In the normal course of business, the Company enters into agreements that include indemnities in favor of third parties, such as engagement letters with advisers and consultants. In certain cases, the Company may have recourse against third parties with respect to these indemnities. The Company maintains insurance policies that may provide coverage against certain claims under these indemnities. The Company has had no claims or payments pursuant to these agreements, and it believes the likelihood of a claim being made is remote. Utilizing the methodology in the Guarantees Topic of the FASB ASC, the Company’s estimate of the value of such guarantees is de minimis, therefore, no accrual has been made in the consolidated financial statements.

The Company leases office space for its headquarters under a non-cancelable operating lease agreement, which originally expired on December 31, 2025. During January 2022, the Company signed a non-cancellable amendment to the corporate headquarters lease extending the lease term of the current space through October 31, 2036. In accordance with ASC 842, Leases, the Company has remeasured the related Right-of-use Asset and Lease Liability on the consolidated statements of financial condition from the commencement date of January 21, 2022. As part of the non-cancellable amendment signed in January 2022, the Company expanded its corporate headquarters during May 2022. The commencement date of the lease expansion was May 1, 2022, with a lease term extending through October 31, 2036. In accordance with ASC 842, Leases, the Company has measured the related Right-of-use Asset and Lease Liability on the consolidated statements of financial condition from the commencement date of May 1, 2022.

The Company entered into a sublease agreement commencing on February 1, 2019, that expires on December 31, 2025. During October of 2020, the Company executed an amendment to the sublease agreement. The sublease agreement is cancelable by either the Company or sublessee upon at least six months prior written notice. On November 29, 2021, the Company gave written notice exercising its right to terminate the sublease effective June 1, 2022. Sublease income will decrease annual lease expense by approximately $0.2 million this year.

During June 2019, the Company signed a non-cancellable lease to the business development and client service office in London to obtain additional space that expires on October 31, 2021. In accordance with ASC 842, Leases, the lease term commenced on November 1, 2019 and the Company recorded a Right-of-use Asset and Lease Liability on the consolidated statements of financial condition associated with the new lease. During July 2021, the Company signed an extension of the non-cancellable lease to the business development and client service office in London which commences on November 1, 2021 and expires on October 31, 2023.

During September 2021, the Company signed a non-cancellable lease for the business development and client service office in Ireland to obtain office space that expires on August 31, 2023. In accordance with ASC 842, Leases, the lease term commenced on September 1, 2021 and the Company recorded a Right-of-use Asset and Lease Liability on the consolidated statements of financial condition associated with the new lease.

During the three and six months ended June 30, 2022, lease expenses of $1.4 million and $2.4 million, respectively, are included in general and administrative expense. During the three and six months ended June 30, 2021, lease expenses were $0.7 million and $1.5 million, respectively. This lease expense includes short-term lease expenses associated with the Company's office space in Australia. Short-term lease expense was less than $0.1 million for both the three and six months ended June 30, 2022. Lease expenses for each of the three months ended June 30, 2022 and 2021, were net of $0.1 million and $0.2 million of sublease income, respectively.

The following table presents the components of operating lease expense, as well as supplemental cash flow information, related to the Company’s leases:


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2022
	(in thousands)
Operating lease expense1	$	896	$	1,587
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	342	$	816
Right-of-use assets obtained in exchange for lease obligations	$	23,691	$	46,885

Amounts have not been reduced by sublease income of $0.1 million and $0.2 million, respectively, recognized during the three and six months ended June 30, 2022.

The following table presents information regarding the Company’s operating leases:


	As of
	June 30, 2022
	(in thousands)
Operating lease right-of-use assets	$	55,311
Operating lease liabilities	$	65,396
Weighted-average remaining lease term (in years)		14.2
Weighted-average discount rate		3.7	%

The maturities of lease liabilities are as follows (in thousands):


Year Ending December 31,	Operating Leases
2022 (excluding the six months ended June 30, 2022)	$	1,496
2023		4,139
2024		5,087
2025		5,087
2026		3,885
2027 and thereafter		66,889
Total undiscounted lease payments	$	86,583
Less discount		(21,187	)
Total lease liabilities	$	65,396