What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-08 compared with 2024-11-07 · 217 added, 338 removed, 386 unchanged (59% of the section changed)

Financial Statements.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Condensed Consolidated Balance Sheets

(in millions, except for share and per share data, unaudited)

September 30,

2025 December 31,

19 unchanged sentences

Operating lease liabilities 65.5 67.3

Other liabilities 0.5 0.8

Revolving credit facility 80.0 —

Third party borrowings 274.4 274.3

1 unchanged sentence

Accounts payable and accrued expenses 0.8 0.5

Derivative liabilities 0.1 0.1

Other liabilities

Securities sold short

5 unchanged sentences

Additional paid-in capital — —

Retained earnings (deficit) ( 14.0 ) 46.9

Retained earnings 24.9 24.4

Accumulated other comprehensive loss ( 3.2 ) ( 4.4 )

Total equity (deficit) and redeemable non-controlling interests in consolidated Funds ( 3.8 ) 49.5

Total equity and redeemable non-controlling interests in consolidated Funds

Total liabilities and equity $ 677.3 $ 703.2

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Condensed Consolidated Statements of Operations

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Management fees $ 112.9 $ 102.2

10 unchanged sentences

Non-operating income and (expense):

Investment income (loss) 1.5 ( 0.3 ) 2.5 0.2

Investment income 0.3 0.9

Interest income 1.1 1.3

5 unchanged sentences

Net income 23.8 15.7

Net income attributable to non-controlling interests in consolidated Funds 2.1 0.2 3.7 0.3

Net income attributable to redeemable non-controlling interests in consolidated Funds 3.7 1.1

Net income attributable to controlling interests $ 20.1 $ 14.6

4 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Condensed Consolidated Statements of Comprehensive Income

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income $ 23.8 $ 15.7

1 unchanged sentence

Amortization related to derivative securities, net of tax

0.7 0.7 2.0 1.9

Foreign currency translation adjustment, net of tax

0.8 ( 0.9 ) 0.8 0.6

Total other comprehensive income (loss) 1.5 ( 0.2 ) 2.8 2.5

Comprehensive income attributable to non-controlling interests in consolidated Funds 2.1 0.2 3.7 0.3

Total other comprehensive income 1.2 0.5

Comprehensive income attributable to redeemable non-controlling interests in consolidated Funds 3.7 1.1

Total comprehensive income attributable to controlling interests $ 21.3 $ 15.1

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended September 30, 2024 and 2023

For the three months ended March 31, 2025 and 2024

($ in millions except share data, unaudited)

4 unchanged sentences

stockholders’

equity (deficit) Redeemable non-controlling

equity (deficit) Redeemable non-controlling interests in consolidated

Funds Total equity (deficit) and

non-controlling

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

Capital contributions — — — — — — 7.7 7.7

Equity-based compensation — — 0.3 — — 0.3 — 0.3

Foreign currency translation adjustment

— — — — ( 0.9 ) ( 0.9 ) — ( 0.9 )

Amortization related to derivatives securities, net of tax — — — — 0.7 0.7 — 0.7

Net de-consolidation of Funds — — — — — — ( 1.9 ) ( 1.9 )

Dividends ($ 0.01 per share)

— — — ( 0.5 ) — ( 0.5 ) — ( 0.5 )

Net income — — — 19.6 — 19.6 0.2 19.8

September 30, 2023 41.5 $ — $ 1.8 $ 29.2 $ ( 8.1 ) $ 22.9 8.3 31.2

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

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

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

Repurchases of common stock including excise taxes

Repurchase of common stock including excise taxes

( 3.5 ) — ( 0.2 ) ( 74.8 ) — ( 75.0 ) — ( 75.0 )

2 unchanged sentences

Foreign currency translation adjustment, net of tax

Amortization related to derivatives securities, net of tax — — — — 0.7 0.7 — 0.7

Withholding tax related to stock option exercise and restricted stock vesting

— — — — ( 0.2 ) ( 0.2 ) — ( 0.2 )

Dividends ($ 0.01 per share)

— — — ( 0.4 ) — ( 0.4 ) — ( 0.4 )

Net income — — — 16.9 — 16.9 2.1 19.0

September 30, 2024 37.3 $ — $ — $ ( 14.0 ) $ ( 3.9 ) $ ( 17.9 ) 14.1 $ ( 3.8 )

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the nine months ended September 30, 2024 and 2023

($ in millions except share data, unaudited)

(millions) Common stock,

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

comprehensive

income (loss) Total

stockholders’

equity (deficit) Redeemable non-controlling interests in consolidated

Funds Total equity (deficit) and

non-controlling

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

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

Capital contributions — — — — — — 9.9 9.9

Equity-based compensation — — 1.0 — — 1.0 — 1.0

Foreign currency translation adjustment — — — — 0.6 0.6 — 0.6

Amortization related to derivatives securities, net of tax — — — — 0.7 0.7 — 0.7

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

Net de-consolidation of Funds — — — — — — ( 1.9 ) ( 1.9 )

Dividends ($ 0.01 per share)

1 unchanged sentence

Net income — — — 14.6 — 14.6 1.1 15.7

September 30, 2023 41.5 $ — $ 1.8 $ 29.2 $ ( 8.1 ) $ 22.9 $ 8.3 $ 31.2

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

December 31, 2024 37.5 $ — $ — $ 24.4 $ ( 4.4 ) $ 20.0 $ 67.1 $ 87.1

Issuance of common stock 0.3 — 0.1 — — 0.1 — 0.1

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

Capital contributions — — — — — — 1.1 1.1

Repurchase of common stock including excise taxes

( 0.8 ) — ( 0.4 ) ( 19.2 ) — ( 19.6 ) — ( 19.6 )

Equity-based compensation — — 0.6 — — 0.6 — 0.6

1 unchanged sentence

Amortization related to derivative securities, net of tax — — — — 0.7 0.7 — 0.7

Withholding tax related to stock option exercise and restricted stock vesting — — ( 0.3 ) ( 6.9 ) — ( 7.2 ) — ( 7.2 )

Withholding tax related to restricted stock vesting

— — ( 0.2 ) — — ( 0.2 ) — ( 0.2 )

Dividends ($ 0.01 per share)

1 unchanged sentence

Net income — — — 20.1 — 20.1 3.7 23.8

September 30, 2024 37.3 $ — $ — $ ( 14.0 ) $ ( 3.9 ) $ ( 17.9 ) $ 14.1 $ ( 3.8 )

March 31, 2025 36.7 $ — $ — $ 24.9 $ ( 3.2 ) $ 21.7 $ 70.8 $ 92.5

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Condensed Consolidated Statements of Cash Flows

(in millions, unaudited)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

Net income $ 23.8 $ 15.7

Net (income) loss attributable to redeemable non-controlling interests in consolidated Funds ( 3.7 ) ( 0.3 )

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

( 3.7 ) ( 1.1 )

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

Depreciation and other amortization 14.1 12.7

Depreciation and amortization

Amortization of debt-related costs 1.1 1.1

4 unchanged sentences

Decrease in investment advisory fees receivable 32.7 24.4

Increase in other receivables, prepayments, deposits and other assets ( 2.0 ) ( 2.7 )

Decrease in other receivables, prepayments, deposits and other assets 3.6 2.6

(Decrease) in accrued incentive compensation, operating lease liabilities and other liabilities ( 101.6 ) ( 72.1 )

14 unchanged sentences

Sale of investment securities 16.8 3.3

Cash flows from investing activities of consolidated Funds

Deconsolidation of Funds — ( 12.5 )

Net cash flows from investing activities 11.8 ( 1.4 )

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Condensed Consolidated Statements of Cash Flows

(in millions, unaudited)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from financing activities:

2 unchanged sentences

( 20.0 ) ( 28.0 )

Payment for debt issuance costs ( 0.6 ) —

Payment to OM plc for co-investment redemptions — ( 0.2 )

1 unchanged sentence

Dividends paid to related parties ( 0.2 ) ( 0.1 )

Repurchases of common stock ( 94.9 ) —

Repurchase of common stock

( 17.8 ) ( 74.3 )

Withholding tax payments related to stock option exercise and restricted stock vesting ( 0.2 ) ( 1.8 )

10 unchanged sentences

Supplemental disclosure of non-cash financing transactions:

Excise tax payable on repurchases of common stock

Payable for repurchases of common stock

Excise tax on repurchases of common stock

See Notes to Condensed Consolidated Financial Statements

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

1) Organization and Description of the Business

BrightSphere Investment Group Inc.

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

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

The Company operates a differentiated investment management business through its majority owned subsidiary, Acadian Asset Management LLC (“Acadian” or the “Affiliate”), a leading systematic manager of active global, international equity and alternative strategies.

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, equity alternatives including macro, 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, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies.

The Company’s Quant & Solutions reportable segment consists of Acadian LLC:

• Quant & Solutions —incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors;

portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative 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.

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.

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

As of September 30, 2024, Paulson & Co.

As of March 31, 2025, Paulson & Co.

(“Paulson”) and related parties thereof held approximately 24.4 % of the common stock of the Company.

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

For the three months ended March 31, 2025, the Company repurchased 770,812 shares of common stock at an average price of $ 25.09 per share, or approximately $ 19.4 million in total, including commissions.

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

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

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

3 unchanged sentences

These unaudited Condensed 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 Condensed Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.”

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

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

2 unchanged sentences

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

however, material intercompany balances and transactions among the Company, its consolidated Affiliate 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.

Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (annual report on Form 10-K) are not required to be included on an interim basis in the Company’s quarterly reports on Form 10-Q.

5 unchanged sentences

Actual results could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements.

New accounting standards not yet adopted

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 does not expect the additional disclosure requirements under ASU 2023-07 to have a material impact on the condensed consolidated financial statements.

BrightSphere Investment Group Inc.

Recently adopted accounting standards

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 and interim periods within those annual periods.

Early adoption is permitted.

The adoption of this standard did not have a material impact on the Condensed Consolidated Financial Statements and related disclosures.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

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

New accounting standards not yet adopted

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.

This amendment is effective for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025.

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

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 condensed 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 Condensed Consolidated Financial Statements and has 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 unaudited Condensed Consolidated Financial Statements, including those that have not yet been adopted.

2 unchanged sentences

Investments are comprised of the following as of the dates indicated (in millions):

September 30,

2025 December 31,

4 unchanged sentences

Total investments per Condensed Consolidated Balance Sheets $ 208.7 $ 221.9

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

4) Fair Value Measurements

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

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2025 (in millions):

Quoted prices

1 unchanged sentence

(Level II) Significant

(Level III) Uncategorized Total value, September 30,

Assets of BSIG and consolidated Funds (1)

(Level III) Uncategorized Total value, March 31, 2025

Assets of AAMI and consolidated Funds

Common and preferred stock

4 unchanged sentences

Consolidated Funds total (1)

94.6 61.2 — — 155.8

Investments related to long-term incentive compensation plans (2)

2 unchanged sentences

— — — 19.9 19.9

BSIG total 48.8 — — 19.7 68.5

33.0 — — 19.9 52.9

Total fair value assets $ 127.6 $ 61.2 $ — $ 19.9 $ 208.7

4 unchanged sentences

Consolidated Funds total (1)

( 20.3 ) ( 0.5 ) — — ( 20.8 )

Total fair value liabilities $ ( 20.3 ) $ ( 0.5 ) $ — $ — $ ( 20.8 )

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

5 unchanged sentences

(Level III) Uncategorized Total value December 31, 2024

Assets of BSIG and consolidated Funds (1)

Assets of AAMI and consolidated Funds

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

3 unchanged sentences

Consolidated Funds total (1)

Investments in separate accounts (2)

94.2 59.8 — — 154.0

3 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

4 unchanged sentences

Consolidated Funds total (1)

( 20.4 ) ( 0.3 ) — — ( 20.7 )

Total fair value liabilities $ ( 20.4 ) $ ( 0.3 ) $ — $ — $ ( 20.7 )

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

(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.

4 unchanged sentences

Assets of consolidated Funds also include investments in Corporate bonds.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

4 unchanged sentences

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

(2) Investments in separate accounts of $ 2.1 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 $ 48.8 million and $ 44.7 million at September 30, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates.

(2) Investments related to long-term incentive compensation plans of $ 33.0 million and $ 48.5 million at March 31, 2025 and December 31, 2024, 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.

(4) The uncategorized amounts of $ 19.7 million and $ 17.9 million at September 30, 2024 and December 31, 2023, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy.

(3) The uncategorized amounts of $ 19.9 million and $ 19.4 million at March 31, 2025 and December 31, 2024, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy.

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

2 unchanged sentences

Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $ 3.4 million and $ 3.6 million at September 30, 2024 and December 31, 2023, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds.

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

The real estate investment Funds of $ 3.0 million and $ 2.9 million at March 31, 2025 and December 31, 2024, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds.

The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year from March 31, 2025.

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

2 unchanged sentences

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

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

BrightSphere Investment Group Inc.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three months ended March 31, 2025 and 2024.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

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):

September 30,

2025 December 31,

9 unchanged sentences

The Company’s involvement with Funds that are VIEs and not consolidated by the Company is generally limited to that of an investment manager and its investment in the unconsolidated VIE, if any.

The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIE’s results are attributable to third parties.

The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees.

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 Condensed Consolidated Financial Statements

1 unchanged sentence

The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions):

September 30,

2025 December 31,

Unconsolidated VIE assets $ 641.7 $ 669.1

Unconsolidated VIE liabilities $ 311.5 $ 316.5

Equity interests on the Condensed Consolidated Balance Sheets $ 3.4 $ 3.6

Maximum risk of loss (1)

(1) Includes equity investments the Company has made.

6) Borrowings and Debt

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

September 30, 2024 December 31, 2023

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

Revolving credit facility:

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

$ — $ — 2 $ — $ —

Total revolving credit facility $ — $ — $ — $ —

Third party borrowings:

$ 275 million 4.80 % Senior Notes Due

July 27, 2026 (3)

$ 274.2 $ 269.1 2 $ 273.9 $ 263.1 2

Total third party borrowings $ 274.2 $ 269.1 $ 273.9 $ 263.1

(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’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.

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements

6) Borrowings and Debt (cont.)

Revolving credit facility

On August 29, 2024, Acadian, 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 Credit Agreement”), which replaced Acadian’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 Credit Agreement is August 29, 2027.

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 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.

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.

Maximum exposure to loss (1)

(1) Includes the carrying value of investments the Company has made in the unconsolidated VIEs in which the Company is not the primary beneficiary.

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

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.

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

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

The following table summarizes information about the Company’s operating leases for the three months ended March 31, 2025 and 2024 (in millions):

Three Months Ended March 31,

Operating lease cost $ 2.2 $ 2.2

5 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 nine months ended

BrightSphere Investment Group Inc.

For the three months ended March 31, 2025 and 2024, the weighted average remaining lease term was 8.3 years and 9.3 years, respectively, and the weighted average discount rate was 3.55 % and 3.52 %, respectively.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

6) Leases (cont.)

September 30, 2024 and 2023, the weighted average remaining lease term was 8.8 years and 9.7 years, respectively, and the weighted average discount rate was 3.52 % and 3.53 %, respectively.

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

1 unchanged sentence

Year Ending December 31,

2024 (excluding the nine months ended September 30, 2024)

2025 (excluding the three months ended March 31, 2025)

Thereafter 33.2

1 unchanged sentence

Less imputed interest ( 9.9 )

7) Borrowings and Debt

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

March 31, 2025 December 31, 2024

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

Revolving credit facility:

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

$ 80.0 $ 80.0 2 $ — $ —

Total revolving credit facility $ 80.0 $ 80.0 $ — $ —

Third party borrowings:

$ 275 million 4.80 % Senior Notes Due

July 27, 2026 (3)

$ 274.4 $ 271.4 2 $ 274.3 $ 271.7 2

Total third party borrowings $ 274.4 $ 271.4 $ 274.3 $ 271.7

(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.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

7) Borrowings and Debt (cont.)

Revolving credit facility

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

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

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.

8) Commitments and Contingencies

1 unchanged sentence

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.

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 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 related to this guaranty.

There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 related to this guaranty.

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

1 unchanged sentence

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

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

BrightSphere Investment Group Inc.

As of March 31, 2025, 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.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Indemnifications

In the normal course of business, such as through agreements to enter into business combinations and divestitures of Affiliates, the Company has entered 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 September 30, 2024, management of the Company has estimated the potential maximum exposure and concluded that it is not material.

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

At March 31, 2025, management of the Company has estimated the potential maximum exposure and concluded that it is not material.

No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at March 31, 2025.

Considerations of credit risk

1 unchanged sentence

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 Condensed Consolidated Financial Statements

3 unchanged sentences

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

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Net income attributable to controlling interests $ 20.1 $ 14.6

8 unchanged sentences

Management fees

The Company’s management fees are a function of the fee rates the Affiliate charges to its 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.

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

Disaggregation of management fee revenue

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

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

The geographic disaggregation of management fee revenue for the three months ended March 31, 2025 and 2024 are as follows (in millions):

Three Months Ended March 31,

Quant & Solutions

$ 85.9 $ 77.3

26.5 23.3 77.4 69.4

Management fee revenue $ 112.9 $ 102.2

11) Accumulated Other Comprehensive Income (Loss)

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

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2025 and 2024 are as follows (in millions):

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of June 30, 2024

Balance, as of December 31, 2024

$ 2.7 $ ( 7.1 ) $ ( 4.4 )

1 unchanged sentence

Amortization related to derivatives securities before tax

— $ 0.9 $ 0.9

Tax impact — ( 0.3 ) ( 0.3 )

Other comprehensive income 0.5 0.7 1.2

Balance, as of September 30, 2024

Balance, as of March 31, 2025

$ 3.2 $ ( 6.4 ) $ ( 3.2 )

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of June 30, 2023

Balance, as of December 31, 2023

$ 3.1 $ ( 9.8 ) $ ( 6.7 )

2 unchanged sentences

Amortization related to derivatives securities before tax

— $ 0.9 $ 0.9

Tax impact 0.1 ( 0.2 ) ( 0.1 )

Other comprehensive income (loss) ( 0.2 ) 0.7 0.5

Balance, as of September 30, 2023

Balance, as of March 31, 2024

$ 2.9 $ ( 9.1 ) $ ( 6.2 )

BrightSphere Investment Group Inc.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

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

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

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of December 31, 2023

$ 3.1 $ ( 9.8 ) $ ( 6.7 )

Foreign currency translation adjustment before tax

Amortization related to derivatives securities before tax

Tax impact $ ( 0.1 ) $ ( 0.6 ) $ ( 0.7 )

Other comprehensive income 0.8 2.0 2.8

Balance, as of September 30, 2024

$ 3.9 $ ( 7.8 ) $ ( 3.9 )

Foreign currency translation adjustment Valuation and amortization of derivative securities Total

Balance, as of December 31, 2022

$ 1.7 $ ( 12.3 ) $ ( 10.6 )

Foreign currency translation adjustment before tax

Amortization related to derivatives securities before tax

Tax impact — ( 0.6 ) ( 0.6 )

Other comprehensive income 0.6 1.9 2.5

Balance, as of September 30, 2023

$ 2.3 $ ( 10.4 ) $ ( 8.1 )

12) Derivatives and Hedging

5 unchanged sentences

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

As of September 30, 2024, the balance recorded in accumulated other comprehensive income (loss) was $( 7.8 ) million, net of tax.

As of March 31, 2025, the balance recorded in accumulated other comprehensive income (loss) was $( 6.4 ) million, net of tax.

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

The Company reclassified $ 0.9 million and $ 0.9 million for the three months ended September 30, 2024 and 2023, respectively.

Amounts of $ 2.6 million and $ 2.5 million have been reclassified for the nine months ended September 30, 2024 and 2023, respectively.

Amounts of $ 1.0 million and $ 0.9 million have been reclassified for the three months ended March 31, 2025 and 2024, respectively.

During the next twelve months the Company expects to reclassify approximately $ 4.0 million to interest expense.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information

The Company has the following reportable segment:

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

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

The corporate head office is included within the Other category.

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.

portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies.

This segment consists of our ownership interest in Acadian LLC.

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.

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 ENI 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.

This measure supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with 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 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 the Company’s Affiliate by consolidated Funds.

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, capital transaction costs, and restructuring costs.

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.

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

Segment Presentation

The following tables set 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 (loss).

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

Three Months Ended September 30, 2024

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 122.2 $ — $ 0.9 (a) $ 123.1

ENI operating expenses 49.9 4.0 9.7 (b)

Earnings before variable compensation 72.3 ( 4.0 ) ( 8.8 ) 59.5

Variable compensation 29.0 0.6 ( 0.2 ) (c)

ENI operating earnings (after variable comp) 43.3 ( 4.6 ) ( 8.6 ) 30.1

Affiliate key employee distributions 3.1 — — 3.1

Earnings after Affiliate key employee distributions 40.2 ( 4.6 ) ( 8.6 ) 27.0

Net interest expense — ( 3.0 ) ( 1.1 ) (d)

Net investment income

Net income attributable to non-controlling interests in consolidated Funds — — ( 2.1 ) (e)

Income tax (expense) benefit — ( 10.4 ) 1.0 (f)

Economic net income $ 40.2 $ ( 18.0 ) $ ( 5.3 ) $ 16.9

BrightSphere Investment Group Inc.

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 Condensed Consolidated Financial Statements

13) Segment Information (cont.)

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

Three Months Ended September 30, 2023

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 106.5 $ — $ 0.8 (a) $ 107.3

ENI operating expenses 44.0 3.4 ( 0.3 ) (b)

Earnings before variable compensation 62.5 ( 3.4 ) 1.1 60.2

Segment Presentation

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 three months ended March 31, 2025 and 2024 are as follows (in millions):

Three Months Ended March 31,

($ in millions) 2025 2024

GAAP consolidated revenue

$ 119.9 $ 105.7

Exclude revenue from consolidated Funds

Quant & Solutions segment ENI revenue

$ 118.2 $ 105.3

Quant & Solutions segment ENI expenses

Fixed compensation and benefits

Variable compensation

ENI operating earnings (after variable comp) 34.7 ( 4.1 ) 1.1 31.7

Affiliate key employee distributions 1.5 — — 1.5

Earnings after Affiliate key employee distributions 33.2 ( 4.1 ) 1.1 30.2

Net interest expense — ( 2.7 ) ( 0.4 ) (d) ( 3.1 )

Net investment income — — 0.4 (e)

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.2 ) (e)

Income tax expense — ( 7.1 ) ( 0.6 ) (f)

Economic net income $ 33.2 $ ( 13.9 ) $ 0.3 $ 19.6

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

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

Nine Months Ended September 30, 2024

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 335.8 $ — $ 2.0 (a) $ 337.8

ENI operating expenses 143.3 11.6 21.3 (b)

Earnings before variable compensation 192.5 ( 11.6 ) ( 19.3 ) 161.6

Variable compensation 81.8 1.8 0.1 (c)

ENI operating earnings (after variable comp) 110.7 ( 13.4 ) ( 19.4 ) 77.9

Affiliate key employee distributions 7.4 — — 7.4

Earnings after Affiliate key employee distributions 103.3 ( 13.4 ) ( 19.4 ) 70.5

Net interest expense — ( 9.5 ) ( 2.7 ) (d)

Net investment income — — 9.0 (e)

Net income attributable to non-controlling interests in consolidated Funds — — ( 3.7 ) (e)

Income tax (expense) benefit — ( 23.6 ) 2.5 (f)

Economic net income $ 103.3 $ ( 46.5 ) $ ( 14.3 ) $ 42.5

BrightSphere Investment Group Inc.

Acadian LLC key employee distributions

Depreciation and amortization

Other segment items

Segment economic net income

$ 34.9 $ 31.4

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

Unallocated corporate expenses

( 4.5 ) ( 4.6 )

Adjustments and reconciling items

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

Investment income

Interest income 1.1 1.3

Interest expense ( 4.8 ) ( 5.0 )

Net consolidated Funds' investment gains

Income before income taxes

$ 32.1 $ 21.8

Income tax expense ( 8.3 ) ( 6.1 )

Consolidated net income

$ 23.8 $ 15.7

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

( 3.7 ) ( 1.1 )

Net income attributable to controlling interests $ 20.1 $ 14.6

Acadian Asset Management Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

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

Nine Months Ended September 30, 2023

Quant & Solutions Other Reconciling Adjustments Total U.S.

ENI revenue $ 292.6 $ — $ 2.8 (a) $ 295.4

ENI operating expenses 134.9 10.8 1.0 (b)

Earnings before variable compensation 157.7 ( 10.8 ) 1.8 148.7

Variable compensation 72.3 2.1 — 74.4

ENI operating earnings (after variable comp) 85.4 ( 12.9 ) 1.8 74.3

Affiliate key employee distributions 3.9 — — 3.9

Earnings after Affiliate key employee distributions 81.5 ( 12.9 ) 1.8 70.4

Net interest expense — ( 9.6 ) ( 1.2 ) (d)

Net investment income — — 2.0 (e)

Net income attributable to non-controlling interests in consolidated Funds — — ( 0.3 ) (e)

Income tax expense — ( 15.9 ) ( 2.4 ) (f)

Economic net income $ 81.5 $ ( 38.4 ) $ ( 0.1 ) $ 43.0

(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:

Adjusted to include consolidated Funds revenues which are included in U.S.

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

GAAP revenue.

Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, restructuring costs, and consolidated Funds’ operating expenses, each of which are included in U.S.

GAAP operating expenses.

Adjusted to include restructuring costs which are included in U.S.

GAAP compensation expense.

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

GAAP interest expense.

Adjusted to include net investment income (loss), and net income attributable to non-controlling interests in consolidated Funds, all of which are included in U.S.

Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided.

Variable compensation is contractually set and calculated individually for Acadian LLC bonuses.

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

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.

Depreciation and amortization includes U.S.

GAAP depreciation and amortization.

Other segment items includes segment systems, portfolio administration costs and other general & administrative expenses.

Included in unallocated corporate expenses for the three months ended March 31, 2025 and 2024 was compensation and benefits of $ 2.4 million and $ 2.5 million, respectively, related to Hold Co which are included in U.S.

GAAP net income attributable to controlling interests.

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

13) Segment Information (cont.)

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

Adjusted to include the tax impact of certain ENI adjustments;

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

Included in unallocated corporate expenses for the three months ended March 31, 2025 and 2024 was general and administrative expenses of $ 2.1 million and $ 2.1 million, respectively, related to Hold Co which are included in U.S.

GAAP net income attributable to controlling interests.

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

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.

14) Subsequent Events

During the period from April 1, 2025 through May 6, 2025, the Company repurchased 0.9 million shares of common stock at a weighted average price of $ 25.48 per share, or approximately $ 23.6 million in total, including commissions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements