Goodwill and Acquired Client Relationships

12 Months Ended

Dec. 31, 2025

The following table presents the changes in the Company’s Goodwill:


	Goodwill
	2024	2025
Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$2,523.6	$2,504.9
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(18.7)	26.3
Balance, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$2,504.9	$2,531.2

As of September 30, 2025, the Company completed its annual impairment assessment on goodwill and no impairment was

indicated.

The following table presents the changes in the Company’s components of Acquired client relationships (net):


	Acquired Client Relationships (Net)
	Definite-lived			Indefinite-lived	Total
	Gross Carrying Value	Accumulated Amortization	Net Carrying Value	Carrying Value	Carrying Value
Balance, as of December 31, 2023 . . . . . . . .	$1,260.5	$(1,051.2)	$209.3	$1,603.1	$1,812.4
Intangible amortization and impairments . .	—	(29.0)	(29.0)	—	(29.0)
Foreign currency translation . . . . . . . . . . . .	(5.0)	5.0	—	(5.6)	(5.6)
Balance, as of December 31, 2024 . . . . . . . .	$1,255.5	$(1,075.2)	$180.3	$1,597.5	$1,777.8
Intangible amortization and impairments . .	—	(25.3)	(25.3)	(135.0)	(160.3)
Foreign currency translation . . . . . . . . . . . .	11.9	(11.9)	—	21.8	21.8
Balance, as of December 31, 2025 . . . . . . . .	$1,267.4	$(1,112.4)	$155.0	$1,484.3	$1,639.3

Definite-lived acquired client relationships at the Company’s consolidated Affiliates are amortized over their expected

period of economic benefit. The Company recorded amortization expense in Intangible amortization and impairments for these

relationships of $48.3 million, $29.0 million, and $25.3 million for the years ended December 31, 2023, 2024, and 2025,

respectively. Based on relationships existing as of December 31, 2025, the Company estimates that its consolidated

amortization expense will be approximately $25 million in each of 2026, 2027, and 2028, approximately $15 million in 2029,

and approximately $10 million in 2030. As of December 31, 2025, no impairments of definite-lived acquired client

relationships were indicated.

In the first quarter of 2025, the Company completed an impairment assessment of the indefinite-lived acquired client

relationships for certain mutual fund assets and determined that the fair value of the assets had declined below their carrying

values. Accordingly, the Company recorded an expense in Intangible amortization and impairments of $59.2 million

attributable to the controlling interest ($70.0 million in aggregate) to reduce the carrying value of the assets to fair value. The

decline in the fair value was a result of current and projected declines in assets under management that decreased the forecasted

revenue associated with the assets. The most relevant assumptions used in these analyses were revenue growth rates over the

next five years ranging from (21)% to 0%, long-term revenue growth rates of 0%, and discount rates of 11.0%.

In the first quarter of 2025, the Company also recorded an expense in Intangible amortization and impairments of

$4.0 million attributable to the controlling interest ($7.0 million in aggregate) to reduce the carrying value of an indefinite-lived

acquired client relationship to zero due to the closure of one of its Affiliate’s mutual fund products.

In the fourth quarter of 2025, the Company completed its annual impairment assessment of its indefinite-lived acquired

client relationships and determined that the fair value of certain mutual fund assets had declined below their carrying values.

Accordingly, the Company recorded an expense in Intangible amortization and impairments of $37.0 million attributable to the

controlling interest ($58.0 million in aggregate) to reduce the carrying value of the assets to fair value. The decline in the fair

value was a result of current and projected declines in assets under management that decreased the forecasted revenue

associated with the assets. The most relevant assumptions used in these analyses were revenue growth rates over the next five

years ranging from (34)% to 0%, long-term revenue growth rates of 0%, and discount rates of 10.5%.

For the year ended December 31, 2025, no other impairments were indicated for the Company’s indefinite-lived acquired

client relationships.

In the third quarter of 2023, the Company completed the sale of its equity interest in Veritable, LP (“Veritable”), one of the

Company’s consolidated Affiliates, (the “Veritable Transaction”). Pursuant to the terms of the agreement, under which a third

party acquired 100% of the outstanding equity interests in Veritable, the Company received $287.4 million in cash, net of

transaction costs. Veritable is included in the Company’s results through the closing date, and the Company’s gain from the

transaction was $133.1 million, which is recorded in Affiliate transaction gains in the Consolidated Statements of Income.