AllianzGI Strategic Partnership

3 Months Ended

Mar. 31, 2021

On February 1, 2021, the Company completed the actions necessary to finalize its strategic partnership with Allianz Global Investors ("AllianzGI"), announced in July 2020, pursuant to which the Company became the investment adviser, distributor and/or administrator of certain of AllianzGI's open-end, closed-end and retail separate account assets. Additionally, as part of the strategic partnership, AllianzGI’s Dallas-based Value Equity team joined the Company as a newly established affiliated manager, NFJ Investment Group. Assets acquired in connection with the transaction primarily consisted of definite-lived intangible assets representing open-end, closed-end and retail separate account investment contracts as well as indefinite-lived assets consisting of goodwill related to the NFJ Investment Group. The NFJ Investment Group revenues and operating income was not material to the Company's results of operations for the three months ended March 31, 2021.

Transaction consideration consists of variable cash payments based on a percentage of the investment management fees earned on certain open-end, closed-end and retail separate account assets adopted under the transaction. Payments are to be made annually around the anniversary of the closing date of the transaction over the next seven years. The transaction consideration is being accounted for as contingent consideration with the estimated future payments of $137.7 million as of March 31, 2021 being recorded as a liability on the Company's Condensed Consolidated Balance Sheet. In addition, the Company capitalized $7.7 million of costs associated with certain assets acquired.

The following table summarizes the identified acquired assets:


	February 1, 2021
(in thousands)	Approximate Fair Value		Weighted Average Useful Life
Definite-lived intangible assets:
Open-end and closed-end fund investment contracts	$	101,447	13 years
Retail separate account investment contracts	17,000		6 years
Trade name	1,941		8 years
Total definite-lived intangible assets	$	120,388
Goodwill	25,000
Total assets acquired	$	145,388