Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Landmark Partners

On March 30, 2021, the Company entered into a definitive agreement with Ares Holdings L.P. (“Ares”), pursuant to which Ares agreed to purchase all of the Company’s interests in Landmark and the Company’s co-investments in Landmark funds. On June 2, 2021, the Company completed the sale of all its interests in Landmark to Ares for cash consideration of $690.0 million, adjusted for customary closing adjustments. The divestiture of Landmark met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results. The Company redeemed co-investments of $31.5 million in Landmark’s funds as of June 2, 2021 upon consummation of the sale.

Thompson, Siegel & Walmsley, LLC

On May 9, 2021, the Company entered into an agreement with Pendal Group Limited (“Pendal”), to sell all of the Company’s interests in Thompson, Siegel & Walmsley, LLC (“TSW”) and the Company’s seed investment in TSW strategies. On July 22, 2021, the Company completed the sale of all its interests in TSW to Pendal for cash consideration of $240.0 million. The divestiture of TSW met the discontinued operations criteria as it represented a strategic shift that has a major effect on the Company’s operations and financial results.

The major classes of revenue and expenses constituting net income from discontinued operations attributable to controlling interests for Landmark and TSW in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 are as follows (in millions):

	Three Months Ended March 31,
	2022		2021
Revenues	$	—	$	58.2
Operating expenses:
Compensation and benefits	—		43.8
General and administrative expenses	—		4.4
Amortization of intangibles	—		1.6
Depreciation and amortization	—		0.3
Consolidated Funds’ expense	—		0.1
Total operating expenses	—		50.2
Operating income (loss)	—		8.0
Investment gains of consolidated Funds	—		16.6
Income from discontinued operations before taxes	—		24.6
Income tax expense	—		2.7
Income from discontinued operations, net of tax	—		21.9
Income from discontinued operations attributable to non-controlling interests	—		13.4
Net income from discontinued operations attributable to controlling interests	$	—	$	8.5

Consolidated Funds

In connection with the sale of Landmark on June 2, 2021, the Company transferred its co-investment interests in Landmark funds to Ares for $31.5 million. The redemption resulted in the de-consolidation of consolidated Funds

that were considered to be variable interest entities (“VIEs”) as of June 2, 2021 upon consummation of the sale. The criteria for discontinued operations accounting treatment were met. The consolidated Funds’ investments gains/(losses) from discontinued operations, net of tax, attributable to controlling interests was $3.1 million in the Company’s Condensed Consolidated Statement of Operations for the three months ended March 31, 2021.