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 under a non-cancelable operating lease agreement, which expires on December 31, 2025. The Company recognizes minimum lease expense for its headquarters on a straight-line basis over the lease term. The Company entered into a four-year sublease agreement commencing on October 1, 2016, which terminated on January 31, 2019. We entered into a new sublease agreement commencing on February 1, 2019, that expires on December 31, 2025. The sublease agreement is cancelable by either the Company or sublessee given appropriate notice four months prior to February 1, 2021, and each annual period thereafter. Sublease income will continue to decrease annual lease expense by approximately $0.4 million per year.

During December 2018, the Company signed a non-cancellable amendment to the corporate headquarters lease to obtain additional space that expires on December 31, 2025. In accordance with ASC 842, Leases, the lease term commenced on February 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 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 the three and nine months ended September 30, 2020, lease expenses of $0.8 million and $2.2 million, respectively, are included in general and administrative expense. During the three and nine months ended September 30, 2019, lease expenses were $0.7 million and $2.0 million, respectively. This lease expense includes short-term lease expenses associated with the Company's office space in Australia. Short-term lease expense was $0.1 million and $0.3 million for the three and nine months ended September 30, 2020. Lease expenses for the three and nine months ended September 30, 2020 were net of $0.1 million and $0.3 million of sublease income, respectively. Lease expenses for the three and nine months ended September 30, 2019 were net of $0.1 million and $0.3 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 September 30,		For the Nine Months Ended September 30,
	2020
	(in thousands)
Operating lease expense¹	$	555	$	1,717
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	567	$	1,753
Right-of-use assets obtained in exchange for lease obligations	$	—	$	—

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

	As of
	September 30, 2020
	(in thousands)
Operating lease right-of-use assets	$	12,143
Operating lease liabilities	$	12,482
Weighted-average remaining lease term (in years)		5.1
Weighted-average discount rate		4.3	%

Year Ending December 31,	Operating Leases
2020 (excluding the nine months ended September 30, 2020)	$	725
2021		2,846
2022		2,574
2023		2,596
2024		2,607
2025 and thereafter		2,607
Total undiscounted lease payments	$	13,955
Less discount		(1,473	)
Total lease liabilities	$	12,482