Acquisitions (Tables)

3 Months Ended

Mar. 31, 2022

Business Acquisition [Line Items]

Summary of Business Acquisition Related Cost

	Acquisition-related costs
	Three Months Ended March 31,
(in thousands)	2022		2021
NEC	$	29	$	—
WestEnd	$	41		—
Other		47		(164	)
Total acquisition-related costs	$	117	$	(164	)

Summary of Rollforward of Restructuring and Integration Liabilities

The following table presents the rollforward of restructuring and integration liabilities, which are recorded in accounts payable and accrued expenses in the unaudited Condensed Consolidated Balance Sheets, for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in millions)	2022			2021
Liability balance, beginning of period	$	0.3		$	1.0
Severance expense
USAA AMCO Acquisition		—			1.6
THB		—			0.1
Integration costs
USAA AMCO Acquisition		—			0.4
Total restructuring and integration costs		—			2.1
Settlement of liabilities		(0.3	)		(1.7	)
Liability balance, end of period	$	—		$	1.4

USAA AMCO

Business Acquisition [Line Items]

Summary of Significant Inputs to Valuation of Contingent Consideration Payable

Significant inputs to the valuation of contingent consideration payable to sellers as of March 31, 2022 and December 31, 2021 are as follows and are approximate values:

	March 31, 2022			December 31, 2021
Non-managed money revenue average annual growth rate		1	%		5	%
Market price of risk		6	%		6	%
Revenue volatility	16		%	17		%
Discount rate	5		%	3		%
Years remaining in earn out period		1.6			1.9
Undiscounted estimated remaining earn out payments in millions	$70- $75			$72 - $75

NEC Acquisition

Business Acquisition [Line Items]

Summary of Allocation of Purchase Price

The following table presents the estimated amounts of assets acquired and liabilities assumed as of the acquisition date, net of cash acquired:

(in thousands)
Investment management fees receivable	$	118
Other receivables and prepaid expenses		60
Property and equipment		19
Other intangible assets (1)		23,700
Goodwill		41,032
Accounts payable and accrued expenses		(1,780	)
Purchase price, net of cash acquired	$	63,149

(1) Includes $14.0 million for definite-lived customer relationships with a 6 year estimated useful life and $9.7 million for definite-lived investment advisory contracts with a 2 year estimated useful life, which are recorded in other intangible assets, net on the unaudited Condensed Consolidated Balance Sheets.

WestEnd Acquisition

Business Acquisition [Line Items]

Summary of Significant Inputs to Valuation of Contingent Consideration Payable

A maximum of $320.0 million ($80.0 million per year) is payable to sellers in contingent payments. The fair value of contingent consideration payable to sellers was estimated at $239.0 million at March 31, 2022, a decrease of $0.7 million from December 31, 2021. Significant inputs to the valuation of contingent consideration payable to sellers as of March 31, 2022 and December 31, 2021 are as follows and are approximate values:

				December 31, 2021
	March 31, 2022			Acquisition Date
Net revenue average annual growth rate		34	%		37	%
Market price of risk adjustment for revenue (continuous)		11	%		11	%
Revenue volatility	20		%		21	%
Discount rate	5		%		4	%
Years remaining in earn out period		5.6			5.8
Undiscounted estimated remaining earn out payments $ millions	$280 - $320			$277 - $320

Summary of Allocation of Purchase Price

The following table presents the estimated amounts of assets acquired and liabilities assumed as of the acquisition date, net of cash acquired:

(in thousands)
Investment management fees receivable	$	4,560
Prepaid expenses and other assets		256
Property and equipment		2,011
Other intangible assets (1)		175,500
Goodwill		536,023
Accounts payable and accrued expenses		(115	)
Accrued compensation and benefits		(1,480	)
Other liabilities		(693	)
Purchase price, net of cash acquired	$	716,062

(1) Includes $172.5 million for definite-lived customer relationship assets with a 10 year estimated useful life and $3.0 million for a definite-lived trade name asset with a 7 year estimated useful life, which are recorded in other intangible assets, net on the unaudited Condensed Consolidated Balance Sheets.

Summary of Revenue

WestEnd revenue for the three months ended March 31, 2022, was as follows:

	Unaudited
	Three Months Ended
(in millions)	March 31, 2022
Revenue	$	14.6

Summary of Unaudited Pro Forma Information

	Unaudited
	Three Months Ended
(in thousands, except per share amount)	March 31, 2021
Revenue	$	222,013
Net income		63,809
Earnings per share of common stock
Basic	$	0.94
Diluted	$	0.86
Weighted average number of shares outstanding
Basic		67,761
Diluted		74,108