Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has the following reportable segment:

•Quant & Solutions—incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors; portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies. This segment consists of our ownership interest in Acadian LLC.

Hold Co is included within the Unallocated Corporate expenses category. The Hold Co 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. The CODM is the Company’s Chief Executive Officer.

Performance Measure

The primary measure used by the CODM in measuring performance and allocating resources to the segment is economic net income (“ENI”). ENI is used to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management. The Company defines ENI for the segment as ENI revenue less ENI operating expenses. 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 recognized under U.S. GAAP. This measure supplements and should be considered in addition to, and not in lieu of, the 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 by consolidated Funds.

Significant segment ENI expenses include fixed compensation and benefits, variable compensation, and Acadian LLC key employee distributions included in compensation and benefits expense under U.S. GAAP, depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, capital transaction costs, and restructuring costs. Other segment items include ENI general and administrative expense under U.S. GAAP, adjusted to exclude restructuring costs and include sales based compensation.

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

Segment Presentation

The following table sets 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 attributable to controlling interests for the three months ended March 31, 2025 and 2024 are as follows (in millions):

		Three Months Ended March 31,
($ in millions)		2025		2024
U.S. GAAP consolidated revenue		$	119.9	$	105.7
Exclude revenue from consolidated Funds	(a)	1.7		0.4
Quant & Solutions segment ENI revenue		$	118.2	$	105.3
Less: Quant & Solutions segment ENI expenses
Fixed compensation and benefits	(b)	22.9		21.6
Variable compensation	(c)	29.4		26.0
Acadian LLC key employee distributions	(d)	3.1		2.2
Depreciation and amortization	(e)	4.2		4.6
Other segment items	(f)	23.7		19.5
Segment economic net income		$	34.9	$	31.4
Reconciliation of segment ENI to net income attributable to controlling interests:
Unallocated corporate expenses	(g)	(4.5)		(4.6)
Adjustments and reconciling items	(h)	1.2		0.5
Non-cash compensation expenses for Acadian LLC key employee equity and profit interest revaluations	(i)	0.3		(4.4)
Investment income		0.3		0.9
Interest income		1.1		1.3
Interest expense		(4.8)		(5.0)
Net consolidated Funds' investment gains		3.6		1.7
Income before income taxes		$	32.1	$	21.8
Income tax expense		(8.3)		(6.1)
Consolidated net income		$	23.8	$	15.7
Net income attributable to redeemable non-controlling interests in consolidated Funds		(3.7)		(1.1)
Net income attributable to controlling interests		$	20.1	$	14.6

Reconciling Adjustments:

a.Adjustment to exclude consolidated Funds revenues, which are included in U.S. GAAP revenue.

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

c.Variable compensation is contractually set and calculated individually for Acadian LLC bonuses. Amounts are adjusted for non-cash Acadian LLC key employee equity revaluations and severance relating to restructuring costs.

d.Acadian LLC key employee distributions includes the share of Acadian LLC profits after variable compensation that is attributable to the Acadian LLC key employee equity and profits interests holders, according to their ownership interests.

e.Depreciation and amortization includes U.S. GAAP depreciation and amortization.

f.Other segment items includes segment systems, portfolio administration costs and other general & administrative expenses.

g.Included in unallocated corporate expenses for the three months ended March 31, 2025 and 2024 was compensation and benefits of $2.4 million and $2.5 million, respectively, related to Hold Co which are included in U.S. GAAP net income attributable to controlling interests. Included in unallocated corporate expenses for the three months ended March 31, 2025 and 2024 was general and administrative expenses of $2.1 million and $2.1 million, respectively, related to Hold Co which are included in U.S. GAAP net income attributable to controlling interests.

h.Adjustments and reconciling items includes consolidated Funds revenue, consolidated Fund expense, and restructuring costs.

i.Non-cash Acadian LLC key employee equity revaluations represent changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, which are included within the U.S. GAAP compensation and benefits expense.