Redeemable Noncontrolling Interests and Investment Manager Noncontrolling Interests Liability

6 Months Ended

Jun. 30, 2026

Redeemable Noncontrolling Interests and Investment Manager Noncontrolling Interests Liability

Minority interests held in majority-owned investment management subsidiaries are subject to certain redemption provisions which may consist of holder put and company call rights and/or other conditional and unconditional redemption features. The rights are exercisable at pre-established intervals or upon certain conditions, such as death, disability or retirement and are redeemable at a pre-established fixed redemption price during a discrete period or pre-established multiples of earnings before interest, taxes, depreciation and amortization. These redemption provisions 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.

Redeemable noncontrolling interests

Minority interests held in majority-owned investment management subsidiaries that are subject to conditional or contingent redemption provisions are classified as mezzanine equity within redeemable noncontrolling interests on the Company's Consolidated Balance Sheets and recorded at estimated redemption value, and any changes in the estimated redemption value are recorded on the Condensed Consolidated Statements of Operations within noncontrolling interests.

Redeemable noncontrolling interests for the six months ended June 30, 2026 included the following amounts:


	Redeemable Noncontrolling Interests
(in thousands)	CIP		Investment Managers		Total
Balances at December 31, 2025	$	76,152	$	26,782	$	102,934
Net income (loss) attributable to noncontrolling interests	1,365		504		1,869
Changes in redemption value (1)	—		(4,023)		(4,023)
Total net income (loss) attributable to noncontrolling interests	1,365		(3,519)		(2,154)
Business acquisition	—		104,564		104,564

Net subscriptions (redemptions) and other	464		(487)		(23)

Balances at June 30, 2026	$	77,981	$	127,340	$	205,321

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

Investment Manager Noncontrolling Interest Liability

Minority interests held in a majority-owned investment management subsidiary that are subject to unconditional redemption provisions are considered mandatorily redeemable and classified as a liability. This liability is recorded at the greater of the estimated redemption value or the initial fair value with any changes recorded on the Condensed Consolidated Statements of Operations within other expenses along with any distributions earned and paid. The balance as of June 30, 2026 was $152.5 million primarily attributable to the Keystone acquisition (see Note 4).

Equity awards of majority owned investment management subsidiary

The Company issues equity-based profit-interest awards of a majority owned investment manager to its employees, with 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 pre-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 Condensed Consolidated Statements of Operations. The awards are classified as a liability within investment manager noncontrolling interests liability on the Condensed 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 Condensed Consolidated Statements of Operations.

The liability associated with these awards was $12.2 million and $14.4 million at June 30, 2026 and December 31, 2025, respectively. Compensation expense related to these awards totaled $(1.2) million and $(0.8) million for the six months ended June 30, 2026 and 2025, respectively.