Redeemable Noncontrolling Interests

12 Months Ended

Dec. 31, 2025

Redeemable noncontrolling interests

Minority interests held in a majority-owned investment management subsidiary are subject to holder put rights and Company call rights at pre-established multiples of earnings before interest, taxes, depreciation and amortization and, as such, are considered redeemable at other than fair value. The rights are exercisable at pre-established intervals 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, in purchasing equity of the investment management subsidiary, has the option to settle in cash or shares of the Company's common stock and is entitled to the cash flow associated with any purchased equity. The minority interests are recorded at estimated redemption value within redeemable noncontrolling interests on the Company's Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Consolidated Statements of Operations within noncontrolling interests.

Redeemable noncontrolling interests for the year ended December 31, 2025 included the following amounts:


	Redeemable Noncontrolling Interests
(in thousands)	CIP		Investment Manager		Total
Balance at December 31, 2024	$	45,667	$	61,615	$	107,282

Net income (loss) attributable to noncontrolling interests	2,588		5,415		8,003
Changes in redemption value (1)	—		(9,400)		(9,400)
Total net income (loss) attributable to noncontrolling interests	2,588		(3,985)		(1,397)
Affiliate equity sales (purchases)	—		(24,889)		(24,889)
Net subscriptions (redemptions) and other	27,897		(5,959)		21,938
Balance at December 31, 2025	$	76,152	$	26,782	$	102,934

(1)Relates to noncontrolling interests redeemable at other than fair value.

Equity awards of majority-owned investment management subsidiary

The Company also issues equity-based profit-interest awards of the investment manager to certain of its employees,

with certain awards having up to a three-year vesting period when issued. These profit-interest awards are subject to holder put rights and Company call rights at established multiples of earnings before interest, taxes, depreciation and amortization, with certain awards also subject to pre-established thresholds. The awards are accounted for as cash-settled liability awards under ASC 718, with changes in value at each reporting date recognized as compensation expense over the requisite service period, if any, in the Company’s Consolidated Statements of Operations. The awards are classified as a liability within accrued compensation and benefits on the Consolidated Balance Sheets until the awards are settled. Additionally, these awards have a right to participate in distributions of the investment manager which are recorded as employment expense in the Company’s Consolidated Statements of Operations.

Accrued compensation associated with these awards was $14.4 million and $19.4 million at December 31, 2025 and 2024, respectively. Compensation expense related to these awards totaled $(2.8) million and $8.2 million for the years ended December 31, 2025 and 2024, respectively.