Redeemable Noncontrolling Interests

9 Months Ended

Sep. 30, 2018

Redeemable noncontrolling interests include third-party investor equity in consolidated investment products and affiliate minority interests. Third-party investor equity in consolidated investment products are classified as redeemable noncontrolling interests since investors in those products may request withdrawal at any time. Affiliate minority interests are subject to holder put rights and Company call rights at established multiples of earnings before interest, taxes, depreciation and amortization and, as such, are considered redeemable at other than fair value. They are exercisable at pre-established intervals (between 4 and 7 years from their July 2018 issuance or upon certain conditions such as retirement). The put and call rights are not legally detachable or separately exercisable and are deemed to be embedded in the related noncontrolling interests. The Company at its option may purchase affiliate equity in cash or shares of common stock and is entitled to the cash flow associated with any purchased equity. In addition, under certain circumstances the Company may issue or sell affiliate equity interests to its affiliate partners. Affiliate minority interests are recorded on the Company’s condensed consolidated balance sheets in temporary equity at estimated redemption value, and changes in estimated redemption value of these interests are recorded in the Company’s condensed consolidated statements of operations within noncontrolling interests.

Redeemable noncontrolling interests for the nine months ended September 30, 2018 included the following amounts:



($ in thousands)	Consolidated Investment Products			Affiliate Noncontrolling Interests		Total
Value at December 31, 2017	$	4,178		$	—	$	4,178
Business acquisition	—			55,500		55,500
Net income (loss) attributable to noncontrolling interests	(44		)	787		743
Net subscriptions (redemptions) and other	(173		)	—		(173		)
Value at September 30, 2018	$	3,961		$	56,287	$	60,248