 3.53 % and 3.40 %, respectively.

For the years ended December 31, 2024 and 2023, the weighted average remaining lease term was 8.5 years and 9.5 years, respectively, and the weighted average discount rate was 3.55 % and 3.53 %, respectively.

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

4 unchanged sentences

Less imputed interest ( 10.4 )

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

24 unchanged sentences

Total related party revenues $ 129.2 $ 87.5 $ 97.2

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

9) Related Party Transactions (cont.)

(1) Transactions with unconsolidated Affiliate-sponsored Funds are considered related party items on the basis of the Company’s significant influence over the activities of such entities in its capacity as investment advisor thereto.

(1) Transactions with unconsolidated Acadian LLC-sponsored Funds are considered related party items on the basis of the Company’s significant influence over the activities of such entities in its capacity as investment advisor thereto.

These transactions are comprised of fees for advisory services and investments in unconsolidated funds.

Other related party arrangements

As the Company is a member of a group of related businesses, it is possible that the terms of certain related party transactions are not the same as those that would result from transactions with wholly unrelated parties.

See Note 4 “Fair Value Measurements” for more information on the investments in unconsolidated funds.

10) Accounts Payable and Accrued Expenses

7 unchanged sentences

Share-based payments liability (Note 18)

$ 25.4 $ 23.0

Profit interests compensation liability 18.7 —

2 unchanged sentences

Profit interests compensation expense amounted to $ 19.0 million in 2024, $ 0.0 million in 2023, and $( 28.0 ) million in 2022.

Redemptions of profit sharing interests from Affiliate key employees for cash were $ 0.0 million in 2023, $ 2.7 million in 2022, and $ 0.0 million in 2021.

BrightSphere Investment Group Inc.

Redemptions of profit sharing interests from Acadian LLC key employees for cash were $ 0.3 million in 2024, $ 0.0 million in 2023, and $ 2.7 million in 2022.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

5 unchanged sentences

Revolving credit facility:

$ 125 million revolving credit facility expiring March 7, 2025 (1)

$ 140 million revolving credit facility expiring August 29, 2027 (1)(2)

$ — $ — $ — $ —

3 unchanged sentences

274.3 271.7 2 273.9 263.1 2

$ 125 million 5.125 % Senior Notes Due August 1, 2031 (2)(3)

Total third-party borrowings

1 unchanged sentence

(1) Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates.

(2) On August 29, 2024, Acadian LLC’s $ 125 million revolving credit facility was terminated and replaced with a new $ 140 million revolving credit facility.

(3) The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts.

(3) 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.

As a result of this transaction, the Company recorded a $ 3.2 million loss on extinguishment of debt within the Consolidated Statement of Operations for the year ended December 31, 2022.

Revolving credit facility

On March 7, 2022, Acadian, Royal Bank of Canada, BMO Harris Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Bank of America N.A., the Bank of New York Mellon and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian Credit Agreement”), which replaced the Company’s revolving credit facility dated as of August 20, 2019 (as amended by an amendment dated September 3, 2020 and an assignment and assumption and amendment agreement dated February 23, 2021, the “Original Credit Agreement”).

The maturity date of this Original Credit Agreement was August 22, 2022, and the maturity date of the Acadian Credit Agreement is March 7, 2025.

BrightSphere Investment Group Inc.

On August 29, 2024, Acadian LLC, Royal Bank of Canada, Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., the Bank of New York Mellon, Bank of America N.A., as an issuing bank, and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian LLC Credit Agreement”), which replaced Acadian LLC’s revolving credit facility dated as of March 7, 2022 (the “Prior Credit Agreement”).

The maturity date of the Prior Credit Agreement was March 7, 2025, and the maturity date of the Acadian LLC Credit Agreement is August 29, 2027.

Borrowings under the Acadian LLC Credit Agreement bear interest, at Acadian LLC’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5 % and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10 % (“Adjusted Term SOFR”) plus 1 %, plus, in each case, an additional amount ranging from 0.5 % to 1.0 %, with such additional amount based on Acadian LLC’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5 % to 2.0 %, with such additional amount based on Acadian LLC’s Leverage Ratio.

In addition, a commitment fee is charged based on the average daily unused portion of the revolving credit facility under the Acadian LLC Credit Agreement at a per annum rate ranging from 0.25 % to 0.375 %, with such amount based on Acadian LLC’s Leverage Ratio.

The weighted average interest rate for the revolving credit facility was 6.93 %, 6.19 % and 2.64 % in 2024, 2023 and 2022, respectively.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

12) Borrowings and Debt (cont.)

Borrowings under the Acadian Credit Agreement bear interest, at Acadian’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5 % and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10 % (“Adjusted Term SOFR”) plus 1 %, plus, in each case, an additional amount ranging from 0.5 % to 1.0 %, with such additional amount based on Acadian’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR for plus an additional amount ranging from 1.5 % to 2.0 %, with such additional amount based on Acadian’s Leverage Ratio.

In addition, Acadian is charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian Credit Agreement at a per annum rate ranging from 0.25 % to 0.375 %, with such amount based on Acadian’s Leverage Ratio.

The weighted average interest rate for the revolving credit facility was 6.19 %, 2.64 % and 1.60 % in 2023, 2022 and 2021, respectively.

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 2.5 x and the Acadian interest coverage ratio must not be less than 4.0 x.

Under the Acadian LLC Credit Agreement, the ratio of Acadian LLC’s third-party borrowings to Acadian LLC’s trailing twelve months Adjusted EBITDA, as defined by the Acadian LLC Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5 x and the Acadian LLC interest coverage ratio must not be less than 4.0 x.

In July 2016, the Company issued $ 275.0 million of 4.80 % Senior Notes due 2026 (the “2026 Notes”).

7 unchanged sentences

The Company was in compliance with the required covenants related to borrowings and debt facilities as of December 31, 2024.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

13) Income Taxes

Income from continuing operations before income taxes consisted of the following for the years ended December 31 (in millions):

Income before income taxes consisted of the following for the years ended December 31 (in millions):

2024 2023 2022

2 unchanged sentences

Total $ 125.7 $ 96.5 $ 144.8

The components of income tax expense from continuing operations for the years ended December 31 are as follows (in millions):

The components of income tax expense for the years ended December 31 are as follows (in millions):

2024 2023 2022

8 unchanged sentences

Total tax expense (benefit) $ 38.9 $ 29.4 $ 44.2

The Company has recognized income tax expense related to derivative securities within other comprehensive income of $ 0.9 million, $ 1.3 million and $ 0.9 million in the years ended December 31, 2023, 2022 and 2021, respectively.

The Company has recognized income tax benefit related to derivative securities within other comprehensive income of $ 0.9 million, $ 0.9 million and $ 1.3 million in the years ended December 31, 2024, 2023 and 2022, respectively.

The provision for income taxes in 2024, 2023 and 2022 included benefits of $ 0.0 million, $ 0.0 million and $ 0.1 million, respectively, related to the utilization of net operating loss carryforwards.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

2 unchanged sentences

The reconciliation of the difference between the Company’s U.S.

Federal statutory income tax rate and the effective income tax rate for continuing operations for the years ended December 31 is as follows:

Federal statutory income tax rate and the effective income tax rate for the years ended December 31 is as follows:

2024 2023 2022

7 unchanged sentences

Effect of changes in tax law — % 3.5 % — %

Effect of disposal of Affiliates — % — % ( 0.1 ) %

Effect of income from non-controlling interest ( 0.3 ) % ( 0.3 ) % — %

Impact of increased state tax obligations to deferred tax assets ( 1.5 ) % ( 0.5 ) % ( 0.4 ) %

Impact of state tax obligations on deferred tax assets

1.9 % ( 1.5 ) % ( 0.5 ) %

Other ( 0.1 ) % ( 0.4 ) % 1.1 %

Effective income tax rate for continuing operations 30.5 % 30.5 % 28.1 %

Effective income tax rate

31.0 % 30.5 % 30.5 %

The Company’s effective income tax rate is higher than the US federal tax rate of 21% primarily due to its state tax obligations.

During the quarter ended December 31, 2023, Massachusetts enacted a change in the state’s apportionment formula for corporations.

During the year ended December 31, 2023, Massachusetts enacted a change in the state’s apportionment formula for corporations.

The Company measures its deferred tax assets and liabilities at the enacted rates for the period in which these items would reverse.

As a result, the Company recorded the discrete tax impact due to the effect of the change in tax law.

As a result, in the year ended December 31, 2023, the Company recorded the discrete tax impact due to the effect of the change in tax law.

The Company reduced its liability for uncertain tax positions by $ 0.1 million, $ 0.5 million and $ 0.9 million during the years ended December 31, 2024, 2023 and 2022, respectively, due to the lapse of statute of limitations.

2 unchanged sentences

During the year ending December 31, 2023, the Company removed its indefinite reinvestment of foreign unremitted earnings assertion for multiple foreign subsidiaries.

As of December 31, 2024, the Company maintains the assertion that the foreign unremitted earnings of multiple foreign subsidiaries are not permanently reinvested.

The amount of deferred tax recorded during the period was not material.

For foreign subsidiaries whose investments are permanent in duration, income and foreign withholding taxes have not been provided on the unremitted earnings of those subsidiaries.

1 unchanged sentence

The amount of such unremitted earnings and the amount of any unrecognized deferred income tax liability on these unremitted earnings is immaterial at December 31, 2024.

In connection with the sale of its Affiliates, the Company recorded tax expense of $ 0.0 million , $ 0.0 million , and $ 9.4 million, including tax impacts of non-deductible tax items, during the years ended December 31, 2023, 2022 and 2021, respectively.

In addition, during the year ended December 31, 2021, the Company recorded income tax expense of $ 256.7 million in discontinued operations.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

16 unchanged sentences

Net deferred tax assets $ 78.3 $ 69.7

At December 31, 2023 and 2022, the Company’s net deferred tax asset primarily relates to its basis difference in its investment in Acadian Asset Management LLC, which is treated as a partnership for federal income tax purposes.

At December 31, 2024 and 2023, the Company’s net deferred tax asset primarily relates to its basis difference in its investment in Acadian LLC, which is treated as a partnership for federal income tax purposes.

The Company assesses whether a valuation allowance should be established against its deferred income tax assets based on consideration of all available evidence, both positive and negative, using a more likely than not standard.

4 unchanged sentences

As of December 31, 2024, management believes it is more likely than not that the balance of the deferred tax assets will be realized based on forecasted taxable income.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

7 unchanged sentences

Balance as of December 31 $ 1.3 $ 1.1 $ 0.9

The Company’s liability for uncertain tax positions includes unrecognized benefits of $ 0.8 million and $ 0.7 million at December 31, 2023 and 2022, respectively, that if recognized would affect the effective tax rate on income from continuing operations.

The Company’s liability for uncertain tax positions includes unrecognized benefits of $ 1.0 million and $ 0.8 million at December 31, 2024 and 2023, respectively, that if recognized would affect the effective tax rate on income.

The Company recognized $ 0.1 million, $ 0.1 million, and $ 0.0 million in interest and penalties in its income tax provision for the years ended December 31, 2024, 2023 and 2022, respectively.

5 unchanged sentences

The Company and its subsidiaries file tax returns in the U.S., U.K., state, local, and other foreign jurisdictions.

As of December 31, 2023, 2022 and 2021, the Company is generally no longer subject to income tax examinations by U.S.

As of December 31, 2024, the Company is generally no longer subject to income tax examinations by U.S.

federal, state, local, or foreign tax authorities for calendar years prior to 2020.

1 unchanged sentence

The Company estimates a decrease of up to $ 0.7 million within the next twelve months.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

3 unchanged sentences

A number of our subsidiaries operate under regulatory authorities that require that they maintain minimum financial or capital requirements.

Management is not aware of any violations of such financial requirements occurring during the period.

The Company entered into a guaranty for an office space security deposit on behalf of Acadian in the amount of $ 2.5 million in January 2020.

This represents the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guaranty in the event of default by the guaranteed party.

Management is not aware of any violations of such financial requirements occurring during the periods presented.

The Company entered into a guaranty for an office space security deposit on behalf of Acadian LLC in the amount of $ 2.5 million in January 2020.

This represents the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guaranty in the event of default by the guaranteed parties.

This guaranty expires in 2033.

There are no liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023 and 2022, related to this guaranty.

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

Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company or its Affiliate.

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

If an insurance claim or other indemnification for a litigation accrual is available to the Company, the associated gain will not be recognized until all contingencies related to the gain have been resolved.

As of December 31, 2023, there were no material accruals for claims, legal proceedings or other contingencies.

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

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

Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company.

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

As of December 31, 2024 and 2023, 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.

Indemnifications

In the normal course of business, such as through agreements to enter into business combinations and divestitures of Affiliates, the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.

In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties, and which provide general indemnifications.

The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred.

4 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 December 31, 2023, 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 December 31, 2023.

BrightSphere Investment Group Inc.

At December 31, 2024 and 2023, 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 December 31, 2024 and 2023.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

4 unchanged sentences

The Company maintains cash and cash equivalents and short-term investments with various financial institutions.

These financial institutions are typically located in cities in which the Company and its Affiliate operate.

For the Company and its Affiliate, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits.

Additionally, the Company holds insurance policies which cover historical tax benefits relating to certain of its deferred tax assets.

The insurers of the policies are considered a significant counterparty to the Company.

BrightSphere Investment Group Inc.

These financial institutions are typically located in cities in which the Company operates.

Cash deposits at the various financial institutions may exceed Federal Deposit Insurance Corporation insurance limits.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

5 unchanged sentences

2024 2023 2022

Income from continuing operations attributable to controlling interests $ 65.8 $ 100.6 $ 128.1

Income from discontinued operations attributable to controlling interests (Note 3) — — 700.3

Net income attributable to controlling interests

Total income available to participating unvested securities (1)

Total net income attributable to common stock $ 65.8 $ 100.6 $ 828.3

$ 85.0 $ 65.8 $ 100.6

Weighted-average shares of common stock outstanding—basic 37,770,185 41,493,154 42,056,278

4 unchanged sentences

Earnings per share of common stock attributable to controlling interests:

Continuing operations $ 1.59 $ 2.39 $ 1.66

Discontinued operations — — 9.07

Basic earnings per share of common stock attributable to controlling interests $ 1.59 $ 2.39 $ 10.73

Continuing operations $ 1.55 $ 2.33 $ 1.59

Discontinued operations — — 8.70

Diluted earnings per share of common stock attributable to controlling interests $ 1.55 $ 2.33 $ 10.29

(1) Income available to participating unvested securities includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

$ 2.25 $ 1.59 $ 2.39

$ 2.22 $ 1.55 $ 2.33

Management fees

The Company’s management fees are a function of the fee rates the Affiliates charge to their clients, which are typically expressed in basis points, and the levels of the Company’s assets under management.

The Company’s management fees are a function of the fee rates charged to clients, which are typically expressed in basis points, and the levels of the Company’s assets under management.

The most significant driver of increases or decreases in this average fee rate is changes in the mix of the Company’s assets under management caused by net inflows or outflows in certain asset classes or disproportionate market movements.

2 unchanged sentences

Performance fees are recorded in revenues when the contractual performance criteria have been met and when it is probable that a significant reversal of revenue recognized will not occur in future reporting periods.

Other revenue

Included in other revenue are certain payroll and benefits costs and expenses paid on behalf of Funds by the Company’s Affiliates.

In instances where a customer reimburses the Company for a cost paid on the customer’s behalf, the Company is acting as a principal and the reimbursement is accrued on a gross basis at cost as the corresponding reimbursable expenses are incurred.

There was no revenue from expense reimbursements for the year ended December 31, 2023 and 2022.

Revenue from expense reimbursements amounted to $ 2.9 million for the year ended December 31, 2021, and is recorded in other revenue in the Company’s Consolidated Statements of Operations.

Other revenue may also include other miscellaneous revenue, consisting primarily of administration and consulting services.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

16) Revenue (cont.)

Disaggregation of management fee revenue

5 unchanged sentences

Management fee revenue $ 431.1 $ 373.2 $ 367.4

(1) The Company’s previously divested Affiliates, Campbell Global and ICM, are included within the Other category for year ended December 31, 2021.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

17) Employee Benefits

7 unchanged sentences

These non-qualified plans are unfunded, although the Company does make contributions to a Rabbi Trust to hedge its risks in terms of providing returns to employees on their deemed investments held in the plan.

As of December 31, 2023 and 2022, a total of $ 44.5 million and $ 39.9 million, respectively, had been recorded as long-term compensation liabilities and a total of $ 44.7 million and $ 40.0 million had been invested under the Deferred Compensation and Voluntary Deferral plans, respectively.

As of December 31, 2024 and 2023, a total of $ 48.4 million and $ 44.5 million, respectively, had been recorded as long-term compensation liabilities and a total of $ 48.5 million and $ 44.7 million, respectively, had been invested under the Deferred Compensation and Voluntary Deferral plans.

The change in the fair value of long-term compensation liabilities and the change in fair value of the assets invested under the Deferred Compensation and Voluntary Deferral plans was $ 4.6 million and $ 4.6 million, respectively, for the year ended December 31, 2024, $ 4.8 million and $ 4.9 million, respectively, for the year ended December 31, 2023, and $ 4.9 million and $ 4.9 million, respectively, for the year ended December 31, 2022.

The Company recorded total expenses in relation to its qualified and non-qualified plans within compensation and benefits in its Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022 of $ 8.5 million, $ 5.5 million and $ 6.0 million, respectively.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

18) Equity-based Compensation

Cash-settled Affiliate awards

The Company maintains compensation arrangements with certain of its Affiliates whereby in exchange for continued service, Affiliate equity is either purchased by, or granted to Affiliate key employees subject to a limit imposed by the Company, and may be repurchased either by Affiliate key employees or by the Company at a future date at the then applicable fair value, subject to service requirements having been met.

Cash-settled Acadian LLC awards

The Company maintains a compensation arrangement with Acadian LLC whereby in exchange for continued service, Acadian LLC equity is either purchased by, or granted to Acadian LLC key employees subject to a limit imposed by the Company, and may be repurchased either by Acadian LLC key employees or by the Company at a future date at the then applicable fair value, subject to service requirements having been met.

Compensation expense is recognized over the requisite service period equal to the cumulative vested fair value of the award at the end of each period up to the vesting date.

The Company accounts for these arrangements as “cash-settled” share-based payments, and accordingly a corresponding share-based payment liability is recorded.

The Company accounts for the arrangement as “cash-settled” share-based payments, and accordingly a corresponding share-based payment liability is recorded.

The fair value of the liabilities are determined with the assistance of third party valuation specialists using discounted cash flow analyses, which incorporate assumptions for the forecasted earnings information, market risk adjustments, discount rates, when award holders maximize value and post-vesting restrictions.

Vested Affiliate equity liabilities are revalued at each period end until settlement date, with changes in the liabilities included within compensation expense.

Vested Acadian LLC liability-classified equity awards are revalued at each period end until settlement date, with changes in the liabilities included within compensation expense.

The following table presents the changes in the share-based payments liability for the years ended December 31 (in millions):

2 unchanged sentences

Amortization and revaluation of granted awards 10.5 6.2 ( 4.6 )

Affiliate disposals — — ( 0.8 )

Repurchases (cash-settled) ( 8.1 ) ( 2.6 ) ( 4.1 )

1 unchanged sentence

Equity-settled corporate awards

BrightSphere Investment Group equity incentive plan

Acadian Asset Management Inc.

equity incentive plan

The Company has established various plans under which it is authorized to grant restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance-based restricted stock awards (“Performance-based RSAs”), performance-based restricted stock units (“Performance-based RSUs”) and stock option awards.

2 unchanged sentences

As of December 31, 2024, the Company had 4.5 million shares of common stock available to be granted under the various plans.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

19) Equity-based Compensation (cont.)

Compensation expense recognized by the Company for the years ended December 31, 2024, 2023 and 2022 in relation to these awards was $ 0.9 million, $ 1.2 million, and $ 2.4 million respectively.

3 unchanged sentences

It is anticipated that annual awards for 2024 with a fair value of $ 0.8 million will be granted during 2025 with a service inception date of January 1, 2024.

The following summarizes the grant date fair value of the instruments granted by the Company during the year ended December 31:

2023 2022 2021

BrightSphere Investment Group Inc.

awards Shares granted Weighted average fair value Shares granted Weighted average fair value Shares granted Weighted average fair value

RSUs 49,494 24.04 59,999 22.62 15,548 22.06

Grants of restricted stock in BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2024 and 2023

18) Equity-based Compensation (cont.)

Grants of restricted stock in Acadian Asset Management Inc.

The following table summarizes the activity related to restricted stock awards:

2024 2023 2022

BrightSphere Investment Group Inc.

RSAs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Acadian Asset Management Inc.

Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Outstanding at beginning of the year

8 unchanged sentences

Restricted stock awards under the plan generally have a vesting period of one to three years .

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

19) Equity-based Compensation (cont.)

Grants of restricted stock units in BrightSphere Investment Group Inc.

Grants of restricted stock units in Acadian Asset Management Inc.

The following table summarizes the activity related to restricted stock units:

2024 2023 2022

BrightSphere Investment Group Inc.

RSUs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Acadian Asset Management Inc.

Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Outstanding at beginning of the year

7 unchanged sentences

Restricted stock units under the plan generally have a vesting period of one to three years .

Grants of Performance-based restricted stock awards in BrightSphere Investment Group Inc.

The following table summarizes the activity related to performance-based restricted stock awards:

2023 2022 2021

BrightSphere Investment Group Inc.

Performance-based RSAs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Outstanding at beginning of the year

— $ — — $ — 83,092 $ 9.78

Vested during the year — — — — ( 36,007 ) 9.78

Other movements — — — — ( 47,085 ) 9.78

Outstanding at end of the year

— $ — — $ — — $ —

Other movements includes performance-based RSAs that did not meet the market vesting condition and did not vest during the year ended December 31, 2021.

There were no performance-based RSAs granted by the Company during the years ended December 31, 2023, 2022, and 2021.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

18) Equity-based Compensation (cont.)

Grants of Performance-based restricted stock units in BrightSphere Investment Group Inc.

Grants of Performance-based restricted stock units in Acadian Asset Management Inc.

The following table summarizes the activity related to performance-based restricted stock units:

2024 2023 2022

BrightSphere Investment Group Inc.

Performance-based RSUs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Acadian Asset Management Inc.

Performance-based RSUs

Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share

Outstanding at beginning of the year

6 unchanged sentences

Performance-based RSUs under the plan have a vesting period of three years .

Grants of Stock Options in BrightSphere Investment Group Inc.

Grants of Stock Options in Acadian Asset Management Inc.

The following tables summarizes the activity related to the Company’s stock option awards:

3 unchanged sentences

Forfeited during the year

( 75,000 ) 10.00

Exercised during the year

4 unchanged sentences

— $ — 0.0 $ —

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

4 unchanged sentences

2,470,463 $ 10.97 1.6

Granted during the year

Forfeited during the year

( 75,000 ) 10.00

Exercised during the year

19 unchanged sentences

Shares issued upon exercise of the options represent newly issued shares.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

19) Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021 were as follows (in millions):

The components of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2024, 2023 and 2022 were as follows (in millions):

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of December 31, 2021

$ 4.8 $ ( 15.6 ) $ ( 10.8 )

Foreign currency translation adjustment before tax

( 3.1 ) — ( 3.1 )

Amortization related to derivatives securities, before tax (1)

Tax impact — ( 1.3 ) ( 1.3 )

Other comprehensive income 0.4 2.4 2.8

Other comprehensive income (loss)

( 3.1 ) 3.3 0.2

Balance, as of December 31, 2022

Foreign currency translation adjustment before tax

$ 1.7 $ ( 12.3 ) $ ( 10.6 )

Foreign currency translation adjustment before tax

Amortization related to derivatives securities, before tax

3 unchanged sentences

Foreign currency translation adjustment before tax

( 0.5 ) — ( 0.5 )

Amortization related to derivatives securities, before tax

5 unchanged sentences

As a result of this transaction, the Company recorded $ 1.3 million of amortization expense included in the Amortization related to derivative securities, before tax.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

7 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.

Amounts recorded in accumulated other comprehensive income in connection with the settled Treasury rate lock were $ 2.5 million, net of tax of $( 0.9 ) million for the year ended December 31, 2023.

As of December 31, 2023, the balance in accumulated other comprehensive income (loss) in connection with the Treasury rate lock contract amounted to $( 9.8 ) million, net of tax.

As of December 31, 2024, the balance recorded in accumulated other comprehensive income (loss) in connection with the Treasury rate lock contract amounted to $( 7.1 ) million, net of tax.

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

5 unchanged sentences

The Company has the following reportable segment:

and small-cap equities, as well as managed volatility, systematic macro, equity alternatives, and credit strategies.

This segment is comprised of the Company’s interest in Acadian.

The corporate head office is included within the Other category, along with its previously disposed Affiliate, Campbell Global, for the year ended December 31, 2021.

The Company completed the sale of its equity interests in Campbell Global in August 2021.

ICM is included in the Other category for the year ended December 31, 2021.

The Company completed the sale of its equity interests in ICM in July 2021.

The corporate head office expenses are not allocated to the Company’s business segment, but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of the segment.

BrightSphere Investment Group Inc.

portfolios include developed and developing markets for equity, credit and alternative strategies.

This segment is comprised of the Company’s interest in Acadian LLC.

The corporate holding company (“Hold Co”) is included within the Unallocated Corporate expenses category.

The Hold Co expenses are not allocated to the Company’s business segment, but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of the segment.

The CODM is the Company’s Chief Executive Officer.

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

2 unchanged sentences

Performance Measure

The primary measure used by the CODM in measuring performance and allocating resources to the segments is economic net income (“ENI”).

The Company defines economic net income for the segments as ENI revenue less (i) ENI operating expenses, (ii) variable compensation and (iii) key employee distributions.

The primary measure used by the CODM in measuring performance and allocating resources to the segment is economic net income (“ENI”).

ENI is used to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management.

The Company defines ENI for the segment as ENI revenue less ENI operating expenses.

The ENI adjustments to U.S.

1 unchanged sentence

GAAP revenue and expense items, as well as adjustments to U.S.

GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S.

GAAP results, primarily to exclude non-cash, non-economic expenses recognized under U.S.

This measure supplements and should be considered in addition to, and not in lieu of, the Consolidated Statements of Operations prepared in accordance with U.S.

The Company does not disclose total asset information for its reportable segments as the information is not reviewed by the CODM.

The Company does not disclose total asset information for its reportable segment as the information is not reviewed by the CODM.

ENI revenue includes management fees, performance fees and other revenue under U.S.

GAAP, adjusted to include management fees paid to Affiliates by consolidated Funds and the Company’s share of earnings from its equity-accounted Affiliate.

ENI revenue is also adjusted to exclude the separate revenues recorded under U.S.

GAAP for certain Fund expenses reimbursed to our Affiliates.

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

GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, amortization of acquired intangible assets, capital transaction costs, restructuring costs, and the separate expenses recorded under U.S.

GAAP for certain Fund expenses reimbursed to Affiliates.

Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses.

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.

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

Significant segment ENI expenses include fixed compensation and benefits, variable compensation, and Acadian LLC key employee distributions included in compensation and benefits expense under U.S.

GAAP, depreciation and amortization under U.S.

GAAP, adjusted to exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, capital transaction costs, and restructuring costs.

Other segment items include ENI general and administrative expense under U.S.

GAAP, adjusted to exclude restructuring costs and include sales based compensation.

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

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

2 unchanged sentences

Segment Presentation

The following tables set forth summarized operating results for the Company’s segments and related adjustments necessary to reconcile the segment economic net income to arrive at the Company's consolidated U.S.

GAAP net income (loss).

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

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 423.6 $ — $ 3.0 (a) $ 426.6

ENI operating expenses 184.2 14.2 4.9 (b) 203.3

Earnings before variable compensation 239.4 ( 14.2 ) ( 1.9 ) 223.3

Variable compensation 102.2 2.7 7.3 (c)

ENI operating earnings (after variable comp) 137.2 ( 16.9 ) ( 9.2 ) 111.1

Affiliate key employee distributions 5.1 — — 5.1

Earnings after Affiliate key employee distributions 132.1 ( 16.9 ) ( 9.2 ) 106.0

Net interest expense — ( 11.8 ) ( 1.7 ) (d)

Net investment income

Net (income) loss attributable to non-controlling interests in consolidated Funds

— — ( 1.3 ) (e)

Income tax expense — ( 27.7 ) ( 1.7 ) (f)

Economic net income $ 132.1 $ ( 56.4 ) $ ( 9.9 ) $ 65.8

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

22) Segment Information (cont.)

The following table presents the financial data for the Company’s segments for the year ended December 31, 2022 (in millions):

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 416.8 $ — $ 0.4 (a) $ 417.2

ENI operating expenses 165.5 16.6 ( 38.2 ) (b) 143.9

Earnings before variable compensation 251.3 ( 16.6 ) 38.6 273.3

The following table sets forth summarized operating results for the Company’s segment and related adjustments necessary to reconcile the segment economic net income to arrive at the Company’s consolidated U.S.

GAAP net income attributable to controlling interests for the years ended December 31 (in millions):

($ in millions) 2024 2023 2022

GAAP consolidated revenue

$ 505.6 $ 426.6 $ 417.2

Exclude revenue from consolidated Funds

Quant & Solutions segment ENI revenue

$ 502.5 $ 423.6 $ 416.8

Quant & Solutions segment ENI expenses

Fixed compensation and benefits

90.7 86.6 79.0

Variable compensation

ENI operating earnings (after variable comp) 155.3 ( 20.9 ) 38.6 173.0

Affiliate key employee distributions 5.1 — — 5.1

Earnings after Affiliate key employee distributions 150.2 ( 20.9 ) 38.6 167.9

Net interest expense — ( 17.3 ) ( 2.4 ) (d)

Net investment loss

— — ( 0.2 ) (e)

Loss on extinguishment of debt — — ( 3.2 ) (e) ( 3.2 )

Income tax expense — ( 30.4 ) ( 13.8 ) (f)

Economic net income $ 150.2 $ ( 68.6 ) $ 19.0 $ 100.6

BrightSphere Investment Group Inc.

119.9 102.2 96.0

Acadian LLC key employee distributions

Depreciation and amortization

18.1 17.3 18.1

Other segment items

87.9 80.3 68.4

Segment economic net income

$ 176.2 $ 132.1 $ 150.2

Reconciliation of segment ENI to net income attributable to controlling interests:

Unallocated corporate expenses

( 19.4 ) ( 19.1 ) ( 22.2 )

Adjustments and reconciling items

1.9 ( 7.1 ) ( 0.1 )

Non-cash compensation expenses for Acadian LLC key employee equity and profit interest revaluations

( 23.2 ) 0.1 40.0

Investment income (loss) 2.2 ( 0.1 ) 0.2

Interest income 3.5 6.1 0.8

Interest expense ( 19.4 ) ( 19.6 ) ( 20.5 )

Loss on extinguishment of debt

Net consolidated Funds' investment gains (losses)

3.9 4.1 ( 0.4 )

Income before income taxes

$ 125.7 $ 96.5 $ 144.8

Income tax expense ( 38.9 ) ( 29.4 ) ( 44.2 )

Consolidated net income

$ 86.8 $ 67.1 $ 100.6

Net income attributable to non-controlling interests in consolidated Funds ( 1.8 ) ( 1.3 ) —

Net income attributable to controlling interests $ 85.0 $ 65.8 $ 100.6

Acadian Asset Management Inc.

Notes to Consolidated Financial Statements (Continued)

1 unchanged sentence

21) Segment Information (cont.)

The following table presents the financial data for the Company’s segments for the year ended December 31, 2021 (in millions):

Quant & Solutions Liquid Alpha Other Reconciling Adjustments Total U.S.

ENI revenue $ 488.1 $ — $ 35.4 $ 0.3 (a) $ 523.8

ENI operating expenses 160.8 — 32.0 41.3 (b) 234.1

Earnings before variable compensation 327.3 — 3.4 ( 41.0 ) 289.7

Variable compensation 100.8 — 28.8 0.9 (c)

ENI operating earnings (after variable comp) 226.5 — ( 25.4 ) ( 41.9 ) 159.2

Affiliate key employee distributions 12.4 — 1.0 — 13.4

Earnings after Affiliate key employee distributions 214.1 — ( 26.4 ) ( 41.9 ) 145.8

Net interest expense — — ( 22.3 ) ( 2.3 ) (d)

Net investment income

— — — 8.3 (e)

Gain on sale of subsidiaries — — — 48.6 (e)

Net income attributable to non-controlling interests in consolidated Funds — — — ( 68.0 ) (e)

Income tax expense — — ( 47.1 ) ( 2.9 ) (f)

Income from discontinued operations, net of tax — — — 77.3 (g) 77.3

Gain on disposal of discontinued operations, net of tax

— — — 691.0 (h)

Economic net income $ 214.1 $ — $ ( 95.8 ) $ 710.1 $ 828.4

(1) The most directly comparable U.S.

GAAP measure of ENI revenue is U.S.

GAAP revenue.

The most directly comparable U.S.

GAAP measure of ENI operating expenses is U.S.

GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation and Affiliate key employee distributions above.

The most directly comparable U.S.

GAAP measure of earnings after Affiliate key employee distributions is U.S.

GAAP operating income.

The most directly comparable U.S.

GAAP measure of ENI is U.S.

GAAP net income attributable to controlling interests.

Reconciling Adjustments:

(a) Adjusted to exclude earnings from equity-accounted Affiliate, which are included in U.S.

GAAP investment income, and to include consolidated Funds revenues and the separate revenues recorded for certain Fund expenses reimbursed by customers, which are included in U.S.

(a) Adjustment to exclude consolidated Funds revenues, which are included in U.S.

GAAP revenue.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements (Continued)

December 31, 2023 and 2022

22) Segment Information (cont.)

(b) Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, amortization of acquired intangible assets, restructuring costs, consolidated Funds’ operating expenses and the Fund expenses reimbursed by customers, each of which are included in U.S.

GAAP operating expenses.

GAAP compensation expense.

(d) Adjusted to include the cost of seed financing and amortization of debt issuance costs, which is included in U.S.

GAAP interest expense.

(e) Adjusted to include net investment income (loss), the loss on extinguishment of debt, net (income) loss attributable to non-controlling interests in consolidated Funds, and the gain on sale of subsidiaries, all of which are included in U.S.

(b) Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided, adjusted for severance relating to restructuring costs.

Amounts are adjusted for non-cash Acadian LLC key employee equity revaluations and severance relating to restructuring costs.

(d) Acadian LLC key employee distributions includes the share of Acadian LLC profits after variable compensation that is attributable to the Acadian LLC key employee equity and profits interests holders, according to their ownership interests.

(e) Depreciation and amortization includes U.S.

GAAP depreciation and amortization, adjusted for costs associated with the wind-down of the MACS business in the standalone format.

(f) Other segment items includes segment systems, portfolio administration costs and other general & administrative expenses adjusted to exclude restructuring costs.

(g) Included in unallocated corporate expenses for the years ended December 31, 2024, 2023 and 2022 was compensation and benefits of $ 10.0 million, $ 9.2 million, and $ 11.4 million, respectively, related to Hold Co which are included in U.S.

GAAP net income attributable to controlling interests.

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

Adjusted to include tax expense or benefits relating to uncertain tax positions, the tax impact of certain ENI adjustments and other unusual items that are not included in current operating results for ENI purposes.

(g) Adjusted to include the results of discontinued operations, net of tax, which is included in U.S.

Included in unallocated corporate expenses for the years ended December 31, 2024, 2023 and 2022 was general and administrative expenses of $ 9.4 million, $ 9.9 million, and $ 10.4 million, respectively, related to Hold Co which are included in U.S.

GAAP net income attributable to controlling interests.

(h) Adjusted to include the gain on disposal of discontinued operations, net of tax, which is included in U.S.

Included in unallocated corporate expenses for the year ended December 31, 2022 was depreciation expense of $ 0.4 million related to Hold Co which is include in U.S.

GAAP net income attributable to controlling interests.

23) Subsequent Events

During the period from January 1, 2024 through February 26, 2024, the Company repurchased 3.3 million shares of common stock at a weighted average price of $ 20.93 per share, or approximately $ 68.9 million in total, including commissions.

As of February 27, 2024, the outstanding balance on Acadian’s revolving credit facility was $ 84 million.

(h) Adjustments and reconciling items includes consolidated Funds revenue, consolidated Fund expense, and restructuring costs.

(i) Non-cash Acadian LLC key employee equity revaluations represent changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, which are included within the U.S.

GAAP compensation and benefits expense.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

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-K

Item 8. Financial Statements and Supplementary Data