SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed by the Chief Operating Decision Maker (the “CODM”) to determine the allocation of resources and to assess its performance. The Company’s reportable segments are Financial Advisory, Asset Management, and Corporate, which are described in Note 1.

The Company’s CODM is the Company’s Chief Executive Officer. The CODM assesses the segments’ performance by each segment’s adjusted operating income (loss) attributable to each of the segments. The Company previously disclosed each segment’s U.S. GAAP operating income (loss) as the segment’s measure of profit or loss. Comparable prior year information has been recast to reflect the updated measure. Adjusted operating income (loss) is also used by the CODM to allocate compensation and non-compensation related resources to each segment.

The table below provides select financial information about the Company’s segments, including adjusted compensation and benefits expense and adjusted non-compensation expense (both of which are significant expense categories on which the CODM is regularly provided information), other segment items, and adjusted operating income (loss).

Adjusted compensation and benefits expense and adjusted non-compensation expense include costs directly incurred by each segment, with certain adjustments. Adjusted non-compensation expense includes expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services.

Other segment items include certain adjustments to calculate adjusted operating income (loss), including:

•Noncontrolling interests;

•Certain distribution, introducer and management fees paid to third parties and reimbursable deal costs;

•Provision for credit losses;

•Changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements;

•Interest expense, excluding interest expense incurred by LFB; and

•Losses associated with the closing of certain offices as part of the cost-saving initiatives, representing the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss.

Inter-segment revenues are not material for all periods presented.

The CODM does not regularly receive asset information by segment and does not use segment asset information to assess performance or allocate resources.

	Three Months Ended March 31, 2025
	Financial Advisory		Asset Management		Corporate		Total
Net Revenue (Loss) - U.S. GAAP Basis	$	367,359	$	288,100	$	(7,408)	$	648,051
Adjusted Compensation and Benefits Expense	239,968		142,827		38,491		421,286
Adjusted Non-compensation Expense	52,561		59,211		36,110		147,882
Other Segment Items	2,184		(23,606)		16,556		(4,866)
Adjusted Operating Income (Loss)	$	77,014	$	62,456	$	(65,453)	$	74,017
Other Segment Disclosures:
Interest income (included in net revenue)	$	1,197	$	2,447	$	8,018	$	11,662
Depreciation and amortization of property    (included in adjusted non-compensation    expense)	$	2,010	$	1,381	$	5,040	$	8,431

	Three Months Ended March 31, 2024
	Financial Advisory		Asset Management		Corporate		Total
Net Revenue - U.S. GAAP Basis	$	453,507	$	295,476	$	15,770	$	764,753
Adjusted Compensation and Benefits Expense	302,080		150,698		39,955		492,733
Adjusted Non-compensation Expense	47,865		55,575		30,853		134,293
Other Segment Items	(6,873)		(19,542)		8,227		(18,188)
Adjusted Operating Income (Loss)	$	96,689	$	69,661	$	(46,811)	$	119,539
Other Segment Disclosures:
Interest income (included in net revenue)	$	966	$	3,711	$	6,794	$	11,471
Depreciation and amortization of property    (included in adjusted non-compensation    expense)	$	2,249	$	1,289	$	5,551	$	9,089

The table below provides a reconciliation of the Company's consolidated adjusted operating income to the Company’s consolidated U.S. GAAP operating income.

	Three Months Ended March 31,
	2025		2024
Adjusted Operating Income	$	74,017	$	119,539
Adjustments:
Operating income related to noncontrolling interests and    similar arrangements (a)	1,613		4,469
Interest expense (b)	(20,969)		(20,650)
Amortization and other acquisition-related costs	(26)		(68)
Losses associated with cost-saving initiatives (c)	–		(587)
Expenses associated with cost-saving initiatives	–		(48,142)
Operating Income - U.S. GAAP Basis	$	54,635	$	54,561

_____________________

(a)Revenue and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.

(b)Interest expense (excluding interest expense incurred by LFB) is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

(c)Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the three month period ended March 31, 2024.