10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q 

(Mark One)

☒      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the quarterly period ended March 31, 2024

OR

☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to

Commission File Number: 001-38979

BrightSphere Investment Group Inc.

(Exact name of registrant as specified in its charter) 

Delaware		47-1121020
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
200 State Street, 13th Floor		02109
Boston,	Massachusetts
(Address of principal executive offices)		(Zip Code)

(617)-369-7300

(Registrant’s telephone number, including area code) 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Ticker Symbol	Name of each exchange on which registered
Common stock, par value $0.001 per share	BSIG	New York Stock Exchange
4.800% Notes due 2026	BSIG 26	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý 

The number of shares of the registrant’s common stock, $0.001 per share, outstanding as of May 6, 2024 was 37,763,692.

TABLE OF CONTENTS

		Page
Part I	Financial Information	3
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	56
Item 4.	Controls and Procedures	58
Part II	Other Information	59
Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 5.	Other Information	59
Item 6.	Exhibits	60

2

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

BrightSphere Investment Group Inc.

Condensed Consolidated Balance Sheets

(in millions, except for share and per share data, unaudited)

	March 31, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	102.2	$	146.8
Investment advisory fees receivable	119.0		143.4
Income taxes receivable	—		2.7
Fixed assets, net	42.0		44.2
Right of use assets	55.6		57.2
Investments	67.0		64.7
Goodwill	20.3		20.3
Other assets	27.2		27.2
Deferred tax assets	72.2		69.7
Assets of consolidated Funds:
Cash and cash equivalents, restricted	0.8		0.8
Investments	37.6		33.9
Other assets	1.0		0.5
Total assets	$	544.9	$	611.4
Liabilities and stockholders’ equity
Accounts payable and accrued expenses	$	21.6	$	39.1
Accrued incentive compensation	30.2		101.3
Other compensation liabilities	72.7		67.5
Accrued income taxes	7.2		2.6
Operating lease liabilities	70.6		72.4
Other liabilities	0.5		0.8
Revolving credit facility	73.0		—
Third party borrowings	274.0		273.9
Liabilities of consolidated Funds:
Accounts payable and accrued expenses	1.0		0.2
Derivative liabilities	0.1		0.1
Securities sold short	4.2		4.0
Total liabilities	555.1		561.9
Commitments and contingencies
Redeemable non-controlling interests in consolidated Funds	11.5		9.3
Equity:
Common stock (par value $0.001; 37,965,341 and 41,372,291 shares, respectively, issued)	—		—
Additional paid-in capital	—		—
Retained earnings (deficit)	(15.5)		46.9
Accumulated other comprehensive loss	(6.2)		(6.7)
Total equity (deficit) and redeemable non-controlling interests in consolidated Funds	(10.2)		49.5
Total liabilities and equity	$	544.9	$	611.4

See Notes to Condensed Consolidated Financial Statements

3

BrightSphere Investment Group Inc.

Condensed Consolidated Statements of Operations

(in millions except for per share data, unaudited)

	Three Months Ended March 31,
	2024		2023
Revenue:
Management fees	$	102.2	$	90.6
Performance fees	3.1		0.5
Consolidated Funds’ revenue	0.4		0.7
Total revenue	105.7		91.8
Operating expenses:
Compensation and benefits	58.1		49.1
General and administrative expense	20.0		18.4
Depreciation and amortization	4.6		3.8
Consolidated Funds’ expense	0.1		0.7
Total operating expenses	82.8		72.0
Operating income	22.9		19.8
Non-operating income and (expense):
Investment income	0.9		0.3
Interest income	1.3		1.1
Interest expense	(5.0)		(4.9)
Net consolidated Funds’ investment gains	1.7		0.8
Total non-operating loss	(1.1)		(2.7)
Income before income taxes	21.8		17.1
Income tax expense	6.1		5.1
Net income	15.7		12.0
Net income attributable to non-controlling interests in consolidated Funds	1.1		—
Net income attributable to controlling interests	$	14.6	$	12.0
Earnings per share (basic) attributable to controlling interests	$	0.37	$	0.29
Earnings per share (diluted) attributable to controlling interests	0.37		0.28
Weighted average common stock outstanding	39.1		41.4
Weighted average diluted common stock outstanding	39.7		42.7

See Notes to Condensed Consolidated Financial Statements

4

BrightSphere Investment Group Inc.

Condensed Consolidated Statements of Comprehensive Income

(in millions, unaudited)

	Three Months Ended March 31,
	2024		2023
Net income	$	15.7	$	12.0
Other comprehensive income:
Amortization related to derivative securities, net of tax	0.7		0.6
Foreign currency translation adjustment, net of tax	(0.2)		0.7
Total other comprehensive income	0.5		1.3
Comprehensive income attributable to non-controlling interests in consolidated Funds	1.1		—
Total comprehensive income attributable to controlling interests	$	15.1	$	13.3

See Notes to Condensed Consolidated Financial Statements

5

BrightSphere Investment Group Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended March 31, 2024 and 2023

($ in millions except share data, unaudited)

	Common stock (millions)	Common stock,  par value		Additional paid-in capital		Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Total stockholders’ equity (deficit)		Redeemable non-controlling interests in consolidated  Funds		Total equity (deficit) and redeemable non-controlling interests in consolidated Funds
December 31, 2022	41.4	$	—	$	1.5	$	(12.5)	$	(10.6)	$	(21.6)	$	—	$	(21.6)
Issuance of common stock	0.1	—		—		—		—		—		—		—
Capital contributions	—	—		—		—		—		—		0.4		0.4
Equity-based compensation	—	—		0.2		—		—		0.2		—		0.2
Foreign currency translation adjustment	—	—		—		—		0.7		0.7		—		0.7
Amortization related to derivatives securities, net of tax	—	—		—		—		0.6		0.6		—		0.6
Withholding tax related to stock option exercise and restricted stock vesting				(0.3)		—		—		(0.3)				(0.3)
Dividends ($0.01 per share)	—	—		—		(0.3)		—		(0.3)		—		(0.3)
Net income	—	—		—		12.0		—		12.0		—		12.0
March 31, 2023	41.5	$	—	$	1.4	$	(0.8)	$	(9.3)	$	(8.7)	$	0.4	$	(8.3)
December 31, 2023	41.4	$	—	$	—	$	46.9	$	(6.7)	$	40.2	$	9.3	$	49.5
Issuance of common stock	0.1	—		—		—		—		—		—		—
Repurchases of common stock including excise taxes	(3.5)	—		(0.2)		(74.8)		—		(75.0)		—		(75.0)
Capital contributions	—	—		—		—		—		—		1.1		1.1
Equity-based compensation	—	—		0.2		—		—		0.2		—		0.2
Foreign currency translation adjustment, net of tax	—	—		—		—		(0.2)		(0.2)		—		(0.2)
Amortization related to derivative securities, net of tax	—	—		—		—		0.7		0.7		—		0.7
Withholding tax related to stock option exercise and restricted stock vesting	—	—		—		(1.8)		—		(1.8)		—		(1.8)
Dividends ($0.01 per share)	—	—		—		(0.4)		—		(0.4)		—		(0.4)
Net income	—	—		—		14.6		—		14.6		1.1		15.7
March 31, 2024	38.0	$	—	$	—	$	(15.5)	$	(6.2)	$	(21.7)	$	11.5	$	(10.2)

See Notes to Condensed Consolidated Financial Statements

6

BrightSphere Investment Group Inc. Condensed Consolidated Statements of Cash Flows (in millions, unaudited)
	Three Months Ended March 31,
	2024	2023
Cash flows from operating activities:
Net income	15.7	12.0
Less: Net (income) loss attributable to redeemable non-controlling interests in consolidated Funds	(1.1)	—
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and other amortization	4.6	3.8
Amortization of debt-related costs	1.1	1.0
Amortization and revaluation of non-cash compensation awards	6.2	1.2
Deferred income taxes	(2.7)	(1.0)
(Gains) on other investments	(4.4)	(1.1)
Changes in operating assets and liabilities:
Decrease in investment advisory fees receivable	24.4	22.6
Decrease in other receivables, prepayments, deposits and other assets	2.6	0.8
Decrease in accrued incentive compensation, operating lease liabilities and other liabilities	(72.1)	(68.8)
Decrease in accounts payable, accrued expenses and accrued income taxes	(13.6)	(4.8)
Net cash flows from operating activities, excluding consolidated Funds	(39.3)	(34.3)
Net income attributable to redeemable non-controlling interests in consolidated Funds	1.1	—
Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds:
(Gains) on other investments	(0.8)	—
Purchase of investments	(18.8)	(0.1)
Sale of investments	17.0	0.4
Increase in receivables and other assets	(0.4)	(1.0)
Increase in accounts payable and other liabilities	0.8	0.1
Net cash flows from operating activities of consolidated Funds	(1.1)	(0.6)
Net cash flows from operating activities	(40.4)	(34.9)
Cash flows from investing activities:
Additions of fixed assets	(2.4)	(4.5)
Purchase of investment securities	(2.3)	(2.6)
Sale of investment securities	3.3	1.5
Net cash flows from investing activities	(1.4)	(5.6)

See Notes to Condensed Consolidated Financial Statements

7

BrightSphere Investment Group Inc. Condensed Consolidated Statements of Cash Flows (in millions, unaudited)
	Three Months Ended March 31,
	2024		2023
Cash flows from financing activities:
Proceeds from revolving credit facility	101.0		100.0
Repayment of revolving credit facility	(28.0)		(13.0)
Payment to OM plc for co-investment redemptions	(0.2)		(0.4)
Dividends paid to stockholders	(0.3)		(0.5)
Dividends paid to related parties	(0.1)		(0.3)
Repurchases of common stock	(74.3)		—
Withholding tax payments related to stock option exercise and restricted stock vesting	(1.8)		(0.3)
Cash flows from financing activities of consolidated Funds:
Redeemable non-controlling interest capital raised	1.1		0.4
Net cash flows from financing activities	(2.6)		85.9
Effect of foreign exchange rate changes on cash and cash equivalents	(0.2)		0.1
Net increase (decrease) in cash and cash equivalents	(44.6)		45.5
Cash and cash equivalents at beginning of period	$	147.6	$	121.2
Cash and cash equivalents at end of period (including cash at consolidated Funds classified as restricted)	$	103.0	$	166.7
Supplemental disclosure of cash flow information:
Interest paid (excluding consolidated Funds)	$	7.2	$	7.1
Income taxes paid	$	1.4	$	0.8
Supplemental disclosure of non-cash investing and financing transactions:
Excise tax on repurchases of common stock	$	0.7	$	—
Payable for securities purchased by a consolidated Fund	$	0.9	$	—

See Notes to Condensed Consolidated Financial Statements

8

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1) Organization and Description of the Business

BrightSphere Investment Group Inc. (“BrightSphere”, “BSIG” or the “Company”) is a global, diversified asset management company. The Company provides investment management services globally to predominantly institutional investors. The Company operates a differentiated investment management business through its majority owned subsidiary, Acadian Asset Management LLC (“Acadian” or the “Affiliate”), a leading systematic manager of active global, international equity and alternative strategies. Acadian comprises the Company’s Quant & Solutions reportable segment:

•Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies.

Acadian is organized as a limited liability company. Fees for services are largely asset-based and, as a result, revenues fluctuate based on the performance of financial markets and investors’ asset flows in and out of Acadian’s products. The Company utilizes a profit-sharing model in structuring its compensation and ownership arrangements with Acadian. Variable compensation is based on the firm’s profitability. BSIG and Acadian key employees share in profits after variable compensation according to their respective ownership interests. The profit-sharing model results in the alignment of BSIG and Acadian key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business. The corporate head office is included within the Other category.

Prior to 2014, the Company was a wholly-owned subsidiary of Old Mutual plc (“OM plc”), an international long-term savings, protection, and investment group, listed on the London Stock Exchange. On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended. As of March 31, 2024, Paulson & Co. Inc. (“Paulson”) held approximately 23.6% of the common stock of the Company.

For the three months ended March 31, 2024, the Company repurchased 3,530,908 shares of common stock at an average price of $21.04 per share, or approximately $74.4 million in total, including commissions. For the three months ended March 31, 2023, the Company did not repurchase any shares of common stock.

All shares of common stock repurchased by the Company were retired.

9

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

2) Basis of Presentation and Significant Accounting Policies

The Company’s significant accounting policies are as follows:

Basis of presentation

These unaudited Condensed Consolidated Financial Statements reflect the historical balance sheets, statements of operations, statements of comprehensive income, statements of changes in stockholders’ equity and statements of cash flows of the Company. Within these Condensed Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.”

The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of the Company’s Condensed Consolidated Financial Statements have been included. All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Transactions between the Company and its related parties are included in the Condensed Consolidated Financial Statements; however, material intercompany balances and transactions among the Company, its consolidated Affiliate and consolidated Funds are eliminated in consolidation.

Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (annual report on Form 10-K) are not required to be included on an interim basis in the Company’s quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024. The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements.

Use of estimates

The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements.

New accounting standards not yet adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07 - Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The amendment is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. We are currently evaluating the impact of adopting this standard, but we expect the standard to result in additional segment footnote disclosures.

10

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

2) Basis of Presentation and Significant Accounting Policies (cont.)

In December 2023, the FASB issued Accounting Standards Update No. 2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. This amendment is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact of adopting this standard and have not yet determined our transition approach.

The Company has considered all other newly issued accounting guidance that is applicable to the Company’s operations and the preparation of the unaudited Condensed Consolidated Financial Statements, including those that have not yet been adopted. The Company does not believe that any such guidance has or will have a material effect on its Condensed Consolidated Financial Statements and related disclosures.

3) Investments

Investments are comprised of the following as of the dates indicated (in millions):

	March 31, 2024		December 31, 2023
Investments of consolidated Funds held at fair value	$	37.6	$	33.9
Other investments	20.8		20.0
Investments related to long-term incentive compensation plans	46.2		44.7
Total investments per Condensed Consolidated Balance Sheets	$	104.6	$	98.6

11

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

4) Fair Value Measurements

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2024 (in millions):

	Quoted prices in active markets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Uncategorized		Total value, March 31, 2024
Assets of BSIG and consolidated Funds(1)
Common and preferred stock	$	22.3	$	—	$	—	$	—	$	22.3
Corporate bonds	—		15.1		—		—		15.1
Derivatives	—		0.2		—		—		0.2
Consolidated Funds total	22.3		15.3		—		—		37.6
Investments in separate accounts(2)	2.3		—		—		—		2.3
Investments related to long-term incentive compensation plans(3)	46.2		—		—		—		46.2
Investments in unconsolidated Funds(4)	—		—		—		18.5		18.5
BSIG total	48.5		—		—		18.5		67.0
Total fair value assets	$	70.8	$	15.3	$	—	$	18.5	$	104.6
Liabilities of consolidated Funds(1)
Securities sold short	$	(4.2)	$	—	$	—	$	—	$	(4.2)
Derivatives	—		(0.1)		—		—		(0.1)
Consolidated Funds total	(4.2)		(0.1)		—		—		(4.3)
Total fair value liabilities	$	(4.2)	$	(0.1)	$	—	$	—	$	(4.3)

12

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

4) Fair Value Measurements (cont.)

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2023 (in millions):

	Quoted prices in active markets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Uncategorized		Total value December 31, 2023
Assets of BSIG and consolidated Funds(1)
Common and preferred stock	$	19.0	$	—	$	—	$	—	$	19.0
Corporate bonds	—		14.8		—		—		14.8
Derivatives	—		0.1		—		—		0.1
Consolidated Funds total	19.0		14.9		—		—		33.9
Investments in separate accounts(2)	2.1		—		—		—		2.1
Investments related to long-term incentive compensation plans(3)	44.7		—		—		—		44.7
Investments in unconsolidated Funds(4)	—		—		—		17.9		17.9
BSIG total	46.8		—		—		17.9		64.7
Total fair value assets	$	65.8	$	14.9	$	—	$	17.9	$	98.6
Liabilities of consolidated Funds(1)
Securities sold short	$	(4.0)	$	—	$	—	$	—	$	(4.0)
Derivatives	—		(0.1)		—		—		(0.1)
Consolidated Funds total	(4.0)		(0.1)		—		—		(4.1)
Total fair value liabilities	$	(4.0)	$	(0.1)	$	—	$	—	$	(4.1)

(1)Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliate.

Equity securities and derivatives which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. The securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II.

The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided.

13

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

4) Fair Value Measurements (cont.)

If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model with unobservable inputs, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures.

(2)Investments in separate accounts of $2.3 million at March 31, 2024 consisted of approximately 100% equity securities. Investments in separate accounts of $2.1 million at December 31, 2023 were composed of approximately 1% cash equivalents and 99% equity securities. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II).

(3)Investments related to long-term incentive compensation plans of $46.2 million and $44.7 million at March 31, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I.

(4)The uncategorized amounts of $18.5 million and $17.9 million at March 31, 2024 and December 31, 2023, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $3.3 million and $3.6 million at March 31, 2024 and December 31, 2023, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year from March 31, 2024. The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, finance, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three months ended March 31, 2024 and 2023.

14

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

5) Variable Interest Entities

The Company, through its Affiliate, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by the Company’s Affiliate, and other partnership interests typically owned entirely by third-party investors. Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that have ownership interests in the Affiliate.

The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity. Typically, the Fund’s investors are entitled to substantially all of the economics of these VIEs with the exception of the management fees and performance fees, if any, earned by the Company or any investment the Company has made into the Funds. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest, including interests of related parties, is substantial.

The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions):

	March 31, 2024		December 31, 2023
Assets
Investments	$	37.6	$	33.9
Other assets of consolidated Funds	1.8		$	1.3
Total Assets	$	39.4	$	35.2
Liabilities
Liabilities of consolidated Funds	$	5.3	$	4.3
Total Liabilities	$	5.3	$	4.3

“Investments” consist of investments in equity securities, corporate bonds and derivative securities. To the extent the Company also has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above.

The assets of consolidated VIEs presented in the table above belong to the investors in those Funds, are available for use only by the Fund to which they belong, and are not available for use by the Company to the extent they are held by non-controlling interests. Any debt or liabilities held by consolidated Funds have no recourse to the Company’s general credit.

The Company’s involvement with Funds that are VIEs and not consolidated by the Company is generally limited to that of an investment manager and its investment in the unconsolidated VIE, if any. The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIE’s results are attributable to third parties. The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees. The Company has not issued any investment performance guarantees to these VIEs or their investors.

15

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

5) Variable Interest Entities (cont.)

The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions):

	March 31, 2024		December 31, 2023
Unconsolidated VIE assets	$	628.4	$	669.1
Unconsolidated VIE liabilities	$	304.8	$	316.5
Equity interests on the Condensed Consolidated Balance Sheets	$	3.3	$	3.6
Maximum risk of loss(1)	$	3.3	$	3.6

(1)Includes equity investments the Company has made.

6) Borrowings and Debt

The Company’s borrowings and long-term debt were comprised of the following as of the dates indicated (in millions):

	March 31, 2024					December 31, 2023
(in millions)	Carrying Value		Fair Value		Fair Value Level	Carrying Value		Fair Value		Fair Value Level
Revolving credit facility:
$125 million revolving credit facility expiring March 7, 2025(1)	$	73.0	$	73.0	2	$	—	$	—
Total revolving credit facility	$	73.0	$	73.0		$	—	$	—
Third party borrowings:
$275 million 4.80% Senior Notes Due July 27, 2026(2)	$	274.0	$	266.9	2	$	273.9	$	263.1	2
Total third party borrowings	$	274.0	$	266.9		$	273.9	$	263.1

(1)Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates.

(2)The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts.

16

BrightSphere Investment Group Inc.

Notes to Consolidated Financial Statements

(unaudited)

6) Borrowings and Debt (cont.)

Revolving Credit Facility

On March 7, 2022, Acadian, Royal Bank of Canada, BMO Harris Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Bank of America N.A., the Bank of New York Mellon and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian Credit Agreement”), which replaced the Company’s revolving credit facility dated as of August 20, 2019 (as amended by an amendment dated September 3, 2020 and an assignment and assumption and amendment agreement dated February 23, 2021, the “Original Credit Agreement”). The maturity date of this Original Credit Agreement was August 22, 2022, and the maturity date of the Acadian Credit Agreement is March 7, 2025.

Borrowings under the Acadian Credit Agreement bear interest, at Acadian’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case, an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian’s Leverage Ratio. In addition, Acadian is charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian’s Leverage Ratio.

Under the Acadian Credit Agreement, the ratio of Acadian’s third-party borrowings to Acadian’s trailing twelve months Adjusted EBITDA, as defined by the Acadian Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the Acadian interest coverage ratio must not be less than 4.0x.

7) Leases

The Company has operating leases for corporate offices, data centers and certain equipment. The operating leases have remaining lease terms of less than 1 year to 10 years, some of which include options to extend the leases for up to 5 years.

The following table summarizes information about the Company’s operating leases for the three months ended March 31, 2024 and 2023 (in millions):

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	2.2	$	2.1
Variable lease cost	—		—
Total operating lease expense	$	2.2	$	2.1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2.4	$	2.3
Right of use assets obtained in exchange for new operating lease liabilities	—		2.8

17

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

7) Leases (cont.)

In determining the incremental borrowing rate, the Company considered the interest rate yield for the specific interest rate environment and the Company’s credit spread at the inception of the lease. For the three months ended March 31, 2024 and 2023, the weighted average remaining lease term was 9.3 and 10.2 years, respectively, and the weighted average discount rate was 3.52% and 3.54%, respectively.

Maturities of operating lease liabilities were as follows (in millions):

	Operating Leases
Year Ending December 31,
2024 (excluding the three months ended March 31, 2024)	$	6.9
2025	8.9
2026	8.8
2027	8.4
2028	8.5
Thereafter	41.1
Total lease payments	$	82.6
Less imputed interest	(12.0)
Total	$	70.6

8) Commitments and Contingencies

Operational commitments

A number of our subsidiaries operate under regulatory authorities that require that they maintain minimum financial or capital requirements. Management is not aware of any violations of such financial requirements occurring during the period.

Guaranty

The Company entered into a guaranty for an office space security deposit on behalf of Acadian in the amount of $2.5 million in January 2020. This represents the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guaranty in the event of default by the guaranteed parties. This guaranty expires in 2033. There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 related to this guaranty.

Litigation

The Company is subject to claims, legal proceedings, and other contingencies in the ordinary course of its business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company. The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated. As of March 31, 2024, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.

18

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

8) Commitments and Contingencies (cont.)

Indemnifications

In the normal course of business, such as through agreements to enter into business combinations and divestitures of Affiliates, the Company has entered into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred.

Foreign tax contingency

The Company has clients in non-U.S. jurisdictions which require entities that are conducting certain business activities in such jurisdictions to collect and remit tax assessed on certain fees paid for goods and services provided. The Company does not believe this requirement is applicable based on its limited business activities in these jurisdictions. However, given the fact that uncertainty exists around the requirement, the Company has chosen to evaluate its potential exposure related to non-collection and remittance of these taxes. At March 31, 2024, management of the Company has estimated the potential maximum exposure and concluded that it is not material. No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at March 31, 2024.

Considerations of credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and investments. The Company maintains cash and cash equivalents and short term investments with various financial institutions. These financial institutions are typically located in cities in which the Company and its Affiliate operate. For the Company and its Affiliate, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. Additionally, the Company holds insurance policies which cover historical tax benefits relating to certain of its deferred tax assets. The insurers of the policies are considered a significant counterparty to the Company.

19

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

9) Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to controlling interests by the weighted-average number of shares of common stock outstanding. Diluted earnings per share is similar to basic earnings per share, but is adjusted for the effect of potentially issuable common stock, except when inclusion is antidilutive.

The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data):

	Three Months Ended March 31,
	2024		2023
Numerator:
Net income attributable to controlling interests	$	14.6	$	12.0
Denominator:
Weighted-average shares of common stock outstanding—basic	39,063,522		41,444,200
Potential shares of common stock:
Restricted stock units	17,348		7,539
Employee stock options	650,570		1,258,838
Weighted-average shares of common stock outstanding—diluted	39,731,440		42,710,577
Earnings per share of common stock attributable to controlling interests:
Basic	$	0.37	$	0.29
Diluted	$	0.37	$	0.28

10) Revenue

Management fees

The Company’s management fees are a function of the fee rates the Affiliate charges to its clients, which are typically expressed in basis points, and the levels of the Company’s assets under management. The most significant driver of increases or decreases in this average fee rate is changes in the mix of the Company’s assets under management caused by net inflows or outflows in certain asset classes or disproportionate market movements.

Performance fees

The Company’s products subject to performance fees earn these fees upon exceeding high-water mark performance thresholds or outperforming a hurdle rate. Performance fees are recorded in revenues when the contractual performance criteria have been met and when it is probable that a significant reversal of revenue recognized will not occur in future reporting periods.

20

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

10) Revenue (cont.)

Disaggregation of management fee revenue

The geographic disaggregation of management fee revenue for the three months ended March 31, 2024 and 2023 are as follows (in millions):

	Three Months Ended March 31,
	2024		2023
Quant & Solutions
U.S.	$	77.3	$	67.9
Non-U.S.	24.9		22.7
Management fee revenue	$	102.2	$	90.6

11) Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2024 and 2023 are as follows (in millions):

	Foreign currency translation adjustment		Valuation and amortization of derivative securities		Total
Balance, as of December 31, 2023	$	3.1	$	(9.8)	$	(6.7)
Foreign currency translation adjustment before tax	(0.3)		—		(0.3)
Amortization related to derivatives securities before tax	—		0.9		0.9
Tax impact	0.1		(0.2)		(0.1)
Other comprehensive income (loss)	(0.2)		0.7		0.5
Balance, as of March 31, 2024	$	2.9	$	(9.1)	$	(6.2)

	Foreign currency translation adjustment		Valuation and amortization of derivative securities		Total
Balance, as of December 31, 2022	$	1.7	$	(12.3)	$	(10.6)
Foreign currency translation adjustment before tax	0.7		—		0.7
Amortization related to derivatives securities before tax	—		0.8		0.8
Tax impact	—		(0.2)		(0.2)
Other comprehensive income	0.7		0.6		1.3
Balance, as of March 31, 2023	$	2.4	$	(11.7)	$	(9.3)

21

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

12) Derivatives and Hedging

Cash flow hedge

In July 2015, the Company entered into a series of $300.0 million notional Treasury rate lock contracts which were designated and qualified as cash flow hedges. The Company documented its hedging strategy and risk management objective for this contract in anticipation of a future debt issuance. The Treasury rate lock contract eliminated the impact of fluctuations in the underlying benchmark interest rate for future forecasted debt issuances. The Company assessed the effectiveness of the hedging contract at inception and on a quarterly basis thereafter. The forecasted debt issuances occurred in July 2016 and the Treasury rate lock, which had an accumulated fair value of $(34.4) million, was settled.

As of March 31, 2024, the balance recorded in accumulated other comprehensive income (loss) was $(9.1) million, net of tax. This balance will be reclassified to earnings through interest expense over the life of the issued debt. The Company reclassified $0.9 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. During the next twelve months the Company expects to reclassify approximately $3.7 million to interest expense.

13) Segments

The Company has the following reportable segment:

•Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies. This segment is comprised of the Company’s interest in Acadian.

The corporate head office is included within the Other category. The corporate head office expenses are not allocated to the Company’s business segment, but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of the segment.

Performance Measure

The primary measure used by the CODM in measuring performance and allocating resources to the segments is Economic Net Income (“ENI”). The Company defines ENI for the segments as ENI revenue less (i) ENI operating expenses, (ii) variable compensation and (iii) key employee distributions. The ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP. This measure supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with U.S. GAAP. The Company does not disclose total asset information for its reportable segment as the information is not reviewed by the CODM.

ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to the Company’s Affiliate by consolidated Funds.

22

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

13) Segments (cont.)

ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, capital transaction costs, and restructuring costs. Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses.

ENI segment results are also adjusted to exclude the portion of consolidated Fund revenues, expenses and investment return recorded under U.S. GAAP.

Segment Presentation

The following tables set forth summarized operating results for the Company’s segment and related adjustments necessary to reconcile the segment economic net income to arrive at the Company’s consolidated U.S. GAAP net income (loss).

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2024 (in millions):

	Three Months Ended March 31, 2024
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	105.3	$	—	$	0.4	(a)	$	105.7
ENI operating expenses	45.7		3.8		4.7		(b)	54.2
Earnings before variable compensation	59.6		(3.8)		(4.3)			51.5
Variable compensation	26.0		0.6		(0.2)		(c)	26.4
ENI operating earnings (after variable comp)	33.6		(4.4)		(4.1)			25.1
Affiliate key employee distributions	2.2		—		—			2.2
Earnings after Affiliate key employee distributions	31.4		(4.4)		(4.1)			22.9
Net interest expense	—		(3.0)		(0.7)		(d)	(3.7)
Net investment income	—		—		2.6		(e)	2.6
Net income attributable to non-controlling interests in consolidated Funds	—		—		(1.1)		(e)	(1.1)
Income tax (expense) benefit	—		(6.6)		0.5		(f)	(6.1)
Economic net income	$	31.4	$	(14.0)	$	(2.8)		$	14.6

23

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

13) Segments (cont.)

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2023 (in millions):

	Three Months Ended March 31, 2023
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	91.1	$	—	$	0.7	(a)	$	91.8
ENI operating expenses	43.6		3.5		0.5		(b)	47.6
Earnings before variable compensation	47.5		(3.5)		0.2			44.2
Variable compensation	22.5		0.7		—			23.2
ENI operating earnings (after variable comp)	25.0		(4.2)		0.2			21.0
Affiliate key employee distributions	1.2		—		—			1.2
Earnings after Affiliate key employee distributions	23.8		(4.2)		0.2			19.8
Net interest expense	—		(3.4)		(0.4)		(d)	(3.8)
Net investment income	—		—		1.1		(e)	1.1
Income tax expense	—		(4.4)		(0.7)		(f)	(5.1)
Economic net income	$	23.8	$	(12.0)	$	0.2		$	12.0

(1)The most directly comparable U.S. GAAP measure of ENI revenue is U.S. GAAP revenue. The most directly comparable U.S. GAAP measure of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation, and Affiliate key employee distributions above. The most directly comparable U.S. GAAP measure of earnings after Affiliate key employee distributions is U.S. GAAP operating income. The most directly comparable U.S. GAAP measure of ENI is U.S. GAAP net income attributable to controlling interests.

Reconciling Adjustments:

a.Adjusted to include consolidated Funds revenues which are included in U.S. GAAP revenue.

b.Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, restructuring costs, and consolidated Funds’ operating expenses, each of which are included in U.S. GAAP operating expenses.

c.Adjusted to include restructuring costs which are included in U.S. GAAP compensation expense.

d.Adjusted to include the cost of seed financing and amortization of debt issuance costs, which is included in U.S. GAAP interest expense.

e.Adjusted to include net investment income (loss), and net income attributable to non-controlling interests in consolidated Funds, all of which are included in U.S. GAAP net income attributable to controlling interests.

f.Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Adjusted to include the tax impact of certain ENI adjustments; exclude the tax expense or benefits relating to uncertain tax positions, and exclude the tax impact of other unusual items that are not related to current operating results for ENI purposes.

24

BrightSphere Investment Group Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

14) Subsequent Events

During the period from April 1, 2024 through May 7, 2024, the Company repurchased 269,361 shares of common stock at a weighted average price of $22.49 per share, or approximately $6 million in total, including commissions.

The Company seeded Acadian’s Global High Yield Strategy with $15 million of seed capital in April 2024.

25

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company”, “BrightSphere” or “BSIG” refer to BrightSphere Investment Group Inc., and references to “we,” “our” and “us” refer to BSIG and its consolidated subsidiaries, excluding discontinued operations. References to the holding company or “Center” excluding the Affiliates refer to BrightSphere Inc., or “BSUS,” a Delaware corporation and wholly owned subsidiary of BSIG. Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to “Affiliates” or an “Affiliate” refer to the asset management firms in which we have or previously had an ownership interest. References in this Quarterly Report on Form 10-Q to “OM plc” refer to Old Mutual plc, our former parent. None of the information in this Quarterly Report on Form 10-Q constitutes either an offer or a solicitation to buy or sell Acadian’s products or services, nor is any such information a recommendation for Acadian’s products or services.

The following discussion of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and related notes which appear in this Quarterly Report on Form 10-Q in Item 1, Financial Statements.

This discussion contains forward-looking statements that involve risks and uncertainties. See “Forward-Looking Statements” at the end of this Item 2 for more information. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed below.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is designed to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results.

Our MD&A is presented in five sections:

•Overview provides a brief description of our business. It includes information on our reporting segment and underlying Affiliate, a summary of The Economics of Our Business and an explanation of How We Measure Performance using a non-GAAP measure which we refer to as economic net income, or ENI. This section also provides a Summary Results of Operations and information regarding our Assets Under Management by strategy, client type and client location, and net flows by segment, client type and client location.

•U.S. GAAP Results of Operations for the Three Months Ended March 31, 2024 and 2023 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three months ended March 31, 2024 and 2023, as well as key U.S. GAAP operating metrics.

•Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis includes an explanation of the key differences between U.S. GAAP net income and ENI, the key measure management uses to evaluate our performance. This section also provides a reconciliation between U.S. GAAP net income attributable to controlling interests and ENI for the three months ended March 31, 2024 and 2023, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses. This section also provides key non-GAAP operating metrics. In addition, this section provides segment analysis for our business segment.

•Capital Resources and Liquidity discusses our key balance sheet data. This section discusses Cash Flows from the business; Adjusted EBITDA; Future Capital Needs; Borrowings and Long-Term Debt. The discussion of Adjusted EBITDA includes an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S. GAAP net income attributable to controlling interests to Adjusted EBITDA.

•Critical Accounting Policies and Estimates provides a discussion of the key accounting policies and estimates that we believe are the most critical to an understanding of our results of operations and financial condition. These accounting policies and estimates require complex management judgment regarding matters that are highly uncertain at the time the policies were applied and estimates were made.

26

Overview

We are a global asset management holding company headquartered in Boston, Massachusetts. We operate a differentiated investment management business through our majority owned subsidiary, Acadian Asset Management LLC (“Acadian” or the “Affiliate”), a leading systematic manager of active global, international equity and alternative strategies. Acadian comprises our Quant & Solutions reportable segment:

•Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies. This segment is comprised of our interest in our sole Affiliate, Acadian.

Through Acadian, we offer a diverse range of actively-managed investment strategies and products to institutional investors around the globe.

The corporate head office is included within the Other category. The corporate head office expenses are not allocated to the Company’s business segment, but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of our segment.

Under U.S. GAAP, Acadian is consolidated into our financial statements. We may also be required to consolidate Acadian’s sponsored investment entities, or Funds, due to the nature of our decision-making rights, our economic interests in these Funds or the rights of third party clients in those Funds.

    The Economics of Our Business

Our profitability is affected by a variety of factors including the level and composition of our average assets under management, or AUM, fee rates charged on AUM and our expense structure. We earn management fees based on assets under management. Approximately 80% of our management fees for the three months ended March 31, 2024 were calculated based on average AUM (calculated on either a daily or monthly basis) with the remainder of our management fees calculated based on period-end AUM. Changes in the levels of our AUM are driven by market investment performance and net client cash flows. We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed or fail to exceed required returns. Approximately $15 billion, or 14%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee. The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis.

Our largest expense item is compensation and benefits paid to our employees, which consists of both fixed and variable components. Fixed compensation and benefits represents base salaries and wages, payroll taxes and the costs of our employee benefit programs. Variable compensation, calculated as described below, may be awarded in cash, equity, or profit interests.

The arrangement in place with Acadian results in the sharing of economics between BSUS and Acadian’s key management personnel using a profit-sharing model. Profit sharing affects two elements within our earnings: (i) the calculation of variable compensation and (ii) the level of Acadian’s equity or profit interests distribution to its employees.

Variable compensation is the portion of earnings that is contractually allocated to Acadian employees as a bonus pool, typically representing a percentage of earnings before variable compensation, which is measured as revenues less fixed compensation and benefits and other operating and administrative expenses. Profits after variable compensation are shared between us and Acadian key employee equity holders according to our respective equity or profit interests ownership. The sharing of profits in this manner ensures that the economic interests of Acadian key employees and those of BSUS are aligned, both in terms of generating strong annual earnings as well as investing those earnings back into the business in order to generate growth over the long term. We view profit sharing as an

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attractive operating model, as it allows us to share in the benefits of operating leverage as the business grows, and ensures all equity and profit interests holders are incentivized to achieve that growth.

Equity or profit interests owned by Acadian key employees are awarded as part of their variable compensation arrangement. Over time, Acadian key employee-owned equity or profit interests are recycled from one generation of employee-owners to the next, either by the next generation purchasing equity or profit interests directly from retiring principals, or by Acadian key employees forgoing cash bonuses in exchange for the equivalent value in Acadian equity or profit interests. The recycling of equity or profit interests is often facilitated by BSUS; see “—U.S. GAAP Results of Operations—U.S. GAAP Expenses—Compensation and Benefits Expense” for a further discussion.

How We Measure Performance

We manage our business based on one segment, reflecting how our management assesses the performance of our business.

In measuring and monitoring the key components of our earnings, our management uses a non-GAAP financial measure, ENI, to evaluate the financial performance of, and to make operational decisions for, our business. We also use ENI to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and Affiliate equity distributions, and incentivize management. It is an important measure in evaluating our financial performance because we believe it most accurately represents our operating performance and cash generation capability.

ENI differs from net income determined in accordance with U.S. GAAP as a result of both the reclassification of certain income statement items and the exclusion of certain non-cash or non-recurring income statement items. In particular, ENI excludes non-cash charges representing the changes in the value of Affiliate equity and profit interests held by Affiliate key employees, the results of discontinued operations which are no longer part of our business, restructuring costs, capital transaction costs, seed capital and co-investment gains, losses and related financing costs and that portion of consolidated Funds which are not attributable to our stockholders.

ENI revenue is primarily comprised of the fee revenues paid to us by our clients for our advisory services. Revenue included within ENI differs from U.S. GAAP revenue in that it excludes amounts from consolidated Funds which are not attributable to our stockholders.

ENI expenses are calculated to reflect all usual expenses from ongoing continuing operations attributable to our stockholders. Expenses included within ENI differ from U.S. GAAP expenses in that they exclude amounts from consolidated Funds which are not attributable to our stockholders, revaluations of Affiliate key employee owned equity and profit interests, amortization and impairment of acquired intangibles and other acquisition-related items, and certain other non-cash expenses.

“Non-controlling interests” is a concept under U.S. GAAP that identifies net components of revenues and expenses that are not attributable to our stockholders. For example, the portion of the net income (loss) of any consolidated Fund that is attributable to the outside investors or clients of the consolidated Fund is included in “Non-controlling interests” in our Condensed Consolidated Financial Statements. Conversely, “controlling interests” is the portion of revenue or expense that is attributable to our stockholders.

For a more detailed discussion of the differences between U.S. GAAP net income and economic net income, see “—Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis.”

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Summary Results of Operations

The following table summarizes our unaudited results of operations for the three months ended March 31, 2024 and 2023: 

($ in millions, unless otherwise noted)	Three Months Ended March 31,
	2024			2023			2024 vs. 2023
U.S. GAAP Basis
Revenue	$	105.7		$	91.8		$	13.9
Pre-tax income attributable to controlling interests	20.7			17.1			3.6
Net income attributable to controlling interests	14.6			12.0			2.6
U.S. GAAP operating margin(1)	21.7		%	21.6		%	10 bps
Earnings per share, basic ($)	$	0.37		$	0.29		$	0.08
Earnings per share, diluted ($)	$	0.37		$	0.28		$	0.09
Basic shares outstanding (in millions)	39.1			41.4			(2.3)
Diluted shares outstanding (in millions)	39.7			42.7			(3.0)
Economic Net Income Basis(2)(3)
(Non-GAAP measure used by management)
ENI revenue(4)	$	105.3		$	91.1		$	14.2
Pre-tax economic net income(5)	24.0			16.2			7.8
Adjusted EBITDA	31.9			23.6			8.3
ENI operating margin(6)	27.7		%	22.8		%	490 bps
Economic net income(7)	17.4			11.8			5.6
ENI diluted EPS ($)	$	0.44		$	0.28		$	0.16
Other Operational Information
Assets under management (AUM) at period end (in billions)	$	110.4		$	97.5		$	12.9
Net client cash flows (in billions)	0.4			0.1			0.3
Annualized revenue impact of net flows(8)	(0.2)			1.0			(1.2)

(1)U.S. GAAP operating margin equals operating income divided by total revenue.

(2)Economic net income is a non-GAAP measure we use to evaluate the performance of our business. For a reconciliation to U.S. GAAP financial information and a further discussion of economic net income refer to “—Non-GAAP Supplemental Performance Measure—Economic Net Income and Segment Analysis.”

(3)Excludes severance-related items at Acadian of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million for the three months ended March 31, 2024. Excludes costs associated with the transfer of an insurance policy from our former parent of $0.4 million for the three months ended March 31, 2023.

(4)ENI revenue is the ENI measure which corresponds to U.S. GAAP revenue.

(5)Pre-tax economic net income is the ENI measure which corresponds to U.S. GAAP pre-tax income attributable to controlling interests.

(6)ENI operating margin is a non-GAAP efficiency measure, calculated based on ENI operating earnings divided by ENI revenue. ENI operating earnings is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation. The ENI operating margin is most directly comparable to our U.S. GAAP operating margin (excluding the effect of consolidated Funds).

(7)Economic net income is the non-GAAP measure which is most directly comparable to U.S. GAAP net income attributable to controlling interests.

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(8)Annualized revenue impact of net flows represents annualized management fees expected to be earned on new accounts and net assets contributed to existing accounts, less the annualized management fees lost on terminated accounts or net assets withdrawn from existing accounts, plus revenue impact from reinvested income and distributions. The annualized management fees are calculated by multiplying the annual gross fee rate for the relevant account by the net assets gained in the account in the event of a positive flow, excluding any current or future market appreciation or depreciation, or the net assets lost in the account in the event of an outflow, excluding any current or future market appreciation or depreciation. In addition, reinvested income and distributions are multiplied by the average fee rate to compute the revenue impact. For a further discussion of the uses and limitations of the annualized revenue impact of net flows, see “Assets Under Management” herein.

Assets Under Management

The following table presents our assets under management as of each of the dates indicated: 

($ in billions)	March 31, 2024		December 31, 2023
Acadian Asset Management	$	110.4	$	103.7

Our strategies include:

i.Developed Markets equity, which includes Quant & Solutions U.S., global and international equities; and

ii.Emerging Markets equity, which includes Quant & Solutions equity investments in the emerging and frontier markets.

The following table presents our assets under management by strategy as of each of the dates indicated: 

($ in billions)	March 31, 2024		December 31, 2023
Developed Markets	$	87.2	$	80.7
Emerging Markets	23.2		23.0
Total assets under management	$	110.4	$	103.7

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The following table shows assets under management by client type as of each of the dates indicated:

($ in billions)	March 31, 2024				December 31, 2023
	AUM		% of total		AUM		% of total
Public/Government	$	47.0	42.6	%	$	43.7	42.1	%
Commingled Trust/UCITS	27.1		24.5	%	25.2		24.3	%
Corporate/Union	13.2		12.0	%	12.0		11.6	%
Sub-advisory	13.0		11.8	%	12.8		12.3	%
Endowment/Foundation	3.3		3.0	%	3.4		3.3	%
Mutual Fund	0.7		0.6	%	0.7		0.7	%
Other	6.1		5.5	%	5.9		5.7	%
Total assets under management	$	110.4			$	103.7

The following table shows assets under management by client location as of each of the dates indicated:

($ in billions)	March 31, 2024				December 31, 2023
	AUM		% of total		AUM		% of total
U.S.	$	73.0	66.1	%	$	69.9	67.4	%
Europe	18.0		16.3	%	16.6		16.0	%
Asia	5.4		4.9	%	4.4		4.2	%
Australia	7.2		6.5	%	6.5		6.3	%
Other	6.8		6.2	%	6.3		6.1	%
Total assets under management	$	110.4			$	103.7

AUM flows and the annualized revenue impact of net flows

Net client cash flows and revenue impact of net client cash flows for all periods include reinvested income and distributions. Reinvested income and distributions represent investment yield that is reinvested back into the portfolios as opposed to distributed as cash.

In the following table, we present our asset flows and market appreciation (depreciation) by segment. We also present a key metric used to better understand our asset flows, the annualized revenue impact of net client cash flows. Annualized revenue impact of net flows represents annualized management fees expected to be earned on new accounts and net assets contributed to existing accounts (inflows), less the annualized management fees lost on terminated accounts or net assets withdrawn from existing accounts (outflows), plus revenue impact from reinvested income and distributions. Annualized management fee for client flow is calculated by multiplying the annual gross fee rate for the relevant account with the inflow or the outflow. In addition, reinvested income and distributions is multiplied by the average fee rate to compute the revenue impact.

The annualized revenue impact of net flows metric is designed to provide investors with a better indication of the potential financial impact of net client cash flows, however it has certain limitations. For instance, it does not include assumptions for the next twelve months' market appreciation or depreciation and investment performance associated with the assets gained or lost. Nor does it account for factors such as future client terminations or additional contributions or withdrawals over the next twelve months. Additionally, the basis points reported are fee rates based on the asset levels at the time of the transactions and do not consider the fact that client fee rates may change over the next twelve months.

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The following table summarizes our asset flows and market appreciation (depreciation) by segment for each of the periods indicated:

	Three Months Ended March 31,
($ in billions, unless otherwise noted)	2024		2023
Quant & Solutions
Beginning balance	$	103.7	$	93.6
Gross inflows	4.3		2.2
Gross outflows	(4.7)		(3.0)
Reinvested income and distributions	0.8		0.9
Net flows	0.4		0.1
Market appreciation	6.3		3.8
Ending balance	$	110.4	$	97.5
Average AUM	$	107.6	$	96.4
Annualized basis points: inflows	40.0		41.3
Annualized basis points: outflows	44.0		38.9
Annualized revenue impact of net flows ($ in millions)	$	(0.2)	$	1.0

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We also analyze our asset flows by client type and client location. Our client types include:

i.Sub-advisory, which includes assets managed for underlying mutual fund and variable insurance products which are sponsored by insurance companies and mutual fund platforms, where the end client is typically retail;

ii.Institutional, which includes assets managed for public/government pension funds, including U.S. state and local government funds and non-U.S. sovereign wealth, local government and national pension funds; also includes corporate and union-sponsored pension plans; and

iii.Retail/other, which includes assets managed for mutual funds sponsored by our Affiliate, defined contribution plans and accounts managed for high net worth clients.

The following table summarizes our asset flows by client type for each of the periods indicated: 

($ in billions)	Three Months Ended March 31,
	2024		2023
Sub-advisory
Beginning balance	$	12.8	$	11.8
Gross inflows	0.3		0.4
Gross outflows	(0.8)		(0.7)
Reinvested income and distributions	0.1		0.1
Net flows	(0.4)		(0.2)
Market appreciation	0.6		0.3
Ending balance	$	13.0	$	11.9
Institutional
Beginning balance	$	84.3	$	77.2
Gross inflows	3.9		1.7
Gross outflows	(3.3)		(2.2)
Reinvested income and distributions	0.6		0.7
Net flows	1.2		0.2
Market appreciation	5.1		3.4
Ending balance	$	90.6	$	80.8
Retail/Other
Beginning balance	$	6.6	$	4.6
Gross inflows	0.1		0.1
Gross outflows	(0.6)		(0.1)
Reinvested income and distributions	0.1		0.1
Net flows	(0.4)		0.1
Market appreciation	0.6		0.1
Ending balance	$	6.8	$	4.8
Total
Beginning balance	$	103.7	$	93.6
Gross inflows	4.3		2.2
Gross outflows	(4.7)		(3.0)
Reinvested income and distributions	0.8		0.9
Net flows	0.4		0.1
Market appreciation	6.3		3.8
Ending balance	110.4		97.5

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Our categorization of assets under management by client location includes:

i. U.S.-based clients, where the contracting client is based in the United States, and

ii. Non-U.S.-based clients, where the contracting client is based outside the United States.

The following table summarizes asset flows by client location for each of the periods indicated:

($ in billions)	Three Months Ended March 31,
	2024		2023
U.S.
Beginning balance	$	69.9	$	62.7
Gross inflows	1.7		1.2
Gross outflows	(3.3)		(2.1)
Reinvested income and distributions	0.5		0.6
Net flows	(1.1)		(0.3)
Market appreciation	4.2		2.6
Ending balance	$	73.0	$	65.0
Non-U.S.
Beginning balance	$	33.8	$	30.9
Gross inflows	2.6		1.0
Gross outflows	(1.4)		(0.9)
Reinvested income and distributions	0.3		0.3
Net flows	1.5		0.4
Market appreciation	2.1		1.2
Ending balance	$	37.4	$	32.5
Total
Beginning balance	$	103.7	$	93.6
Gross inflows	4.3		2.2
Gross outflows	(4.7)		(3.0)
Reinvested income and distributions	0.8		0.9
Net flows	0.4		0.1
Market appreciation	6.3		3.8
Ending balance	$	110.4	$	97.5

At March 31, 2024, our total assets under management were $110.4 billion, an increase of $6.7 billion, or 6.5%, compared to $103.7 billion at December 31, 2023 and an increase of $12.9 billion, or 13.2%, compared to $97.5 billion at March 31, 2023. The increase in assets under management compared to March 31, 2023 was driven by the equity market appreciation in the last twelve months. The change in assets under management during the three months ended March 31, 2024 reflects net market appreciation of $6.3 billion and net inflows of $0.4 billion. Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM. Given a substantial portion of our AUM is denominated in foreign currencies, foreign exchange rate movements during the period can impact AUM when the strength of the U.S. dollar changes relative to other currencies.

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For the three months ended March 31, 2024, our net flows were $0.4 billion compared to $0.1 billion for the three months ended March 31, 2023. The change in net flows during the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily driven by increased sales in the three months ended March 31, 2024. Reinvested income and distributions of $0.8 billion and $0.9 billion are reflected in the net flows for the three months ended March 31, 2024 and March 31, 2023, respectively. For the three months ended March 31, 2024, the annualized revenue impact of the net flows was $(0.2) million compared to $1.0 million for the three months ended March 31, 2023. Gross inflows of $4.3 billion in the three months ended March 31, 2024 yielded approximately 40 bps compared to $2.2 billion yielding approximately 41 bps in the year-ago period. Gross outflows of $(4.7) billion yielded approximately 44 bps in the three months ended March 31, 2024 compared to $(3.0) billion yielding approximately 39 bps in the year-ago period.

U.S. GAAP Results of Operations for the Three Months Ended March 31, 2024 and 2023

Our U.S. GAAP results of operations were as follows for the three months ended March 31, 2024 and 2023: 

	Three Months Ended March 31,
($ in millions, unless otherwise noted)	2024			2023			Increase (Decrease)
U.S. GAAP Statement of Operations(1)
Management fees	$	102.2		$	90.6		$	11.6
Performance fees	3.1			0.5			2.6
Consolidated Funds’ revenue	0.4			0.7			(0.3)
Total revenue	105.7			91.8			13.9
Compensation and benefits	58.1			49.1			9.0
General and administrative expense	20.0			18.4			1.6
Depreciation and amortization	4.6			3.8			0.8
Consolidated Funds’ expense	0.1			0.7			(0.6)
Total operating expenses	82.8			72.0			10.8
Operating income	22.9			19.8			3.1
Investment income	0.9			0.3			0.6
Interest income	1.3			1.1			0.2
Interest expense	(5.0)			(4.9)			(0.1)
Net consolidated Funds’ investment gains	1.7			0.8			0.9
Income before income taxes	21.8			17.1			4.7
Income tax expense	6.1			5.1			1.0
Net income	15.7			12.0			3.7
Net income attributable to non-controlling interests in consolidated Funds	1.1			—			1.1
Net income attributable to controlling interests	$	14.6		$	12.0		$	2.6
Basic earnings per share ($)	$	0.37		$	0.29		$	0.08
Diluted earnings per share ($)	0.37			0.28			0.09
Weighted average shares of common stock outstanding—basic	39.1			41.4			(2.3)
Weighted average shares of common stock outstanding—diluted	39.7			42.7			(3.0)
U.S. GAAP operating margin(2)	21.7		%	21.6		%

(1)Certain Funds have been consolidated due to our seed capital investments in the Funds.

(2)U.S. GAAP operating margin equals operating income divided by total revenue.

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The following table reconciles our net income attributable to controlling interests to our pre-tax income attributable to controlling interests: 

($ in millions)	Three Months Ended March 31,
U.S. GAAP Statement of Operations	2024		2023
Net income attributable to controlling interests	$	14.6	$	12.0
Add: Income tax expense	6.1		5.1
Pre-tax income attributable to controlling interests	$	20.7	$	17.1

U.S. GAAP Revenues

Our U.S. GAAP revenues principally consist of:

i.management fees earned based on our overall weighted average fee rate charged to our clients and the level of assets under management;

ii.performance fees earned when our Affiliate’s investment performance over agreed time periods for certain clients has differed from pre-determined hurdles; and

iii.revenue from consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds.

Management Fees

Our management fees are a function of the fee rates charged to our clients, which are typically expressed in basis points, and the levels of our assets under management.

Average basis points earned on average assets under management were 38.2 bps for the three months ended March 31, 2024 and 38.1 bps for the three months ended March 31, 2023. The overall weighted average fee rate increase for the three months ended March 31, 2024 is the result of changes in the mix of assets under management caused by market movements and client flows.

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Management fees increased $11.6 million, or 12.8%, from $90.6 million for the three months ended March 31, 2023 to $102.2 million for the three months ended March 31, 2024. The increase was due to higher levels of average assets under management. Average assets under management increased 11.6%, from $96.4 billion for the three months ended March 31, 2023 to $107.6 billion for the three months ended March 31, 2024, mainly due to the positive equity market in the past twelve months.

Performance Fees

Approximately $15 billion, or 14% of our AUM, were in accounts with performance fee features in which we participate. Performance fees are typically shared with our Affiliate key employees through various contractual compensation and profit-sharing arrangements.

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Performance fees increased $2.6 million, from $0.5 million for the three months ended March 31, 2023 to $3.1 million for the three months ended March 31, 2024, primarily due to strong performance relative to market in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.

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U.S. GAAP Expenses

Our U.S. GAAP expenses principally consist of:

i.compensation paid to our investment professionals and other employees, including base salary, benefits, sales-based compensation, variable compensation, Affiliate distributions, and revaluation of key employee owned Affiliate equity and profit interests;

ii.general and administrative expenses;

iii.amortization of acquired intangible assets;

iv.depreciation and amortization charges; and

v.expenses of consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds.

Compensation and Benefits Expense

Our most significant category of expense is compensation and benefits awarded to our and our Affiliate’s employees. The following table presents the components of U.S. GAAP compensation expense for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
($ in millions)	2024		2023
Fixed compensation and benefits(1)	$	23.5	$	23.4
Sales-based compensation(2)	1.6		1.9
Variable compensation(3)	26.4		23.2
Affiliate key employee distributions(4)	2.2		1.2
Non-cash Affiliate key employee equity revaluations(5)	4.4		(0.6)
Total U.S. GAAP compensation and benefits expense	$	58.1	$	49.1

(1)Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided.

(2)Sales-based compensation is paid to our Affiliate’s sales and distribution teams and represents compensation earned by our sales professionals, paid over a multi-year period, related to revenue earned on new sales. Its variability is based upon the structure of sales-based compensation due on inflows of assets under management and market-based movement in both current and prior periods.

(3)Variable compensation is contractually set and calculated individually for our Affiliate, plus Center bonuses. Variable compensation is usually awarded based on a contractual percentage of Affiliate ENI profits before variable compensation and may be paid in the form of cash or non-cash Affiliate equity or profit interests. With our Affiliate, we have a contractual split of performance fees between Affiliate employees and BSUS. The Affiliate’s share of performance fees, which ranges between 60%-75% of the total, is allocated entirely to variable compensation. The variable compensation earned on performance fees vests over three-years and compensation expense is recognized over that service period. Center variable compensation includes cash and our equity. Non-cash variable compensation awards typically vest over several years and are recognized as compensation expense over that service period.

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	Three Months Ended March 31,
($ in millions)	2024		2023
Cash variable compensation	$	24.7	$	21.6
Non-cash equity-based award amortization	1.7		1.6
Total variable compensation(a)	$	26.4	$	23.2

(a)For the three months ended March 31, 2024, $26.6 million of variable compensation expense (of the $26.4 million above) is included within economic net income, which excludes $(0.2) million of variable compensation associated with restructuring at Acadian.

(4)Affiliate key employee distributions represent the share of Affiliate profits after variable compensation that is attributable to Affiliate key employee equity and profit interests holders, according to their ownership interests. The Affiliate key employee distribution ratio at our Affiliate is calculated as Affiliate key employee distributions divided by ENI operating earnings at the Affiliate. Within our Affiliate we have a tiered equity structure, where BSUS and other classes of employee equity holders are entitled to an initial proportionate preference over profits after variable compensation, structured such that before a preference threshold is reached, there would be no required key employee distributions to the tiered equity holders, whereas for profits above the threshold, the key employee distribution amount to the tiered equity holders would be calculated based on the tiered key employee ownership percentages.

(5)Non-cash Affiliate key employee equity revaluations represent changes in the value of Affiliate equity and profit interests held by Affiliate key employees. These ownership interests may in certain circumstances be repurchased by BSUS at a value based on a pre-determined fixed multiple of twelve-month earnings and as such a liability is carried on our balance sheet based on the expected cash to be paid. However, any equity or profit interests repurchased by BSUS can be used to fund a portion of future variable compensation awards, resulting in savings in cash variable compensation that offset the negative cash effect of repurchasing the equity. Our Affiliate equity and profit interest plans have been designed to ensure BSUS is not required to repurchase more equity than we can reasonably recycle through variable compensation awards in any given twelve-month period.

Fluctuations in compensation and benefits expense for the periods presented are discussed below.

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Compensation and benefits expense increased $9.0 million, or 18.3%, from $49.1 million for the three months ended March 31, 2023 to $58.1 million for the three months ended March 31, 2024. Fixed compensation and benefits increased $0.1 million, or 0.4%, from $23.4 million for the three months ended March 31, 2023 to $23.5 million for the three months ended March 31, 2024, primarily reflecting cost of living increases and the cost of new hires supporting our growth initiatives, partially offset by cost savings realized from restructuring at our Affiliate in late 2023. Variable compensation increased $3.2 million, or 13.8%, from $23.2 million for the three months ended March 31, 2023 to $26.4 million for the three months ended March 31, 2024. The increase was primarily attributable to higher pre-bonus profits in the three months ended March 31, 2024. Sales-based compensation decreased $(0.3) million or (15.8)% from $1.9 million for the three months ended March 31, 2023 to $1.6 million for the three months ended March 31, 2024, as a result of the structure of sales-based compensation programs, driven by the timing of asset inflows which trigger sales-based compensation in both current and prior periods. Affiliate key employee distributions increased $1.0 million, or 83.3%, from $1.2 million for the three months ended March 31, 2023 to $2.2 million for the nine months ended March 31, 2024, driven by higher operating earnings in the three months ended March 31, 2024. Revaluations of Affiliate equity changed $5.0 million, reflecting fluctuations in the value of key employee ownership interests at our consolidated Affiliate, as the value of Affiliate equity decreased $(0.6) million for the three months ended March 31, 2023 and increased $4.4 million for the three months ended March 31, 2024.

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General and Administrative Expense

Three months ended March 31, 2024 compared to three months ended March 31, 2023: General and administrative expense increased $1.6 million, or 8.7%, from $18.4 million for the three months ended March 31, 2023 to $20.0 million for the three months ended March 31, 2024. The increase was primarily due to higher systems, outside services and portfolio administrative costs, as well as our continued investment in growth initiatives and capabilities.

Depreciation and Amortization Expense

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Depreciation and amortization expense increased $0.8 million, or 21.1%, from $3.8 million for the three months ended March 31, 2023 to $4.6 million for the three months ended March 31, 2024. The increase was primarily attributable to additional software and technology investments in the business.

U.S. GAAP Other Non-Operating Items of Income and Expense

Other non-operating items of income and expense consist of:

i.investment income;

ii.interest income; and

iii.interest expense.

Investment Income

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Investment income increased $0.6 million, from $0.3 million for the three months ended March 31, 2023 to $0.9 million for the three months ended March 31, 2024, reflecting an increase in returns generated by seed capital investments due to market appreciation.

Interest Income

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Interest income increased $0.2 million, or 18.2%, from $1.1 million for the three months ended March 31, 2023 compared to $1.3 million for the three months ended March 31, 2024. The increase was due to an increases in short-term investment returns in the three months ended March 31, 2024.

Interest Expense

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Interest expense increased $0.1 million, or 2.0%, from $4.9 million for the three months ended March 31, 2023 to $5.0 million for the three months ended March 31, 2024, reflecting an increase in interest rates on the revolving credit facility in the three months ended March 31, 2024.

U.S. GAAP Income Tax Expense

Our effective tax rate has been impacted by state and local tax obligations, changes in liabilities for uncertain tax positions, tax effects of stock-based compensation, limitations on executive compensation, and the mix of income earned in the United States versus foreign jurisdictions. Our effective tax rate could be impacted in the future by these items as well as further changes in tax laws and regulations in jurisdictions in which we operate.

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Three months ended March 31, 2024 compared to three months ended March 31, 2023: Income tax expense increased $1.0 million, from $5.1 million for the three months ended March 31, 2023 to $6.1 million for the three months ended March 31, 2024. The increase in income tax expense primarily relates to the increase in income before income taxes during the three months ended March 31, 2024.

U.S. GAAP Consolidated Funds

The net income or loss of all consolidated Funds, excluding any income or loss attributable to seed capital or co-investments we make in the Funds, is included in non-controlling interests in our Consolidated Financial Statements and is not included in net income attributable to controlling interests or in management fees.

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Consolidated Funds’ revenue decreased $(0.3) million, from $0.7 million for the three months ended March 31, 2023 to $0.4 million for the three months ended March 31, 2024. Consolidated Funds’ expense decreased $(0.6) million, from $0.7 million for the three months ended March 31, 2023 to $0.1 million for the three months ended March 31, 2024. Net consolidated Funds’ investment gain increased $0.9 million from $0.8 million for the three months ended March 31, 2023 to $1.7 million for the three months ended March 31, 2024.

Key U.S. GAAP Operating Metrics

The following table shows our key U.S. GAAP operating metrics for the three months ended March 31, 2024 and 2023.

	Three Months Ended March 31,
($ in millions)	2024			2023
Numerator: Operating income	$	22.9		$	19.8
Denominator: Total revenue	$	105.7		$	91.8
U.S. GAAP operating margin(1)	21.7		%	21.6		%
Numerator: Total operating expenses(2)	$	82.7		$	71.3
Denominator: Management fee revenue	$	102.2		$	90.6
U.S. GAAP operating expense / management fee revenue(3)	80.9		%	78.7		%
Numerator: Variable compensation	$	26.4		$	23.2
Denominator: Operating income before variable compensation and Affiliate key employee distributions(2)(4)(5)	$	51.2		$	44.2
U.S. GAAP variable compensation ratio(3)	51.6		%	52.5		%
Numerator: Affiliate key employee distributions	$	2.2		$	1.2
Denominator: Operating income before Affiliate key employee distributions(2)(4)(5)	$	24.8		$	21.0
U.S. GAAP Affiliate key employee distributions ratio(3)	8.9		%	5.7		%

(1)Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin is 21.5% for the three months ended March 31, 2024, and 21.7% for the three months ended March 31, 2023.

(2)Excludes consolidated Funds’ expense of $0.1 million for the three months ended March 31, 2024, and $0.7 million for the three months ended March 31, 2023.

(3)Excludes the effect of Funds consolidation for the three months ended March 31, 2024 and 2023.

(4)Excludes consolidated Funds’ revenue of $0.4 million for the three months ended March 31, 2024, and $0.7 million for the three months ended March 31, 2023.

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(5)The following table identifies the components of operating income before variable compensation and Affiliate key employee distributions, as well as operating income before Affiliate key employee distributions:

	Three Months Ended March 31,
($ in millions)	2024		2023
Operating income	$	22.9	$	19.8
Affiliate key employee distributions	2.2		1.2
Operating (income) loss of consolidated Funds	(0.3)		—
Operating income before Affiliate key employee distributions	24.8		21.0
Variable compensation	26.4		23.2
Operating income before variable compensation and Affiliate key employee distributions	$	51.2	$	44.2

Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis

As supplemental information, we provide a non-GAAP performance measure that we refer to as economic net income, or ENI, which represents our management’s view of the underlying economic earnings generated by us. We define economic net income as ENI revenue less (i) ENI operating expenses, (ii) variable compensation, (iii) key employee distributions, (iv) net interest and (v) taxes, each as further discussed in this section. ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP.

ENI is an important measure to investors because it is used by us to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine Affiliate variable compensation and equity distributions, and incentivize management. It is also an important measure because it assists management in evaluating our operating performance and is presented in a way that most closely reflects the key elements of our profit share operating model with our Affiliate. For a further discussion of how we use ENI and why ENI is useful to investors, see “—Overview—How We Measure Performance.”

To calculate economic net income, we re-categorize certain line items on our Condensed Consolidated Statements of Operations to reflect the following:

•We exclude the effect of Funds’ consolidation by removing the portion of Fund revenues, expenses and investment return which were not attributable to our stockholders.

•We include within management fee revenue any fees paid to Affiliate by consolidated Funds.

•We include our share of earnings from our equity-accounted Affiliate within other income in ENI revenue, rather than investment income.

•We treat sales-based compensation as a general and administrative expense, rather than part of fixed compensation and benefits.

•We identify separately from operating expenses variable compensation and Affiliate key employee distributions, which represent Affiliate earnings shared with Affiliate key employees.

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We also make the following adjustments to U.S. GAAP results to more closely reflect our economic results:

i.We exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees. These ownership interests may in certain circumstances be repurchased by BSUS at a value based on a pre-determined fixed multiple of trailing earnings and as such this value is carried on our balance sheet as a liability. Non-cash movements in the value of this liability are treated as compensation expense under U.S. GAAP. However, any equity or profit interests repurchased by BSUS can be used to fund a portion of future variable compensation awards, resulting in savings in cash variable compensation that offset the negative cash effect of repurchasing the equity. Our Affiliate equity and profit interest plans have been designed to ensure BSUS is never required to repurchase more equity than we can reasonably recycle through variable compensation awards in any given twelve-month period.

ii.We exclude non-cash amortization or impairment expenses related to acquired goodwill and other intangibles as these are non-cash charges that do not result in an outflow of tangible economic benefits from the business.

iii.We exclude capital transaction costs, including the costs of raising debt or equity, gains or losses realized as a result of redeeming debt or equity and direct incremental costs associated with acquisitions of businesses or assets.

iv.We exclude seed capital and co-investment gains, losses, and related financing costs. The net returns on these investments are considered and presented separately from ENI because ENI is primarily a measure of our earnings from managing client assets, which therefore differs from earnings generated by our investments in Affiliate products, which can be variable from period to period.

v.We include cash tax benefits associated with deductions allowed for acquired intangibles and goodwill that may not be recognized or have timing differences compared to U.S. GAAP.

vi.We exclude the results of discontinued operations attributable to controlling interests since they are not part of our ongoing business and restructuring costs incurred in continuing operations.

vii.We exclude deferred tax resulting from changes in tax law and expiration of statutes, adjustments for uncertain tax positions, deferred tax attributable to intangible assets and other unusual items not related to current operating results to reflect ENI tax normalization.

We also adjust our income tax expense to reflect any tax impact of our ENI adjustments.

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Reconciliation of U.S. GAAP Net Income to Economic Net Income for the Three Months Ended March 31, 2024 and 2023

The following table reconciles net income attributable to controlling interests to economic net income for the three months ended March 31, 2024 and 2023: 

		Three Months Ended March 31,
($ in millions)		2024		2023
U.S. GAAP net income attributable to controlling interests		$	14.6	$	12.0
Adjustments to reflect the economic earnings of the Company:
i.	Non-cash key employee-owned equity and profit interest revaluations	4.4		(0.6)
ii.	Amortization of acquired intangible assets	—		—
iii.	Capital transaction costs	0.1		0.1
iv.	Seed/Co-investment (gains) losses and financings(1)	(1.2)		(0.8)
v.	Tax benefit of goodwill and acquired intangibles deductions	0.4		0.4
vi.	Discontinued operations attributable to controlling interests and restructuring(2)	—		0.4
vii.	ENI tax normalization	—		0.1
Tax effect of above adjustments, as applicable(3)		(0.9)		0.2
Economic net income		$	17.4	$	11.8

(1)The net return on seed/co-investment (gains) losses and financings for the three months ended March 31, 2024 and 2023 is shown in the following table:

	Three Months Ended March 31,
($ in millions)	2024			2023
Seed/Co-investment gains	$	(1.8)		$	(1.1)
Financing costs:
Seed/Co-investment average balance	36.2			19.1
Blended interest rate*	6.5		%	6.5		%
Financing costs	0.6			0.3
Net seed/co-investment gains and financing	$	(1.2)		$	(0.8)

* The blended rate is based on the weighted average rate of the long-term debt.

(2)The three months ended March 31, 2024 includes severance-related items at Acadian of $(0.2) million and costs associated with the transfer of an insurance policy from our former parent of $0.2 million. The three months ended March 31, 2023 includes costs associated with the transfer of an insurance policy from our former parent of $0.4 million.

(3)Reflects the sum of lines (i), (ii), (iii), (iv) and the restructuring component of line (vi) multiplied by the 27.3% U.S. statutory tax rate (including state tax).

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Limitations of Economic Net Income

Economic net income is the key measure our management uses to evaluate the financial performance of, and make operational decisions for, our business. Economic net income is not audited and is not a substitute for net income or other performance measures that are derived in accordance with U.S. GAAP. Furthermore, our calculation of economic net income may differ from similarly titled measures provided by other companies.

Because the calculation of economic net income excludes certain ongoing expenses, including amortization expense and certain compensation costs, it has certain material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures of earnings.

    ENI Revenues

The following table reconciles U.S. GAAP revenue to ENI revenue for the three months ended March 31, 2024 and 2023: 

	Three Months Ended March 31,
($ in millions)	2024		2023
U.S. GAAP revenue	$	105.7	$	91.8
Exclude revenue from consolidated Funds attributable to non-controlling interests	(0.4)		(0.7)
ENI revenue	$	105.3	$	91.1

The following table identifies the components of ENI revenue:

	Three Months Ended March 31,
($ in millions)	2024		2023
Management fees(1)	$	102.2	$	90.6
Performance fees(2)	3.1		0.5
ENI revenue	$	105.3	$	91.1

(1)ENI management fees correspond to U.S. GAAP management fees.

(2)ENI performance fees correspond to U.S. GAAP performance fees.

    ENI Operating Expenses

The largest difference between U.S. GAAP operating expense and ENI operating expense relates to compensation. As shown in the following reconciliation, we exclude the impact of key employee equity revaluations. Variable compensation and Affiliate key employee distributions are also segregated out of U.S. GAAP operating expense in order to align with the manner in which these items are contractually calculated at the Affiliate level.

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The following table reconciles U.S. GAAP operating expense to ENI operating expense for the three months ended March 31, 2024 and 2023.

	Three Months Ended March 31,
($ in millions)	2024		2023
U.S. GAAP operating expense	$	82.8	$	72.0
Less: items excluded from economic net income
Non-cash key employee equity and profit interest revaluations	(4.4)		0.6
Restructuring costs(1)	—		(0.4)
Funds’ operating expense	(0.1)		(0.7)
Less: items segregated out of U.S. GAAP operating expense
Variable compensation(2)	(26.6)		(23.2)
Affiliate key employee distributions	(2.2)		(1.2)
ENI operating expense	$	49.5	$	47.1

(1)The three months ended March 31, 2024 includes $(0.2) million of severance-related items at Acadian and $0.2 million of costs associated with the transfer of an insurance policy from our former parent. The three months ended March 31, 2023 includes $0.4 million costs associated with the transfer of an insurance policy from our former parent.

(2)The three months ended March 31, 2024 excludes $(0.2) million severance-related items at Acadian that is included within Restructuring costs.

The following table identifies the components of ENI operating expense:

	Three Months Ended March 31,
($ in millions)	2024		2023
Fixed compensation & benefits(1)	$	23.5	$	23.4
General and administrative expenses(2)	21.4		19.9
Depreciation and amortization	4.6		3.8
ENI operating expense	$	49.5	$	47.1

(1)Fixed compensation and benefits include base salaries, payroll taxes and the cost of benefit programs provided. The following table reconciles U.S. GAAP compensation and benefits expense for the three months ended March 31, 2024 and 2023 to ENI fixed compensation and benefits expense:

	Three Months Ended March 31,
($ in millions)	2024		2023
Total U.S. GAAP compensation and benefits expense	$	58.1	$	49.1
Non-cash key employee equity and profit interest revaluations excluded from ENI	(4.4)		0.6
Sales-based compensation reclassified to ENI general & administrative expenses	(1.6)		(1.9)
Affiliate key employee distributions	(2.2)		(1.2)
Restructuring expenses	0.2		—
Variable compensation	(26.6)		(23.2)
ENI fixed compensation and benefits	$	23.5	$	23.4

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The following table reconciles U.S. GAAP general and administrative expense to ENI general and administrative expense:

	Three Months Ended March 31,
($ in millions)	2024		2023
U.S. GAAP general and administrative expense	$	20.0	$	18.4
Sales-based compensation	1.6		1.9
Restructuring costs	(0.2)		(0.4)
ENI general and administrative expense	$	21.4	$	19.9

Key Non-GAAP Operating Metrics

The following table shows our key non-GAAP operating metrics for the three months ended March 31, 2024 and 2023. We present these metrics because they are the measures our management uses to evaluate the profitability of our business and are useful to investors because they represent the key drivers and measures of economic performance within our business model. Please see the footnotes below for an explanation of each ratio, its usefulness in measuring the economics and operating performance of our business, and a reference to the most closely related U.S. GAAP measure:

	Three Months Ended March 31,
($ in millions)	2024			2023
Numerator: ENI operating earnings(1)	$	29.2		$	20.8
Denominator: ENI revenue	$	105.3		$	91.1
ENI operating margin(2)	27.7		%	22.8		%
Numerator: ENI operating expense	$	49.5		$	47.1
Denominator: ENI management fee revenue(3)	$	102.2		$	90.6
ENI operating expense ratio(4)	48.4		%	52.0		%
Numerator: ENI variable compensation	$	26.6		$	23.2
Denominator: ENI earnings before variable compensation(1)(5)	$	55.8		$	44.0
ENI variable compensation ratio(6)	47.7		%	52.7		%
Numerator: Affiliate key employee distributions	$	2.2		$	1.2
Denominator: ENI operating earnings(1)	$	29.2		$	20.8
ENI Affiliate key employee distributions ratio(7)	7.5		%	5.8		%

(1)ENI operating earnings represents ENI earnings before Affiliate key employee distributions and is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation. It differs from economic net income because it does not include the effects of Affiliate key employee distributions, net interest expense or income tax expense.

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The following table reconciles U.S. GAAP operating income to ENI operating earnings:

	Three Months Ended March 31,
($ in millions)	2024		2023
U.S. GAAP operating income	$	22.9	$	19.8
Exclude the impact of:
Affiliate key employee-owned equity and profit interest revaluations	4.4		(0.6)
Goodwill impairment and amortization of acquired intangible assets	—		—
Restructuring costs(a)	—		0.4
Affiliate key employee distributions	2.2		1.2
Variable compensation	26.6		23.2
Funds’ operating (income) loss	(0.3)		—
ENI earnings before variable compensation	55.8		44.0
Less: ENI variable compensation(b)	(26.6)		(23.2)
ENI operating earnings	29.2		20.8
Less: ENI Affiliate key employee distributions	(2.2)		(1.2)
ENI earnings after Affiliate key employee distributions	$	27.0	$	19.6

(a)The three months ended March 31, 2024 includes $(0.2) million of severance-related items at Acadian and $0.2 million of costs associated with the transfer of an insurance policy from our former parent. The three months ended March 31, 2023 includes $0.4 million of costs associated with the transfer of an insurance policy from our former parent.

(b)The three months ended March 31, 2024 excludes $(0.2) million severance-related items at Acadian.

(2)The ENI operating margin, which is calculated before Affiliate key employee distributions, is used by management and is useful to investors to evaluate the overall operating margin of the business. The ENI operating margin is most comparable to our U.S. GAAP operating margin. Our U.S. GAAP operating margin, excluding the effect of consolidated Funds, is 21.5% for the three months ended March 31, 2024, and 21.7% for the three months ended March 31, 2023.

The ENI operating margin is important because it gives investors an understanding of the profitability of the total business relative to revenue, irrespective of the ownership position which we have in our Affiliate. Management and investors use this ratio when comparing our profitability relative to our peer group and evaluating our ability to manage the cost structure and profitability of our business under different operating environments.

(3)ENI management fee revenue corresponds to U.S. GAAP management fee revenue.

(4)The ENI operating expense ratio is used by management and is useful to investors to evaluate the level of operating expense as measured against our recurring management fee revenue. We have provided this ratio since many operating expenses, including fixed compensation and benefits and general and administrative expense, are generally linked to the overall size of the business. We track this ratio as a key measure of scale economies because in our profit-sharing economic model, scale benefits both the Affiliate employees and our stockholders. The ENI operating expense ratio is most comparable to the U.S. GAAP operating expense / management fee revenue ratio.

(5)ENI earnings before variable compensation is calculated as ENI revenue, less ENI operating expense.

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(6)The ENI variable compensation ratio is used by management and is useful to investors to evaluate consolidated variable compensation as measured against our ENI earnings before variable compensation. Variable compensation is contractually set and calculated individually at our Affiliate, plus Center bonuses. Variable compensation is usually awarded based on a contractual percentage of our Affiliate’s ENI earnings before variable compensation and may be paid in the form of cash or non-cash Affiliate equity or profit interests. Center variable compensation includes cash and our equity. Non-cash variable compensation awards typically vest over several years and are recognized as compensation expense over that service period. The variable compensation ratio at our Affiliate is calculated as variable compensation divided by ENI earnings before variable compensation. The ENI variable compensation ratio is most comparable to the U.S. GAAP variable compensation ratio.

(7)The ENI Affiliate key employee distribution ratio is used by management and is useful to investors to evaluate Affiliate key employee distributions as measured against our ENI operating earnings. Affiliate key employee distributions represent the share of Affiliate profits after variable compensation that is attributable to Affiliate key employee equity and profit interests holders, according to their ownership interests. The Affiliate key employee distribution ratio at our Affiliate is calculated as Affiliate key employee distributions divided by ENI operating earnings at that Affiliate. Within our Affiliate, we have a tiered equity structure, where BSUS and other classes of employee equity holders are entitled to an initial proportionate preference over profits after variable compensation, structured such that before a preference threshold is reached, there would be no required key employee distributions to the tiered equity holders, whereas for profits above the threshold the key employee distribution amount to the tiered equity holders would be calculated based on the tiered key employee ownership percentages. The ENI Affiliate key employee distributions ratio is most comparable to the U.S. GAAP Affiliate key employee distributions ratio.

Tax on Economic Net Income

The following table reconciles the United States statutory tax to tax on economic net income:

	Three Months Ended March 31,
($ in millions)	2024			2023
Pre-tax economic net income(1)	$	24.0		$	16.2
Taxes at the U.S. federal and state statutory rates(2)	(6.6)			(4.4)
Other reconciling tax adjustments	—			—
Tax on economic net income	(6.6)			(4.4)
Economic net income	$	17.4		$	11.8
Economic net income effective tax rate(3)	27.5		%	27.2		%

(1)Includes interest income and third-party ENI interest expense, as shown in the following table:

	Three Months Ended March 31,
($ in millions)	2024		2023
U.S. GAAP interest income	$	1.3	$	1.1
U.S. GAAP interest expense	(5.0)		(4.9)
U.S. GAAP net interest expense	(3.7)		(3.8)
Other ENI interest expense exclusions(a)	0.7		0.4
ENI net interest expense	(3.0)		(3.4)
ENI earnings after Affiliate key employee distributions(b)	27.0		19.6
Pre-tax economic net income	$	24.0	$	16.2

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(a)Other ENI interest expense exclusions represent cost of financing on seed capital and co-investments and amortization of debt issuance costs.

(b)ENI earnings after Affiliate key employee distributions is calculated as ENI operating income (ENI revenue, less ENI operating expense, less ENI variable compensation), less Affiliate key employee distributions. Refer to “—Key Non-GAAP Operating Metrics” for a reconciliation from U.S. GAAP operating income (loss) to ENI earnings after Affiliate key employee distributions.

(2)Taxed at U.S. Federal and State statutory rate of 27.3%.

(3)The economic net income effective tax rate is calculated by dividing the tax on economic net income by pre-tax economic net income.

Investments

The value of our seed capital investments was $43.2 million as of March 31, 2024 and $41.4 million as of December 31, 2023, including direct investments in consolidated Funds. Total seed capital investments represents our seed capital invested within our Affiliate’s investment products. The following table reconciles the investments balance per our Condensed Consolidated Balance Sheets to the total value of our seed capital investments as of each of the dates indicated:

($ in millions)	December 31, 2023		December 31, 2023
Investments per Consolidated Balance Sheets	$	67.0	$	64.7
Seed capital investment in consolidated Funds	22.4		21.4
Investments related to long-term incentive compensation plans	(46.2)		(44.7)
Total seed capital investments	$	43.2	$	41.4

    Segment Analysis

We operate our business through the following reportable segment:

•Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies. This segment is comprised of our interest in Acadian.    

The corporate head office is included within the Other category. The corporate head office expenses are not allocated to the Company’s business segment but the CODM does consider the cost structure of the corporate head office when evaluating the financial performance of our segment.

The primary measure used by the CODM in measuring performance and allocating resources to the segments is ENI. We define economic net income for the segments as ENI revenue less (i) ENI operating expenses, (ii) variable compensation and (iii) key employee distributions. The ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP.

ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to our Affiliate by consolidated Funds.

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ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, capital transaction costs, and restructuring costs. Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses.

ENI segment results are also adjusted to exclude the portion of consolidated Funds’ revenues, expenses and investment return recorded under U.S. GAAP.

Refer to the reconciliations of U.S. GAAP revenue to ENI revenue, U.S. GAAP Operating expense to ENI Operating expense, variable compensation and Affiliate key employee distributions disclosed previously within this section.

    Segment ENI Revenue

The following table identifies the components of segment ENI revenue for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
($ in millions)	2024				2023
	Quant & Solutions		Total		Quant & Solutions		Total
Management fees	$	102.2	$	102.2	$	90.6	$	90.6
Performance fees	3.1		3.1		0.5		0.5
ENI revenue	$	105.3	$	105.3	$	91.1	$	91.1

Quant & Solutions Segment ENI Revenue

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Quant & Solutions ENI revenue increased $14.2 million, or 15.6%, from $91.1 million for the three months ended March 31, 2023 to $105.3 million for the three months ended March 31, 2024. The increase was attributable to 12.8% higher management fees, driven by higher average AUM and higher performance fees that are variable and are contractually triggered based on investment performance results over agreed upon time periods.

    Segment ENI Expense

The following table identifies the components of segment ENI expense for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
($ in millions)	2024						2023
	Quant & Solutions		Other		Total		Quant & Solutions		Other		Total
Fixed compensation & benefits	$	21.6	$	1.9	$	23.5	$	21.6	$	1.8	$	23.4
General and administrative expense	19.5		1.9		21.4		18.2		1.7		19.9
Depreciation and amortization	4.6		—		4.6		3.8		—		3.8
Total ENI operating expenses	$	45.7	$	3.8	$	49.5	$	43.6	$	3.5	$	47.1
Variable compensation	26.0		0.6		26.6		22.5		0.7		23.2
Affiliate key employee distributions	2.2		—		2.2		1.2		—		1.2
Total expenses	$	73.9	$	4.4	$	78.3	$	67.3	$	4.2	$	71.5

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Quant & Solutions Segment ENI Expense

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Quant & Solutions ENI operating expense increased $2.1 million, or 4.8%, from $43.6 million for the three months ended March 31, 2023 to $45.7 million for the three months ended March 31, 2024. The increase was driven by 7.1% higher ENI general and administrative expense primarily due to higher systems, outside services, and portfolio administrative costs and continued investment in growth initiatives and capabilities. Quant & Solutions ENI fixed compensation and benefits expense was unchanged at $21.6 million for the three months ended March 31, 2024 and 2023, respectively, reflecting cost of living increases and the cost of new hires supporting our growth initiatives, offset by cost savings realized from restructuring in late 2023. Quant & Solutions ENI variable compensation expense is based on contractual percentage of earnings before variable compensation, and also includes a formulaic split of performance fee revenue that gets deferred and recognized as variable compensation expense over a three-year vesting period. Quant & Solutions ENI variable compensation expense increased 15.6% as a result of higher earnings before variable compensation in the three months ended March 31, 2024. Affiliate key employee distributions attributable to Quant & Solutions increased 83.3%, as a result of higher operating earnings, impacted by the leveraged nature of the distribution share.

Other ENI Expense

Three months ended March 31, 2024 compared to three months ended March 31, 2023: Other ENI operating expense increased $0.3 million, or 8.6%, from $3.5 million for the three months ended March 31, 2023 to $3.8 million for the three months ended March 31, 2024. The increase was driven by 5.6% higher fixed compensation and benefit expense due to cost of living and employee benefit increases driven by inflation and 11.8% higher general and administrative expense driven by an increase in rent expense. Other ENI variable compensation expense decreased (14.3)% due to lower non-cash equity compensation amortization at the corporate head office.

Capital Resources and Liquidity

    Cash Flows

The following table summarizes certain key financial data relating to cash flows. All amounts presented exclude consolidated Funds: 

	Three Months Ended March 31,
($ in millions)	2024		2023
Cash provided by (used in)(1)
Operating activities	$	(39.3)	$	(34.3)
Investing activities	(1.4)		(5.6)
Financing activities	(3.7)		85.5

(1)Excludes consolidated Funds.

Comparison for the three months ended March 31, 2024 and 2023

Net cash from operating activities decreased $(5.0) million, from net cash used of $34.3 million for the three months ended March 31, 2023 to net cash used of $39.3 million for the three months ended March 31, 2024, driven by changes in net income offset by changes in operating assets and liabilities period-over-period. In the three months ended March 31, 2024, net cash from investing activities increased by $4.2 million, from $(5.6) million used in the three months ended March 31, 2023 to $(1.4) million used in the three months ended March 31, 2024, driven by higher net sales of investment securities and lower fixed asset additions in the three months ended March 31, 2024. Net cash from financing activities decreased $89.2 million, from $85.5 million provided in the three months ended March 31, 2023 to $(3.7) million used in the three months ended March 31, 2024, primarily due to the repayment of third party borrowings and higher share repurchases in the three months ended March 31, 2024.

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    Supplemental Liquidity Measure — Adjusted EBITDA

As supplemental information, we provide information regarding Adjusted EBITDA, which we define as economic net income before net interest, income taxes, depreciation, and amortization. Adjusted EBITDA is a non-GAAP liquidity measure that we provide in addition to, but not as a substitute for, cash flows from operating activities. It should be noted that our calculation of Adjusted EBITDA may not be consistent with Adjusted EBITDA as calculated by other companies. We believe Adjusted EBITDA is a useful liquidity metric because it indicates our ability to make further investments in our business, service debt and meet working capital requirements.

The following table reconciles our U.S. GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three months ended March 31, 2024 and 2023.

	Three Months Ended March 31,
($ in millions)	2024		2023
Net income attributable to controlling interests	$	14.6	$	12.0
Net interest expense to third parties	3.7		3.8
Income tax expense	6.1		5.1
Depreciation and amortization (including intangible assets)	4.6		3.8
EBITDA	$	29.0	$	24.7
Non-cash compensation costs, including revaluation of Affiliate key employee-owned equity and profit interests	4.7		(0.4)
Gain on seed and co-investments	(1.8)		(1.1)
Restructuring expenses(1)	—		0.4
Capital transaction costs	—		—
Adjusted EBITDA	$	31.9	$	23.6
ENI net interest expense to third parties	(3.0)		(3.4)
Depreciation and amortization(2)	(4.9)		(4.0)
Tax on economic net income	(6.6)		(4.4)
Economic net income	$	17.4	$	11.8

(1)The three months ended March 31, 2024 includes $(0.2) million of severance-related items at Acadian and $0.2 million of costs associated with the transfer of an insurance policy from our former parent. The three months ended March 31, 2023 includes costs associated with the transfer of an insurance policy from our former parent of $0.4 million.

(2)Includes non-cash equity-based award amortization expense.

Limitations of Adjusted EBITDA

As a non-GAAP, unaudited liquidity measure and derivation of EBITDA, Adjusted EBITDA has certain material limitations. It does not include cash costs associated with capital transactions and excludes certain U.S. GAAP expenses that fall outside the definition of EBITDA. Each of these categories of expense represents costs to us of doing business, and therefore any measure that excludes any or all of these categories of expense has material limitations.

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    Future Capital Needs

We believe that our available cash and cash equivalents to be generated from operations, supplemented by short-term and long-term financing, as necessary, will be sufficient to fund current operations and capital requirements for at least the next twelve months, as well as our day-to-day operations and future investment requirements. Our ability to secure short-term and long-term financing in the future will depend on several factors, including our future profitability, our relative levels of debt and equity and the overall condition of the credit markets.

    Borrowings and Long-Term Debt

The following table summarizes our financing arrangements as of the dates indicated: 

($ in millions)	March 31, 2024		December 31, 2023		Interest rate	Maturity
Revolving credit facility:
$125 million revolving credit facility	$	73.0	$	—	Variable rate	March 7, 2025
Total revolving credit facility	$	73.0	$	—
Third party borrowings:
4.80% Senior Notes Due 2026	$	274.0	$	273.9	4.80%	July 27, 2026
Total third party borrowings	$	274.0	$	273.9

Revolving Credit Facility

On March 7, 2022, Acadian, Royal Bank of Canada, BMO Harris Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Bank of America N.A., the Bank of New York Mellon and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (“Acadian Credit Agreement”), which replaced our revolving credit facility dated as of August 20, 2019 (as amended by an amendment dated September 3, 2020 and an assignment and assumption and amendment agreement dated February 23, 2021, the “Original Credit Agreement”). The maturity date of the Original Credit Agreement was August 22, 2022, and the maturity date of the Acadian Credit Agreement is March 7, 2025.

Borrowings under the Acadian Credit Agreement bear interest, at Acadian’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian’s Leverage Ratio. In addition, Acadian is charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian’s Leverage Ratio.

Under the Acadian Credit Agreement, the ratio of Acadian’s third-party borrowings to Acadian’s trailing twelve months Adjusted EBITDA, as defined by the Acadian Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the ratio of Acadian’s trailing twelve months Adjusted EBITDA to Acadian’s interest expense (the “Interest Coverage Ratio”) must be not less than 4.0x. At March 31, 2024, Acadian’s Leverage Ratio was 0.5x and Acadian’s Interest Coverage Ratio was 57.6x.

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Other Compensation Liabilities

Other compensation liabilities principally consist of cash-settled Affiliate equity and profit interests liabilities held by certain Affiliate key employees, and voluntary deferred compensation plans. The following table summarizes our other long-term liabilities as of each of the dates indicated:

	March 31, 2024		December 31, 2023
($ in millions)
Share-based payments liability	$	22.3	$	23.0
Affiliate profit interests liability	4.3		—
Employee equity	26.6		23.0
Voluntary deferral plan liability	46.1		44.5
Total	$	72.7	$	67.5

Share-based payments liability represents the value of Affiliate key employee-owned equity that may under certain circumstances be repurchased by us that is considered an equity award under U.S. GAAP based on the terms and conditions attached to these interests. Affiliate profit interests liability represents the value of Affiliate key employee-owned equity that may under certain circumstances be repurchased by us that is not considered an equity award under U.S. GAAP, but rather a form of compensation arrangement, based on the terms and conditions attached to these interests. Our obligation in any given period in respect of funding these potential repurchases of Affiliate equity is limited to only that portion that may be put to us by Affiliate key employees, which is typically capped annually under the terms of these arrangements such that we are not required to repurchase more than we can reasonably recycle by re-granting the interests in lieu of cash variable compensation owed to Affiliate key employees.

Certain of our and Acadian’s key employees are eligible to participate in our voluntary deferral plan, or VDP, which provides our senior personnel the opportunity to voluntarily defer a portion of their compensation. There is a voluntary deferral plan investment balance included in investments on the Condensed Consolidated Balance Sheets that corresponds to this deferral liability.

Additionally, we have recorded accrued incentive compensation of $30.2 million and $101.3 million on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, respectively. Included within the accrued incentive compensation balance is the vested portion of Acadian’s deferred compensation pool. Acadian’s deferred compensation pool is based on a contractual percentage of Acadian performance fee revenues and post-bonus profits, and is subject to a three-year vesting period. Compensation expense is recognized over the requisite service period. Unamortized compensation expense related to the unvested portion of the deferred compensation pool of $14.4 million, $10.7 million and $0.5 million is expected to be recognized in the years ending December 31, 2024, 2025 and 2026, respectively.

Critical Accounting Policies and Estimates

There have been no significant changes to the critical accounting policies and estimates disclosed in our most recent Form 10-K for the year ended December 31, 2023. Critical accounting policies and estimates are those that require management’s most difficult, subjective or complex judgments and would therefore be deemed the most critical to an understanding of our results of operations and financial condition.

    Recent Accounting Developments

See discussion of Recent Accounting Developments in Note 2 of the accompanying Condensed Consolidated Financial Statements.

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Forward Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements, which may include, from time to time, anticipated revenues, margins, cash flows or earnings, anticipated future performance of our business, our expected future net cash flows, our anticipated expense levels, capital management, financial condition, results of operations and cash flows, and/or expectations regarding market conditions. The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “can be,” “may be,” “aim to,” “may affect,” “may depend,” “intends,” “expects,” “believes,” “estimate,” “plan,” “project,” and other similar expressions are intended to identify such forward-looking statements. Such statements are subject to various known and unknown risks and uncertainties and we caution readers that any forward-looking information provided by or on behalf of us is not a guarantee of future performance.

Actual results may differ materially from those in forward-looking information as a result of various factors, some of which are beyond our control, including but not limited to those discussed above and elsewhere in this Quarterly Report on Form 10-Q, in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 28, 2024, and subsequent SEC filings. Due to such risks and uncertainties and other factors, we caution each person receiving such forward-looking information not to place undue reliance on such statements. Further, such forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and we undertake no obligations to update any forward looking statement to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events.

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Market Risk

Our exposure to market risk is directly related to our role as an asset manager. Substantially all of our investment management revenues are derived from our agreements with our clients. Under these agreements, the revenues we receive are based on the value of our assets under management or the investment performance on client accounts for which we earn performance fees. Accordingly, our revenues and net income may decline as a result of our assets under management decreasing due to depreciation of our investment portfolios. In addition, such depreciation could cause our clients to withdraw their funds in favor of investments offering higher returns or lower risk, which would cause our revenues and net income to decline further.

Our model for assessing the impact of market risk on our results uses March 31, 2024 ending AUM and management fee rates as the basis for management fee revenue calculations. With respect to performance fee revenue, we assume that relative investment performance is the same as in the past four quarters ended March 31, 2024. Therefore, market-driven changes in performance fees, which are typically based on relative performance versus market indices, reflect changes in the underlying AUM used in the calculation rather than differences in relative performance as a result of a changed market environment. The impact that market changes have on performance fee eligible accounts varies due to high-water marks and other measurement hurdles which are not factored in this analysis. Changes in performance fee revenues could be significant in each period. The basis for the analysis is performance fees earned for the twelve months ended March 31, 2024.

Our profit sharing economic structure, described more fully in “Management’s Discussion and Analysis of Financial Condition and Results of Operation—The Economics of Our Business,” results in a sharing of market risk between us and our employees. Approximately 35% of our ENI cost structure is variable, representing variable compensation and Acadian key employee distributions. These variable expenses generally are linked in a formulaic manner to the profitability of the business after covering operating expenses, which include base compensation and benefits, general and administrative expenses, and depreciation and amortization. In modeling the impact of market risk, we assume that these operating expenses remain unchanged, but the resulting impact on profit driven by increases or decreases in revenue will change variable compensation and Affiliate key employee distributions in line with their formulaic calculations. Any change in pre-tax profit is tax-affected to calculate profit after tax.

The value of our assets under management was $110.4 billion as of March 31, 2024. A 10% increase or decrease in the value of our assets under management, if proportionally distributed over all of our investment strategies, asset classes and client relationships, would cause an annualized increase or decrease in our gross management fee revenues of approximately $42 million based on our current weighted average fee rate of approximately 38 basis points. Approximately $15 billion, or 14%, of our AUM, are in accounts subject to performance fees. Of these assets, the majority are in accounts for which performance fees are calculated based on investment return that differs from the relative benchmark returns. Assuming the market change does not impact our relative performance, a 10% increase or decrease in AUM would have a $5 million impact to our gross performance fees based on our trailing twelve-month performance fees of $53 million as of March 31, 2024. The combined impact on our management fees and performance fees would have a direct impact on our earnings and result in an annual change of approximately $18 million in our post-tax economic net income, given our current cost structure and operating model.

Equity market risk, interest rate risk, and foreign currency risk are the market risks that could have the greatest impact on our management fees, performance fees and our business profitability. Impacts on our management and performance fees can be calculated based on the percentage of AUM constituting equity investments or foreign currency denominated investments, respectively, multiplied by the relevant weighted average management fee and performance fee attributable to that asset class.

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•Our equity markets-based AUM includes U.S. equities (including small cap through large cap securities and substantially value or blended investment styles) and global/non-U.S. equities (including global, non-U.S. and emerging markets securities). A 10% increase or decrease in equity markets would cause our $108 billion of equity assets under management to increase or decrease by $11 billion, resulting in a change in annualized management fee revenue of $42 million and an annual change in post-tax economic net income of approximately $16 million, given our current cost structure, operating model, and weighted average fee rate of 38 basis points at the mix of strategies as of March 31, 2024. Approximately $14 billion, or 13%, of our equity markets-based AUM are in accounts subject to performance fees. Of these assets, the majority are in accounts for which performance fees are calculated based on investment return in excess of the relative benchmark returns. Assuming the market change does not impact our relative performance, a 10% change in equity markets would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income, given our current cost structure and operating model.

•Foreign currency AUM includes equity and alternative assets denominated in foreign currencies. A 10% increase or decrease in foreign exchange rates against the U.S. dollar would cause our $88 billion of foreign currency denominated AUM to increase or decrease by $9 billion, resulting in a change in annualized management fee revenue of $35 million and an annual change in post-tax economic net income of $14 million, based on weighted average fees earned on our foreign currency denominated AUM of 40 basis points at the mix of strategies as of March 31, 2024. Approximately $13 billion, or 14%, of our foreign currency denominated AUM are in accounts subject to performance fees. Of these assets, the majority are in accounts for which performance fees are calculated based on investment return that differs from the relative benchmark returns. Assuming the market change does not impact our relative performance, a 10% change in foreign currency exchange rates would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income, given our current cost structure and operating model.

While the analysis above assumes that market changes occur in a uniform manner across the relevant portfolio, because of our declining fee rates for larger relationships and differences in our fee rates across asset classes, a change in the composition of our assets under management, in particular an increase in the proportion of our total assets under management attributable to strategies, clients or relationships with lower effective fee rates, could have a material negative impact on our overall weighted average fee rate.

As is customary in the asset management industry, clients invest in particular strategies to gain exposure to certain asset classes, which exposes their investment to the benefits and risks of such asset classes. We have not adopted a corporate-level risk management policy regarding client assets, nor have we attempted to hedge at the corporate level or within individual strategies the market risks that would affect the value of our overall assets under management and related revenues. Any reduction in the value of our assets under management would result in a reduction in our revenues.

Interest Rate Risk

We are exposed to interest rate risks primarily through borrowings under Acadian’s revolving credit facility. Interest on borrowings under the revolving credit facility is based upon variable interest rates. Borrowings under the credit facility were $73.0 million as of March 31, 2024. We currently do not hedge against interest rate risk. As of March 31, 2024, a hypothetical 10% change in interest rates would have resulted in an immaterial change to our interest expense during the three months ended March 31, 2024.

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Item 4.  Controls and Procedures.

Controls and Procedures

Our management, including our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at March 31, 2024. Based on this evaluation, our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures are effective.

Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting during the quarter ended March 31, 2024 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1.         Legal Proceedings.

From time to time, we and our Affiliate may be parties to various claims, suits, and complaints in the ordinary course of our business. Although the amount of liability that may result from these matters cannot be ascertained, we do not currently believe that, in the aggregate, they will result in liabilities material to our consolidated financial condition, future results of operations or cash flow.

Item 1A.  Risk Factors.

There have been no material changes in the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2.         Unregistered Sales of Equity Securities and Use of Proceeds.

The following table sets out information regarding purchases of equity securities by the Company for the three months ended March 31, 2024:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value that may yet be purchased under the plans or programs (in millions)(1)
January 1-31, 2024	1,872,028	$	20.29	1,872,028	$	56.9
February 1-29, 2024	1,496,174	21.82		1,496,174	24.3
March 1-31, 2024	162,706	22.49		162,706	20.6
Total	3,530,908	$	21.04	3,530,908

(1) On December 20, 2023, we announced that our Board of Directors authorized the repurchase of up to $100.0 million of our common stock. Share repurchases are subject to a variety of factors, such as our stock price, the capital needs of our business, and economic and market conditions and may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, accelerated share repurchase transactions, exchange transactions, or any combination of such methods. The program does not obligate us to repurchase any particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at our discretion. We repurchased 3.5 million shares of common stock with an aggregate purchase price, excluding commissions, of $74.4 million under this program during the three months ended March 31, 2024. As of March 31, 2024, $20.6 million remained available to repurchase shares under the program.

Item 5.  Other Information.

During our fiscal quarter ended March 31, 2024, none of our directors or officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) entered into, modified (as to amount, price or timing of trades) or terminated (i) contracts, instructions or written plans for the purchase or sale of our securities that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information or (ii) non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).

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Item 6.         Exhibits.

Exhibit No.	Description
3.1	Amended and Restated Certificate of Incorporation of BrightSphere Investment Group Inc., adopted as of July 12, 2019, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K12B filed on July 15, 2019.
3.2	Amended and Restated Bylaws of BrightSphere Investment Group Inc., adopted as of February 27, 2023, incorporated herein by reference to Exhibit 3.2 to the Annual Report on Form 10-K filed on February 28, 2023.
31.1*	Certification of the Company’s principal executive officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Company’s principal financial officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of the Company’s principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of the Company’s principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, (ii) the Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023, (iv) the Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2024 and 2023, (v) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 and (vi) the Notes to Financial Statements.
104*	The cover page of this Quarterly Report on Form 10-Q, formatted in Inline eXtensible Business Reporting Language

* Filed herewith

** Furnished herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		BrightSphere Investment Group Inc.
Dated:	May 8, 2024
		By:	/s/ Suren Rana
			Suren Rana President and Chief Executive Officer (principal executive officer)
			/s/ Christina Wiater
			Christina Wiater Senior Vice President and Principal Financial Officer (principal financial officer and principal accounting officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Suren Rana, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of BrightSphere Investment Group Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2024

/s/ Suren Rana

Suren Rana

President and Chief Executive Officer

(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christina Wiater, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of BrightSphere Investment Group Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2024

/s/ Christina Wiater

Christina Wiater

Senior Vice President and Principal Financial Officer

(principal financial officer and principal accounting officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Suren Rana, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report on Form 10-Q of BrightSphere Investment Group Inc. for the quarterly period ended March 31, 2024 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Report fairly presents in all material respects the financial condition and results of operations of BrightSphere Investment Group Inc. for the periods covered by the Report. The foregoing certification is being furnished to the Securities and Exchange Commission as part of the Report. A signed original of this statement has been provided to BrightSphere Investment Group Inc. and will be retained by BrightSphere Investment Group Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Date:	May 8, 2024	/s/ Suren Rana
		Name: Suren Rana
		Title: President and Chief Executive Officer
		(principal executive officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Christina Wiater, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report on Form 10-Q of BrightSphere Investment Group Inc. for the quarterly period ended March 31, 2024 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Report fairly presents in all material respects the financial condition and results of operations of BrightSphere Investment Group Inc. for the periods covered by the Report. The foregoing certification is being furnished to the Securities and Exchange Commission as part of the Report. A signed original of this statement has been provided to BrightSphere Investment Group Inc. and will be retained by BrightSphere Investment Group Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Date:	May 8, 2024	/s/ Christina Wiater
		Name: Christina Wiater
		Title: Senior Vice President and Principal Financial Officer
		(principal financial officer and principal accounting officer)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 06, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38979
Entity Registrant Name	BrightSphereInvestment Group Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1121020
Entity Address, Address Line One	200 State Street, 13th Floor
Entity Address, City or Town	Boston,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02109
City Area Code	617
Local Phone Number	369-7300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,763,692
Entity Central Index Key	0001748824
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	BSIG
Security Exchange Name	NYSE
4.800% Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	4.800% Notes due 2026
Trading Symbol	BSIG 26
Security Exchange Name	NYSE

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Assets
Investments	$ 104.6	$ 98.6
Total assets	544.9	611.4
Liabilities and stockholders’ equity
Operating lease liabilities	70.6
Total liabilities	555.1	561.9
Commitments and contingencies
Equity:
Total equity (deficit) and redeemable non-controlling interests in consolidated Funds	(10.2)	49.5
Total liabilities and equity	544.9	611.4
Consolidated Entity Excluding Consolidated Funds
Assets
Cash and cash equivalents	102.2	146.8
Investment advisory fees receivable	119.0	143.4
Income taxes receivable	0.0	2.7
Fixed assets, net	42.0	44.2
Right of use assets	55.6	57.2
Investments	67.0	64.7
Goodwill	20.3	20.3
Other assets	27.2	27.2
Deferred tax assets	72.2	69.7
Liabilities and stockholders’ equity
Accounts payable and accrued expenses	21.6	39.1
Accrued incentive compensation	30.2	101.3
Other compensation liabilities	72.7	67.5
Accrued income taxes	7.2	2.6
Operating lease liabilities	70.6	72.4
Other liabilities	0.5	0.8
Revolving credit facility	73.0	0.0
Third party borrowings	274.0	273.9
Equity:
Common stock (par value $0.001; 37,965,341 and 41,372,291 shares, respectively, issued)	0.0	0.0
Additional paid-in capital	0.0	0.0
Retained earnings (deficit)	(15.5)	46.9
Accumulated other comprehensive loss	(6.2)	(6.7)
Consolidated Funds
Assets
Investments	37.6	33.9
Other assets	1.0	0.5
Cash and cash equivalents, restricted	0.8	0.8
Liabilities and stockholders’ equity
Accounts payable and accrued expenses	1.0	0.2
Derivative liabilities	0.1	0.1
Securities sold short	4.2	4.0
Redeemable non-controlling interests in consolidated Funds	$ 11.5	$ 9.3

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, issued (in shares)	37,965,341	41,372,291

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Total revenue	$ 105.7	$ 91.8
Operating expenses:
Total operating expenses	82.8	72.0
Operating income	22.9	19.8
Non-operating income and (expense):
Investment income	2.6	1.1
Total non-operating loss	(1.1)	(2.7)
Income before income taxes	21.8	17.1
Income tax expense	6.1	5.1
Net income	15.7	12.0
Net income attributable to non-controlling interests in consolidated Funds	1.1	0.0
Net income attributable to controlling interests	$ 14.6	$ 12.0
Earnings per share (basic) attributable to controlling interests (in dollars per share)	$ 0.37	$ 0.29
Earnings per share (diluted) attributable to controlling interests (in dollars per share)	$ 0.37	$ 0.28
Weighted average common stock outstanding (in shares)	39,063,522	41,444,200
Weighted average diluted common stock outstanding (in shares)	39,731,440	42,710,577
Management fees
Revenue:
Total revenue	$ 102.2	$ 90.6
Consolidated Entity Excluding Consolidated Funds
Operating expenses:
Compensation and benefits	58.1	49.1
General and administrative expense	20.0	18.4
Depreciation and amortization	4.6	3.8
Non-operating income and (expense):
Investment income	0.9	0.3
Interest income	1.3	1.1
Interest expense	(5.0)	(4.9)
Net income	15.7	12.0
Consolidated Entity Excluding Consolidated Funds | Management fees
Revenue:
Total revenue	102.2	90.6
Consolidated Entity Excluding Consolidated Funds | Performance fees
Revenue:
Total revenue	3.1	0.5
Consolidated Funds
Revenue:
Total revenue	0.4	0.7
Operating expenses:
Total operating expenses	0.1	0.7
Non-operating income and (expense):
Net consolidated Funds’ investment gains	1.7	$ 0.8
Net income attributable to non-controlling interests in consolidated Funds	$ 1.1

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 15.7	$ 12.0
Other comprehensive income:
Amortization related to derivative securities, net of tax	0.7	0.6
Foreign currency translation adjustment, net of tax	(0.2)	0.7
Total other comprehensive income	0.5	1.3
Comprehensive income attributable to non-controlling interests in consolidated Funds	1.1	0.0
Total comprehensive income attributable to controlling interests	$ 15.1	$ 13.3

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Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Accumulated other comprehensive income (loss)	Consolidated Entity Excluding Consolidated Funds Total stockholders’ equity (deficit)	Consolidated Entity Excluding Consolidated Funds Common Stock	Consolidated Entity Excluding Consolidated Funds Additional paid-in capital	Consolidated Entity Excluding Consolidated Funds Retained earnings (deficit)	Consolidated Entity Excluding Consolidated Funds Accumulated other comprehensive income (loss)	Consolidated Funds
Beginning balance (in shares) at Dec. 31, 2022				41,400,000
Beginning balance at Dec. 31, 2022		$ (10.6)	$ (21.6)	$ 0.0	$ 1.5	$ (12.5)	$ (10.6)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock (in shares)				100,000
Repurchases of common stock including excise taxes (in shares)	0
Equity-based compensation			0.2		0.2
Foreign currency translation adjustment, net of tax	$ 0.7		0.7				0.7
Amortization related to derivatives securities, net of tax			0.6				0.6
Withholding tax related to stock option exercise and restricted stock vesting	(0.3)		(0.3)		(0.3)
Dividends			(0.3)			(0.3)
Net income			12.0			12.0
Ending balance (in shares) at Mar. 31, 2023				41,500,000
Ending balance at Mar. 31, 2023		(9.3)	(8.7)	$ 0.0	1.4	(0.8)	(9.3)
Beginning balance at Dec. 31, 2022								$ 0.0
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds
Capital contributions	(0.4)							(0.4)
Net income			12.0			12.0
Ending balance at Mar. 31, 2023								0.4
Beginning balance at Dec. 31, 2022	(21.6)
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds
Capital contributions	(0.4)							(0.4)
Equity-based compensation	0.2
Foreign currency translation adjustment, net of tax	0.7
Amortization related to derivative securities, net of tax	0.6
Withholding tax related to stock option exercise and restricted stock vesting	(0.3)		(0.3)		(0.3)
Dividends	(0.3)
Net income	12.0
Ending balance at Mar. 31, 2023	$ (8.3)
Beginning balance (in shares) at Dec. 31, 2023				41,400,000
Beginning balance at Dec. 31, 2023		(6.7)	40.2	$ 0.0	0.0	46.9	(6.7)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock (in shares)				100,000
Repurchases of common stock including excise taxes (in shares)	(3,530,908)			(3,500,000)
Repurchases of common stock including excise taxes	$ (74.4)		(75.0)		(0.2)	(74.8)
Equity-based compensation			0.2		0.2
Foreign currency translation adjustment, net of tax	(0.2)		(0.2)				(0.2)
Amortization related to derivatives securities, net of tax			0.7				0.7
Withholding tax related to stock option exercise and restricted stock vesting	(1.8)		(1.8)			1.8
Dividends			(0.4)			(0.4)
Net income			14.6			14.6		1.1
Ending balance (in shares) at Mar. 31, 2024				38,000,000.0
Ending balance at Mar. 31, 2024		$ (6.2)	(21.7)	$ 0.0	$ 0.0	(15.5)	$ (6.2)
Beginning balance at Dec. 31, 2023								9.3
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds
Capital contributions	(1.1)							(1.1)
Net income			14.6			14.6		1.1
Ending balance at Mar. 31, 2024								11.5
Beginning balance at Dec. 31, 2023	49.5
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds
Repurchases of common stock including excise taxes	(75.0)
Capital contributions	(1.1)							$ (1.1)
Equity-based compensation	0.2
Foreign currency translation adjustment, net of tax	(0.2)
Amortization related to derivative securities, net of tax	0.7
Withholding tax related to stock option exercise and restricted stock vesting	(1.8)		$ (1.8)			$ 1.8
Dividends	(0.4)
Net income	15.7
Ending balance at Mar. 31, 2024	$ (10.2)

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends (in dollars per share)	$ 0.01	$ 0.01

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 15.7	$ 12.0
Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds:
Total net cash flows from operating activities	(40.4)	(34.9)
Cash flows from investing activities:
Net cash flows from investing activities	(1.4)	(5.6)
Cash flows from financing activities of consolidated Funds:
Net cash flows from financing activities	(2.6)	85.9
Effect of foreign exchange rate changes on cash and cash equivalents	(0.2)	0.1
Net increase (decrease) in cash and cash equivalents	(44.6)	45.5
Cash and cash equivalents at beginning of period	147.6	121.2
Cash and cash equivalents at end of period (including cash at consolidated Funds classified as restricted)	103.0	166.7
Supplemental disclosure of cash flow information:
Income taxes paid	1.4	0.8
Supplemental disclosure of non-cash investing and financing transactions:
Excise tax on repurchases of common stock	0.7	0.0
Consolidated Entity Excluding Consolidated Funds
Cash flows from operating activities:
Net income	15.7	12.0
Less: Net (income) loss attributable to redeemable non-controlling interests in consolidated Funds	(1.1)	0.0
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and other amortization	4.6	3.8
Amortization of debt-related costs	1.1	1.0
Amortization and revaluation of non-cash compensation awards	6.2	1.2
Deferred income taxes	(2.7)	(1.0)
(Gains) on other investments	(4.4)	(1.1)
Changes in operating assets and liabilities:
Decrease in investment advisory fees receivable	24.4	22.6
Decrease in other receivables, prepayments, deposits and other assets	2.6	0.8
Decrease in accrued incentive compensation, operating lease liabilities and other liabilities	(72.1)	(68.8)
Decrease in accounts payable, accrued expenses and accrued income taxes	(13.6)	(4.8)
Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds:
(Gains) on other investments	(4.4)	(1.1)
Total net cash flows from operating activities	(39.3)	(34.3)
Cash flows from investing activities:
Additions of fixed assets	(2.4)	(4.5)
Purchase of investment securities	(2.3)	(2.6)
Sale of investment securities	3.3	1.5
Cash flows from financing activities:
Proceeds from revolving credit facility	101.0	100.0
Repayment of revolving credit facility	(28.0)	(13.0)
Payment to OM plc for co-investment redemptions	(0.2)	(0.4)
Repurchases of common stock	(74.3)	0.0
Withholding tax payments related to stock option exercise and restricted stock vesting	(1.8)	(0.3)
Supplemental disclosure of cash flow information:
Interest paid (excluding consolidated Funds)	7.2	7.1
Consolidated Entity Excluding Consolidated Funds | Nonrelated Party
Cash flows from financing activities:
Dividends paid to shareholders and related parties	(0.3)	(0.5)
Consolidated Entity Excluding Consolidated Funds | Related Party
Cash flows from financing activities:
Dividends paid to shareholders and related parties	(0.1)	(0.3)
Consolidated Funds
Cash flows from operating activities:
Less: Net (income) loss attributable to redeemable non-controlling interests in consolidated Funds	1.1	0.0
Adjustments to reconcile net income to net cash flows from operating activities:
(Gains) on other investments	(0.8)	0.0
Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds:
(Gains) on other investments	(0.8)	0.0
Purchase of investments	(18.8)	(0.1)
Sale of investments	17.0	0.4
Increase in receivables and other assets	(0.4)	(1.0)
Increase in accounts payable and other liabilities	0.8	0.1
Total net cash flows from operating activities	(1.1)	(0.6)
Cash flows from financing activities of consolidated Funds:
Redeemable non-controlling interest capital raised	1.1	0.4
Supplemental disclosure of non-cash investing and financing transactions:
Payable for securities purchased by a consolidated Fund	$ 0.9	$ 0.0

XML

Organization and Description of the Business

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of the Business

Organization and Description of the Business

BrightSphere Investment Group Inc. (“BrightSphere”, “BSIG” or the “Company”) is a global, diversified asset management company. The Company provides investment management services globally to predominantly institutional investors. The Company operates a differentiated investment management business through its majority owned subsidiary, Acadian Asset Management LLC (“Acadian” or the “Affiliate”), a leading systematic manager of active global, international equity and alternative strategies. Acadian comprises the Company’s Quant & Solutions reportable segment:

•Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies.

Acadian is organized as a limited liability company. Fees for services are largely asset-based and, as a result, revenues fluctuate based on the performance of financial markets and investors’ asset flows in and out of Acadian’s products. The Company utilizes a profit-sharing model in structuring its compensation and ownership arrangements with Acadian. Variable compensation is based on the firm’s profitability. BSIG and Acadian key employees share in profits after variable compensation according to their respective ownership interests. The profit-sharing model results in the alignment of BSIG and Acadian key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business. The corporate head office is included within the Other category.

Prior to 2014, the Company was a wholly-owned subsidiary of Old Mutual plc (“OM plc”), an international long-term savings, protection, and investment group, listed on the London Stock Exchange. On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended. As of March 31, 2024, Paulson & Co. Inc. (“Paulson”) held approximately 23.6% of the common stock of the Company.

For the three months ended March 31, 2024, the Company repurchased 3,530,908 shares of common stock at an average price of $21.04 per share, or approximately $74.4 million in total, including commissions. For the three months ended March 31, 2023, the Company did not repurchase any shares of common stock.

All shares of common stock repurchased by the Company were retired.

XML

Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

The Company’s significant accounting policies are as follows:

Basis of presentation

These unaudited Condensed Consolidated Financial Statements reflect the historical balance sheets, statements of operations, statements of comprehensive income, statements of changes in stockholders’ equity and statements of cash flows of the Company. Within these Condensed Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.”

The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of the Company’s Condensed Consolidated Financial Statements have been included. All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Transactions between the Company and its related parties are included in the Condensed Consolidated Financial Statements; however, material intercompany balances and transactions among the Company, its consolidated Affiliate and consolidated Funds are eliminated in consolidation.

Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (annual report on Form 10-K) are not required to be included on an interim basis in the Company’s quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024. The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements.

Use of estimates

The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements.

New accounting standards not yet adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07 - Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The amendment is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. We are currently evaluating the impact of adopting this standard, but we expect the standard to result in additional segment footnote disclosures.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. This amendment is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact of adopting this standard and have not yet determined our transition approach.

The Company has considered all other newly issued accounting guidance that is applicable to the Company’s operations and the preparation of the unaudited Condensed Consolidated Financial Statements, including those that have not yet been adopted. The Company does not believe that any such guidance has or will have a material effect on its Condensed Consolidated Financial Statements and related disclosures.

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Investments

3 Months Ended

Mar. 31, 2024

Investments [Abstract]

Investments

Investments

Investments are comprised of the following as of the dates indicated (in millions):

	March 31, 2024		December 31, 2023
Investments of consolidated Funds held at fair value	$	37.6	$	33.9
Other investments	20.8		20.0
Investments related to long-term incentive compensation plans	46.2		44.7
Total investments per Condensed Consolidated Balance Sheets	$	104.6	$	98.6

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2024 (in millions):

	Quoted prices in active markets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Uncategorized		Total value, March 31, 2024
Assets of BSIG and consolidated Funds(1)
Common and preferred stock	$	22.3	$	—	$	—	$	—	$	22.3
Corporate bonds	—		15.1		—		—		15.1
Derivatives	—		0.2		—		—		0.2
Consolidated Funds total	22.3		15.3		—		—		37.6
Investments in separate accounts(2)	2.3		—		—		—		2.3
Investments related to long-term incentive compensation plans(3)	46.2		—		—		—		46.2
Investments in unconsolidated Funds(4)	—		—		—		18.5		18.5
BSIG total	48.5		—		—		18.5		67.0
Total fair value assets	$	70.8	$	15.3	$	—	$	18.5	$	104.6
Liabilities of consolidated Funds(1)
Securities sold short	$	(4.2)	$	—	$	—	$	—	$	(4.2)
Derivatives	—		(0.1)		—		—		(0.1)
Consolidated Funds total	(4.2)		(0.1)		—		—		(4.3)
Total fair value liabilities	$	(4.2)	$	(0.1)	$	—	$	—	$	(4.3)

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2023 (in millions):

	Quoted prices in active markets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Uncategorized		Total value December 31, 2023
Assets of BSIG and consolidated Funds(1)
Common and preferred stock	$	19.0	$	—	$	—	$	—	$	19.0
Corporate bonds	—		14.8		—		—		14.8
Derivatives	—		0.1		—		—		0.1
Consolidated Funds total	19.0		14.9		—		—		33.9
Investments in separate accounts(2)	2.1		—		—		—		2.1
Investments related to long-term incentive compensation plans(3)	44.7		—		—		—		44.7
Investments in unconsolidated Funds(4)	—		—		—		17.9		17.9
BSIG total	46.8		—		—		17.9		64.7
Total fair value assets	$	65.8	$	14.9	$	—	$	17.9	$	98.6
Liabilities of consolidated Funds(1)
Securities sold short	$	(4.0)	$	—	$	—	$	—	$	(4.0)
Derivatives	—		(0.1)		—		—		(0.1)
Consolidated Funds total	(4.0)		(0.1)		—		—		(4.1)
Total fair value liabilities	$	(4.0)	$	(0.1)	$	—	$	—	$	(4.1)

(1)Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliate.

Equity securities and derivatives which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. The securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II.

The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided.

If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model with unobservable inputs, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures.

(2)Investments in separate accounts of $2.3 million at March 31, 2024 consisted of approximately 100% equity securities. Investments in separate accounts of $2.1 million at December 31, 2023 were composed of approximately 1% cash equivalents and 99% equity securities. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II).

(3)Investments related to long-term incentive compensation plans of $46.2 million and $44.7 million at March 31, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I.

(4)The uncategorized amounts of $18.5 million and $17.9 million at March 31, 2024 and December 31, 2023, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $3.3 million and $3.6 million at March 31, 2024 and December 31, 2023, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year from March 31, 2024. The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, finance, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions.

There were no significant transfers of financial assets or liabilities between Levels II or III during the three months ended March 31, 2024 and 2023.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

The Company, through its Affiliate, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by the Company’s Affiliate, and other partnership interests typically owned entirely by third-party investors. Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that have ownership interests in the Affiliate.

The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity. Typically, the Fund’s investors are entitled to substantially all of the economics of these VIEs with the exception of the management fees and performance fees, if any, earned by the Company or any investment the Company has made into the Funds. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest, including interests of related parties, is substantial.

The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions):

	March 31, 2024		December 31, 2023
Assets
Investments	$	37.6	$	33.9
Other assets of consolidated Funds	1.8		$	1.3
Total Assets	$	39.4	$	35.2
Liabilities
Liabilities of consolidated Funds	$	5.3	$	4.3
Total Liabilities	$	5.3	$	4.3

“Investments” consist of investments in equity securities, corporate bonds and derivative securities. To the extent the Company also has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above.

The assets of consolidated VIEs presented in the table above belong to the investors in those Funds, are available for use only by the Fund to which they belong, and are not available for use by the Company to the extent they are held by non-controlling interests. Any debt or liabilities held by consolidated Funds have no recourse to the Company’s general credit.

The Company’s involvement with Funds that are VIEs and not consolidated by the Company is generally limited to that of an investment manager and its investment in the unconsolidated VIE, if any. The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIE’s results are attributable to third parties. The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees. The Company has not issued any investment performance guarantees to these VIEs or their investors.

The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions):

	March 31, 2024		December 31, 2023
Unconsolidated VIE assets	$	628.4	$	669.1
Unconsolidated VIE liabilities	$	304.8	$	316.5
Equity interests on the Condensed Consolidated Balance Sheets	$	3.3	$	3.6
Maximum risk of loss(1)	$	3.3	$	3.6

(1)Includes equity investments the Company has made.

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Borrowings and Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Borrowings and Debt

Borrowings and Debt

The Company’s borrowings and long-term debt were comprised of the following as of the dates indicated (in millions):

	March 31, 2024					December 31, 2023
(in millions)	Carrying Value		Fair Value		Fair Value Level	Carrying Value		Fair Value		Fair Value Level
Revolving credit facility:
$125 million revolving credit facility expiring March 7, 2025(1)	$	73.0	$	73.0	2	$	—	$	—
Total revolving credit facility	$	73.0	$	73.0		$	—	$	—
Third party borrowings:
$275 million 4.80% Senior Notes Due July 27, 2026(2)	$	274.0	$	266.9	2	$	273.9	$	263.1	2
Total third party borrowings	$	274.0	$	266.9		$	273.9	$	263.1

(1)Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates.

(2)The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts.

Revolving Credit Facility

On March 7, 2022, Acadian, Royal Bank of Canada, BMO Harris Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Bank of America N.A., the Bank of New York Mellon and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into a new revolving credit facility agreement (the “Acadian Credit Agreement”), which replaced the Company’s revolving credit facility dated as of August 20, 2019 (as amended by an amendment dated September 3, 2020 and an assignment and assumption and amendment agreement dated February 23, 2021, the “Original Credit Agreement”). The maturity date of this Original Credit Agreement was August 22, 2022, and the maturity date of the Acadian Credit Agreement is March 7, 2025.

Borrowings under the Acadian Credit Agreement bear interest, at Acadian’s option, at the per annum rate equal to either (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the secured overnight financing rate for a one month period plus a credit spread adjustment of 0.10% (“Adjusted Term SOFR”) plus 1%, plus, in each case, an additional amount ranging from 0.5% to 1.0%, with such additional amount based on Acadian’s Leverage Ratio (as defined below) or (b) Adjusted Term SOFR plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian’s Leverage Ratio. In addition, Acadian is charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian’s Leverage Ratio.

Under the Acadian Credit Agreement, the ratio of Acadian’s third-party borrowings to Acadian’s trailing twelve months Adjusted EBITDA, as defined by the Acadian Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the Acadian interest coverage ratio must not be less than 4.0x.

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

The Company has operating leases for corporate offices, data centers and certain equipment. The operating leases have remaining lease terms of less than 1 year to 10 years, some of which include options to extend the leases for up to 5 years.

The following table summarizes information about the Company’s operating leases for the three months ended March 31, 2024 and 2023 (in millions):

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	2.2	$	2.1
Variable lease cost	—		—
Total operating lease expense	$	2.2	$	2.1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2.4	$	2.3
Right of use assets obtained in exchange for new operating lease liabilities	—		2.8

In determining the incremental borrowing rate, the Company considered the interest rate yield for the specific interest rate environment and the Company’s credit spread at the inception of the lease. For the three months ended March 31, 2024 and 2023, the weighted average remaining lease term was 9.3 and 10.2 years, respectively, and the weighted average discount rate was 3.52% and 3.54%, respectively.

Maturities of operating lease liabilities were as follows (in millions):

	Operating Leases
Year Ending December 31,
2024 (excluding the three months ended March 31, 2024)	$	6.9
2025	8.9
2026	8.8
2027	8.4
2028	8.5
Thereafter	41.1
Total lease payments	$	82.6
Less imputed interest	(12.0)
Total	$	70.6

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operational commitments

A number of our subsidiaries operate under regulatory authorities that require that they maintain minimum financial or capital requirements. Management is not aware of any violations of such financial requirements occurring during the period.

Guaranty

The Company entered into a guaranty for an office space security deposit on behalf of Acadian in the amount of $2.5 million in January 2020. This represents the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guaranty in the event of default by the guaranteed parties. This guaranty expires in 2033. There are no liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 related to this guaranty.

Litigation

The Company is subject to claims, legal proceedings, and other contingencies in the ordinary course of its business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company. The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated. As of March 31, 2024, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.

Indemnifications

In the normal course of business, such as through agreements to enter into business combinations and divestitures of Affiliates, the Company has entered into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred.

Foreign tax contingency

The Company has clients in non-U.S. jurisdictions which require entities that are conducting certain business activities in such jurisdictions to collect and remit tax assessed on certain fees paid for goods and services provided. The Company does not believe this requirement is applicable based on its limited business activities in these jurisdictions. However, given the fact that uncertainty exists around the requirement, the Company has chosen to evaluate its potential exposure related to non-collection and remittance of these taxes. At March 31, 2024, management of the Company has estimated the potential maximum exposure and concluded that it is not material. No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at March 31, 2024.

Considerations of credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and investments. The Company maintains cash and cash equivalents and short term investments with various financial institutions. These financial institutions are typically located in cities in which the Company and its Affiliate operate. For the Company and its Affiliate, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. Additionally, the Company holds insurance policies which cover historical tax benefits relating to certain of its deferred tax assets. The insurers of the policies are considered a significant counterparty to the Company.

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Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to controlling interests by the weighted-average number of shares of common stock outstanding. Diluted earnings per share is similar to basic earnings per share, but is adjusted for the effect of potentially issuable common stock, except when inclusion is antidilutive.

The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data):

	Three Months Ended March 31,
	2024		2023
Numerator:
Net income attributable to controlling interests	$	14.6	$	12.0
Denominator:
Weighted-average shares of common stock outstanding—basic	39,063,522		41,444,200
Potential shares of common stock:
Restricted stock units	17,348		7,539
Employee stock options	650,570		1,258,838
Weighted-average shares of common stock outstanding—diluted	39,731,440		42,710,577
Earnings per share of common stock attributable to controlling interests:
Basic	$	0.37	$	0.29
Diluted	$	0.37	$	0.28

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Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Management fees

The Company’s management fees are a function of the fee rates the Affiliate charges to its clients, which are typically expressed in basis points, and the levels of the Company’s assets under management. The most significant driver of increases or decreases in this average fee rate is changes in the mix of the Company’s assets under management caused by net inflows or outflows in certain asset classes or disproportionate market movements.

Performance fees

The Company’s products subject to performance fees earn these fees upon exceeding high-water mark performance thresholds or outperforming a hurdle rate. Performance fees are recorded in revenues when the contractual performance criteria have been met and when it is probable that a significant reversal of revenue recognized will not occur in future reporting periods.

Disaggregation of management fee revenue

The geographic disaggregation of management fee revenue for the three months ended March 31, 2024 and 2023 are as follows (in millions):

	Three Months Ended March 31,
	2024		2023
Quant & Solutions
U.S.	$	77.3	$	67.9
Non-U.S.	24.9		22.7
Management fee revenue	$	102.2	$	90.6

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2024 and 2023 are as follows (in millions):

	Foreign currency translation adjustment		Valuation and amortization of derivative securities		Total
Balance, as of December 31, 2023	$	3.1	$	(9.8)	$	(6.7)
Foreign currency translation adjustment before tax	(0.3)		—		(0.3)
Amortization related to derivatives securities before tax	—		0.9		0.9
Tax impact	0.1		(0.2)		(0.1)
Other comprehensive income (loss)	(0.2)		0.7		0.5
Balance, as of March 31, 2024	$	2.9	$	(9.1)	$	(6.2)

	Foreign currency translation adjustment		Valuation and amortization of derivative securities		Total
Balance, as of December 31, 2022	$	1.7	$	(12.3)	$	(10.6)
Foreign currency translation adjustment before tax	0.7		—		0.7
Amortization related to derivatives securities before tax	—		0.8		0.8
Tax impact	—		(0.2)		(0.2)
Other comprehensive income	0.7		0.6		1.3
Balance, as of March 31, 2023	$	2.4	$	(11.7)	$	(9.3)

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Derivatives and Hedging

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Derivatives and Hedging

Cash flow hedge

In July 2015, the Company entered into a series of $300.0 million notional Treasury rate lock contracts which were designated and qualified as cash flow hedges. The Company documented its hedging strategy and risk management objective for this contract in anticipation of a future debt issuance. The Treasury rate lock contract eliminated the impact of fluctuations in the underlying benchmark interest rate for future forecasted debt issuances. The Company assessed the effectiveness of the hedging contract at inception and on a quarterly basis thereafter. The forecasted debt issuances occurred in July 2016 and the Treasury rate lock, which had an accumulated fair value of $(34.4) million, was settled.

As of March 31, 2024, the balance recorded in accumulated other comprehensive income (loss) was $(9.1) million, net of tax. This balance will be reclassified to earnings through interest expense over the life of the issued debt. The Company reclassified $0.9 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. During the next twelve months the Company expects to reclassify approximately $3.7 million to interest expense.

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Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segments

Segments

The Company has the following reportable segment:

•Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, equity alternatives including macro, and credit strategies. This segment is comprised of the Company’s interest in Acadian.

The corporate head office is included within the Other category. The corporate head office expenses are not allocated to the Company’s business segment, but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of the segment.

Performance Measure

The primary measure used by the CODM in measuring performance and allocating resources to the segments is Economic Net Income (“ENI”). The Company defines ENI for the segments as ENI revenue less (i) ENI operating expenses, (ii) variable compensation and (iii) key employee distributions. The ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP. This measure supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with U.S. GAAP. The Company does not disclose total asset information for its reportable segment as the information is not reviewed by the CODM.

ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to the Company’s Affiliate by consolidated Funds.

ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, capital transaction costs, and restructuring costs. Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses.

ENI segment results are also adjusted to exclude the portion of consolidated Fund revenues, expenses and investment return recorded under U.S. GAAP.

Segment Presentation

The following tables set forth summarized operating results for the Company’s segment and related adjustments necessary to reconcile the segment economic net income to arrive at the Company’s consolidated U.S. GAAP net income (loss).

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2024 (in millions):

	Three Months Ended March 31, 2024
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	105.3	$	—	$	0.4	(a)	$	105.7
ENI operating expenses	45.7		3.8		4.7		(b)	54.2
Earnings before variable compensation	59.6		(3.8)		(4.3)			51.5
Variable compensation	26.0		0.6		(0.2)		(c)	26.4
ENI operating earnings (after variable comp)	33.6		(4.4)		(4.1)			25.1
Affiliate key employee distributions	2.2		—		—			2.2
Earnings after Affiliate key employee distributions	31.4		(4.4)		(4.1)			22.9
Net interest expense	—		(3.0)		(0.7)		(d)	(3.7)
Net investment income	—		—		2.6		(e)	2.6
Net income attributable to non-controlling interests in consolidated Funds	—		—		(1.1)		(e)	(1.1)
Income tax (expense) benefit	—		(6.6)		0.5		(f)	(6.1)
Economic net income	$	31.4	$	(14.0)	$	(2.8)		$	14.6

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2023 (in millions):

	Three Months Ended March 31, 2023
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	91.1	$	—	$	0.7	(a)	$	91.8
ENI operating expenses	43.6		3.5		0.5		(b)	47.6
Earnings before variable compensation	47.5		(3.5)		0.2			44.2
Variable compensation	22.5		0.7		—			23.2
ENI operating earnings (after variable comp)	25.0		(4.2)		0.2			21.0
Affiliate key employee distributions	1.2		—		—			1.2
Earnings after Affiliate key employee distributions	23.8		(4.2)		0.2			19.8
Net interest expense	—		(3.4)		(0.4)		(d)	(3.8)
Net investment income	—		—		1.1		(e)	1.1
Income tax expense	—		(4.4)		(0.7)		(f)	(5.1)
Economic net income	$	23.8	$	(12.0)	$	0.2		$	12.0

(1)The most directly comparable U.S. GAAP measure of ENI revenue is U.S. GAAP revenue. The most directly comparable U.S. GAAP measure of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation, and Affiliate key employee distributions above. The most directly comparable U.S. GAAP measure of earnings after Affiliate key employee distributions is U.S. GAAP operating income. The most directly comparable U.S. GAAP measure of ENI is U.S. GAAP net income attributable to controlling interests.

Reconciling Adjustments:

a.Adjusted to include consolidated Funds revenues which are included in U.S. GAAP revenue.

b.Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, restructuring costs, and consolidated Funds’ operating expenses, each of which are included in U.S. GAAP operating expenses.

c.Adjusted to include restructuring costs which are included in U.S. GAAP compensation expense.

d.Adjusted to include the cost of seed financing and amortization of debt issuance costs, which is included in U.S. GAAP interest expense.

e.Adjusted to include net investment income (loss), and net income attributable to non-controlling interests in consolidated Funds, all of which are included in U.S. GAAP net income attributable to controlling interests.

f.Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Adjusted to include the tax impact of certain ENI adjustments; exclude the tax expense or benefits relating to uncertain tax positions, and exclude the tax impact of other unusual items that are not related to current operating results for ENI purposes.

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Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

During the period from April 1, 2024 through May 7, 2024, the Company repurchased 269,361 shares of common stock at a weighted average price of $22.49 per share, or approximately $6 million in total, including commissions.

The Company seeded Acadian’s Global High Yield Strategy with $15 million of seed capital in April 2024.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 14.6	$ 12.0

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

These unaudited Condensed Consolidated Financial Statements reflect the historical balance sheets, statements of operations, statements of comprehensive income, statements of changes in stockholders’ equity and statements of cash flows of the Company. Within these Condensed Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.”

The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of the Company’s Condensed Consolidated Financial Statements have been included. All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Transactions between the Company and its related parties are included in the Condensed Consolidated Financial Statements; however, material intercompany balances and transactions among the Company, its consolidated Affiliate and consolidated Funds are eliminated in consolidation.

Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (annual report on Form 10-K) are not required to be included on an interim basis in the Company’s quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024. The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements.

Use of estimates

Use of estimates

The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements.

New accounting standards not yet adopted

New accounting standards not yet adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07 - Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The amendment is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. We are currently evaluating the impact of adopting this standard, but we expect the standard to result in additional segment footnote disclosures.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09 - Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. This amendment is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact of adopting this standard and have not yet determined our transition approach.

The Company has considered all other newly issued accounting guidance that is applicable to the Company’s operations and the preparation of the unaudited Condensed Consolidated Financial Statements, including those that have not yet been adopted. The Company does not believe that any such guidance has or will have a material effect on its Condensed Consolidated Financial Statements and related disclosures.

Variable interest entities (“VIEs”)

The Company, through its Affiliate, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by the Company’s Affiliate, and other partnership interests typically owned entirely by third-party investors. Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that have ownership interests in the Affiliate.

The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity. Typically, the Fund’s investors are entitled to substantially all of the economics of these VIEs with the exception of the management fees and performance fees, if any, earned by the Company or any investment the Company has made into the Funds. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest, including interests of related parties, is substantial.

The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIE’s results are attributable to third parties. The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees. The Company has not issued any investment performance guarantees to these VIEs or their investors.

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Investment (Tables)

3 Months Ended

Mar. 31, 2024

Investments [Abstract]

Schedule of Investment Components

Investments are comprised of the following as of the dates indicated (in millions):

	March 31, 2024		December 31, 2023
Investments of consolidated Funds held at fair value	$	37.6	$	33.9
Other investments	20.8		20.0
Investments related to long-term incentive compensation plans	46.2		44.7
Total investments per Condensed Consolidated Balance Sheets	$	104.6	$	98.6

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of the Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2024 (in millions):

	Quoted prices in active markets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Uncategorized		Total value, March 31, 2024
Assets of BSIG and consolidated Funds(1)
Common and preferred stock	$	22.3	$	—	$	—	$	—	$	22.3
Corporate bonds	—		15.1		—		—		15.1
Derivatives	—		0.2		—		—		0.2
Consolidated Funds total	22.3		15.3		—		—		37.6
Investments in separate accounts(2)	2.3		—		—		—		2.3
Investments related to long-term incentive compensation plans(3)	46.2		—		—		—		46.2
Investments in unconsolidated Funds(4)	—		—		—		18.5		18.5
BSIG total	48.5		—		—		18.5		67.0
Total fair value assets	$	70.8	$	15.3	$	—	$	18.5	$	104.6
Liabilities of consolidated Funds(1)
Securities sold short	$	(4.2)	$	—	$	—	$	—	$	(4.2)
Derivatives	—		(0.1)		—		—		(0.1)
Consolidated Funds total	(4.2)		(0.1)		—		—		(4.3)
Total fair value liabilities	$	(4.2)	$	(0.1)	$	—	$	—	$	(4.3)

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2023 (in millions):

	Quoted prices in active markets (Level I)		Significant other observable inputs (Level II)		Significant unobservable inputs (Level III)		Uncategorized		Total value December 31, 2023
Assets of BSIG and consolidated Funds(1)
Common and preferred stock	$	19.0	$	—	$	—	$	—	$	19.0
Corporate bonds	—		14.8		—		—		14.8
Derivatives	—		0.1		—		—		0.1
Consolidated Funds total	19.0		14.9		—		—		33.9
Investments in separate accounts(2)	2.1		—		—		—		2.1
Investments related to long-term incentive compensation plans(3)	44.7		—		—		—		44.7
Investments in unconsolidated Funds(4)	—		—		—		17.9		17.9
BSIG total	46.8		—		—		17.9		64.7
Total fair value assets	$	65.8	$	14.9	$	—	$	17.9	$	98.6
Liabilities of consolidated Funds(1)
Securities sold short	$	(4.0)	$	—	$	—	$	—	$	(4.0)
Derivatives	—		(0.1)		—		—		(0.1)
Consolidated Funds total	(4.0)		(0.1)		—		—		(4.1)
Total fair value liabilities	$	(4.0)	$	(0.1)	$	—	$	—	$	(4.1)

(1)Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliate.

Equity securities and derivatives which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. The securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II.

The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided.

If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model with unobservable inputs, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures.

(2)Investments in separate accounts of $2.3 million at March 31, 2024 consisted of approximately 100% equity securities. Investments in separate accounts of $2.1 million at December 31, 2023 were composed of approximately 1% cash equivalents and 99% equity securities. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II).

(3)Investments related to long-term incentive compensation plans of $46.2 million and $44.7 million at March 31, 2024 and December 31, 2023, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I.

(4)The uncategorized amounts of $18.5 million and $17.9 million at March 31, 2024 and December 31, 2023, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. Other investment vehicles are not subject to redemption restrictions.

The real estate investment Funds of $3.3 million and $3.6 million at March 31, 2024 and December 31, 2023, respectively, were subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year from March 31, 2024. The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, finance, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions.

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Assets and Liabilities and Information Pertains to VIEs

The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions):

	March 31, 2024		December 31, 2023
Assets
Investments	$	37.6	$	33.9
Other assets of consolidated Funds	1.8		$	1.3
Total Assets	$	39.4	$	35.2
Liabilities
Liabilities of consolidated Funds	$	5.3	$	4.3
Total Liabilities	$	5.3	$	4.3

The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions):

	March 31, 2024		December 31, 2023
Unconsolidated VIE assets	$	628.4	$	669.1
Unconsolidated VIE liabilities	$	304.8	$	316.5
Equity interests on the Condensed Consolidated Balance Sheets	$	3.3	$	3.6
Maximum risk of loss(1)	$	3.3	$	3.6

(1)Includes equity investments the Company has made.

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Borrowings and Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Long Term Debt

The Company’s borrowings and long-term debt were comprised of the following as of the dates indicated (in millions):

	March 31, 2024					December 31, 2023
(in millions)	Carrying Value		Fair Value		Fair Value Level	Carrying Value		Fair Value		Fair Value Level
Revolving credit facility:
$125 million revolving credit facility expiring March 7, 2025(1)	$	73.0	$	73.0	2	$	—	$	—
Total revolving credit facility	$	73.0	$	73.0		$	—	$	—
Third party borrowings:
$275 million 4.80% Senior Notes Due July 27, 2026(2)	$	274.0	$	266.9	2	$	273.9	$	263.1	2
Total third party borrowings	$	274.0	$	266.9		$	273.9	$	263.1

(1)Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates.

(2)The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts.

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Summary of Lease Information

The following table summarizes information about the Company’s operating leases for the three months ended March 31, 2024 and 2023 (in millions):

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	2.2	$	2.1
Variable lease cost	—		—
Total operating lease expense	$	2.2	$	2.1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2.4	$	2.3
Right of use assets obtained in exchange for new operating lease liabilities	—		2.8

Summary of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities were as follows (in millions):

	Operating Leases
Year Ending December 31,
2024 (excluding the three months ended March 31, 2024)	$	6.9
2025	8.9
2026	8.8
2027	8.4
2028	8.5
Thereafter	41.1
Total lease payments	$	82.6
Less imputed interest	(12.0)
Total	$	70.6

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Calculation of Pro Forma Basic and Diluted Earnings Per Share

The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data):

	Three Months Ended March 31,
	2024		2023
Numerator:
Net income attributable to controlling interests	$	14.6	$	12.0
Denominator:
Weighted-average shares of common stock outstanding—basic	39,063,522		41,444,200
Potential shares of common stock:
Restricted stock units	17,348		7,539
Employee stock options	650,570		1,258,838
Weighted-average shares of common stock outstanding—diluted	39,731,440		42,710,577
Earnings per share of common stock attributable to controlling interests:
Basic	$	0.37	$	0.29
Diluted	$	0.37	$	0.28

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Revenue (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The geographic disaggregation of management fee revenue for the three months ended March 31, 2024 and 2023 are as follows (in millions):

	Three Months Ended March 31,
	2024		2023
Quant & Solutions
U.S.	$	77.3	$	67.9
Non-U.S.	24.9		22.7
Management fee revenue	$	102.2	$	90.6

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Components of Accumulated Other Comprehensive Income (loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2024 and 2023 are as follows (in millions):

	Foreign currency translation adjustment		Valuation and amortization of derivative securities		Total
Balance, as of December 31, 2023	$	3.1	$	(9.8)	$	(6.7)
Foreign currency translation adjustment before tax	(0.3)		—		(0.3)
Amortization related to derivatives securities before tax	—		0.9		0.9
Tax impact	0.1		(0.2)		(0.1)
Other comprehensive income (loss)	(0.2)		0.7		0.5
Balance, as of March 31, 2024	$	2.9	$	(9.1)	$	(6.2)

	Foreign currency translation adjustment		Valuation and amortization of derivative securities		Total
Balance, as of December 31, 2022	$	1.7	$	(12.3)	$	(10.6)
Foreign currency translation adjustment before tax	0.7		—		0.7
Amortization related to derivatives securities before tax	—		0.8		0.8
Tax impact	—		(0.2)		(0.2)
Other comprehensive income	0.7		0.6		1.3
Balance, as of March 31, 2023	$	2.4	$	(11.7)	$	(9.3)

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Segments (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Reconciling Adjustments

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2024 (in millions):

	Three Months Ended March 31, 2024
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	105.3	$	—	$	0.4	(a)	$	105.7
ENI operating expenses	45.7		3.8		4.7		(b)	54.2
Earnings before variable compensation	59.6		(3.8)		(4.3)			51.5
Variable compensation	26.0		0.6		(0.2)		(c)	26.4
ENI operating earnings (after variable comp)	33.6		(4.4)		(4.1)			25.1
Affiliate key employee distributions	2.2		—		—			2.2
Earnings after Affiliate key employee distributions	31.4		(4.4)		(4.1)			22.9
Net interest expense	—		(3.0)		(0.7)		(d)	(3.7)
Net investment income	—		—		2.6		(e)	2.6
Net income attributable to non-controlling interests in consolidated Funds	—		—		(1.1)		(e)	(1.1)
Income tax (expense) benefit	—		(6.6)		0.5		(f)	(6.1)
Economic net income	$	31.4	$	(14.0)	$	(2.8)		$	14.6

The following table presents the financial data for the Company’s segment for the three months ended March 31, 2023 (in millions):

	Three Months Ended March 31, 2023
	Quant & Solutions		Other		Reconciling Adjustments			Total U.S. GAAP(1)
ENI revenue	$	91.1	$	—	$	0.7	(a)	$	91.8
ENI operating expenses	43.6		3.5		0.5		(b)	47.6
Earnings before variable compensation	47.5		(3.5)		0.2			44.2
Variable compensation	22.5		0.7		—			23.2
ENI operating earnings (after variable comp)	25.0		(4.2)		0.2			21.0
Affiliate key employee distributions	1.2		—		—			1.2
Earnings after Affiliate key employee distributions	23.8		(4.2)		0.2			19.8
Net interest expense	—		(3.4)		(0.4)		(d)	(3.8)
Net investment income	—		—		1.1		(e)	1.1
Income tax expense	—		(4.4)		(0.7)		(f)	(5.1)
Economic net income	$	23.8	$	(12.0)	$	0.2		$	12.0

(1)The most directly comparable U.S. GAAP measure of ENI revenue is U.S. GAAP revenue. The most directly comparable U.S. GAAP measure of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation, and Affiliate key employee distributions above. The most directly comparable U.S. GAAP measure of earnings after Affiliate key employee distributions is U.S. GAAP operating income. The most directly comparable U.S. GAAP measure of ENI is U.S. GAAP net income attributable to controlling interests.

Reconciling Adjustments:

a.Adjusted to include consolidated Funds revenues which are included in U.S. GAAP revenue.

b.Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, restructuring costs, and consolidated Funds’ operating expenses, each of which are included in U.S. GAAP operating expenses.

c.Adjusted to include restructuring costs which are included in U.S. GAAP compensation expense.

d.Adjusted to include the cost of seed financing and amortization of debt issuance costs, which is included in U.S. GAAP interest expense.

e.Adjusted to include net investment income (loss), and net income attributable to non-controlling interests in consolidated Funds, all of which are included in U.S. GAAP net income attributable to controlling interests.

f.Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Adjusted to include the tax impact of certain ENI adjustments; exclude the tax expense or benefits relating to uncertain tax positions, and exclude the tax impact of other unusual items that are not related to current operating results for ENI purposes.

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Organization and Description of the Business (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Business Acquisition [Line Items]
Repurchase of common stock (in shares)	3,530,908	0
Average price of common stock repurchased (in dollars per share)	$ 21.04
Repurchase of common stock	$ 74.4
Paulson | BrightSphere Investment Group
Business Acquisition [Line Items]
Parent owned interest	23.60%

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Investments (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Investment Holdings [Line Items]
Total investments per Condensed Consolidated Balance Sheets	$ 104.6	$ 98.6
Consolidated Funds
Investment Holdings [Line Items]
Investments	37.6	33.9
Total investments per Condensed Consolidated Balance Sheets	37.6	33.9
Consolidated Entity Excluding Consolidated Funds
Investment Holdings [Line Items]
Total investments per Condensed Consolidated Balance Sheets	67.0	64.7
Consolidated Entity Excluding Consolidated Funds | Other investments
Investment Holdings [Line Items]
Investments	20.8	20.0
Consolidated Entity Excluding Consolidated Funds | Investments related to long-term incentive compensation plans
Investment Holdings [Line Items]
Investments	$ 46.2	$ 44.7

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Fair Value Measurements (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Asset of BSIF and consolidated Funds
Total fair value assets	$ 104.6	$ 98.6
Uncategorized	18.5	17.9
Liabilities of consolidated Funds
Total fair value liabilities	$ (4.3)	(4.1)
Real estate investment funds
Liabilities of consolidated Funds
Term over which the underlying assets are expected to be liquidated by the investees	1 year
Quoted prices in active markets (Level I)
Asset of BSIF and consolidated Funds
Total fair value assets	$ 70.8	65.8
Liabilities of consolidated Funds
Total fair value liabilities	(4.2)	(4.0)
Significant other observable inputs (Level II)
Asset of BSIF and consolidated Funds
Total fair value assets	15.3	14.9
Liabilities of consolidated Funds
Total fair value liabilities	(0.1)	(0.1)
Significant unobservable inputs (Level III)
Asset of BSIF and consolidated Funds
Total fair value assets	0.0	0.0
Liabilities of consolidated Funds
Total fair value liabilities	0.0	0.0
Consolidated Funds
Asset of BSIF and consolidated Funds
Common and preferred stock	22.3	19.0
Derivatives	0.2	0.1
Investments in unconsolidated Funds	37.6	33.9
Liabilities of consolidated Funds
Securities sold short	(4.2)	(4.0)
Derivative liability	(0.1)	(0.1)
Consolidated Funds | Corporate bonds
Asset of BSIF and consolidated Funds
Corporate bonds	15.1	14.8
Consolidated Funds | Quoted prices in active markets (Level I)
Asset of BSIF and consolidated Funds
Common and preferred stock	22.3	19.0
Derivatives	0.0	0.0
Liabilities of consolidated Funds
Securities sold short	(4.2)	(4.0)
Derivative liability	0.0	0.0
Consolidated Funds | Quoted prices in active markets (Level I) | Corporate bonds
Asset of BSIF and consolidated Funds
Corporate bonds	0.0	0.0
Consolidated Funds | Significant other observable inputs (Level II)
Asset of BSIF and consolidated Funds
Common and preferred stock	0.0	0.0
Derivatives	0.2	0.1
Liabilities of consolidated Funds
Securities sold short	0.0	0.0
Derivative liability	(0.1)	(0.1)
Consolidated Funds | Significant other observable inputs (Level II) | Corporate bonds
Asset of BSIF and consolidated Funds
Corporate bonds	15.1	14.8
Consolidated Funds | Significant unobservable inputs (Level III)
Asset of BSIF and consolidated Funds
Common and preferred stock	0.0	0.0
Derivatives	0.0	0.0
Liabilities of consolidated Funds
Securities sold short	0.0	0.0
Derivative liability	0.0	0.0
Consolidated Funds | Significant unobservable inputs (Level III) | Corporate bonds
Asset of BSIF and consolidated Funds
Corporate bonds	0.0	0.0
Consolidated Entity Excluding Consolidated Funds
Asset of BSIF and consolidated Funds
Consolidated Funds total	37.6	33.9
Consolidated Funds total	67.0	64.7
Uncategorized	18.5	17.9
Liabilities of consolidated Funds
Consolidated Funds total	(4.3)	(4.1)
Consolidated Entity Excluding Consolidated Funds | Investments in separate accounts
Asset of BSIF and consolidated Funds
Investments in separate accounts	2.3	2.1
Consolidated Entity Excluding Consolidated Funds | Investments related to long-term incentive compensation plans
Asset of BSIF and consolidated Funds
Investments related to long-term incentive compensation plans	46.2	44.7
Investments in unconsolidated Funds	46.2	44.7
Consolidated Entity Excluding Consolidated Funds | Investments in unconsolidated Funds
Asset of BSIF and consolidated Funds
Investments in unconsolidated Funds	18.5	17.9
Uncategorized	18.5	17.9
Consolidated Entity Excluding Consolidated Funds | Investment funds subject to longer redemption restrictions
Asset of BSIF and consolidated Funds
Uncategorized	3.3	3.6
Consolidated Entity Excluding Consolidated Funds | Quoted prices in active markets (Level I)
Asset of BSIF and consolidated Funds
Consolidated Funds total	22.3	19.0
Consolidated Funds total	48.5	46.8
Liabilities of consolidated Funds
Consolidated Funds total	$ (4.2)	$ (4.0)
Investment in equity securities	100.00%	99.00%
Investments in cash equivalents		1.00%
Consolidated Entity Excluding Consolidated Funds | Quoted prices in active markets (Level I) | Investments in separate accounts
Asset of BSIF and consolidated Funds
Investments in separate accounts	$ 2.3	$ 2.1
Consolidated Entity Excluding Consolidated Funds | Quoted prices in active markets (Level I) | Investments related to long-term incentive compensation plans
Asset of BSIF and consolidated Funds
Investments related to long-term incentive compensation plans	46.2	44.7
Consolidated Entity Excluding Consolidated Funds | Quoted prices in active markets (Level I) | Investments in unconsolidated Funds
Asset of BSIF and consolidated Funds
Investments in unconsolidated Funds	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant other observable inputs (Level II)
Asset of BSIF and consolidated Funds
Consolidated Funds total	15.3	14.9
Consolidated Funds total	0.0	0.0
Liabilities of consolidated Funds
Consolidated Funds total	(0.1)	(0.1)
Consolidated Entity Excluding Consolidated Funds | Significant other observable inputs (Level II) | Investments in separate accounts
Asset of BSIF and consolidated Funds
Investments in separate accounts	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant other observable inputs (Level II) | Investments related to long-term incentive compensation plans
Asset of BSIF and consolidated Funds
Investments related to long-term incentive compensation plans	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant other observable inputs (Level II) | Investments in unconsolidated Funds
Asset of BSIF and consolidated Funds
Investments in unconsolidated Funds	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant unobservable inputs (Level III)
Asset of BSIF and consolidated Funds
Consolidated Funds total	0.0	0.0
Consolidated Funds total	0.0	0.0
Liabilities of consolidated Funds
Consolidated Funds total	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant unobservable inputs (Level III) | Investments in separate accounts
Asset of BSIF and consolidated Funds
Investments in separate accounts	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant unobservable inputs (Level III) | Investments related to long-term incentive compensation plans
Asset of BSIF and consolidated Funds
Investments related to long-term incentive compensation plans	0.0	0.0
Consolidated Entity Excluding Consolidated Funds | Significant unobservable inputs (Level III) | Investments in unconsolidated Funds
Asset of BSIF and consolidated Funds
Investments in unconsolidated Funds	$ 0.0	$ 0.0

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Variable Interest Entities - Assets and Liabilities of Funds that are VIEs (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Assets
Total assets	$ 544.9	$ 611.4
Liabilities
Total liabilities	555.1	561.9
VIEs, Consolidated Funds
Assets
Investments	37.6	33.9
Other assets of consolidated Funds	1.8	1.3
Total assets	39.4	35.2
Liabilities
Liabilities of consolidated Funds	5.3	4.3
Total liabilities	$ 5.3	$ 4.3

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Variable Interest Entities - Information of Variable Interest Holdings (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Variable Interest Entities
Unconsolidated VIE assets	$ 544.9	$ 611.4
Unconsolidated VIE liabilities	555.1	561.9
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entities
Unconsolidated VIE assets	628.4	669.1
Unconsolidated VIE liabilities	304.8	316.5
Equity interests on the Condensed Consolidated Balance Sheets	3.3	3.6
Maximum risk of loss	$ 3.3	$ 3.6

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Borrowings and Debt - Long Term Debt (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Carrying Value	$ 274,000,000.0	$ 273,900,000
Fair Value	266,900,000	263,100,000
Line of Credit | Revolving credit facility | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Carrying Value	73,000,000.0	0
Fair Value	73,000,000.0	0
Line of Credit | Revolving credit facility | Revolving credit facility expiring March 7, 2025
Debt Instrument [Line Items]
Face amount	125,000,000
Line of Credit | Revolving credit facility | Revolving credit facility expiring March 7, 2025 | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Carrying Value	73,000,000.0	0
Fair Value	73,000,000.0	0
Senior notes | 4.80% Senior Notes Due July 27, 2026
Debt Instrument [Line Items]
Face amount	$ 275,000,000
Interest rate	4.80%
Senior notes | 4.80% Senior Notes Due July 27, 2026 | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Carrying Value	$ 274,000,000.0	273,900,000
Fair Value	$ 266,900,000	$ 263,100,000

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Borrowings and Debt - Narrative (Details) - Line of Credit - Revolving credit facility	Mar. 07, 2022
Debt Instrument [Line Items]
Maximum interest leverage ratio	2.5
Minimum interest coverage ratio	4.0
Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.25%
Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.375%
Federal Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Adjusted Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	0.10%
Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Secured Overnight Financing Rate (SOFR) | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Secured Overnight Financing Rate (SOFR) | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Secured Overnight Financing Rate (SOFR), Additional Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Secured Overnight Financing Rate (SOFR), Additional Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%

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Leases - Narrative (Details)	Mar. 31, 2024	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Lease renewal term	5 years
Weighted average remaining lease term	9 years 3 months 18 days	10 years 2 months 12 days
Weighted average discount rate	3.52%	3.54%
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	10 years

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Leases - Summary of Lease Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 2.2	$ 2.1
Variable lease cost	0.0	0.0
Total operating lease expense	2.2	2.1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2.4	2.3
Right of use assets obtained in exchange for new operating lease liabilities	$ 0.0	$ 2.8

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Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024 (excluding the three months ended March 31, 2024)	$ 6.9
2025	8.9
2026	8.8
2027	8.4
2028	8.5
Thereafter	41.1
Total lease payments	82.6
Less imputed interest	(12.0)
Total	$ 70.6

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Commitments and Contingencies (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Deposit guaranty on behalf of an Affiliate			$ 2,500,000
Guaranty liabilities	$ 0	$ 0

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income attributable to controlling interests	$ 14.6	$ 12.0
Denominator:
Weighted-average shares of common stock outstanding—basic (in shares)	39,063,522	41,444,200
Potential shares of common stock:
Weighted-average shares of common stock outstanding—diluted (in shares)	39,731,440	42,710,577
Earnings per share of common stock attributable to controlling interests:
Basic (in dollars per share)	$ 0.37	$ 0.29
Diluted (in dollars per share)	$ 0.37	$ 0.28
Restricted stock units
Potential shares of common stock:
Restricted stock units/Employee stock options (in shares)	17,348	7,539
Employee stock options
Potential shares of common stock:
Restricted stock units/Employee stock options (in shares)	650,570	1,258,838

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Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Management fee revenue	$ 105.7	$ 91.8
Management fees
Disaggregation of Revenue [Line Items]
Management fee revenue	102.2	90.6
Management fees | Quant & Solutions | U.S.
Disaggregation of Revenue [Line Items]
Management fee revenue	77.3	67.9
Management fees | Quant & Solutions | Non-U.S.
Disaggregation of Revenue [Line Items]
Management fee revenue	$ 24.9	$ 22.7

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Foreign currency translation adjustment before tax	$ (0.3)	$ 0.7
Amortization related to derivatives securities before tax	0.9	0.8
Tax impact	(0.1)	(0.2)
Total other comprehensive income	0.5	1.3
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(6.7)	(10.6)
Ending balance	(6.2)	(9.3)
Foreign currency translation adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	3.1	1.7
Foreign currency translation adjustment before tax	(0.3)	0.7
Amortization related to derivatives securities before tax	0.0	0.0
Tax impact	0.1	0.0
Total other comprehensive income	(0.2)	0.7
Ending balance	2.9	2.4
Valuation and amortization of derivative securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(9.8)	(12.3)
Foreign currency translation adjustment before tax	0.0	0.0
Amortization related to derivatives securities before tax	0.9	0.8
Tax impact	(0.2)	(0.2)
Total other comprehensive income	0.7	0.6
Ending balance	$ (9.1)	$ (11.7)

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Derivatives and Hedging (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Jul. 31, 2016	Jul. 31, 2015
Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from AOCI to interest expense	$ 0.9	$ 0.8
Amount reclassified within twelve months	3.7
Accumulated other comprehensive income
Derivative Instruments, Gain (Loss) [Line Items]
Stockholders' equity	$ (9.1)	$ (11.7)	$ (9.8)	$ (12.3)
Designated as Hedging Instrument | Treasury Lock
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount						$ 300.0
Fair value of derivative					$ (34.4)

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Segments - Summarized Operating Results by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
ENI revenue	$ 105.7	$ 91.8
ENI operating expenses	54.2	47.6
Earnings before variable compensation	51.5	44.2
Variable compensation	26.4	23.2
ENI operating earnings (after variable comp)	25.1	21.0
Affiliate key employee distributions	2.2	1.2
Earnings after Affiliate key employee distributions	22.9	19.8
Net interest expense	(3.7)	(3.8)
Net investment income	2.6	1.1
Net income attributable to non-controlling interests in consolidated Funds	(1.1)	0.0
Income tax (expense) benefit	(6.1)	(5.1)
Net income attributable to controlling interests	14.6	12.0
Consolidated Funds
Segment Reporting Information [Line Items]
Net income attributable to non-controlling interests in consolidated Funds	(1.1)
Operating Segments | Quant & Solutions
Segment Reporting Information [Line Items]
ENI revenue	105.3	91.1
ENI operating expenses	45.7	43.6
Earnings before variable compensation	59.6	47.5
Variable compensation	26.0	22.5
ENI operating earnings (after variable comp)	33.6	25.0
Affiliate key employee distributions	2.2	1.2
Earnings after Affiliate key employee distributions	31.4	23.8
Net interest expense	0.0	0.0
Net investment income	0.0	0.0
Income tax (expense) benefit	0.0	0.0
Net income attributable to controlling interests	31.4	23.8
Operating Segments | Quant & Solutions | Consolidated Funds
Segment Reporting Information [Line Items]
Net income attributable to non-controlling interests in consolidated Funds	0.0
Other
Segment Reporting Information [Line Items]
ENI revenue	0.0	0.0
ENI operating expenses	3.8	3.5
Earnings before variable compensation	(3.8)	(3.5)
Variable compensation	0.6	0.7
ENI operating earnings (after variable comp)	(4.4)	(4.2)
Affiliate key employee distributions	0.0	0.0
Earnings after Affiliate key employee distributions	(4.4)	(4.2)
Net interest expense	(3.0)	(3.4)
Net investment income	0.0	0.0
Income tax (expense) benefit	(6.6)	(4.4)
Net income attributable to controlling interests	(14.0)	(12.0)
Other | Consolidated Funds
Segment Reporting Information [Line Items]
Net income attributable to non-controlling interests in consolidated Funds	0.0
Reconciling Adjustments
Segment Reporting Information [Line Items]
ENI revenue	0.4	0.7
ENI operating expenses	4.7	0.5
Earnings before variable compensation	(4.3)	0.2
Variable compensation	(0.2)	0.0
ENI operating earnings (after variable comp)	(4.1)	0.2
Affiliate key employee distributions	0.0	0.0
Earnings after Affiliate key employee distributions	(4.1)	0.2
Net interest expense	(0.7)	(0.4)
Net investment income	2.6	1.1
Income tax (expense) benefit	0.5	(0.7)
Net income attributable to controlling interests	(2.8)	$ 0.2
Reconciling Adjustments | Consolidated Funds
Segment Reporting Information [Line Items]
Net income attributable to non-controlling interests in consolidated Funds	$ (1.1)

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended
	May 07, 2024	Apr. 30, 2024	Mar. 31, 2024	Mar. 31, 2023
Subsequent Event [Line Items]
Repurchase of common stock (in shares)			3,530,908	0
Repurchase of common stock			$ 74.4
Subsequent Event | Acadian Global High Yield Strategy
Subsequent Event [Line Items]
Seed capital investment		$ 15.0
Subsequent Event | Common Stock
Subsequent Event [Line Items]
Repurchase of common stock (in shares)	269,361
Average price of shares repurchased (in dollars per share)	$ 22.49
Repurchase of common stock	$ 6.0